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  1. 1. TOURISM MARKETING Illona Sola Gracia NIM 00000006713 Sanly NIM 00000006682 Stephanie Anatasya NIM 00000006256 Trie Tamara Natasia NIM 00000006841
  2. 2. DEFINITION OF MARKETING • Marketing is popularly perceived as involving little more than the promotional advertisements are displayed through television and other media • Marketing implicates everyone in the tourism and hospitality sector • Marketing involves the interaction and interrelationship among consumers and producers of goods and services, through which ideas, products, services and values are created and exchanged for the mutual benefit of both groups.
  3. 3. SERVICES MARKETING • Services marketing applies to service sector activities such as tourism. • Characteristics of services marketing : 1. Intangibility 2. Inseperability 3. Variability 4. perishability
  4. 4. INTANGIBILITY • Contrast with physical products, they can be experiences in only a very limited way prior to their purchase and consumption. • The product itself cannot be returned once it has been consumed. • Word of mouth is especially important as a source of product information. • To reduce the risk, service providers offers tangible clues as to what the customer can expect from the product.
  5. 5. INSEPARABILITY • The production and consumption occur simultaneously in the same place. • Because the consumers and producers of the product in frequent contact, these interactions has a major impact on customer satisfaction level. • Thus, emotional labour attributes such as empathy, assurance, responsiveness are very important. • Tourists also need to respect the regulations since their misbehavior can negatively affect the product.
  6. 6. VARIABILITY • Each producer-consumer interaction is a unique experience that influenced by large number of often unpredictable factors. • Often, just one experience can have a disproportionate influence in souring tourist’s impression. • This uncertainly element (variability) combined with the inseperability, makes it extremely difficult to introduce quality control in tourism.
  7. 7. PERISHABILITY • Tourism services cannot be produced and stored today for consumption in the future. • This characteristic also helps to explain why airlines, hotel or other business offer last minute sales that drastically reduced the prices.
  8. 8. MANAGING SUPPLY AND DEMAND Two main cost components that must be taken into account : 1. Fixed costs : costs that the operation has little flexibility to change over the short time. 2. Variable costs : costs that can be adjusted in the short time.
  10. 10. - DAILY VARIATIONS IN DEMAND- THE LEVEL OF DEMAND FOR THE MOST TOURISM SERVICES CHANGES THROUGHOUT THE DAY. • The peak Check Out & Check In time in Hotel. However, Housekeeping Dept. have to prepare the room. • Airport Hotel often faces unpredictable demand • Peak often occurs between midday & late afternoon
  11. 11. - Weekly Variations in Demand- Weekly basis are illustrated in the hotel industry by the distinction between the ‘four-day’ and ‘three-day’ market. The four-day market is a largely business- oriented clientele that concentrates in the Monday to Thursday and downturn on the weekend. The three-day or short holiday markets peaks on the weekend and during national or states holidays. Business Hotel Resort
  12. 12. - SEASONAL VARIATIONS IN DEMAND- Variations can also be identified over the one-year cycle, with a distinction being made between high season, the low season and shoulder periods in many types of destinations and operations. Ice Hotel in Sweden that only open in Winter Ski Hotel
  13. 13. -Long term Variations in Demand- The most difficult patterns to identify are those that occur over a period of several years or even decades.
  14. 14. Supply/demand matching strategies Supply Supply Demand Demand If supply exceeds demand: • Increase demand • Reduce supply • Redestribute supply If demand exceeds supply: • Reduce demand • Increase supply • Redestribute demand
  16. 16. DESTINATION TOURISM ORGANISATION (DTO) Established as govermenr or quasi-gvermental agencies at the national, regional, state or municipal level. This is a role that serves to rainforce the importance of destination gverments within the overall tourism system.
  17. 17. Marketing Functions of Destination Tourism Organisations • Promotion • Research • Direct Support for The Tourism Industry
  18. 18. Strategic Tourism Marketing - Must have vision for the future - An awareness of the strategy that are required to achieve success - Only with long term thinking will minimise negative impacts and attain a sustainable tourism sector
  19. 19. Business Mision SWOT Analysis Long-term Objectives / Marketing Strategies Short-term Objectives / Marketing Tactics Implementation Control / Evaluation
  20. 20. Business Mission The mission statement is usually some very basic directive that influences any further statement of objectives or goals. A business, in contrast, may have a mission of offering the highest quality products within a particular sector
  21. 21. SWOT Analysis o Strengths o Weakness o Opportunities o Threats Internal Environment External Environment
  22. 22. Objectives  Long Term Objectives : 10-15 Years Given the complex and unpredictable nature of the factors that will influence tourism over that timeframe.  Short Term Objectives : 6 Month – 3 Years Should be established that have a horizon 6 months to 3 years depending on feasibility.
  23. 23. Control / Evaluation  The control or evaluation process provides feedback for further SWOT analyses, which reassess the internal and external environmental factors.  This in turn may lead to a reassessment of marketing strategies and tactics.  It is also useful to periodically evaluate the SWOT procedures themselves to ensure that the best methodologies are used to assess the best quality information.
  24. 24. Marketing Mix 8P
  25. 25. Place • Tourists must travel to the destinatiom in order to directly consume the tourist product. • Relative location (potential market & competitor) is a critical element of place , as it coverage (the other places that are identified or not as a target markets for marketing & promotional efforts)
  26. 26. Product • The product component encompasses the range of available goods and services (quality, warranty and aftersales service)
  27. 27. People  Service personnel : highly trained employees and emotional labour at the consumer inteface.  The tourists themselves : inappropriate tourist behaviour can reduce the quality of the product for all participants.  Local residents : tourists may be attracted by the culture and hospitality of the resident population.
  28. 28. Price The Pricing Techniques : 1. Profit oriented = oriented towards profit include typical approaches such as the maximisation of profits and the attainment of satisfactory profits. 2. Sales oriented = maximising the volume of sales, increasing market share through aggressive promotion and reduced prices, maintaining high prices as a signal of outstanding quality
  29. 29. 3. Competition oriented = the reactive approach can involve the matching of a competitor’s prices, depending on the type of market that is being targeted. 4. Cost oriented : cost oriented pricing is to calculate break even point that is combination of price and occupancy where revenues and costs are equal.
  30. 30. PACKAGING packaging refers to deliberate grouping of two or more elements of the tourism experience into a single product. this is the best illustrated in the private sector by the provision of set-price package tours integrate transportation,accommodation,visits to attractions and other complementary tourism components.
  31. 31. PROGRAMMING programming is closely related to packaging in that it involves the addition of special events , activities or programs to a product to make it more diverse and appealing.
  32. 32. PUBLICITY Publicity can occur through press release and is one of the least expensive means of promotion,and one that can be readily used by destination managers. There is a higher risk in such unsolicited media coverage that the publicity,and resulting product image,will be negative.
  33. 33. MERCHANDISING Merchandising can be used very effectively as a promotional tool when it involves the sale of products, at on-site gift shops or online,that are readily associated with a particular company or destination. There are several advantages associated with well-formulated merchandising strategies : -Unlike other forms of promotion, merchandising also generates direct income,and all the more so since logo products often sell at a premium. -Since such products are usually purchased as souvenirs , they tend to be prominently displayed as status symbols back in the origin region,thereby maximising exposure to potential customers. -It is commonly the more frequently worn items of clothing , such as base-ball caps and T-shirts,that are merchandised, and therefore the purchasers of these products are likely to spend more time acting as walking billboards for the company or destination.
  34. 34. ADVERTISING Advertising is the most common form of promotion and constitutes a major topic of investigation and management in its own right. An important distinction in advertising can be made between a ‘ shotgun approach’ and a ‘ rile approach’. In shortgun marketing , an advertisement is placed in a mainstream media source that is accessed by a broad cross-section of the tourist market. Rifle marketing, occurs when the advertisement is directed specifically to the target market.
  35. 35. PARTNERSHIPS Partnerships are especially important for small operations that lack the economies of scale to engage in these efforts efficiently and effectively on their own.