THM 1006 Paripan Keawnet

The marketing mix and tourist behavior

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 tangible aspects, service element , branding

Price discounting , value for money Place the role of intermediaries, direct sell Promotion 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”

Kotler and Armstrong (2004)

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.

The four stages of the product life-cycle Source : Kotler and Armstrong

(2004)

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 Perceptions of quality and

value for 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

The function of the retail travel agent

Place (or distribution)

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.

The distribution of tourism products is being revolutionized by development of new electronic databases which incorporated telecommunication systems.

Many tourism organization see the development

of global sales and distribution systems as a key strategic objective.

Promotion

Methods of marketing communication

Promotion

Promotion is the way in which the tourism organization communicates in an effective way with its target customers.

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