MARKETING THE INDUSTRY
SEGMENTS
4.01 Explain the use of the
marketing mix and promotional
mix in the travel, tourism, and
recreation industry.
Marketing: The process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives
Marketing mix: The combination of the four basic
marketing strategies; also known as the 4 P’s of
marketing
•Product
•Place
•Price
•Promotion
Packaging: Combining related and complementary services into
a single-price offering
*As one of the product
considerations, packaging serves an
important role in every area of the
hospitality and tourism industry.
Package Considerations
•Include a core attraction or “demand generator”
•Provide value to the customer
•Provide consistent quality among all the elements
•Plan well
•Cover all the details
•Make a profit
Benefits of packages for the customer
•“User friendly”
Meet specific customer needs
Create benefits that might be unavailable or
making individual arrangements
•Greater convenience
•Affordability
•Ability to budget for trip
•Consistent quality of services free from surprises
•Satisfaction for those seeking special interest excursions
overlooked when
Travel Packages
•Fly-drive
•Family vacation
•Fly-rail
•Lodging and meal
•Entertainment packages
Corporate Participants in the Packaging Process
•Lodging providers
•Restaurants
•Car rental agencies
•Travel agents
•Airlines
•Buses
•Attractions
Benefits of Packaging to Businesses
•Increased customer volumes, thus more prosperity
•Increased business during off-peak periods
•Improved focus on meeting the needs of specific target markets
•Attraction of new target markets
•More accurate forecasting
•Improved efficiency
•Complementary services
•Repeat customers
•Increased length of stay and capital spent
•Increased customer satisfaction
Promotional mix: The combination of advertising, sales
promotion, personal selling, merchandising, public
relations, and publicity used by hospitality and travel
businesses for a particular time period
•Inform
•Persuade
•Remind
Advertising: Any PAID form of NONPERSONAL
communication through different media by an identified
sponsor
•Newspapers
•Magazines
•Radio
•Television
•Outdoor advertising
•Direct mail
•Interactive media
Factors to consider when choosing the appropriate advertising
media
•Target market
•Waste
•Costs
•Lead time
•Reach
•Clutter
•Frequency
•Total advertising budget
Factors to consider when choosing the appropriate advertising
media
•Reach: The number of potential customers exposed to an advertisement at
least once
•Frequency: The number of times potential customers are exposed to a
given advertisement
•Waste: The number of customers exposed to an advertisement who are
not part of the company’s target market
•Lead time: The period of time between the design of an advertisement and
its actual appearance in the selected medium
Advantages of Advertising
•Low cost per contact
•Reaches customers where
salespeople cannot go
•Allows for creative production
•The message may be repeated
several times
Disadvantages of Advertising
•Cannot close a sale
•Messages can be ignored
•High waste factor
•Does not provide quick feedback
Cooperative advertising: A partnership between two or more
companies to share the cost of an an advertisement
•Allows businesses to share the cost of an advertisement
•Reduces control over the message
•Increases lead-time for planning the ad
Personal selling: Promotion that involves direct contact between
a salesperson and a customer
•Outside the place of business (field
calls/outside sales)
•On the phone
•Inside the place of business
Advantages of Personal Selling
•Ability to close sales
•Capability of holding customer’s attention
•Allows two-way communication
•Provides direct feedback
•Focuses on individual needs
•Develops relationships
•Makes immediate action possible
Disadvantages of Personal Selling
•High cost per contact
•Customer defensiveness
or resistance
Sales promotion: Approaches other than advertising, personal
selling, public relations, and publicity that provide customers
with a short-term inducement to make an immediate purchase
•Coupons
•Samples
•Games
Advantages of Sales Promotion
•Ability to generate immediate sales
•Can be circulated to a large group of
people
•Provides quick feedback because of
the time limit associated with the
incentive
•Flexible timing
Disadvantages of Sales Promotion
•Benefits limited by the
constraints of the time frame
•Does not build long-term
loyalty for the company
Recognition programs: A sales promotion technique that
rewards customers as an incentive or inducement intended to
ensure their loyalty and to generate repeat business
•Frequent-flyer programs
•Frequent-guest programs
Merchandising: Point-of-purchase advertising that includes all
of the materials used in the business to encourage sales
•Posters
•Tent cards
•Displays
•Demonstrations
•Menus
Advantages and Disadvantages of Merchandising
•Advantages and disadvantages similar to sales
promotion
•Promotes impulse purchases
•Supports advertising campaigns
Public relations: All of the activities that an organization uses
to develop or sustain positive relationships with individuals or
other companies
•Company newsletters
•Press releases
•Media kits
•Feature stories
•Ceremonies
Publicity: A specific kind of public relations that involves
communicating positive and newsworthy information about a
business through the media at no cost to the business
Advantages of Publicity
•No cost
•Considered reliable by customers since the
company does not pay for or control the message
•Implied approval and support
•Respected and seen as having stature coming from
national television and other media sources
•Helps maintain a public presence
Disadvantages of Publicity
•Difficult to generate with any regularity
•Lacks company control over the message
•May also include negative influences