Diploma in Travel & Tourism Economics & Hotel Management University of Colombo Information Technology in Travel & Tourism

DDTEHM 02

Tourism Marketing Introduction

By Buddhika Hewawasam

Tourism
Largest industry in world exceeding

900 million arrivals in 2010 Exceeding the mark of USD 1.5 trillion
Constantly increasing despite of Economic recessions , crises etc. But tourism dynamics changed customers act differently . Experience Sri Lanka as Tourist destination.. what are our issues related to tourism ???

What is Marketing
Isnt it a business function? Isnt it sales? Isnt it promotions and advertising ? How important is it ??? Is it really important for Tourism professionals ??

Understanding Marketing

Meeting customer needs profitably

Function vs. Philosophy Marketing is whole business ! Purpose of business as creating and maintain satisfied , profitable customers Todays profit or customer for ever Customer focus in every aspect marketing mix concept

Completing the definition

Create and maintain satisfied and profitable customers

Complete Definition Social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others Kotler,Bowen & Makens (2008)

Understanding core marketing concepts

Need : State of felt deprivation what you are lack of physical : hunger, warmth, shelter psychological : belongingness, entertainment etc Social and self esteem refer : Maslows hierarchy of needs Want : need shaped by culture and personality how people communicate their needs same need but different wants Needs cant create but wants can .. . Demands : Purchasing power of a want unlimited wants but need to fulfill with limited resources

Understanding core marketing concepts

Product : Anything that can offer to satisfy a need or want can be physical or non Customer value : benefit cost of the product cost can be non monetary or non monetary value adding as a challenge Customer satisfaction: customer expectation product performance expectation created by market info, past experience or opinions . delivering more than the expectation .

Understanding core marketing concepts

Exchange process : obtaining something desired from someone by offering something in return

Transaction : Unit of measurement in exchange process

Market : where transaction take place actual or potential buyers whom transact with sellers

can be physical or non physical

Marketing : satisfying human needs and wants through exchange process Marketing Management Analysis , planning , implementation and control of programs designed to create , build and maintain beneficial exchange with target buyers for the purpose of achieving organizational objectives Kotler et al ,2008.

Development of Marketing philosophy

Production /Manufacturing concept: availability and affordability of product is the most important consideration, no customer focus but higher focus on production process

Product concept: Make the available product excellent. Product focus without customer orientation
Sales concept: Getting every possible sale. Promotions and discount for product etc . Over capacity normally demand for higher sales Short term gain but long term loss Marketing concept: Addressing needs and wants of the customers and served the customers profitability by providing same. Perspective of customer against producer Societal Marketing ; customer + social well being Concept of sustainability : short run fulfillment of customer needs vs. long run social needs

What fits for your organization ???

Marketing vs. Sales

Sales oriented in production and attempt to dump the product by heavy promotion and direct sales. Profit achieve through volume

Market oriented in customer, produce things value to customer, long term customer relationship against short term acquire.

BOGOF campaigns in tourism .

Marketing in Tourism
Tourism = Travel + Hospitality Travel : surface , air , sea Hospitality : accommodation , activities , entertainment ,

Marketing in Nutshell Know your customer : Market research /customer behavior Know what he wants : Segmentation , positioning & targeting Know your solution : Product strategy Know how to price and promote : price and promo strategy Know how to retain customers : Branding & Marketing planning

Review points
Marketing is all about fulfilling needs of your customers profitably Creating value for customer is a holistic process going beyond the marketing department Beyond the product focus is need of the day yet to understood by many hospitality industry partners

Short-term profit orientation has to eliminate for long term sustainability

End of Session One Next Session : Service marketing

Thank You !