Report on Marketing Strategies and Consumer Behavior in Tourism

This report provides a comprehensive overview of marketing concepts and strategies within the travel and tourism industry, using Thomas Cook as a case study. It delves into core marketing concepts like customer orientation, dual-core marketing, and integrated marketing, emphasizing the importance of understanding customer needs and wants. The report explores the impact of the marketing environment, including micro and macro factors, and analyzes factors affecting consumer motivation and demand. It covers market segmentation principles, strategic marketing planning, and the role of marketing research. Additionally, the report examines consumer behavior models, including economic, learning, sociological, and psychoanalytical models, along with the consumer decision-making process and buyer behavior types. The report concludes with a discussion of the importance of strategic marketing planning and promotional mixes in the tourism sector.

Travel and Tourism
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Core concept of marketing....................................................................................................1
1.2 Impact of marketing environment.........................................................................................2
1.3 Factors which affect motivation and demand of service user...............................................3
1.4 Principle of market segmentation..........................................................................................5
TASK 2............................................................................................................................................6
2.1 Importance of strategic marketing planning.........................................................................6
2.2 Marketing research and information.....................................................................................7
2.3 Influence of marketing on community..................................................................................7
TASK 3............................................................................................................................................8
Covered in PPT...........................................................................................................................8
TASK 4............................................................................................................................................8
4.1 Nature and role of promotional mix......................................................................................8
4.2 Covered in Poster..................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In each and every sector as well as department of entities management is necessary. In
today's world, travel and tourism sector is increasing as it helps in offering more job
opportunities so that they can give proper contribution to economy. Tourism market is distinctive
products and services rather than selling of physical goods (Buhalis and Foerste, 2013). In travel
and tourism sector, there are different organisations which are working in it and they should
understand needs and wants of service users and deliver proper satisfaction to tourists by
delivering qualitative services. The employees of business entity can classify their guests
according to status, lifestyle and so on. Present report is based on Thomas Cook which provide
different offers to their consumers. Employees should create trust among their consumers by
providing holiday packages at a reasonable rates (MARKETING RESOURCES, 2017). From
assignment, reader will get information about concept of marketing in travel and tourism sector.
TASK 1
1.1 Core concept of marketing
The concept of marketing refers to analyse and evaluate the customers needs and wants
and then make decisions to satisfy those needs. They can understand their customers demands
and attract them for travelling. There are three concept of marketing in tourism such as:
 Customer Orientation- This is the oldest concept of marketing. Thomas cook adopt this
concept for the participation of more customers and increase their profit (Buhalis and
Foerste, 2015).
 Dual-core Marketing- The tourism operator focus on dual marketing and identify the
needs and wants of the customers and make them comfortable.
 Integrated Marketing- They should focus on their infrastructure development and
provide best service to their customers.
This is the responsibility of the travel and tourism company is to fulfilled the needs,
wants and demand of the customers in a specified time period (Dey and Sarma, 2010). The
services provided by the Thomas cook tourism company are comfortable accommodation,
reservation, transport facility, dinning facility, restaurants for food and beverages and souvenirs
outlets etc. The tourism industry are attracts their customers by decreasing their price rate related
to their competitors, offer discount and provide best service. Tourism company's target is to fulfil
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the consumers need and helping them to sort out their problems. They also helps customer for
changes in flight or add some other services and facilities and also provides direct customer
booking seat only basis, through their own website (How to become a Tour Operator Manager,
2016). Thomas cook enhance their promotion by giving their magazine in each seat, provide
snacks and drinks, generate tax-duty free products and emporium Boucher's. Thomas cook adopt
and upgrade new technology to make more profit. They can book tickets from online and offline
both modes and provide information of their ticket price, timing, schedule,services and facilities
on the newspaper, templates, magazine and television. Tourism company should offer discounts
on their tickets in the summer vacation.
1.2 Impact of marketing environment
Marketing Environment defines factors that affects a business ability to build and
maintain customers relationships. It include internal and external factors that surrounds the
business environment (Xiang, Magnini and Fesenmaier, 2015). There are two marketing
environment factors such as:
Micro Environment- It refers to that organisation which is controlled by an individual. There
are some factors of micro such as customers, supplier, competitors, public and marketing
intermediaries.
 Customers- Micro environment is based on customer orientation. The main aim of the
marketing plan is to attract more customers towards their product. The firm should fulfil
their needs and wants and provide them excellent customer service.
 Suppliers- The supplier plays an essential role in a firm, they are those who supply the
material and finished products to the businesses to complete the demand of the
customers. They help in success of the business to identify the need of the customers.
 Competitors-The competitors are those who sell same or similar type of products and
services. For example, in the Colour Television Market, Samsung TV faces competition
from other companies like Oneida, Video con and others.
 Public- Public refers to the people in general. The organisation has a duty to satisfy the
people need and wants in satisfied manner (Victor, Middleton and Clarke, 2012).
 Marketing Intermediaries- Intermediaries are the middle person between customers and
company. They are either individual or business houses who promote the company
selling, distribution and promotion.
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Macro Environment- Macro environment are those external factors which are not directly
affect the environment. It includes economic, social, demographical, physical and political.
 Economic environment- It is highly difficult and not easy to comprehend. This
environment are related to inflation, taxes, unemployment and recession.
 Social environment- This environment is related to the people and it includes
demographic area, culture background, ethics, fashion change and social status.
 Demographic environment- This study is related to human population especially
reference to age, education, income size and density. They attracts more customers with
lower their price rate (Dolnicar and et. al., 2012).
 Physical environment- It includes physical factors like soil, climate,water supply, land
and weather. This environment can influence young people mental and emotional health
as well as physical heath.
 Political environment- This environment refers to the state, government and legislation.
Every country have their own rules and regulations which suites the environment of the
company.
1.3 Factors which affect motivation and demand of service user
The consumer market is the market where people allows to purchase products, goods and
services. These products can be used for personal use or share with others. In this market,
consumer purchase only daily use products.
The major motivational and determinant factors are:
 Socio-economic factors- There is an increase in the living standard of people in the
tourism generating countries. By the changing in the demographic structure , there is an
increase in the level of tourists. It increases the awareness among the people about their
culture and landscape.
 Development of transport- The development of new transportation helps to increase in
the volume of tourism industry. The large network of transportation has made most of the
part of world available in short time.
 Development of tourist services- The services like accommodation, food and beverage,
information system etc. plays an important role in tourism sector (Hays, Page and
Buhalis, 2013).
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 Promotion of tourism- The promotion of tourism sector through tv channels,internet,
publication and provide customer service.
Models of Consumer Behaviour which are:
Economic Model- In this model the purchasing power of an consumer are depend on
concept of utility. The consumer have correct knowledge about the utility of each product or
services and they have complete and accurate knowledge about the product.
Learning Model- In this model the behaviour of human is totally based on some core
concepts like stimuli, response and impaction which determine the human needs and wants to
satisfy the behaviour of the consumers.
Sociological Model- In this model , the individual's decision are not only based on utility
factors but they are dependent on social factors like group of society, attitude of individuals and
level of society (Huang and et. al., 2013).
Psychoanalytical Model- According to this model it mainly deals with the analysis of
consumer behaviour and evaluate which type of product consumer like or dislike.
1. Problem Recognition- The first stage of the process is find out the actual need of the
consumer and fulfil its basic requirement. Then analyse the problem and provide solution
in corrective manner.
2. Information Search- The gathering of information through many sources like personal
sources, commercial sources, public sources and experimental sources.
3. Evaluation of Alternatives- In this stage the consumers should analyse all the
information through the search of various alternatives products and services and compare
them according to the need and want.
4. Purchase Decision- In this fourth stage consumer make a decision to purchase the
product through online store or visiting traditional physical stores.
5. Post Purchase Evaluation- In the last of consumer decision process, the consumer
analyse the product and make final decision to purchase the product or not.
There are three types of Buyers Behaviour which includes:
 Complex buying behaviour- The buyer are completely understand about their product
category and make product best among others (Hudson and Thal, 2013).
 Dissonance Reducing Buying Behaviour- The consumer participation is high and
available brands are less. This type of product is sale in short time period.
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 Habitual Buying Behaviour- The consumer involvement is low and available brands are
show more and they purchase only that product which are habitual.
Consumer value refers to the amount of interest in which consumer purchase product and
services. The value of the consumer is high if he/she get more profit and its value is low when
he/she gets less profit. Consumer satisfaction is the match of actual expectation and real
fulfilment of needs and wants of consumers.
1.4 Principle of market segmentation
Market segmentation is the process in which a market are divides into different category
of potential customer into groups or segments .There are some principle of market segmentation.
 Market segmentation- It is the process in which market are subdivided into different
groups of people who have same needs and wants within group and dissimilar need
across the group.
 Market Targeting- It is the market where goodness and badness or soundness or
unsoundness of the target segment market (Hussain, 2012).
 Product Positioning- It is the process where marketer produce product and offer to the
consumer that directly hits their mind and product are different from other competition.
There are some bases of market segmentation which includes:
 Geographic- This is important factor of tourism belongs to different places or location
with different culture and show different traits of behaviour.
 Demographic- The demographic segmentation is done by considering the tourist age,
gender, occupation, income and family members.
 Psycho graphic- In this segmentation the company gather information about tourist
attitude, interest, living standard and overall personality.
Life Cycle Stage:
 Introduction Stage- In this stage a company introduce and launch a new product in the
market which is suitable for market size and fulfil consumer demand.
 Growth Stage- In this stage the product take a high growth in sales and profits and
increase the sale in short time period (Konu, 2010).
 Maturity Stage- In this stage the product maintain the market share they have built up
and make changes in product design and size to attract more consumer.
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 Decline Stage- When the product will start to shrink and demand of the item is less then
it is said declining stage of the product.
Tourist Typology are:
 Explorer- They are habitual to explore new places and destination. They accept every
type of lifestyle and actively involve in each activities.
 Elite tourism- They are adopt every type of location and take pre arranged facilities.
 Unusual tourism- They prefer to to travel in an organised tour and buy only one day
package (Law, Qi and Buhalis, 2010).
TASK 2
2.1 Importance of strategic marketing planning
Key arranging is that procedure which leads in to adjust long haul business goals and
openings. For arranging of summer trip in Morocco and Egypt, supervisor need to dissect Ansoff
Matrix, with the goal that they can establish that whether they need to grow their administrations
or not (Freeman and Selmi, 2010).
Market infiltration – It is a development technique where association is offering existing
item into existing business sector. Their point is to expand piece of the pie to beat their rivals. It
will be conceivable just when, Thomas Cook is pitching more items to show clients or finding
new thoughts, without changing any current items.
Market advancement - In this system, association chose to offer their current item into
new market. In this firm can distinguish and grow new part of market for organization current
merchandise and enterprises. This methodology is considered as more hazardous than some other
technique for going into new market portion division.
Item improvement – In this, association is presenting new item in set up new market. The
endeavours are remaining in existing business sector and expanding scope of items which are
offered to clients. It is conceivable just when, firm is putting resources into R and D of various
item (Li and et. al., 2011).
Broadening – In this, organization goes into new market with offering new item and
administrations. Thomas Cook can obtain or start new business which is not related with their
current items. This considered as most dangerous development system to hold in showcase for a
drawn out stretch of time.
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Thomas Cook need to embrace enhancement and market improvement methodology
since they are giving new administrations in other place. It will be advantageous for them to pull
in new clients. Both technique will help them to increase upper hand and beat their rivals.
2.2 Marketing research and information
Employers and employees of business entity have to do proper marketing research as it is
helpful in attaining targets. When they do appropriate market research then this will helps in
identifying and analysing needs and wants of consumers. Along with this they have to grab
opportunities which are available with them in the competitive market. They have to gain
information and data which will help in betterment of consumers and this boost brand image of
Thomas Cook. Managers of firm have to monitor and evaluate performance so that they can
deliver services according to their needs. It is a consumer centric approach as it will be beneficial
for them so that they can focus on their demands of services which can be fulfilled (Morrison,
2013). It will assist in enhancing in growth opportunities as it can be fulfilled through identifying
opportunities in the competitive market. It will aid Thomas Cook in improving their growth in
competitive market.
It is a duty as well as responsibility of marketing manager so that they can collect related
information so that they can satisfy the needs and wants of consumers. The demand of
consumers should be properly understand by them so that they cannot face any type of problem
in fulfilling them. Along with this appropriate pricing policy should be used by them so that
every person can afford those services and company will generate more and more revenue.
2.3 Influence of marketing on community
There are various factors which having a impact on society. Marketing assist Thomas
Cook in promoting their services which will aid in attracting large number of consumers. They
have to protect rights for consumers which will be adherence of rules as well as regulations of
strict government. They have to make different and appropriate marketing strategies so that they
can offer services for consumers at a lower price.
Industry of travel and tourism should be based on consumer income as it helps in
generating more and more profits. There are some services which are provided by Thomas Cook
should be ethical which will assist in protecting the rights of service users (Park and Oh, 2012).
It is a responsibility and duty of marketing manager so that they can followed all rules and
regulations which are framed by consumers. If there is a change in the government regulations
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and for that they should be updated all time as it assist in retaining them in the competitive
market for a long period of time. This will assist consumers in remaining satisfied from services
as it helps in attaining targets (Thakran and Verma, 2013).
There are so many individuals who are present in the society which having a different
culture, caste, nationality as well as religion. Thomas Cook should consider all these things
which aid in providing different kind of services so that consumers get better experience.
TASK 3
Covered in PPT
TASK 4
4.1 Nature and role of promotional mix
Marketing mix having a different promotional elements in which there are effective tools
and techniques to be included so that they can create or provide awareness associated to products
and services. This will assist in attaining the goals and objectives in a specified time period. If
managers are using this technique then this will aid in attracting large number of consumers from
various places. Other tools and methods which are included in this are advertising, personal
selling, sales promotion as well as direct selling (Buhalis and Foerste, 2013).
 Advertising: By using this technique, employees of Thomas Cook can do promotion of
their goods and services by using newspaper, social as well as online. This includes the
appropriate communication process with the consumers so that targets can be achieved.
 Sales promotion: This method assist in promoting the merchandise which will aid in
getting attention of their consumers. For boosting sales, they have to deliver discount
offers, vouchers as well as gifts to service users.
 Public relation: Managers and employers of Thomas Cook have to maintain public
relation as it assist in maintaining their reputation in front of their competitors. It helps in
collecting information from guests as a feedback so that they can resolve their issues,
queries or any other disputes.
 Direct selling: This technique is also helpful to managers and employees of Thomas
Cook directly to consumers. Along with this they have to promote various discount offers
to service users.
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There are some integrated promotional technique which are important in accomplishing
goals and objectives (Buhalis and Foerste, 2015). It assist in maintaining the relation with their
consumers. Staff members of Thomas Cook have to monitor or evaluate all strategy which are
included or adopted by them so that they can analyse that all the work should be complete in a
proper time or not. Along with this they have to select best channel of promotion which assist in
reducing the cost so that they can generate more and more revenue.
4.2 Covered in Poster
CONCLUSION
After summing up assignment, it has been analysed that marketing on travel and tourism
having a both negative as well as positive impact to Thomas Cook. They have to boost
awareness related to merchandise and services which they are delivering to their guests. Along
with this they have to adopt distinctive tools and techniques which will aid employees and
managers to attract large number of service users. Higher authorities of Thomas Cook is
planning for holiday trip of Morocco and Egypt and for that they have to evaluate needs and
wants of their clients which will help them in satisfying their desires. There are different
promotional techniques which are adopt by higher authorities as it provides awareness related to
services so that targets can be attained by them. This will assist in maintaining or improving their
strong position when they are facing high competition.
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