TOURISM AND HOSPITALITY MARKETING

(MIDTERM) WEEK 7: TOURISM MARKETING TYPES OF COMMUNICATION MODEL

AND COMMUNICATION PROCESS
LINEAR MODEL OF COMMUNICATION
MARKETING
Sender > channel/message > receiver
Is a process that seeks to inform, persuade and
KEY FEATURES
bring consumers into action.
- One way communication
Information and persuasion are mainly achieved
- Used for mass communication
through communication.
- Senders send message and receivers only receive
COMMUNICATION
- No feedback - Concept of noise
is simply the act of transferring information
PROS
from one place, person or group to another.
- Good at audience persuasion and propaganda setting
marketing and communication go hand in hand
- Intentional results
CONS
MARKETING COMMUNICATION
- Communication is not continuous as no concept of
are those techniques that the company or a business
feedback
individual uses to convey promotional messages about
- No way to know if communication was effective
their products and services. Experts of marketing
communication design different types of persuasive
TRANSACTIONAL MODEL OF COMMUNICATION
communication and send it to the target audience.
sender/receiver > channel/message/feedback >
receiver/sender
MARKETING COMMUNICATION TOOLS
KEY FEATURES
- Pamphlets - Press Release
- Used for interpersonal communication
- Brochures - Personal Selling
- Senders and receivers interchange roles
- Emails - Exhibitions
- Simultaneous feedback
- Advertisements - Websites
- Context of environment and noise
- Sales Promotions and Campaign
- Feedback is taken as a new message
PROS
IMPORTANCE OF MARKETING
- Simultaneous and instant feedback
COMMUNICATION
- No discrimination between sender and receiver
Information Credibility
CONS
Persuasion Reinforcement
- Encourages non-verbal communication
- More noise due to communicators talking at the same
MARKETING COMMUNICATION PROCESS
time the other person is.
first two components are ‘sender’ and ‘receiver’. Second
two components are ‘message’ and ‘media.’ The other
INTERACTIONAL MODEL OF COMMUNICATION
features of this model are ‘encoding,’ ‘decoding,’
sender > channel/message > receiver
‘response,’ and ‘feedback.’ And, the last feature is
receiver > channel/message/feedback > sender
‘noise.’ Noise is random and other competing messages
KEY FEATURES
that more often interfere with the communication.
- Used for new communications like internet
This model emphasizes on the major key factors that
- Slower feedbacks in turns
play an important role in effective communication. It is
- Concept of held of experience
imperative to know the market response and your target
- Known as convergence model
audience before you send any message.
- Communication becomes linear if receiver does not
respond
PROS
- Feedback even in mass communication
- New communication channels
CONS
- Feedback can take a very long time
- Sender and receiver might not know who the other
person is
ROLE OF MARKETING COMMUNICATIONS COMMUNICATION PROBLEMS
Customer equity Language Barriers
Brand equity Varied connotation of words, signals and
Provide product information symbols Cultural differences
Lead to purchase Faulty word choices
Voice of the company Mistranslations
WEEK 8: TOURISM AND HOSPITALITY
PRODUCTS
- a group of selected components or elements brought together in a ‘bundle’ to satisfy needs and wants

COMPONENT OF TOURISM PRODUCT PRODUCT LIFE CYCLE

- Attraction - Image
- Accessibility - Price
- Accommodation
TOURISM PRODUCT TYPES
Convenience Tourism Product Shopping
Tourism Product
Unsought Tourism Product Industrial Tourism
Product
Capital Item
PRODUCT LEVEL

TO PREVENT DECLINE
Market Modification Product
Modification Marketing Mix Modification

PRODUCT DEVELOPMENT
Product development should be an ongoing process to
ensure profitability and sustain interest on the product
line.
NEW PRODUCT DEVELOPMENT PROCESS

CREATION OF TOURISM PRODUCT

STEPS IN TOURISM PRODUCT DEVELOPMENT

Research the Market
Match the Product with Market
Assess the Destination
Understand the Stakeholder Role
Product Building
Marketing and Promotion
Providing Human and Technical Resource
WEEK 9: PRICE REVENUE MANAGEMENT
Is the amount of money charged for a good or It is concerned with optimizing financial results
service. The only Marketing mix element that produces and is especially popular in industries like hospitality,
revenue Changing too much chases away potential which must contend with high fixed costs and a
customers, charging too little cuts revenue. perishable inventory. For example, hotels have a certain
number of rooms and fixed costs which must be met,
FACTORS TO CONSIDER WHEN SETTING regardless of how many rooms are sold. In such
PRICE industries, revenue management is employed in an effort
to predict demand and optimize inventory and price
availability. When utilized correctly, this will ultimately
result in higher revenue.

It is a systematic approach to matching demand

for services with an appropriate supply in order to
maximize revenues (Shoemaker et al 2007)

MARKET RECOVERY
Price can represent a significant incentive to encourage
visitors to offset their fears and to return.

It can also be done through price changes.

PRICE CHANGES
Initiating price cuts
Initiating price increases
Buyer reactions to price changes
Competitor reactions to price changes
GENERAL PRICING APPROACH
Responding to price changes
Cost-based Pricing
Break-even Analysis and Target Profit Pricing
WEEK 10: TOURISM PROMOTION
Buyer-based Pricing (Value-based)
Competition-based Pricing
PROMOTION
Has been defined as the coordination of all seller-
PRICING STRATEGIES
initiated efforts to set up channels of information and
New Product Pricing Strategies
persuasion to sell goods and services or promote an idea
Prestige Pricing
(Belch 2008)
Market-skimming pricing
Marketing-penetration pricing
PROMOTION MIX
Product-bundle Pricing
It is a company’s total marketing communications
program and it consists of a specific blend of:
EXISTING-PRODUCT PRICING STRATEGIES
Advertising
Price-adjustment strategies
Direct Marketing
Volume Discounts
Personal selling
Discounts based on time of purchase
Sales promotion
Discriminatory Pricing
Public relations
Revenue Management
Psychological Pricing
ADVERTISING
Promotional Pricing
OBJECTIVES
Value Pricing
To inform
To persuade
To remind
NATURE Targeting
Reach many buyers Communicating
Repeat message many times Impersonal Selling
Expensive Servicing
Information Gathering
GOALS OF HOSPITALITY Allocating
Tangible the service element so the reader
mentally grasps what is offered SALES PROCESS
Promise a benefit that can be delivered and/or Prospecting and Qualifying prospects
provide solutions to problems Pre-approach
Differentiate the property from that of the Approach
competition Presentation and demonstration
Have positive effects on employees who must Negotiation and Overcoming Objections
execute the promises Closing the sale
Capitalize on word of mouth Follow- up/maintenance

TYPES OF ADVERTISING EXECUTION SALES PROMOTION

Slice of Life OBJECTIVES
Lifestyle Increased short-term sales
Fantasy Help build long term market share
Mood or Image Entice consumers to try a new product
Musical Lure consumers away from competitors
Personality Hold and reward loyal customers
Technical expertise Building stronger customer relations
Scientific evidence Obtaining new accounts
Testimonials evidence
FACTORS TO CONSIDER IN SETTING UP A
DIRECT MARKETING SALES PROMOTIONAL PLAN
NATURE Objectives of the campaign
Nonpublic Type of market to be tapped
Immediate Competition
Customized Cost and effectiveness of each tool
Interactive
NATURE
ADVANTAGES Wide assortment of Tools
Precision targeting Rewards quick response
Personalized messages Efforts short-lived
Privacy
Faster sales TARGET
Variety of packaging options Consumer
Less competition from other media content Trade intermediaries
Immediate results Sales force
Measurability
COMMON SALES PROMOTION TOOLS
PERSONAL SELLING Samples
NATURE Coupons
Personal interaction Packages
Relationship building Premiums
Most expensive promo tools Patronage rewards
Point of purchase
TASK OF A SALESPERSON Contests and games
Prospecting
PUBLIC RELATIONS Defining the target market
NATURE Designing the PR message
Very Believable Implementing the PR plan
Dramatize a company or product Underutilized Evaluating PR results

OBJECTIVE MAJOR TOOLS IN MARKETING PR

Building Product awareness Publications
Creating interest Events
Providing information News
Stimulating demand Speeches
Reinforcing the brand Public service activities
Identity media
MAJOR ACTIVITIES WEEK 11: DISTRIBUTION CHANNELS IN THE
Press Relations TOURISM INDUSTRY
Product Publicity
Corporate Communications DISTRIBUTION CHANNEL
Lobbying A set of independent organizations involved in
Counseling the process of making a product or service available to
the consumer or business user.
CONTRIBUTION OF PR TO MARKETING It moves goods from producers to consumers, it
Assist in the launch of new product overcomes the major time, place and possession gaps
Assist in repositioning a mature product that separate goods and services from those who would
Build up interest in a product category use them.
Influence specific target groups
Defend products that have encountered public TOURISM DISTRIBUTION CHANNEL
problems It is an operating structure, system, or linkage of
various combinations of organizations through which a
PUBLIC RELATIONS PROCESS producer of travel products describes, sells, or confirms
Understand the firm’s mission, culture and target travel arrangements to the buyer.
of communication
Setting up of Objectives
DISTRIBUTION CHANNEL AND ITS
FUNCTIONS
Information
Promotions
Contact
Matching
Negotiation
Physical distribution
Financing
Risk taking

SELECTING CHANNEL MEMBERS Studying economic feasibility

Knowing the needs of your customer Maintaining control
Attracting channel members
FRANCHISING
Is a method of doing business by which a franchisee is Granting the right to engage in offering, selling,
granted the right to engage in offering, selling or or distributing goods or services under a marketing
distributing goods and services under a marketing format format which is designed by the franchisor
which is designed by the franchisor (Kotler 2008)