Marketing in Travel and Tourism Industry: Detailed Report

This report delves into the application of marketing principles within the travel and tourism sector, using Thomas Cook as a case study. It covers key marketing concepts like needs, wants, and demands, and analyzes the impact of the marketing environment, including micro and macro factors. The report explores consumer motivation, market segmentation strategies, and the importance of strategic marketing planning. It also examines the elements of the marketing mix, the role of service sector mix, and the concept of the total tourism product. Furthermore, it provides insights into promotional campaigns and their integrated nature. The report offers a comprehensive overview of marketing practices, consumer behavior, and strategic planning within the travel and tourism industry.

MARKETING IN THE TRAVEL AND
TOURISM INDUSTRY

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
1.1 Concepts of Marketing ....................................................................................................1
1.2 Impact of Marketing Environment...................................................................................3
1.3 Factors affecting consumer motivation and demand........................................................5
1.4 Principles of Market Segmentation .................................................................................6
TASK 2............................................................................................................................................8
2.1 Importance of Strategic Marketing Planning ..................................................................8
2.2 Relevance of Marketing Research and Information.........................................................9
2.3 Influence of marketing on society..................................................................................10
TASK 3..........................................................................................................................................11
3.1 Issues in the element of marketing mix..........................................................................11
3.2 Importance of service sector mix element......................................................................13
3.3 concept of total tourism product.....................................................................................14
TASK 4..........................................................................................................................................15
4.1 Integrated nature and role of promotion mix..................................................................15
4.2 Plan for promotional campaign......................................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Illustration Index
Illustration 1: Concepts of marketing..............................................................................................1
Illustration 2: Micro environment....................................................................................................3
Illustration 3: Macro environmental factor......................................................................................4
Illustration 4 Sales Promotion........................................................................................................17

TASK 1
1.1 Concepts of Marketing
Illustration 1: Concepts of marketing
(Source: Concepts of marketing, 2016)
There are different type of marketing concepts identified which plays very effective role in
terms of setting the direction of marketing personnel towards the specific approach. The
applications of the same with reference to the given case scenario is depicted in below: Needs, wants and demands: These all concepts can be consider as synonym of each other.
Here, the given element of marketing depict about the needs and wants of the customers.
This element state that before carrying out the production of any type of goods and
services, the manager of firm must analyses the needs and demands of its customers. The
given thing will be applied in the particular case scenario (Bradley, 2005). Here, before
making the final plan for the tour package in Morocco and Egypt, the manager of cited
firm must analyse the needs and demands of its respective buyers. For example, some
buyers will state that they would like to do adventure tourism in Morocco and Egypt.
However, some will say that they want to perform religious tour in the countries. Thus,
here on the basis of given opinions only the Thomas Cook must make decision about the
travel destination with respect to the Morocco and Egypt. Products: It is the second element of marketing which gives description about the products
and services which firm will offer to its respective buyers. Here, in the given element the
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manager of Thomas Cook will make the decision regarding the type of services being
offered by it to the respective buyers while organizing tours in Morocco and Egypt. For
example, with respect to the given tour services could be a tour guide, free breakfast,
discount on tickets and chance to get the stay in famous five star hotel which is located in
any of the given destination. Value, satisfaction and quality: The given concept of marketing is used for the purpose to
give immense experience of services to the buyers. Here, the satisfaction of customers will
be enhanced if they firm deliver services more than the expected one (Kim, Lehto and
Morrison, 2007). Thus, in order to raise the satisfaction of Thomas Cook buyers, it is
required by the manager that it must gather the feedback from the customers of other firm
who had performed tour in the given destinations. Thus, through this way only manager
can assess the pros and cons of the respective tour. On the basis of this, Thomas Cook can
plan an effective tour. This will not only enhance the satisfaction of customers, but it will
also make the buyers feel like that they are valued. However, the manager of Thomas Cook
should constantly make efforts in terms of improving the quality of services which is being
delivered by it. Through this also, satisfaction of buyers will be maintained. Exchange, transaction and relationships: Exchange is the activity in which one individual
get something in exchange of doing some work. With respect to given case scenario,
exchange will be in monetary terms. Here, Thomas Cook will get payment from its client
in return of organizing tours for them. However, with an aim to deliver the given services
Thomas Cook will have to form an agreement with all the hotels where its customers will
stay while getting tour in Morocco and Egypt. However, the relationship element of
marketing state that firm must developed an effective relationship with its buyers. This can
be developed by Thomas Cook by delivering the services in a manner which is being
promised by it.
 Markets: In the given element, manager will have to make the decision about the market
where it can present its products and services. Thus, for Thomas Cook market would be all
the buyers who wanted to perform tour in Morocco and Egypt (Pan, MacLaurin and Crotts,
2007)
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1.2 Impact of Marketing Environment
The marketing environment of an organisation is known as the factors and items that
affects the capability to construct and maintain relationship with customers. The marketing
environment for the given company can be affected by micro environment and macro environment
factors (Chaffey, Ellis-Chadwick, Mayer and Johnston, 2009). Presenting here the detailed study
on micro and macro environment factors affecting the travel and tourism business of Thomas cook
and its effect on the current packaged tour to Morocco and Egypt.
 Micro Environment : The micro marketing environment relates to the factors affecting the
marketing within the company. They are suppliers, competitors, customers, public and
intermediaries.
Illustration 2: Micro environment
(Source: Micro environment, 2016) Supplier: They are the individual who fulfils raw material related demand of firm. With
respect to the given holiday supplier of Thomas Cook will be the hotels and tour guide.
These all suppliers can cause significant impact upon the Morocco and Egypt holiday trip.
This is because, the satisfaction of Thomas Cook customers largely depends upon the
services of these individuals only ((Kotler, Bowen and Makens, 2006)). For example, the
supplier of the firm will not provide high quality of services then in the given situation
satisfaction of buyers will be impacted in a negative way. Due to this, brand image of
Thomas Cook will be impacted. Customers:The person who uses the goods and services will be called as buyers. The
decision regarding the type of package which needs to be adopt by the firm largely
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depends upon the buyers only. For example, the buyers who belong to the age group of 16-
25 year will prefer to do the adventurous tours. Likewise, the buyers who are coming with
their family will like to have combination of both adventurous and site scene tours. Thus,
the needs and demands of the different buyers will also lead to cause the necessary impact
upon the holiday trip of Thomas Cook (Thomas Cook, 2015). Competitors: They are the individual who give tough competition to the other person
which produces the similar type of goods and services (Yilmaz and Bititci, 2006). The
Morocco and Egypt holiday plan of Thomas Cook will be impacted through the strategic of
cited firm rivalries. For example, competitors of Thomas Cook has decided to organise the
tours within given countries only in which it is offering different additional services such
as free tour guides and taxi fares etc. The given will lead to impact the holiday plan of
Thomas Cook. This is because, as per its rivalry corporation will have to perform changes
in its own plan also. However, if not done then it became difficult for the enterprise with
regard to attract large number of customers in an effectual manner. Macro Environment : It consists of factors which are external but it causes significant
impact upon the operation of firm.
Illustration 3: Macro environmental factor
(Source: Macro environmental factor, 2016)
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 Demographic forces: It depicts about the elements of population such as age, sex, race and
level of education. The given element will also influence the Thomas Cook holiday trip.
For example customers of age group between 10 to 30 are offered the trips for enjoyment,
business, adventure etc. For age group 30 -60 marketing is based on the nature of people
within this age group. They mostly prefer business trips and family tours. The age group
above 60 mostly prefer pilgrims, so they are offered with the similar packages along with
all the leisures provided to them. The mentioned company has arranged this package tour
to Morocco and Egypt for the different age groups (Kotler, Bowen and Makens, 2006). Economic forces: The economic condition country will also cause significant impact upon
the pricing strategy of Morocco and Egypt holiday trip. For example, the manager of
Thomas Cook has decided to set high prices for the given trip. The given thing will not
being practically implemented by the firm if condition like recession impact the different
nations. Thus, in the given situation firm will have to set low prices for the respective
holiday(Uzama, 2009).
 Political forces: This describes about the political condition of nation. It includes the
factors such as change in rate of interest and tax rate. For example, government where
Thomas Cook is operation has increased the rate of taxes upon holiday services. Thus, with
an aim to cover the given cost, cited firm will have to increase the prices of Morocco and
Egypt holiday trip. If this is not done then in this situation cited firm will incur losses.
1.3 Factors affecting consumer motivation and demand
Four factors assessed which lead to cause impact upon customer motivation and demand. Cultural: It is the set of basic values, behaviour and want which customers learned from
their families. It includes the factors such as buyers social class and religion. The services
which Thomas Cook is giving is largely depends upon the social class of respective buyers.
For example, the firm has planned to take the group of Indian customers in the given
destination. Then in this circumstance, firm will have mould its services as per given
buyers only (Cravens and Piercy, 2008). For instance, it is seen that many of the Indian
customers does not prefer to eat non-vegeterian food. Thus, Thomas Cook has to make
arrangement for the given type of customers. This is because if not made then demand with
respect to the given holiday trip can vary significantly.
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 Social:It state about the society where buyers belong. The demand of the customers with
respect to the given services is influenced through the given factor also. For example, the
formation of Morocco and Egypt holiday trip depends upon different social factors such as
family, individual person and young individuals (Tasci and Gartner, 2007). This lead to
influence the demand of buyers also. For example, people who have huge family will
prefer to perform travel at economic holiday package. In this situation, manager of Thomas
Cook will have to prepare economic holiday package for the respective destination. Personal:It entails about the characteristic which are specific to the persons. For example,
some individuals have very lavishing lifestyle, then their way of selecting the specific
product of firm will depend upon the given factor only. Thus, the behaviour of buyers will
also influence through the lifestyle related factor in an effective way (Doole and Lowe,
2008). Thus, Thomas Cook should consider the given aspect also while designing its
services for respective holiday.
 Psychological: It is the way of thinking of an individual. The demand of buyer is also
affected through the motivation related factor. In this context, it is assessed that if some
buyer have motivation to get trip in Morocco and Egypt, then their demand with respect to
the given type of holiday packages will be increases significantly.
1.4 Principles of Market Segmentation
Market segmentation is the process of dividing whole group of buyers into different sub
segments. Thus, it can be said that it is beneficial for the corporation such as Thomas Cook with
regard to perform the segmentation of its market in an effective manner. It is depicted in below:
 It enables firm with regard to choose its adversing tactics in a strategic way. For instance,
firm has segmented its market on the basis of age group of buyers. Then as per given factor
cited firm can choose its adversing means. For instance, in order to lure young buyers
means such as Facebook and you tube can be used.
 It helps the corporation with regard to perform significant improvement in the sales and
profits by adopting strategic market tactic.
In addition to this, with an aim to form different principles of market segmentation,
manager of Thomas Cook can take help from the MASH criteria. Thus, on the basis of given
criteria only an effective segmentation can be performed by cited firm with regard to the holiday
services being offered by it.
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 Measurable: This criteria depict that the basis of segmentation which is being chosen by
the firm must be measurable. For example, Thomas Cook has selected demographic basis
for its Morocco and Egypt holiday trip. Then, for the firm it is essential that it must gather
the proper information about the given basis. For instance, 50% buyers belongs to 16-20
age category and 12% buyers belongs to 45-50 age group. Accessible:The segmentation which is being selected by Thomas Cook must be accessible. Substantial: Here, in the criteria manager of firm will have to make the decision that the
segmentation criteria which is being selected by it must be important. This is means that
the segmentation criteria which Thomas Cook has selected should help in yielding high
amount of profits and sales.
 Homogeneous: It depicts about the interaction between segmentations.
Marketing planning is the comprehensive blueprint which gives description about the
marketing efforts which is being carried out by the firm during the time. The main purpose of
marketing planning is to set the direction of firm towards the specific direction. SOSTAC is the
marketing planning model which plays very effective role in terms of formaing an effective
marketing plan for the firm in an effectual way. The segmentation are of four types such as
demographic, geographic, behavioural, psycho graphic etc. However, company is using following
methods for the purpose to segment its market with respect holiday trip to Morocco and Egypt
(Ginsber and Bloom, 2004). On the basis of geographical location: The company has planned this holiday for not
only UK public but also for the other nations. The company has made an advertisement
on its website and the complete information about tour has been posted there (Snepenger,
King, Marshall and Uysal, 2006). So the people all over the world can have the chance to
join the trip.
 On the basis of demographic condition: The said company has made the tour plan for the
different category of people. Like people with different age groups, income
differentiation, different life styles are provided with facilities to avail the plans as per
their requirements.
 On the basis of psychology: The mentioned group knows that the people will choose this
trip only when they are satisfied with their needs (Ginsberg and Bloom, 2004). Different
people have their different psychology. Suppose if a buyer needs to have economy class
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seats and the other buyer wants a business class seats, so the company has made a plan
which will satisfy the wants of all the buyers.
TASK 2
2.1 Importance of Strategic Marketing Planning
Marketing planning is the blue print which helps in setting the direction of marketing team
of the firm. In accordance with the given context, the process of strategic marketing planning is
identified which can be used by Thomas Cook with an aim to prepare the tactical plan with regard
to the Morocco and Egypt holiday trip. For the given process SOSTAC MODEL is applied. The
detailed explanation about the same is depicted in below: Situation: It describes about the present situation of Thomas Cook. The company has
appointed marketing manager for planning the trip to Morocco and Egypt. The marketing
planning is important to grab the attention of customers from this holiday plan. Objective: With respect to the given scenario, objective of Thomas Cook manager is to
attract large number of buyers towards the given trip. Strategy: The above mentioned objectives can be accomplished with the help of different
marketing means such as newspapers, television and Facebook etc ((Hawkins and
Mothersbaugh, 2009). Tactic: In this section, firm will have to precise its marketing mean and thus it must select
such marketing means which will help in attracting its target market customers in an
effectual way. For example, Thomas Cook has decided to attract young customer towards
the given trip. Then in the given circumstance firm must use the mean such as social
networking sites as it is mostly being access by young buyers. Action: In this section, action will be taken by the marketing manager of firm as per the
marketing objectives which is being framed by it. For example, in this section firm will
form the marketing team who will do the practical implementation of the framed plan.
 Control: Finally, in the last section marketing manager of Thomas Cook will control the
plan which is being framed by it (Moutinho, 2011). Here, in this section manager will
assess its success. Thus, here it will analyse that whether it has meet its marketing plan or
not.
Besides this, for the firm it is very essential that it must take help from the strategic
marketing planning process. This is because, the given process helps in clarifying the direction of
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firm. In addition to this, with the help of given marketing plan only in-depth understanding
regarding respective target market group of customer can be gained. Besides this, the main
purpose of marketing plan is to set the accountability of employees who are working within firm.
In addition to this, the given plan direct Thomas Cook in the specific direction.
2.2 Relevance of Marketing Research and Information
Marketing research is the set of process which is used to gather the information about the
market where firm will sale its products. For the firm it is very essential that it must perform carry
out the thorough research of the market where it has planned to sale its products and services.
However, with an aim to perform the same tool such as DODCAR model can be used. The
detailed explanation about the same is depicted in below: Definition: The marketing process begin with the definition of opportunities and threats
for the respective country. Here, for the firm it is very necessary that it must gather in-
depth information regarding the given elements. This is because, on the basis of this
information, a specific research objective can be set by the manager of corporation. Objective: In this section, Thomas Cook will define its objective. For example, with
respect to given case scenario, the objective of Thomas Cook would be to gather full-
fledged information about the destinations such as Morocco and Egypt where it is
organising its tour. Design: In this section, decision regarding different research method which will be used by
the manager of cited firm is taken. Thus, here rough plan will be prepared with respect to
the research. Collect: In this step, information regarding different method of collected data will be
taken. In this context, here researcher can collect data with the help of primary and
secondary mean. Here, primary mean include the technique such as questionnaire.
Likewise, secondary means will include the mean such as books, journals and online
article. Analyse: In this part, the researcher will have to analyse the collected data and for this
purpose techniques such as SPSS and thematic analysis will be used.
 Report: Finally, in the last step researcher will found out the final result of its conducted
study and thus, it will work upon it.
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