MARKETING THE INDUSTRY

SEGMENTS

Explain the use of the marketing

mix and promotional mix in the

travel, tourism, and recreation

industry.

Marketing: The process of planning

and executing the conception,

pricing, promotion, and distribution

of ideas, goods, and services to

create exchanges that satisfy

individual and organizational

objectives

Marketing mix: The combination

of the four basic marketing

strategies; also known as the 4 P’s

of marketing

•Product

•Place

•Price

•Promotion

Packaging: Combining related and

complementary services into a single-price

offering

*As one of the product

considerations,

packaging serves an

important role in every

area of the hospitality and

tourism industry.

Package Considerations

•Include a core attraction or “demand

generator”

•Provide value to the customer

•Provide consistent quality among all the

elements

•Plan well

•Cover all the details

•Make a profit

Benefits of packages for the customer

•“User friendly”

Meet specific customer needs

Create benefits that might be unavailable or

overlooked when making individual arrangements

•Greater convenience

•Affordability

•Ability to budget for trip

•Consistent quality of services free from surprises

•Satisfaction for those seeking special interest

excursions

Travel Packages

•Fly-drive

•Family vacation

•Fly-rail

•Lodging and meal

•Entertainment packages

Corporate Participants in the Packaging

Process

•Lodging providers

•Restaurants

•Car rental agencies

•Travel agents

•Airlines

•Buses

•Attractions

Benefits of Packaging to Businesses

•Increased customer volumes, thus more prosperity

•Increased business during off-peak periods

•Improved focus on meeting the needs of specific target

markets

•Attraction of new target markets

•More accurate forecasting

•Improved efficiency

•Complementary services

•Repeat customers

•Increased length of stay and capital spent

•Increased customer satisfaction

Promotional mix: The combination of

advertising, sales promotion, personal

selling, merchandising, public

relations, and publicity used by

hospitality and travel businesses for a

particular time period

•Inform

•Persuade

•Remind

Advertising: Any PAID form of

NONPERSONAL communication through

different media by an identified sponsor

•Newspapers

•Magazines

•Radio

•Television

•Outdoor advertising

•Direct mail

•Interactive media

Factors to consider when choosing the

appropriate advertising media

•Target market

•Costs

•Reach

•Frequency

•Waste

•Lead time

•Clutter

•Total advertising

budget

Factors to consider when choosing the

appropriate advertising media

•Reach: The number of potential customers

exposed to an advertisement at least once

•Frequency: The number of times potential

customers are exposed to a given advertisement

•Waste: The number of customers exposed to an

advertisement who are not part of the company’s

target market

•Lead time: The period of time between the design

of an advertisement and its actual appearance in the

selected medium

Advantages of Advertising

•Low cost per contact

•Reaches customers

where salespeople

cannot go

•Allows for creative

production

•The message may be

repeated several

times

Disadvantages of Advertising

•Cannot close a sale

•Messages can be ignored

•High waste factor

•Does not provide quick

feedback

Cooperative advertising: A partnership

between two or more companies to share

the cost of an an advertisement

•Allows businesses to share the cost of

an advertisement

•Reduces control over the message

•Increases lead-time for planning the ad

Personal selling: Promotion that involves

direct contact between a salesperson and a

customer

•Outside the place of business

(field calls/outside sales)

•On the phone

•Inside the place of business

Advantages of Personal Selling

•Ability to close sales

•Capability of holding customer’s

attention

•Allows two-way communication

•Provides direct feedback

•Focuses on individual needs

•Develops relationships

•Makes immediate action

possible

Disadvantages of Personal Selling

•High cost per

contact

•Customer

defensiveness or

resistance

Sales promotion: Approaches other than

advertising, personal selling, public

relations, and publicity that provide

customers with a short-term inducement to

make an immediate purchase

•Coupons

•Samples

•Games

Advantages of Sales Promotion

•Ability to generate

immediate sales

•Can be circulated to a

large group of people

•Provides quick feedback

because of the time limit

associated with the

incentive

•Flexible timing

Disadvantages of Sales Promotion

•Benefits limited by

the constraints of the

time frame

•Does not build long-

term loyalty for the

company

Recognition programs: A sales promotion

technique that rewards customers as an

incentive or inducement intended to ensure

their loyalty and to generate repeat

business

•Frequent-flyer programs

•Frequent-guest programs

Merchandising: Point-of-purchase

advertising that includes all of the materials

used in the business to encourage sales

•Posters

•Tent cards

•Displays

•Demonstrations

•Menus

Advantages and Disadvantages of

Merchandising

•Advantages and disadvantages

similar to sales promotion

•Promotes impulse purchases

•Supports advertising campaigns

Public relations: All of the activities that an

organization uses to develop or sustain

positive relationships with individuals or

other companies

•Company newsletters

•Press releases

•Media kits

•Feature stories

•Ceremonies

Publicity: A specific kind of public

relations that involves communicating

positive and newsworthy information

about a business through the media at no

cost to the business

Advantages of Publicity

•No cost

•Considered reliable by customers

since the company does not pay for

or control the message

•Implied approval and support

•Respected and seen as having

stature coming from national

television and other media sources

•Helps maintain a public presence

Disadvantages of Publicity

•Difficult to generate with any

regularity

•Lacks company control over

the message

•May also include negative

influences