The marketing mix and tourist behavior THM 1006 Paripan Keawnet
This Chapter we explore the ways in which tourist
behavior influences the four Ps (4 P’s) The marketing mix is the set of variables which the organization can alter in the short term and the long term in order to satisfy their customer requirements. Product tangible aspects, service element , branding Price discounting , value for money Place the role of intermediaries , direct sell Promotion advertising , brochures , sales promotions
Product
Price Place Promotion
tangible aspects, service element , branding discounting , value for money the role of intermediaries, direct sell advertising , brochures , sales promotions
“ The way in which the product is defined by
customers on important attributes – the place the product occupies in the consumers minds”
“ One of the key objectives for any tourism
organization is Product Positioning”
(2004)
Kotler and Armstrong
ď‚— Positioning map of the UK hospitality industry
prior to the development of the budget market
The correct positioning of a product will mean that the
customer can recognize it as being distinct from competitors’ product. Organization often use positioning maps to help them spot an opportunity in a particular marketplace. Consumer wanted better value-for-money product . The hospitality organizations developed their ranges of budget hotels under various brand names to reflect this demand. The correct positioning of product to reflect consumer behavior is therefore vital for the organization.
ď‚— The four stages of the product life-cycle
(2004)
Source : Kotler and Armstrong
The position of the product in the product life-
cycle will also men that particular type of consumer will be attracted the product
The marketing programe will have to reflect the
consumers’ needs and wants.
The product life-cycle model has been criticized
as a forecasting model.
Appropriate messages
Strong and appropriate status
in relation to customer service
messages
Safety and reliability value for
Perceptions of quality and money
Strong brand identity Consumer
“Branding as : a name , term symbol or design or
combination of them, intended to identify good or service of one seller or group of seller and to differentiate them for those of their competitors” Kotler and Armstrong(2004)
The benefits that a strong brand name brings to
an organization which is marketing a fully inclusive tour (FIT) product
ď‚— The function of the retail travel agent
Place (or distribution) ď‚— The distribution channels for airline seats
A distribution channel (or place)
“ The set of firms and individuals that take title or assist in transferring title to the particular good or service as it moves from the producer to the final consumer” Kolter and Armstrong Consumer are affected by the intermediaries in the distribution chain. Computerized reservation systems have allowed service organization such as airlines and hotel to communicate directly with the customer and cut out the intermediaries.
ď‚— The distribution of tourism products is being
revolutionized by development of new electronic databases which incorporated telecommunication systems.
ď‚— Many tourism organization see the development
of global sales and distribution systems as a key strategic objective.
Promotion ď‚— Methods of marketing communication
Promotion ď‚— Promotion is the way in which the tourism
organization communicates in an effective way with its target customers.
ď‚— The methods of marketing communication that a
tourist organization uses depend on the type product, the aims of the campaign and the market characteristics.
The price decision of organization will be affected by
a number of factors including the price objectives, legal and regulatory issues, the competition and costs.
The consumer must see a link between the price
charged and product quality.
The price of each product in the airline industry links
to the perceptions of the market segment and is reflected in the levels of service and product offerings.
Price Product
Customer
Customer expectations
First class Highest price
High socioeconomic group Customers with high status
• High level of personal service • Rapid check in •Large amount of space on board
Business class Medium price
Business traveller Medium/high socioeconomic class
•Some personal service • Reliable and quick check in • Good space allocation on board • Business services on board
Economy class Lower price
Families Low/medium socioeconomic class Students/Single people
• Little personal service • Limited menus • Little space on board • Service for children
Technique
Example
Effects on consumer behavior
Low introductory pricing
FIT – Tour Operator
Lures consumer in the new market
Low prices across the board
Economy –air travel
Encourages consumer who is interested primarily in economy
Last –minute discounting Middle – range hotel
Encourages consumer to impulse purchase at last minute
Discounting to particular market segments
Museums
Encourages underprivileged Groups to visit
Premium pricing
Luxury Hotels
Encourage consumer who id looking for status value and exclusivity