Marketing Report: Strategies for Travel and Tourism Sector

This report, prepared as an assignment for an Assistant Marketing Manager role at Thomas Cook, delves into the core marketing concepts within the travel and tourism sector. It examines customer needs, the impact of the marketing environment (micro and macro) on the organization, and factors influencing customer demand and motivation. The report analyzes market segmentation strategies, including geographical, demographic, and behavioral segmentation, and their benefits. It further discusses the importance of strategic marketing planning, market research, and the influence of marketing on society. The analysis covers the elements of the marketing mix (product, price, place, promotion), the significance of service sector mix elements, and the concept of the total tourism product. Finally, it assesses the role of the promotional mix and proposes a promotional campaign for Thomas Cook's summer 2016 holidays, specifically focusing on packages to Morocco and Egypt.

Marketing in travel and
tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Marketing concepts for travel and tourism sector.................................................................1
1.2 Impact of marketing environment on individual within Thomas Cook................................2
1.3 Factors which affects the customer's demand and motivation in travel and tourism............3
1.4 Uses and analysing different principles of market segmentation in marketing planning at
Thomas Cook..............................................................................................................................4
TASK 2............................................................................................................................................6
2.1 Importance for strategic marketing planning for travel and tourism....................................6
2.2 Relevance of market information and market research to managers in travel and tourism. .7
2.3 Influence of marketing on society.........................................................................................7
TASK 3............................................................................................................................................9
3.1 Discussing issues in product, price and place elements........................................................9
3.2 Importance of service sector mix elements.........................................................................10
3.3 Concept of total tourism product.........................................................................................11
TASK 4..........................................................................................................................................12
4.1 Assessing the role of the promotional mix..........................................................................12
4.2 Plan an promotional campaign for Thomas Cook summer 2016 holidays.........................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing in travel and tourism sector can be defined as using different tools with the
help of which various travel and tourism organizations aim for attracting customers. People visit
various places so as to learn and to experience new culture, custom, places, etc. In order to make
their travel easy, travellers contact travel agencies which design various packages that include
famous places which a traveller should visit (Aaker, 2011). These agencies like Thomas Cook
which is one of the famous travel and tourism agencies which adopt various strategies with the
help of which they focus on attracting customers by providing them packages of visiting
different countries. In this regard, company has made a plan to provide holiday package in order
to visit Morocco and Egypt in summer 2016 holidays. Hence, as an Assistant Marketing
Manager of Thomas cook, it is the main need of him to have clear understanding about various
concepts related to travel and tourism sector. Present report covers various concepts and
principles which are included in travel and tourism sector. Further, it helps in understanding the
roles of marketing as well as marketing mix in travel and tourism. Lastly, it also includes the
benefits of adopting promotional mix in travel and tourism sector.
TASK 1
1.1
1. There are many concepts which are helpful in attracting customers in travel and
tourism sector. Following are the core concepts which are used in travel and tourism
sector:Customer’s wants and requirements: In accordance with the case, it is important
for Thomas Cook to understand the needs and wants of customers and accordingly
designing packages which would satisfy them. Survey and research are helpful in
developing packages for various places which would develop curiosity among customers
(Charles, 2007). According to case, managers of Thomas Cook developed a summer
holiday visit of Morocco and Egypt. This type of tour was designed by understanding the
interest of people toward it. When, firm develops packages according to the needs and
requirement of customers, then it will surely increase the growth and revenue of Thomas
Cook.
2. Quality and satisfaction to customers: When, a firm develops any kind of package, it is
important to maintain the quality of services which they provide. Customers prefer to
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trust the organization which delivers all the services with high quality (Doole and Lowe,
2005). In accordance with the case, the tour developed by managers of Thomas Cook
related to Morocco and Egypt should have all the services provided to them in high
quality as it is very essential for satisfying customers and in developing trust.
3. Destinations: It is important for Thomas Cook to conduct a market survey of the
countries in which they plan tours. According to the case, it is essential for Thomas Cook
to conduct market research of Morocco and Egypt wherein they have planned the
summer holiday tour (Craig and Campbell, 2012). They should identify important spots
which would be loved and preferred by the travellers. In both the countries, that is
Morocco and Egypt, important places should be identified and they should be also
focused on the accommodation and food services which would be provided to the
customers.
4. Maintaining relationship: It is important for the firms of travel and tourism to maintain
relationship with customers. In this context, they should regularly provide information to
their customers regarding the changes or new packages which they would have developed
(Ferrell, 2012). According to the given case, Thomas Cook should make use of various
sources with the help of which they would be able to develop curiosity among customers
in order to use the provided package that is summer holiday trip of Morocco and Egypt.
5. Target market: It is very important for the organization to identify their target audience
so that they would be able to focus their designed package effectively. In accordance with
the case Thomas Cook needs to select target audience so that they would be able to
provide their services effectively (Hjort, and et. al. 2013).
6. Marketing strategy: It is very important for the organization to select marketing
strategies with the help of which they could convey information and could increase their
sales (Hollensen, 2015). Pre setting the strategies would help them to know estimate for
which the firm needs to spend on their each services.
7. Supply and demand: Supply are the services which would be included in the tour. It
includes services like food, accommodation, etc. it is the responsibility of Thomas Cook
to select firm which would be effective enough to satisfy their customers (Kayani, 2014).
On the other hand, demand are for the customers are basically the security of life.
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Customers should be ensured that they would not be having any issue in which they have
to risk their life at Morocco and Egypt.
1.2
 In the business environment, marketing can be determined as various factors
which affect firm in developing relationship with customers. In order to understand the
impact, it could be easily done with the help of analysing the micro and macro
environment. Micro environment can be defined as the factors which directly affect the
performance of the organization. Following are the impact of micro environment on
Thomas Cook:Customers: They are the one which help in determining the growth of
organization. In this context, Thomas Cook should understand the needs and wants of
customers and accordingly, they should provide services which would satisfy the needs
of customers (Hawkins and Mothersbaugh, 2009). For the tour of Morocco and Egypt,
they should cover all the important spots which would help to satisfy customers. Supplier: There are many suppliers who come under travel and tourism. It includes
service providers like hospitality, food, travelling, etc (Liano, 2012). Thomas Cook
should select suppliers who would provide quality services to their customers at low
price. This is one of the best ways to reduce the price of package designed.
 Competitors: There are many competitors who design various packages with the help of
which these firms attract customers (Williams, 2012). In this context, managers of
Thomas Cook who designed tour of Morocco and Egypt should make the use of different
promotional tools in such a way that they would be able to compete effectively.
Macro environment can be defined as factors which affects the organization but firm have no
control over it. Firm has to take precautions to reduce these factors. Following are the macro
factors which affect the marketing environment of Thomas Cook:
1. Political factors: In both the countries such as Morocco and Egypt, liberal rules and
regulations are considered by the government that encourage for easy entry in the market
(Pop, Pop, and Dabija, 2013). If, policies followed in these countries would have not
been liberal, then Thomas Cook would have found difficulty in designing tour package
for Morocco and Egypt.
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2. Technological factors: Improvement in technology has helped in connecting with
customers easily (Kayani, 2014). It has helped in providing their customers with all the
required information which would be required in planning tour for the designed package.
1.3
There are many factors which affect customer's demand and motivation in travel and
tourism sector. These types of factors are helpful in increasing the growth and revenue of
organization. Following are the factors which affect customer's motivation and demand in travel
and tourism sector: Improvement in technology: Improvement in technology has helped in developing
knowledge and increasing understanding of customers. There are many tools which are
adopted by travel and tourism firms with the help of which they apply strategies which
are helpful in attracting customers (Omar, Ab Karim and Omar, 2015). Improvement in
technology has helped in understanding the demands of customers and providing them
services which would satisfy and motivate them. In accordance with the case, Thomas
Cook should make the use of the technology with the help of which they would be able to
develop motivation towards the summer tour of Morocco and Egypt. Before designing
the tour package, they can conduct research which would help them to know the
requirements and demand of customers. When, customers are provided with all the
demanded requirements, then they automatically get motivated. Providing options: Thomas Cook should provide them different range of options. They
can provide different range of services with the availability of different days. In this, they
should provide tour of Morocco and Egypt in terms of different days like two days, 5
days or one week (Andermo, 2014). As the number of days increases, then the price
would also increase. With this, Thomas Cook would be able to attract more and more
customers according to their budget. Mostly, individuals demand for developing
packages in which they could visit places within their budget. This would also be helpful
in motivating them.
 Market: All the countries have attractive place. Similarly, in Morocco and Egypt, there
are attractive places which would be helpful in developing curiosity and motivation
among customers.
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1.4
Market segmentation is helpful in dividing market into different groups which help firm
to focus on their targeted customers. Following are the different forms of market segmentation:
1. Geographical segmentation: In this type of segmentation, market is divided on the basis
of cities, states, countries, districts, etc (Maulina and Kusherdyana, 2014). In accordance
with the case, Thomas Cook can develop packages for those countries which would be
the most preferred countries.
2. Demographic segmentation: In this type of segmentation, division is done on the basis of
income, age, profession, gender, education, etc. By segmenting the target market into
different age group, they would be able to develop tour packages accordingly
(Khongtong and et.al., 2015). They can provide different services to age group of 8 to 16.
Special discount offers could be provided. Further, they can also focus on family
packages. In this, they could provide many offers with the help of which they would get
attracted. Another segmentation could be done according to gender like girls could be
provided with special discount offers or additional services.
3. Behavioural segmentation: In this segmentation, division is done on the basis of rate,
status, attitude towards product, occasion, etc. In this context, market research plays an
important role in understanding the preferences of customers and according to the
findings, they should develop packages which would satisfy their customers effectively
(Petroman and et.al., 2012). Mostly people travel to different places only when they get
holidays. In this context, holiday package designed by Thomas Cook of Morocco and
Egypt would be helpful in attracting customers as they organized tour during summer
holidays.
Following are the uses or benefits of different principles of market segmentation: Improvement in product and services: In segmentation, firm would be benefited in
making changes in the services which are provided by travel and tourism sector as they
would get to know the requirement of customers (Szutowski, 2015). In accordance with
the case, Thomas Cook would be able to design packages according to the needs and
wants of target audience.
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 In retention: Segmentation is helpful in understanding the needs and wants of customers.
In this context, firm would be able to solve issues which customers face and through this,
customer retention is possible for company.
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TASK 2
2.1
Strategic marketing is a process with the help of which firm develops plans and
implements them in a strategic manner. There are many tools with the help of which organization
can develop strategic marketing planning. In this context, each of the tools have their own
importance which are as follows: Product life cycle: It is helpful in making changes on the services which they provide.
Changes are done as demand for the services reduces. There are mainly four stages which
are involved in product life cycle. In which, the first stage is introduction stage.
According to this stage, firm adopts various tools with the help of which they could
promote their package designed by the managers of Thomas Cook related to Morocco
and Egypt (Hollensen, 2015). Growth of this package depends upon the strategies they
adopt in promoting services. Growth is the second stage, in this stage customers get to
know about the product. Maturity stage is the stage in which Thomas Cook would get
maximum profit. Mostly firms focus on maintaining this level and in order to do it, they
apply different strategies like discounts, additional services, etc. Last stage is decline, in
this stage firm should start developing new packages which would help in attracting
customers.
 SWOT analysis: With this help of this tools, Thomas Cook would be able to identify the
strengths, weaknesses, opportunities and threats involved in the package that has
designed for Morocco and Egypt (SWOT Analysis Examples for Every Business
Situation, 2013). Threat occurs when firm does not promote their services effectively,
then the package designed would not get benefit to it. With the help of this tool, Thomas
Cook can identify all the given areas so that they can develop strategic marketing
planning accordingly.
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2.2
Market research can be defined as the activity through which information is collected
form customers to know their needs and preferences. Marker research is conducted so as to
preferences of the customers and according to the needs managers could provide them services
and this would be helpful in increasing the growth (Wilson and et.al., 2012). There are mainly
two types of research which are primary research and secondary research.
Primary research: It is a type of research when information are collected for the first times.
Secondary research: In this, information collected form some other person is used for
conducting research.
Market research and information collected from it are important in travel and tourism sector as it
has many benefits. Following are the relevance of market research and information to managers
in travel and tourism sector:
1. Evaluation marketing performance: With the help of marketing research and
information, they get to know the efficiency of performance (Wilson and et.al., 2012).
Summer tour package designed by managers of Thomas Cook for Morocco and Egypt,
managers will easily get to know the performance level and if, its performance is
negative, then they can make changes accordingly so as to improve the performance
level.
2. Analysing data: In order to take effective decisions, it is important to gain information of
the market through conducting market research (De Mooij, 2013). Further, they can also
understand the behaviour of customers towards the summer package. Thomas Cook could
provide services according to the needs and wants of customers and can make
improvement in their services.
3. Helpful in increasing sale: Market research is helpful in providing information with the
help of which marketing campaigns could be designed and customers could be attracted.
Market research is helpful for the organizations in increasing their sale and profit
(Hartley and Claycomb, 2013). It is also helpful in knowing the needs and wants of
customers and providing them services to them accordingly.
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4. Selecting the best strategies: Marker research and information are helpful in different
strategies like promotion, implementation plan, etc (Kotler, 2012). In this context, it is
helpful in selecting the best strategy with the help of which they can easily promote their
summer tour of Morocco and Egypt.
2.3
Marketing can be defined as a tool with the help of which organizations develop
awareness among customers. There are both positive and negative impacts of marketing on
society which are as follows:
 Provide information: It is one of the main impacts of marketing. People or customers are
provided with information. In accordance with the case, with the help of marketing,
Thomas Cook would be able to provide adequate information regarding the summer tour
pack designed for Morocco and Egypt (Lusch and Vargo, 2014). Marketing would cover
all the information regarding tour like the number of days, facilities provided, etc. Developing positive environment: Marketing is done in order to develop awareness
among the people of society. Government bodies display different types of
advertisements which are done to develop awareness among society (Charles, 2007).
These types of advertisements are helpful in reducing threats. NGO's and there are
different government bodies who work for the betterment of society and in developing
awareness.
 Developing living standards: Living standard of society improves when organizations
develop various marketing strategies and with the help of which people get to know about
the services and products provided by the organizations.
There are also negative impact over the society because of marketing, which are as
follows:
 Expectations: When consumers buy products or services for the organization, they
create a mind-set towards the product but when it does not meet their expectation, then it
creates negative image of product or company in the society (Aaker, 2011). It could be in
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both way either company does not meet the expectation of customers or consumers
expected more from product.
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