Marketing Essentials for Travel and Tourism: TUI AG Marketing Analysis

This report provides a comprehensive analysis of marketing essentials, focusing on the application within the travel and tourism industry, specifically using TUI AG as a case study. The report begins with an introduction to marketing, defining its core principles and objectives. It then delves into the key roles and responsibilities of the marketing function, examining concepts such as brand management and market research. The report explores the interrelationships between the marketing department and other organizational units, including sales, human resources, and finance, highlighting how these departments work together to achieve common goals. A significant portion of the report is dedicated to the application of the marketing mix (product, price, place, and promotion) in the marketing planning process, providing a comparative analysis between TUI AG and Booking.com. The report concludes with the development of a basic marketing plan for TUI AG, outlining strategies to achieve business objectives. References are provided at the end.

Marketing Essentials
for
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key roles and responsibilities of marketing function...........................................................1
P2. Discuss how roles and responsibilities of marketing relate to wider organisational context
.....................................................................................................................................................3
TASK 2............................................................................................................................................4
P3. Application of marketing mix to marketing planning process for achieving the business
objectives.....................................................................................................................................4
TASK 3............................................................................................................................................8
P4. Produce a basic marketing plan ...........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is a term that defines the process involving identification, estimation and
satisfaction of requirements of customers for achieving goals and objectives (Gregg, 2015). The
main activity of the marketing department is to make people aware about the products and
services offered by an organisation. In this report, TUI AG has bee selected which an Anglo-
German international company in Travel and Tourism Industry. It has its headquarters in
Hannover, Germany. It holds a leading position in the market of United Kingdom. Furthermore,
this report covers explanation of role and responsibilities, analysis of importance of inter-
relationships between marketing and other functional units, marketing mic together with its
application, differentiation between basic and strategic marketing plan which is then followed by
development of basic marketing plan to fulfil the goals and objectives of chosen entity.
TASK 1
P1. Key roles and responsibilities of marketing function
In the words of Philip Kotler, “marketing is the science and art of exploring, creating and
delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled
needs and desires. It defines, measures and quantifies the size of the identified market and the
profit potential. It pinpoints which segments the company is capable of serving best and its
designs and promotes the appropriate products and services.”
On decoding this definition, it can be said that marketing is all about carrying the
practices and activities for interacting and persuading customers to create awareness about
products and services. It is directly linked with market size that TUI wish to target for its services
in order to attain marketing goals and objectives (Hair Jr, and et. al., 2015).
There are various concepts within the activity of marketing which have been transformed
with the time and addition has been done in this. Hence, some of the development in marketing
concepts have been elaborated below:
Marketing concept- According to this concept, the main focus is determine needs of
target customers with an aim to fulfil them. Many strategies and decisions are made to emphasize
on demands that are there in the market. Furthermore, there are different approaches which are
applied by the company to achieve the goals and objectives.
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Product concept- This concept is mainly associated with the fact that customers look for
the products which are easily available at cheap price. There are certain expectations of buyers
such as quality, features, material etc. which should be there to attract them. Furthermore, those
products or services should be produced which are in high demand.
Production concept- It is related to utilising the costs in an efficient manner by
maximising it production so as to make more sales. There should be proper distribution of
resources in order to provide attractive offers to customers (Kakarot-Handtke, 2015).
Selling concept- This concept emphasizes on using the measures, tactics and strategies t
make people buy the products or services. This is the main activity by which customers are
attracted to the products and service for making sales in order to earn profit. There are many
approaches and strategies which can be adopted by organisations to offer the products to final
consumer.
Societal marketing concept- This concept is based on providing benefits to the society
from the profits earned by the organisations. This can be done in many ways for helping the
people to have better lifestyle and standard of living.
Apart from this, there are different roles and responsibilities related to marketing function
within TUI which have been presented underneath:
Brand management- Brand is the identity of the company which is a valuable asset. The
role and responsibilities of marketing function is to manage brand of enterprise by conducting
competitive analysis. It is useful in assessing the factors and opportunities that can assist the
marketing department to help establishing and maintaining strong brand position (Kakarot-
Handtke, 2015).
Research- It is the most significant roles of marketing function by which vital
information is gathered to make decisions regarding choices, preferences, trends etc. prevailing
in the market. These get changed from time to time therefore, adjustments should be according to
the requirements. This is a continuous activity by which TUI can make right decisions which can
help it attain the objectives.
Product development- This role of marketing function within TUI connected with
creating of deals to be offered by the entity. In simple terms, it is the responsibility for the
production of services for which people are willing to pay and made of highest quality. The
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useful information can be gathered by taking feedbacks from the buyers. This is used for
analysing the current market scenario.
P2. Discuss how roles and responsibilities of marketing relate to wider organisational context
Marketing function is the most significant within an entity which is inter-related with
other units of the entity. This relationship helps in forming a co-ordination between all so that
efficiency can be maintained. The nexus and its working have been shown below:
Marketing and Sales- The prime role of marketing department is to attract customer and
maintain the image so as to retain them for a long time. Also, there is always a motive to
influence new and potential buyers to make purchase from the organisation (Kovačević, 2018).
This is the reason by which companies produce more goods and services in order to achieve their
sales targets. With the increase in customer base, the company is required to make more sales.
The marketing department is required to have information by which it can provide the services as
per the expectations of customers. This can be achieved through detail market research and
analysis in order to perform well among the competitors. This can be understood by an example
wherein it has been analysed that customers are more into customised services. Therefore, TUI
can use this information to make packages according to the requirement of customers in order to
provide higher satisfaction by making enhanced sales.
Marketing and Human resource- HR department in an organisation has the roles and
responsibilities to recruit and select the candidates to meet the requirement and fill the vacant
positions. Human capital is essential for achieving the goals and objectives by using their skills,
capabilities and knowledge for contributing to the success of the company (Misni, Nor and
Ahmad, 2017). For example, there is urgent requirement of some personnels for advertising new
services launched by TUI. Candidates should meet the eligibility criteria and possess all those
skills and qualifications which are required for the job positions. The marketing department will
communicate about the vacant positions to HR unit of TUI in order to appoint the suitable people
for the vacancy. This shows the inter-relationship between these two functional units to form a
co-ordination in order to achieve goals and objectives. Therefore, the requirement of having right
workforce is on HR department who are competent to work according to instructions and
guidelines of the TUI.
Marketing and Finance- Finance department is responsible for the activities related
maintaining financial resources which can be for short as well as long period. There is direct
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nexus between marketing and finance between every organization. The number of activities
undertaken finance department are planning, procurement, utilisation of funds. There is a factor
which is connected with saving of funds and make budget for every activity. The financial
resources are allocated according to the requirement for achieving the targets efficiently. On the
other hand marketing unit is associated with promotion and advertising of products and services
among the customers (Nguyen and Wait, 2015). The marketing function helps in increasing
customer base. An example is presented to understand the inter-relationship, TUI is planning to
use marketing strategies for raising awareness about the new service is the online booking
system. This would require sufficient funds to achieve the set goals and objectives. Hence, the
details about funds and budget would be communicated to financial department for passing the
funds as quickly as possible.
TASK 2
P3. Application of marketing mix to marketing planning process for achieving the business
objectives
Marketing mix is a strategic tool used for analysing the various elements of marketing to
help the organisation in promoting the product or service in the market. This provides guidance
and assist in making strategies for the attainment of goals and objectives. With this, competitive
advantage can be gained which leads to higher profit. Also, it can sustain for a long time by
retaining its position and become a leader in the industry (Routledge.Ramos, 2018).
This can be understood by conducting a comparison between two organisations viz. TUI
and Booking.com which is provided below:
Elements of
Marketing Mix
TUI Booking.com
Product This strategy of TUI is for the
diversification of products. Different
types of services are provided by it to
attract the customers. The second
strategy used by TUI is differentiation
through which it can make the
services look different from its
This enterprise in more directed
towards use of customer-based
service development. This is the
prime strategy adopted by it as
opposed to the strategy used by
TUI. It is not into providing a huge
range of services and the focus is
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competitors. It is useful in gaining
competitive advantage from other
entities operating in the same industry
(Rowley, 2016). Also, the services are
produced in a way which suits the
requirements and expectations of
variety of customers and is according
to the trends currently prevailing in
the market.
always on introducing and giving
services which are in high demand
by the customers. The examples for
the same are accommodation
services such as Hotels, guest
houses, etc.
Price TUI make sure it retain the current
leading position in the market
therefore, it adopt competitive pricing
strategy which helps it grow the
existing as well as potential markets.
Initially, the prices set by it are
usually higher as compared to the
organisations present within the same
industry. The main reason behind this
is the quality and features included in
the services offered by TUI.
Booking.com has been using
differentiated pricing strategy for
fixing the prices of the services
being sold by it. There are many
deals offered by Booking.com to
its customers. The price is
determined and fixed on the basis
of actual perceived value of the
services. This has proved to be a
successful strategy which created
positive results for the company
(Spiteri, Olstad and Woods, 2018).
Place It needs huge investment which
should be done with detail
investigation. The business is
conducted through physical outlets as
well as online (Uchino, 2018). In the
former, customers can visit the outlets
for available tour packages, booking
hotels, airlines, etc. and latter can be
used for gaining information about
Booking.com is a company which
has undergone digital
transformation. Since, majority of
the population use internet service,
which has pushed selling of
services online. It emphasizes on
providing the services through a
mobile application which is
designed exclusively for the
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the services offered by it. There is an
official website which can be
accessed anywhere and anytime.
company. It is used for
communicating and interacting
with existing as well as potential
customers. One can avail the
services with this app. But, it also
has physical stores where people
can get the basic services related to
travel and tourism.
Promotion When it comes to promoting the
goods, TUI uses traditional media
approaches such as radio, television,
newspaper advertising etc. This is the
best way to make people aware about
services offered by TUI. However, it
has analysed the importance using
social media and other similar
platforms for promoting the offers
and services made by it.
The company takes the helps of
social media to promote its
packages and services which are
offered by it. Most of the people
are active on platforms like
Facebook, Instagram etc. which are
widely used (Uhl and Gollenia,
2016). This is the most common
mode of advertising the services
and new deals to the final
customers. In addition to this, it
also uses radio and television for
promoting the services so as to
make large number of people
aware about the services.
People It is the target people to whom goods
or service are sold in order to earn
profit. Furthermore, employees
working in an entity are also covered
in this element. There is diverse
workforce working in the company in
different fields such as sales,
There are appraisal programmes,
training sessions, development
programmes etc. are used in within
the company for helping the
employee develop their skills and
capabilities. This is the way
through which people can be
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customer relationship management,
etc. TUI make sure it has good quality
candidates for performing their jobs
(Werner and Tang, 2017). In order to
provide them necessary knowledge
and add skills, it follows on the job
training method to train them for their
individual growth in the respective
fields. Apart from this, the target
customers are the millennials and
business persons who are willing to
spend and avail the services.
engaged and participated in the
organizational activities. The
company focus on developing a
connection with its employees
which is beyond the professional
boundaries. In this, it can retain the
staff for a long time. Furthermore,
it conducts research for collecting
data regarding the choices and
preferences of customers. This
helps its categorising the people
into different categories in order to
persuade them accordingly.
Process There are more than one processes
which are followed by TUI in order to
manage the services and make them
available for end consumer. These are
implemented to achieve the goals and
objectives of the company. For
instance, it has a separate team and
servers for handling the work carried
online (Williams, 2017). This is to
ensure safety and confidentiality of
the information provided by the
customers.
Booking.com is more into using
simple and easy to use processes so
that customers and employees can
understand and use them
effectively. On coming to the
records, it has provided its services
to a wide range of hotels which
extends to 30million. In order to
make booking of any of the
services, one has to use the sole
platform. It is used for building
channels through which
information can flow,
communication can be done,
activities like bookings etc.
Physical evidence TUI has distinct packaging of its Personalisation is something which
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products within its retail shops.
Moreover, it has incorporated website
which is user friendly and high
quality images and videos are
available for people to develop their
perceptions about the services
provided by the company.
is applied by Booking.com by
which customers can select the
services such as choosing the
accommodation, holiday packages,
etc. This is done as per the needs
and requirements of buyers
availing the services.
TASK 3
P4. Produce a basic marketing plan
Marketing plan is a document that entails strategies which can be used for advertising and
other similar activities to reach the target market (Yan, and et. al., 2019). It is used to
communicate and interact with the customers. Basic marketing plan is used for making the
services popular among the people in the target market. On the other hand, strategic marketing
plan is for achieving the strategic goals and objectives for becoming more competitive in the
marketplace.
With regard to TUI, it has number of services for the final customers in the form of
booking services, tour packages, and many similar services. But, people are well aware with the
TUI airways which has an application known as TUI Fly. In this, customers can make the
bookings in an instant manner without even waiting for a long time. Also, it is useful for fast
check-ins, in flight engagement etc. The marketing plan for TUI has bee provided below:
Strategic objectives: The below-mentioned are the strategic goals which TUI wish to
achieve, the same are as follows:
 TUI is planning to achieve a goal of raising overall profitability by 8% within a time
period of 6 months from the date of implementation of the above-mentioned app.
 The customer base is to be increased by 7% within 4 months from the introduction of this
service.
Offerings: The variety of services will range from tour packages from personalised
services. This can be done through website as well as physical outlets. The main aim of TUI Fly
is to assist customers to book flights promptly. Together with this, self check-ins is also its
another feature.
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Target market: It is useful to identify the target market for selling the services.
Therefore, STP analysis has been conducted which is as follows: segmentation- On the basis of this, the market has been categorised into two parts viz.
Geographical which involves locations and demographical on the basis of age, gender,
income etc. Targeting- TUI is targeting customers earning more than £1200 including people living
in rural as well as urban areas.
 Positioning- It has business presence online as well as physical outlets. This covers
mobile application and social media platforms.
Marketing budget:
PARTICULARS I II III IV V
Start-Up Capital 5400 11000 12450 13030 17140
Investment 4300 7800 5500 4465 8636
TOTAL 9700 18800 17950 17495 25776
MARKETING
OUTLAY
Marketing 6500 7800 6900 12700 13660
Publicity 8800 12100 9900 10500 12200
TOTAL 15300 19900 16800 23200 25860
Monitoring: There are several measures for monitoring the marketing plan. One of the
most effective method is Key Performance Indicators. These are the elements which indicate as
to whether the plan is working according to set standards or not.
CONCLUSION
From the above report, it is concluded from the information above, that marketing is a
very important function within the organisation. Analysis of its concepts, along with its roles and
responsibilities helps in assessing its roles within the organisation as well as within marketing
environment. Moreover, interrelationship of marketing with other functional units helps
organisation in achieving business objectives more effectively. Moreover, it is very important to
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compare use of marketing mix in different organisation, so as to develop tactics which ensure
accomplishment of organisational goals. Lastly, a strategic marketing plan helps in developing a
pathway for marketing and providing new offerings of an organisation within the market.
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