Transcript Document

Welcome to Unit 2
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MARKETING
Review of unit reading material from textbook:
Travel Career Development 8th ed.
Authors: Gagnon,P. & Houser, S.
How do you define marketing?
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Marketing:
The process of planning and executing the
conception, pricing, promotion and
distribution if ideas, goods, and services
to create exchanges that satisfy the
individual and organizational goals.
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When looking at marketing you must look at
the marketing mix.
What specific points must
we look at for this
*marketing mix* ?
The marketing mix comprises the 4 P’s of marketing:
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Product
Place
Price
Promotion
(Gagnon and Houser, 2005, p. 235)
Resources
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Companies need to know their customer’s wants, needs,
and demands and work on ways to satisfy these.
Gathering of information is done
through market research .
The 4 C’s
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Marketing experts look at the 4 C’s basically
from the customer’s point of view.
Product
Place
Customer value or solution
Convenience
Promotion
Communication
Price
Cost to the customer
(Gagnon and Houser, 2005, p. 235)
Types of Research
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Primary data: research that is direct from the
customer.
Questionnaires
Surveys
Personal interviews
Personal one-on-one
correspondence
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Primary research can be a traveler filling
out a comment card or a preference
card to determine how the customer
enjoyed the product; whether it be a
trip, hotel room, excursion, or meal.
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Secondary Research: *Reliable* sources or
publications from other’s previous work.
Reference books
Published survey analysis
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When you look up information in a
reference book or on the Internet,
that is known as a secondary
source.
It is another’s data used to document
your findings.
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Market research can tell us a great deal about
our type of customers or our
market segment.
Market segments
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Demographic
Psychographic
Geographic
Usage
Price
(Gagnon and Houser, 2005, p. 233)
Demographic
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Age
Race
Gender
Culture
Income
Educational level
(Gagnon and Houser, 2005, p. 233)
Psychographic
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Beliefs (religious)
Interests (art, history)
Activities (surfing, gambling)
Attitudes (protests, memorials)
(Gagnon and Houser, 2005, p. 233)
Geographic
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Cities
States
Countries
Neighborhoods
Including language, climate, and lifestyles.
(Gagnon and Houser, 2005, p. 233)
Usage
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Similar to psychographic
Business
Personal leisure
Professional meetings
Visiting friends or relative.
(Gagnon and Houser, 2005, p. 233)
Price
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What is the customer willing to pay?
Top of the line or budget?
(Gagnon and Houser, 2005, p. 233)
Laws
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How can research of laws affect
marketing a product?
Laws vary from state to state
and country to country
Example:
Gambling is
legal in some
states or cities
but not all.
Politics
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Political unrest and wars certainly can curb
travel or business within a country.
Economics
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People travel or spend money when they have
discretionary income.
A country’s monetary worth can influence
where a person might travel.
Technology
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Technology has opened new doors for
advertising, communicating,
and means of transportation
resulting in new ways and
opportunities to travel.
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Data collected on customers or prospective
customers can be used to promote service to a
selected target market.
CRM
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CRM or Customer Relationship Marketing
is a specific venue collecting data on it’s
customers so that they can provide the best
service for the customers return.
Ritz Carlton collects data on a
customer’s preferences so
that when that customer is in
another one of their hotels
that customer will get exactly
what they want.
It is in the database!
(Gagnon and Houser, 2005, p. 234)
Let’s take a look at the
4P’s of marketing
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 Product
 Promotion
 Place
 Price
Product
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Goods, service, or idea that is marketed to fill
customer needs and wants.
Air travel
Destinations
Hotels
Amusements
Restaurants
Meeting and
events
Levels of service and
price range varies.
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Now that we have a product, we have to
find of way of getting this product
information to the consumer.
Promotion
Promotion
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 Personal Selling
 Sales Promotion
 Public Relations/Sponsorship
 Direct Mail
 Trade Fairs/Exhibitions
 Advertising
(Gagnon and Houser, 2005, p. 239-245)
Personal Selling
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Salespeople who sell face to face to an individual.
Each of us can also do personal
selling as we represent our place
of business and talk about the
company.
Manning a booth and talking
to visitors at a show or expo
is also personal selling.
Sales Promotion
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Buy One Get One Free
Coupons
Money-off promotions
Competitions
Free accessories
Introductory offers
What other ways are sales promotion used in
the travel and hospitality business?
Public Relations
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The PR people are right on
their game to control any
negative publicity or to
promote the company.
Example:
What can happen when there is a hotel
fire or an airplane crash? How about an
outbreak of food poisoning?
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Also sponsoring or hosting
events is a part of public relations…
it is establishing recognition
and respect with the
public or community.
Direct Mail
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Direct mail is often used to target consumers from a
database.
Flyers
Brochures
Newsletters
Questionnaires
Trade Fairs and Exhibitions
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Purpose is to increase awareness and to
encourage trial.
State tourism
departments will
often set up at a
trade show to
promote their
state.
Advertising
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Advertising is a 'paid for' communication
Newspapers (local, national, free, trade)
Magazines and journals
Television (local, national)
Cinema
Outdoor advertising (such as posters, bus
sides)
Yellow pages
How Effective is Advertising?
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Newspapers get thrown way or used for
bird cages so are most often used for short
term ads.
TV is very expensive and radio can be as well
depending on the time advertised. Drive
time (going and coming from work) is the
most expensive because there are more
listeners.
Internet
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The Internet can offer a great amount of
information to the customer but it has to be
current and monitored and updated regularly.
It has to look good
and be easily
navigated.
Links to other sources is
also a feature that the
hospitality industry and
other industries use.
Which is best?
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Effective promotion of a business uses
multiple media for advertising, as well as
other forms of promotion.
(Gagnon and Houser, 2005, p.244)
Place
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The mechanism through which goods and/or
services are moved through a channel or
distributed.
How will the customer hear
about the product or
service?
A travel agency
Directly from the
specific company,
(hotel, airline, cruise
line)
Dual distribution:
Using several ways
Internet
Price
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There are several levels of price
for this industry.
What is the customer
willing to spend?
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Travel agencies are differentiating
themselves from competitors and using
pricing strategies to so that the price and
service meets the needs of the customer or
target market.
Next week
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Making a Sale
References
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Gagnon, P. & Houser, S. (2005) Travel career
development (8th ed.). Canada: The Travel Institute