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Intro to Tourism & Hospitality Chapter 8 Copyright Introduction to Tourism and Hospitality in BC by Morgan Westcott, Editor, (c) Capilano University is used under a CC-BY 4.0 International license. This chapter is by Ray Freeman and Kelley Glazer and is used under a CC-BY 4.0 International license. Learning Outcomes Explain the meaning of services marketing Describe the differences between marketing services and marketing products Describe the characteristics of a marketing orientation and its benefits Define key services marketing terminology (Freeman & Glazer, n.d.) Learning Outcomes Explain the PRICE concept of marketing Provide examples of the 8 Ps of services marketing Gain knowledge of key service marketing issues and trends (Freeman & Glazer, n.d.) Marketing Figure 8.1 A vintage ad marketing the cost-effectiveness of Econo-Travel hotels from the July 1978 National Geographic Marketing Marketing is a continuous, sequential process through which management plans, researches, implements, controls, and evaluates activities designed to satisfy the customers’ needs and wants, and meet the organization’s objectives. (Freeman & Glazer, n.d.) Services Marketing Morrison (2010) indicates, services marketing “is a concept based on a recognition of the uniqueness of all services; it is a branch of marketing that specifically applies to the service industries”(p. 767). Marketing Marketing Tourism and Hospitality We must understand the difference between marketing goods and marketing services (Freeman & Glazer, n.d.) Evolution of Marketing Table 8.1: Evolution of marketing in the 20th century Timeframe Marketing Era 1920-1930 Production orientation 1930-1950 Sales orientation 1950-1960 Marketing department (marketing orientation, internal agency) 1960-1970 Marketing company (marketing orientation, external agency) 1970-Present Societal marketing 1995-Present Online marketing Data source: Morrison, 2010 Services Marketing Four key differences between goods and services. Services are: 1. Intangible 2. Heterogeneous 3. Inseparable (simultaneously produced and consumed) 4. Perishable (Regan; Rathmell; Shostack; Zeithaml et al. in Wolak, Kalafatis, & Harris, 1998) Services Marketing PRICE Concept: P: plan (where are we now?) R: research (where would we like to be?) I: implement (how do we get there?) C: control (how do we make sure we get there?) E: evaluate (how do we know if we got there?) (Morrison, 2010) Services Marketing Figure 8.5 Services marketing triangle (adapted from Morrison, 2010) Services Marketing 8 Ps: 1. Product 2. Place 3. Promotion 4. Pricing (Morrison, 2010) Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria’s harbour, is different from selling a tube of toothpaste. Services Marketing 8 Ps Continued: 5. People 6. Programming 7. Partnership 8. Physical evidence (Morrison, 2010) Figure 8.2 A 1970s Peter Max-designed ad for the American Cancer Society urging people to not smoke IMC Integrated Marketing Communications (IMC): Involves planning and coordinating all of the promotional mix elements (including online and social media) Superior to using each element separately and independently (Eliason, 2014) Consumer Behaviour 1. Personal factors - reflect needs, wants, motivations, previous experience, and a person’s lifestyle 2. Interpersonal factors - culture, social class, family, and opinion leaders Perception is Reality Perceptual Biases Selective Retention Closure (Morrison, 2010) Figure 8.7 All people view things through their own perceptual filters. Consumer Decision Making 5 step pattern for consumer decision making: 1. Need recognition 2. Information search 3. Pre-purchase evaluation 4. Purchase 5. Post-purchase evaluation. (Kollat, D., Blackwell, R., & Engel, J., 1972) Reaching the Consumer Traditional Channels 1. Mass Media 2. Out-of-home (OOH) 3. Print Media 4. Online Channels (Freeman & Glazer, n.d.) Social Media Social Media and Reputation Management 1. Social Media 2. Word of Mouth in the Age of Social Media 3. Advertising and Trust 4. Online Reviews = Business Success Bringing it all together The role of Destination BC Marget Segmentation CTC’s Explorer Quotient BC’s Key Markets 1. Nearby Markets – BC, Alberta and Washington State 2. Priority Markets - Ontario, California, Germany, Japan, United Kingdom, South Korea and Australia 3. Emerging Markets – China, India and Mexico (BC Ministry of Jobs, Tourism and Innovation, 2011) Trends and Issues Demographic shifts (aging population, the rise of millennials), and socioeconomics (cultural changes, economic decline/growth) Political, economic, and geographic changes (emerging or declining economies) Trip purpose (growth of multipurpose trips) Psychographic changes (special interests, healthy lifestyles, sustainability) Behavioural adaptations (free independent travel, decreasing brand loyalty) Product-related trends (emerging niches) Distribution channels (online travel agencies, virtual travel) (Freeman & Glazer, n.d.) References British Columbia Ministry of Jobs, Tourism and Innovation. (2011). Gaining the edge: A five year strategy for tourism in British Columbia. Retrieved from: www.jtst.gov.bc.ca/tourismstrategy/documents/mjti_tourismstrategyreport_fnl.pdf Canadian Tourism Commission. (2008). The explorer quotient: A deeper understanding of the modern traveller. Retrieved from: www.ttracanada.ca/sites/default/files/uploads/ctc._the_explorer_quotient_-_a_deeper_understanding_of_the_m.pdf Eliason, K. (2014, December 23). The importance of integrated marketing communications. Retrieved from www.portent.com/blog/internet-marketing/rainingmarketing-importance-integrated-marketing-communications.htm Freeman & Glazer, (n.d.) Services Marketing. In Westcott, M. Editor, Introduction to Tourism and Hospitality in BC (pp. 124-147). Retrieved from http://opentextbc.ca/introtourism/chapter/chapter-8-service-marketing/ Kollat, D., Blackwell, R., & Engel, J. (1972). The current status of consumer behavior research: Developments during the 1968-1972 period. Proceedings of the Third Annual Conference of the Association for Consumer Research. Chicago, IL : Association for Consumer Research, pp. 576-585. Morrison, A. M. (2010). Hospitality & travel marketing (4th ed., international ed.). Clifton Park, NY: Delmar Cengage Learning. Wolak, R., Kalafatis, S., & Harris, P. (1998). An investigation into four characteristics of services. Journal of Empirical Generalisations in Marketing Science, 3, 22-43. Retrieved from http://members.byronsharp.com/empgens/emp1.pdf Attributions Figure 8.1 Vintage Ad #1,203: This Cheap Hotel Does Not Compute by Jamie is used under a CC BY 2.0 license. Figure 8.2 1970s Advertising – Poster – Peter Max Don’t Smoke Cigarettes (USA) by Daniel Anyes Arroyo is used under a CC BY-NC 2.0 license. Figure 8.3 British Columbia Parliament Christmas Lights by James Wheeler is used under a CC BY-NC-SA 2.0 license. Figure 8.5 Services Marketing Triangle by LinkBC is used under a CC BY-NC-SA 2.0 license. Figure 8.7 Army Photography Contest – 2007 – FMWRC – Arts and Crafts – Eye of the Holder by US Army is used under a CC BY 2.0 license.