Marketing in Travel and Tourism: Core Concepts and Strategies

This report provides a comprehensive analysis of marketing within the travel and tourism sector, with a specific focus on Visit Scotland. It delves into core marketing concepts, examining consumer needs, wants, and values, alongside the impact of the marketing environment, including micro and macro factors. The report explores consumer motivation, demand, and market segmentation principles, assessing the importance of marketing planning and research. It evaluates the influence of marketing on society and dissects the marketing mix elements, including product, price, place, and the service sector mix, culminating in an application of the total tourism product concept. Furthermore, the report identifies the role of the promotional mix and culminates in the planning and justification of an integrated advertising campaign for Visit Scotland. This assignment, contributed by a student, showcases practical application of marketing theories to a real-world case study within the travel and tourism industry.

MARKETING IN TRAVEL
AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Discuss core concepts of marketing in travel and tourism industry.................................3
1.2 Identify the impact of marketing environment on Visit Scotland and tourist destinations4
1.3 Explain the factors affecting consumer motivation and demand.....................................5
1.4 Analyse principles of market segmentation ....................................................................5
TASK 2 ...........................................................................................................................................6
2.1 Assess the importance of marketing planning in Visit Scotland......................................6
2.2 Discuss relevance of marketing research........................................................................6
2.3 Evaluate the influence of marketing on society...............................................................7
TASK 3............................................................................................................................................8
3.1 Discuss issues in product, price, place elements of marketing mix.................................8
3.2 Assess the significance of service sector mix on Visit Scotland......................................9
3.3 Apply concept of total tourism product ...........................................................................9
TASK 4..........................................................................................................................................10
4.1 Identify role of promotional mix....................................................................................10
4.2 Plan and justify integrated advertising campaign for Visit Scotland.............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is an process of analysing demands of target audience and develop
promotional strategies to ensure product awareness. This is very important in every type of
business organisation (Huang, Y.C. And et.al., 2013). It is an essential tool for promoting
products and services in market place in order to attract potential buyers. This is very helpful in
increasing sales and financial gains of company. It consists numerous activities to identify
demands, needs and wants of customers so that strategies for promotion could be made in
effective manner. This report is about Visit Scotland (visitscotland.com) which is an travel and
tourism company in UK. It is focussed towards promoting Scotland as an tourist destination.
Core concepts of marketing will be discussed in this study. It is required to understand the role of
marketing management. Application of marketing mix and promotional mix on travel and
tourism industry will be important part of this research.
TASK 1
1.1 Discuss core concepts of marketing in travel and tourism industry
Marketing is an important concept of designing various activities related with sales in
effective manner. It consists advertising, promotions, delivery of goods and services in order to
attain higher level of consumer satisfaction. There are several concepts in this scenario that are
important for travel and tourism industry. Visit Scotland can implement these principles to take
decisions regarding marketing of their products and services. These core concepts are as follows-
Needs and wants of consumers- This concept includes desires of consumers that are
different for various buyers. It is very important to identify and understand tastes and preferences
of customers in order to design products and services in effective manner (Hudson and Thal,
2013). This assists in achieving competitive advantages in market place. Needs are related with
factors like safety, social, esteem, physiological and self actualization. Safety includes job and
health security and physiological needs consists food, shelter and clothing. Social desires are
sense of belongingness, friendship whereas esteem is focussed towards achievement and
recognition. Self actualization needs are related with own growth. Therefore, Visit Scotland can
can design its tourism services in such way that could meet desires of consumers. They have to
introduce attractive travel packages to grab more attention of buyers.

Consumer value- Another important aspect of marketing is deriving consumer value and
satisfaction by delivering products and services. This could be done by providing high quality
products and services to them.
Markets- It is the place where company will be delivering its services (Kayar and Kozak,
2011). This company need to identify its potential market in order to analyse specific needs of
different segments. It is very essential for providing valuable services and expanding business
globally by evaluating opportunities and threats.
1.2 Identify the impact of marketing environment on Visit Scotland and tourist destinations
Marketing environment consists various factors that could influence functioning of an
organisation. The marketing structure in Scotland is very different from many other countries
(Molina, Gómez and Martín-Consuegra, 2011). It includes micro and macro surrounding which
has certain impact on process of marketing.
Micro environment- These are the internal factors that presents within the company.
Such elements in Visit Scotland are as follows-
Consumers- They are critical part for growth of an organisation by generating more
revenues from people coming Scotland for visiting as tourist. Travellers always seeks for those
places where they can be satisfied with tourist destination and reasonable prices (Molina, Gómez
and Martín-Consuegra, 2011). This company should focus on the desires of travellers for
Scotland in order to enhance level of satisfaction.
Competitors- These are rival companies who are operating in same business activities
due to which they affects functioning of this firm. It is required to identify marketing strategies
and policies of competitors so that action plan of this organisation could be made more effective
the visit Scotland has many other rivalries in tourist companies.
Macro environment- These are outside components of marketing environment that
affects operations of this organisation. Such factors are as follows-
Political and legal- It is related with legal framework, rules and regulations made by
government of UK. Marketing policies of visit Scotland company should be formed as per these
legalities so as to maintain healthy and ethical business practices (Morgan, M. and Ranchhod, A.,
2011).
Technology- It is most important aspect in marketing of travel and tourism industry.
Technological advancements are taking place on continuous basis so, it is necessary for Visit

Scotland to adopt new and advanced technologies to attract more people. Examples of such
elements are introducing mobile application for the purpose of booking and designing attractive
website.
1.3 Explain the factors affecting consumer motivation and demand
Consumer behaviour plays an crucial role in their demands and buying decisions. It is
required to understand them to offer them products and services that could satisfy their desires
(Morgan and Ranchhod, 2011). There are several factors that affects motivation of consumers
and demand for product and services. These are as follows-
Group actions- This includes different groups such as family, friends, society etc. which
influences buying behaviour of consumers. These factors affect motivation and demand decision
of different individuals and groups regarding packages of tours and bookings.
Purchasing power of buyers- It is related with ability of consumers to spend money on
services. Buyers seeks for offers that are suitable as per their purchasing power. Therefore
tourism does get affected by rationale nature of consumers. Company should understand this
capacity in order to enhance sales. There should be travelling packages according to different
capabilities of buyers to gain effective outcomes.
Personal preferences- These are related with personal likes, dislikes, taste, values and
preferences that are important to be determined to design marketing policies which could attract
them more and the personal preference has many variations according to time and Visit Scotland
has to make policies according to their tastes.
Economic conditions- Such factors also affects motivation of consumers to travel as
these elements has direct impact on purchasing power. If disposable income will be higher then,
buyers can spend more money on travelling.
1.4 Analyse principles of market segmentation
Segmentation is the activity of dividing entire market into various sub sections according
to interests and needs of consumers. It helps the organisation in making effective planning for
marketing and achieve targets effectively. This is also useful in identifying target customers and
forming strategies which will help in attracting these buyers. Types of market segmentation are
as follows-
Geographic segmentation- This division includes dividing the market as per
geographical areas such as rural and urban in order to target customers. It is most common

segmentation used in travel and tourism sector. As this has to be undertaken by the Visit
Scotland travel and tourism company.
Behavioural segmentation- In this, market is to be divide according to behaviour
attitudes, knowledge and loyalty level of buyers. This aspect is helpful for this company in
targetting loyal customers by offering various services to loyal customers and they always
choose those tourism companies which provide them the satisfaction through services.
Psycho graphic segmentation- It includes dividing the market on the basis of
psychological factors such as, style, interest, etc. of consumers which influences their buying
decisions (Morrison, 2013). This is very helpful in identifying the consumers who are able to
spend on luxury services and this may result into useful thing for visit Scotland as living of
standard has improved with time.
Demographic segmentation- This division is related with demographic factors such as
age, gender, caste, income, education etc. It is very helpful in dealing effectively with consumers
of different age groups, income status and educational backgrounds. Visit Scotland can offer
different services of travelling to youths and old age people by keeping their demands in mind.
TASK 2
2.1 Assess the importance of marketing planning in Visit Scotland
Marketing planning is an process of forecasting various activities and designing effective
framework of marketing strategies. Important part of this activity is to improve sales
performance and expansion of business in international market. It is very beneficial in attracting
potential buyers to buy tour packages of this organisation. This assists in identifying capabilities
of business organisation in order to know the strengths and overcome weaknesses (Moutinho,
2011). Some of the important role are as follows-
Provides directions- Marketing planning includes setting goals and objectives that are to
be achieved in future. It serves as directions which is to be followed while promotional activities.
This helps in providing clear guidelines for marketing strategies and useful at every level.
Integrates operations- It helps in integrating all factors of marketing that is essential to
attain objectives in effective manner. These aspects includes designing of services, pricing,
budgeting etc. If all these components will be cooperative with each other than consumers could
be attracted in proper way.

Forecasting- Marketing planning plays important role in forecasting sales results that is
to be achieved from efforts of marketing. Finance division uses such forecasts in preparing
budgets and sales department uses it in setting targets.
2.2 Discuss relevance of marketing research
Marketing research is the process of conducting market survey in order to make
marketing strategies more effective. Visit Scotland can understand the needs and demands of
buyers and whether they are satisfied with existing services or not. It assists marketing manager
in meeting customer's requirements effectively. This helps in surviving in tough competition and
achieving competitive advantages. Several benefits of marketing research are as follows-
 It emphasises on meeting unsatisfied demands and preferences of buyers in order to
enhance consumer loyalty. This is important to build strong and healthy relations with
potential audience.
 It is very helpful in identifying weaknesses of company which assists manager in
focussing on areas where improvement is required.
 This provides clear directions to manager by identifying growth and development
opportunities. It facilitates in generating more profits for company (Park and Oh, 2012).
 Marketing research is future oriented so it is useful in understanding future needs and
wants of consumers which assists this company in meeting changing requirements of
buyers. It make buyers loyal and stable for long time.
 Competition is biggest threat for every organisation. Visit Scotland can get benefit of
determining level of competition through marketing research. It helps in knowing what
strategies are adopted by rival firms. This assists in making strong marketing campaign to
lead in travel and tourism market.
2.3 Evaluate the influence of marketing on society
Society is most important part in marketing process. It is essential to focus on them while
formulating strategies and policies. Marketing manager of Visit Scotland should include every
aspect of society in order to target them in effective manner. They should have travelling offers
beginning from low costs till luxurious services. There is need for dynamic tour packages that
could be used to satisfy different segments of consumers. It benefits society by providing

information to consumers about the products and services they are seeking for. This identifies
demands and tries to meet it in appropriate manner.
Along with that, it also helps in managing expectations of society. Through marketing,
organisation spread awareness about major changes like introducing new product line, improving
quality of services etc. It helps in promoting goods and services which results in higher sales.
Due to which business expands and there is increased job creation and tax revenues to
government. The relationship between customers and travel organisations is main factor that
influences them to choose particular firm. It is essential to offer good quality services with
reasonable and fair rates to ensure safeguard the interest of society. It is also necessary for Visit
Scotland to involve Corporate social responsibilities in marketing strategies. These are related
with social welfare in which business firms spends some part of their profits in education,
healthcare, environment prevention. This will help in influencing consumers in positive manner
and there will be good brand image of company in society. Few of the elements is as follows:
TASK 3
3.1 Discuss issues in product, price, place elements of marketing mix
Marketing mix refers to combination of various elements of business such as product,
price, place and promotion (Hays, Page and Buhalis, 2013). These factors influences strategies
of marketing in order to target customers in effective manner. It helps company in using limited
resources in activities of promotions. There are several issues in these components which might
be faced by marketing manager. These are as follows-
Product- It includes the services that are offered by Visit Scotland in order to meet
demands of buyers. Since, services are tangible in nature so marketing for this should be very
strong. It could be done by offering tours and travelling offers at reasonable rates to attract more
potential consumers (Elements of marketing mix. 2014). Offering new packages will help
marketing manager in becoming more feasible to determining life cycle. Company can earn more
revenues in beginning but if competitors are offering same services at low cost then it could
create problem.
Price-It is the amount that is payable of consumers in return of services offered by this
organisation. Company can fluctuate price during life cycle of services (Hall, Timothy and
Duval, 2012). They can adopt skimming pricing policy in order to earn more profits at initial

stage after introducing a offer. Major issue in this scenario is that, travel and tourism company
cannot charge high prices for very long time because consumers always seeks for those service
providers who are offering travel packages at low prices. This could affect profitability of this
enterprise.
Place- It refers to the place where services will be offered by this firm. Problems related
with this element are that tourists are very cautious about their security and it affects their
demands regarding travel packages.
3.2 Assess the significance of service sector mix on Visit Scotland
Service sector mix are factors related with various components of service marketing. It
helps the company in delivering effective services (Hahm and Wang, 2011). This ensures
successful campaign of marketing and enhancing sales volume of business. Additional elements
of service marketing are as follows-
People- It consists people associated with marketing. This company can conduct proper
training and development programs to make employees able to deliver best services to
consumers. It is helpful in improving quality of services.
Packaging- It refers to presentation manner of services. There is need for having various
additional facilities in order to make services more attractive. Along with core services there
should be some additional facilities that will grab attention of service users.
Programming- It is concerned with duration of activities of marketing. Manager should
arrange all actions and plans of promotion in such a way that overlapping and wasteful activities
could be avoided.
3.3 Apply concept of total tourism product
Total tourism product is an concept related with combination of different services
provided by Visit Scotland to give best experience to potential users. It helps this company in
delivering complete tour experience from starting of journey to end in effective manner. It
includes additional services like flight tickets, accommodations, resorts, spa, theme park medical
care etc. if company provides all these services in effective way then it could lead to higher level
of consumer satisfaction (Goeldner and Ritchie, 2012). Total tourism product helps this
company in delivering quality services at reasonable prices that are as per consumer's comfort. It
consists everything that are associated with complete tour. Tourism product is group of services

together in a bundle to satisfy multiple needs of consumers. Therefore, it is an object that is very
useful for Visit Scotland in attracting large number of tourists. It is required to deal with good
suppliers of different services in order to ensure efficiency and quality to generate higher degree
of customer satisfaction.
TASK 4
4.1 Identify role of promotional mix
Promotion mix is an blend of various methods of promotional methods that is used by
organisations to create , enhance and maintain demands of products and services. This is one of
the four p's of marketing mix and it emphasises towards creating awareness amongst consumers
to influence them to purchase (Godall and Ashworth, 2013). Visit Scotland can use different
types of promotional methods in order to increase its sale of travel and tourism services.
Advertising- It is done through giving ads in newspaper, magazines, TV, radio etc. This
is an effective tool of promotion as it helps in developing brand recognition and attracting more
target consumers.
Personal selling- It is an type of promotion service providers communicates personally
with customers in order to build strong relationship with them. Company recruits sales
executives for this purpose who provides information about new services and offers to potential
buyers.
Sales promotion- It includes various tools of promotion such as discounts, rebates,
contests, gifts, vouchers etc. These are offered to consumers in order to increase sales.
Companies are also using mobile applications to inform buyers about new offers so that they can
avail its benefits.
4.2 Plan and justify integrated advertising campaign for Visit Scotland
Marketing campaign is very important for conducting promotional activities in effective
way. Integrated advertising campaign for this firm could be in following manner-
 Visit Scotland can initiate new marketing campaign that will focus towards generating
more awareness about products and services by adopting highly advanced techniques.
 They can make campaign more consumer focussed by making advertising plans as per
tastes and preferences of customers (Garín-Muñoz and Pérez-Amaral, 2011).

 Direct marketing will be an good option as it includes personal interaction between
consumers and sales executives appointed by company. In this method , sales personnels
can immediately solve doubts and confusions of buyers.
 More innovative techniques could be used by this company to design effective
advertisement for TV and newspapers.
 Sales promotional methods like discounts, gifts, contests etc. could be adopted by this
firm. This will attract consumers more to take tour packages from this company.
 Digital marketing is another important tool that is very useful in making advertising
campaign more effective (Buhalis and Foerste, 2015). Company can make attractive
website to provide its services online. They can post every information about new offers
on their site. This will help in wide assess of their promotions.
 Launching mobile applications will be another important part of marketing plan. It will
help in keep consumers updated about each and every information of services of Visit
Scotland. From this service users will get offers on their phones through email and text
messages.
Therefore, these are few techniques that could be used by this organisation in order to increase
its brand awareness and building consumer loyalty and stability.
CONCLUSION
From the above report it can be concluded that, marketing plays as an backbone for
success and growth of company. Visit Scotland can take several advantages by implementing
process of marketing in effective manner. Macro and micro components of marketing
environment should be analysed to ensure smooth running of marketing activities. There is need
for identifying and understanding needs and preferences of target consumers so that product and
services could be designed as per that. It helps in boosting up the sales of this organisation by
using proper promotional tool for creating awareness about services offered by this company.
There is need for designing attractive and strong advertisement in order to grab more attention
from consumers. Innovative and creative strategies of marketing could help in enhancing
number of clients. It is required to understand concept of total tourism product in order to expand
business and ensure future growth of firm.

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>.