Transcript Tourism Marketing

Tourism Marketing
Fall 2016
Bertan Kaynatma
Core Concept of Marketing
Process by which companies create value for
customers and society, resulting in strong
customer relationships that capture value from
customers in return
Understand
Needs, Wants
& Demands
Exchanges &
Relationships
Develop
Marketing
Offerings
Create Value
& Satisfaction
Reap benefits
from Markets
Agenda
Macroenvironment
Microenvironment
Microenvironment
Management
Orientations
Factors close to
the company
that affect its
ability to serve
its customers,
the company
itself, marketing
channel firms,
customer
markets, and a
broad range of
publics
Microenvironment
Company
Marketers must work closely with top management and
other departments
E.g.: finance dept finds the money to conduct a
marketing plan
E.g.: accounting measures how effective marketing
dept is, and whether it is achieving it’s goals
Marketing decisions made within strategy set by top
management
Courtyard Marriott
Microenvironment
Existing Competition
Part of micro and macroenvirnonment
Must adapt to customers, as well as competition
Goal is to create strategic advantage and
superior positioning relative to others
Strategy is not “one size fits all”
Text eg. Small company vs large company
Microenvironment
Competition
Share of
Market
Share of
Heart
Share of
Mind
Microenvironment
Competition
Share of
Market
Competitor’s share of the target market
Microenvironment
Competition
Most immediate association between
company and industry
% of customers who think of the company
first when asked about the industry
Coffee house or cafe
Candy bar
Beer
Airline
Hotel
Hamburger
Share of
Mind
Microenvironment
Competition
Share of
Heart
The percentage of customers
who named the competitor in
responding to the statement,
“Name the company from
whom you would prefer to buy
the product.”
Competition
4 Levels
Companies that
offer similar
services to the
same customers
at a similar price
Companies that
make the same
product or class of
products
Companies
that supply the
same service
Companies that
compete for the
same consumer
dollars
Microenvironment
Suppliers
The firms and individuals that provide the
resources needed by the company to produce
its goods and services
Just…so…many…
Restaurant dangers
Late food deliveries
Cost increases
Microenvironment
Marketing Intermediaries
Help the company promote, sell, and distribute its
goods to the final buyer
Microenvironment
Marketing Intermediaries
The internet effect
Disintermediation
 the elimination of intermediaries
InsertBrandName.com
Price transparency
Microenvironment
Marketing Intermediaries
More of a partnership than ever before
Coke and its marketing assistance
Help me, help you
Carnival
Microenvironment
Marketing Intermediaries
Marketing
Services
Agencies
Intermediaries
 Help formulate and
implement mktg
strategies
Financial
Intermediaries
 Help finance
transactions and
insure the risks
associated with
buying and selling of
goods and services
Microenvironment
Customers
Consumer markets
Business markets
Resellers
Governments
International
Microenvironment
Publics
Financial Publics
Media Publics
Government Publics
Citizen-Action Publics
Local Publics
General Public
Internal Publics
Macroenvironment
Microenvironment
Macro
Environment
Consists of forces
that shape
opportunities
and pose threats
to the company
Management
Orientations
Macroenvironment
Future Competitors
Barriers to Entry and Exit
Restaurants
Hotels
 Bottom line: Unpredictable
 Porter’s 5 Forces
Macroenvironment
Demographics
 Human population defined in terms of size, density,
location, age, gender, race, occupation…and it
can go on and on
Macroenvironment
Demographics
Baby
Boomers
Born
Generation
X
Millenials
1946 – 1964 1965 – 1976 1977 – 2000
Number
78 million
49 million
83 million
Current
Age
50 – 68
38 – 49
14 - 37
Macroenvironment
Demographics
Baby Boomers
•
•
•
•
Most money to spend
Like traveling
frequently,
restaurants
Exotic trips
Do something before
it is too late
Generation X
•
•
•
•
•
•
Environmental concerns
Social issues
Economically cautious
Research for quality and
unique experience
Families
Spend more
Millenials
•
•
•
Most difficult
to reach
Most potential
Saturated with
media
messages
Macroenvironment
Economic
 Factors that affect consumer purchasing power and spending
patterns
Income
 Per Capita Disposable Income
Macroenvironment
Economic
Currency fluctuations
Exchange
rates
http://www.xe.com/currencycharts/?from=TRY&to=EU
R&view=5Y
Macroenvironment
Natural
Trends to be aware of
1. Raw materials shortages-
- Sao Paulo
- https://www.youtube.com/
watch?v=1xpbN-cmet0
- http://edition.cnn.com/vid
eos/world/2015/02/25/wbtsao-paulo-brazil-watershortage.cnn
2. Pollution
Global warming extreme
example
Gunabara Bay, Rio de Janeiro, Brazil
2016 Olympics
Gunabara Bay, Rio de Janeiro, Brazil
2016 Olympics
Macroenvironment
Natural
1. Raw materials shortages
2. Pollution
Global warming extreme example
3. Increased government intervention
Government Intervention in
Environmental issues
Sulfur Emissions
Worldwide allowance: 3.5%
New Regulation: 1.0%
Newest Regulation: 0.1%
Result?
 Costs: low-sulfur fuel adds
70-100%
 $180 million on new
scrubber technology
 42 / 101 ships
 $400 million on 70 / 101
ships
 Change routes of ships
 Eliminate Baltimore and
Norfolk homeports
Jobs
 No ships flagged /
registered in the USA
Macroenvironment
Technological
 Guest experience more efficient
 Self service
 Hospitality operations more efficient
 Data analysis tools
 Theft prevention in hotels
 Marketing reach extended globally
 Videoconferencing
 Smart phones
 Social media
 Internet tracking
Macroenvironment
Political
Laws, government agencies, and pressure groups
that influence and limit the activities of various
organizations and individuals in society
Macroenvironment
Political Trends
More legislation and regulation
Food safety
Permits
Taxes
Employment
Health and safety building codes
Trade practices and competition
Macroenvironment
Goals of Regulation
Protects
companies
from each
other
• Fed Trade Commission
• Prevent unfair practices
• Deceptive pricing /
advertising
• Antitrust and Monopolies
Macroenvironment
Goals of Regulation
Protect
consumers
from
businesses
•Deceptive advertising,
pricing, packaging
•Unsafe products
Macroenvironment
Goals of Regulation
Protect
Society’s
interests
•Pollution, overcrowding,
congestion, littering,
Macroenvironment
Political Trends
Enforcement:
Federal Trade Commission, the Food and Drug
Administration, the Interstate Commerce Commission, the
Federal Communications Commission, the Federal Power
Commission, the Civil Aeronautics Board, the Consumer
Products Safety Commission, the Environmental Protection
Agency, and the Office of Consumer Affairs
These agencies can have a major impact on a company’s
marketing performance
Social responsibility
MADD resulted in bars and restaurants being more
accountable for alcohol abuse
PETA and the treatment of animals
 Industry Support: countries as a brand
Macroenvironment
Cultural
Institutions and other forces that affect society’s
basic values, perceptions, preferences, and
behaviors
Core beliefs
Really can’t be changed
Passed on from parents to children, then reinforced by
school, government, business, etc.
Secondary beliefs
Open to change
Text example: Marriage
Others LGBT, Drinking, Women’s appearance,
Religion
Responding to the Marketing Environment
Option 1
View it as “uncontrollable”
Adapt to market
Don’t try to change anything
Identify the given opportunities and
threats
Responding to the Marketing Environment
Option 2
Environmental management
perspective
Take action to change environment
Lobby
Form trade organizations and cozy up to
lawmakers
Persuasive advertising
Media even
ts
Extra credit homework
1. What environmental trends will affect the success of a
first class hotel chain, such as Hyatt or Sofitel, over the
next 10 years? If you were corporate director of
marketing for this type of hotel, what plans would you
make to deal with these trends?
2. Go to the websites of travel or hospitality companies
and find examples of how they are taking measures to
sustain and improve the natural environment. Which
companies that you examined do you think have the
best programs? Explain your answer.
Sources
 Kotler, Bowen, and Makens. Marketing for Hospitality and Tourism. 6e.
Pearson Higher Education. 2014.
 Datamonitor. Industry Profile – Global Hotels, Resorts, and Cruise Lines.
Datamonitor.com. Mar 2010.
 Marketline. Global Hotels, Resorts, and Cruise Lines. Marketline.com. Nov
2014,
 Hugo, Martin. Carnival to spend 400 million to cut cruise ship pollution. LA
Times. May 22, 2014. Web. Mar 2014. http://www.latimes.com/business/lafi-carnival-400-million-cruise-ship-pollution-20140522-story.html
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