Chapter 1 Introduction to tourism marketing Tourism

Chapter 1 Introduction to tourism marketing

Tourism in the experience economy • From service economy to experience economy • Tourism experience – core value of service delivery in tourism • Tourism system: demand, travel, destination, marketing • Destination mix: FAITH

Concepts related to customer experience • • Customer expectation Customer perception Customer satisfaction Customer value

The evolution of marketing concepts • • Production orientation Sales orientation Marketing orientation Personal marketing orientation

Production orientation • Dominated business operation approaches until mid 1950 s • Concerned with product supply issues • Supply shortage comparing to mass demand • Common belief: supply creates its own demand

Sales orientation • Mid 1950 s to early 1970 s • More business efforts on sales promotion strategies and advertisements • Still lack of attention to customers’ needs

Marketing orientation • Starting from early 1970 s • Competitive business environment • Unprecedented attention to consumer needs and wants • Customer centred and marketdriven business practices

Personal marketing orientation • Propelled by technology • Tailor marketing programs to the individual • Mass customisation • Customer relationship management (CRM) • Database marketing

What is marketing? • Definitions of marketing • Marketing mix

Definitions of marketing (1) • Philip Kotler (2003): a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others

Definitions of marketing (2) • American Marketing Association (AMA) (1995): the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals.

Definitions of marketing (3) • AMA (2004): an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing mix • Four Ps: Product, price, place, and promotion • Four Cs: customer solution, customer cost, convenience, and communication • Seven Ps: Product, price, place, promotion, people, process, and physical evidence

Characteristics of tourism services • Characteristics of services • Special features of travel and tourism

Characteristics of services • • Intangibility Inseparability Variability Perishability

Special features of travel and tourism • • Seasonality Unclear ownership Interdependence Sensitivity to crises Fixed capacity Shorter exposure to services More emotional buying appeals

Special features of travel and tourism • Greater emphasis on stature and imagery • More variety and types of distribution channels • Easier copying of services • Difficulty of differentiating tourism, travel and hospitality services

The importance of tourism marketing • World economic development • Consumer movement patterns • Limited destination information before trip • Multiple service segments in tourism • Marketing – everybody’s responsibility

Destination marketing organisations • National tourism organisations (NTOs)/ national tourism administrations NTAs) • International tourism organisations • Inter- and intra-organisational collaboration

NTOs/NTAs • Responsible for many aspects of a nation’s tourism development • Destination marketing as a major or sole function • Branch offices in major source markets

International tourism organisations • World Tourism Organisation (UNWTO) • World Travel and Tourism Council (WTTC) • Pacific Asia Travel Association (PATA)

Inter- and intra-organisational collaboration • International marketing collaboration: E. g. , UNWTO Silk Road Project • Inter-organisational collaborations within a destination • Departmental collaboration and cooperation within a tourism company

Summary • Nature of tourism in the experience economy • Customer experience related concepts • Evolution of marketing concepts • Definitions of marketing • Characteristics of tourism services • Importance of tourism marketing • Destination marketing organisations