Overview
This lecture introduces the unique characteristics of tourism products, the evolution and management of tourism marketing, core marketing functions, the marketing mix, and the rise of integrated marketing communications (IMC) within the tourism and hospitality industry.
Unique Characteristics of Tourism Products
- Tourism products are intangible, inseparable, variable, perishable, seasonal, and substitutable.
- Intangible: Cannot be sampled or examined before purchase; rely on reviews and company promises.
- Inseparable: The consumer must be present at the place of service (e.g., flights, hotels).
- Variable: The experience differs with time, company, and service provider; standardization is crucial.
- Perishable: Unused services (e.g., hotel rooms, airline seats) cannot be stored or sold later.
- Seasonal: Demand fluctuates with time and consumer behavior; pricing adjusts for seasonality.
- Substitutable: Many alternatives exist, making customer loyalty a challenge in a competitive market.
- Tourism is considered a high involvement product due to high cost, complexity, and infrequency of purchase.
Tourism Marketing Definition and Evolution
- Marketing is broader than just advertising and selling; it includes all employees and focuses on customer satisfaction.
- Philip Kotler defines marketing as a social process for creating and exchanging value.
- Tourism products are "wants" (luxuries) not "needs," making them harder to market during economic downturns.
- Modern marketing emphasizes finding, retaining, and growing profitable customers (customer-centered marketing).
- Building loyalty and strong customer relationships is more cost-effective than continuously acquiring new customers.
Marketing as a Management Process
- Marketing management process includes: Marketing information systems, marketing planning, tactical campaign planning, operations, and monitoring/control.
- Information systems track customer and market data for decision-making.
- Planning involves analyzing the environment and setting objectives.
- Tactical campaigns implement strategy; operations coordinate execution.
- Monitoring includes evaluating results and handling feedback and competition.
Core Marketing Functions and the Marketing Mix
- Functions: Marketing information management, financing, pricing, promotion, product/service management, distribution, and selling.
- The marketing mix (Product, Price, Place, Promotion) involves designing an appealing offer, setting the right price, distributing to the consumer, and creating promotional strategies to build awareness and interest.
Integrated Marketing Communications (IMC) Approach
- IMC utilizes all forms of promotion for maximum consistent communication impact.
- Technology and fragmented media have reduced traditional advertising's effectiveness.
- Companies and advertising agencies now favor incentive-based compensation tied to marketing results.
- Growth of big retailers and database marketing has changed strategies, focusing on direct marketing, loyalty programs, and efficient customer service via updated databases.
Key Terms & Definitions
- Intangible — Product cannot be physically sensed before purchase.
- Inseparable — Service and consumption occur at the same place and time.
- Variable (Heterogeneous) — Experience differs based on context and people involved.
- Perishable — Unsold services cannot be stored for future sale.
- Seasonal — Demand fluctuates due to time or consumer behavior.
- Substitutable — Many alternatives exist in the market.
- High involvement product — Expensive, complex, infrequently purchased, and carefully considered.
- Marketing mix — The combination of product, price, place, and promotion to meet customer needs.
- Integrated Marketing Communications (IMC) — Coordinated use of various promotional tools for a consistent message.
Action Items / Next Steps
- Review examples of unique tourism product characteristics.
- Familiarize with the marketing mix and its application in tourism.
- Read further on integrated marketing communications and recent trends in tourism marketing.