WSTiE. Marketing in Tourism

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1 WSTiE Marketing in Tourism dr Anna Sobczyk-Kolbuch

2 AGENDA 1. Marketing the essence and features. Clasical and modern concepts of marketing 2. Evolution of enterprises` activities on the market the origin of marketing concepts 3. Concepts of marketing mix 4P, 5P, 4C 4. Marketing conditions in different market sectors (industry, consumers, service marketing) green marketing, marketing in tourism as a service concepts

3 5. Functions and rules of marketing in tourism 6. Market segments process of segmentation 7. Marketing research in tourism 8. Product 9. Price 10.Distribution 11.Promotion Discussion case studies questions

4 Exam rules: 1) Case studies 2) Test

5 Main terms connected with marketing

6 Marketing the definition Classical concept: Marketing = the set of activities that deal with the process of selling goods and services, that use specific methods and techniques which influence consumers` (or buyers`) behaviour

7 Marketing the definition Modern concepts: Marketing = the aspiration to make consumers (buyers) the most satisfied because of activities that company presents on the market A satisfied consumer is one of a company`s assets, so knowlegde on his needs, wants and expectations becomes the most important task in modern marketing

8 Classical concept (narrow perspective) Marketing means appropriate planning, coordination and controlling all company`s activities on potential and current markets (target markets)

9 Classical concept aspects of marketing a rule (philosophical aspect) = according to that rule target market (consumers) is the most important assets of a company / a point of departure for marketing strategies/ a regular activity with a set of tools (tool aspect) = marketing mix (4P, 5P) a system of decisions (organisational aspect) = improving the companies ability of successful market activity

10 Modern concept (wide perspective) Marketing is a social and management process, that helps the individuals and groups of interests (consumers, companies) to gain everything what they want and need, because of exchange of goods and services or values

11 Important issues of marketing buyer/consumer satisfaction product (wide perspective) company (wide perspective) = for-profit and non-profit organisations American Marketing Assosiation (AMA definition): Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large (Approved October 2007)

12 Elements of organisations and market (micro and makro environment) versus marketing

13 Fields of marketing in tourism = the knowledge on rules, methods and techniques concerning decision making process and marketing activities between a company (organisation) and its current and potential customers, especially like:

14 consumer behaviour marketing research market segmentation product policy price policy distribution policy promotion policy

15 ORIGIN of marketing Evolution of companies concepts and attitudeds towards target markets Production orientation (manufacturer market) Selling orientation (distribution) Marketing orientation(consumer market) Strategic marketing orientation Partnership marketing orientation Social marketing orientation

16 MARKETING MIX enterpreneur/company point of view 4P (Product, Price, Place, Promotion) 5P (Product, Price, Place, Promotion, People) consumer/household point of view 4C (Consumer, Cost, Convenience, Communication)

17 MARKETING MIX (4P) PRODUCT assortment quality pattern features brand packaging service guarentee PRICE Discount Concession Period of Payment Terms of Credit PLACE Channels Territorial Range Assortment, Comparison Localisation, Transport PROMOTION Sales Promotion Advertisements Public Relations Direct Marketing Personnel

18 Segmentation is the identification of subsets of buyers within a market who share similar needs and demonstrate similar behaviour

19 Segmentation aims to match GROUPS of PURCHASERS with the same set of needs and behaviour = SEGMENT

20 Why Segmentation? - to observe the market (parts of the market are easier to observe) - to adapt strategies to consumer needs and wants - react quickly for environment -..

21 FEATURES of potential segment - viable (to know if profit can be made) - accessible - measurable - homogenic

22 Criteria of segmentation descriptive behavioural - geographic (place of living, country/city) - demographic (age, sex, education) - psychographic (lifestyle, beliefs) - socio-cultural (class)

23 Dividing the first stage of segmentation process is seperation of the market into its segments

24 Targeting the second stage of segmentation process: to select a segment of series of segments and target them (resources and efforts)

25 Massive marketing strategy (homogenic market) Selective marketing strategy niche marketing strategy

26 Six-step question framework for successful positioning: 1. What position do you currently own? 2. What position do you want to own? 3. Who do you have to defeat to own the position you want? 4. Do you have the resources to do it? 5. Can you persist until you get there? 6. Are your tactics supporting the positioning objective you set?

27 Elements of MARKETING MIX PRODUCT = everything that can be purchased on the market, e.g. everything that is wanted/ desired by consumers and at the same time has its price Product consists of four layers: core of product (benefit core), real product, additional product and potential product

28 Elements of MARKETING MIX PRODUCT LIFE CYCLE main stages: introduction of the product to the market growth of the product establishment of the product decline of the product recycle modernise product fashion product seasonal oddity

29 Elements of MARKETING MIX PRICE it is a value of the product in money Price is a very important element of marketing mix, because majority of consumers take the price of the product as one of the most important factor in consumer decision making process during the purchase

30 Elements of MARKETING MIX Companies usually have different price policies due to the product life cycle stage, like: policy of low price policy of high price policy of skimming (high price at introduction) policy of penetrating (low price at introduction)

31 Elements of MARKETING MIX DISTRIBUTION (place) = An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. Distribution channel = Chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user TYPES OF CHANNELS/ DISTRIBUTION: INDIRECT and DIRECT

32 Elements of MARKETING MIX TYPES OF CHANNELS/ DISTRIBUTION: INDIRECT and DIRECT indirect and direct wide and narrow long and short

33 Elements of MARKETING MIX PROMOTION = it is a communication between a company and a consumer (market communication), in other words it is transmitting information about products (companies offer) to potential consumers (buyers) and collecting information from current consumers about their opinions, levels of satisfaction of product etc.

34 Elements of MARKETING MIX Communication it is bilateral process (dialogue)

35

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