Matakuliah : G1174/Tourism Management and Planning
Tahun
: 2007
Marketing Management in A Tourism Destination
Pertemuan 17-18
Topics
• Marketing concept in tourism destination
• Marketing Mix
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Objectives
1. To identify the marketing concept in tourism destination
2. To explain the marketing mix in tourism
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Destination Marketing
• Destination rely on tourism as a major tool in the creation of
development and suport for the indigenous population.
• The understanding of destination image is important for any
destination marketing and it is closely interrelated component of:
– The perception which refers to individual’s own knowledge
– Affective appeals which refers to individual’s feeling toward a destination
• Key areas in destination marketing:
– The image of destination
– Stakeholders and their support for destination
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Definition of Tourism Marketing
• Marketing is a management philosophy which, in light of demand,
makes it possible through research, forecasting and selection to
place products on the market most in line with the organization's
purpose for the greatest benefit
• Marketing as a social and managerial process by which individuals
and groups obtain what they need and want through creating and
exchange products and value with others
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Characteristics of Tourism Marketing
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Customer: first priority/ prime focus
Research: constantly asking
Review: review organization's strengths and weaknesses
Plan: long/short strategic marketing plan
Perception: image
Co-orporate/ co-ordinate: throughout organization to reach
common goal
• Change: dynamic
• Broadly conceive/understand
• Evaluation: how successful is the promotion
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The Importance of Marketing In Destination Management
Profit
Growth
Stakeholder satisfaction
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Higher quality environment
Employee satisfaction
Marketing
Breakthrough
innovation
Higher quality products & services
Continuous
improvement
Marketing
Customer satisfaction
Marketing vs. Selling
Marketing
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•
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Customer
Satisfaction
Focus on customer needs
Marketing plan is crucial
Long terms
Utilized integrated market
To achieve profit through
customer satisfaction
Selling
• Product
Sales volume
• Focus on product, factory
• Selling approach is important
• Short terms
• Use selling and promotion
• To achieve profit
Marketing Principles for Tourism Destination
• Tangibilizing the service product:
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Promotional materials
Employee appearance: trade dress, uniform & costume
Physical surrounding
‘Green Marketing’
• Managing employee through internal marketing
• Managing perceived risk: minimizing service gaps
• Managing consistency
– A point to encounter
– Moment of truth
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Marketing Mix in Tourism
• Marketing mix is the set of controllable tactical marketing tools that the
company blends to produce the response it wants in the target markets
• Marketing tools:
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Product: combination of service, brand, quality, benefit, value
Pricing: stimulate sales, achieve financial goals
Promotion: advertising, sales promotion, merchandising, PR
Place: manner to sell the product, distribution
People: skill & knowledge
Physical evidence: environment, image, facilities, added value
Process: efficiency, performance, speed
Consumer: expectation
Convenience: related to distribution
Cost: related to price
Communication: related to promotion
The level of products
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Physical evidence
Core
Participation
Interaction
• What is a tourist product?
Anything that can be offered to a
market for attention, acquisition, use
or consumption that might satisfy a
want and need
Include: physical objects, services,
places, organization and ideas
• Level of products:
– core products
– facilitating products
– supporting products
– augmented products
Physical evidence through branding
• A successful brand is an identifiable products or services or persons or places
augmented in such a way that buyer or user perceives relevant, unique added
values to match their needs most closely
• What is a brand? Why a company or a product use brand?
– Brand is a name, term, sign, symbol which makes people remember the products or
services. It
– It used to identify the services or goods and differentiate them from competitors
Condition that support branding:
1. Easy to identify
2. Perceive as the best value
3. Maintain quality
4. Expand from small to larger market
5. Economic of scale
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Price and cost
• The amount of money charged for a good or service
• Pricing Objectives:
– Financial: profit, cash flow
– Competitive: leader, follower, innovator, survivor
– Volume: sales, market share
– Image: positioning
• Factors to considering when setting the price
Internal Factors:
• Marketing Objectives
• Marketing Mix
• Strategies
• Cost
• Organization of Pricing
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Price
External Factors:
• Nature of the market
• Competition
• Other environment Factors
Distribution channels and convenience
• A set of independent organization involved in the process of making
a product or service available to customers
• Why the tourism and hotel industry need marketing intermediaries?
– Efficiency in making service available to target markets
• Distribution channel functions:
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1.
2.
3.
4.
5.
6.
7.
Information
Promotion
Contact
Matching
Negotiation
Physical distribution
Financing
Communication vs. Promotion
• A company’s total marketing communications program, called its
Promotion Mix, which consists of advertising, sales promotion, public
relation, personal selling.
• Element in the communication process
Sender
Encoding
Message
Media
Decoding
Noise
Feedback
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Response
Receiver
Promotion Mix
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Factors in setting promotion mix
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Type of product or service and market
Strategy: push vs. pull
Buyer readiness stage
Product lifecycle stage
Promotion mix
 Advertising: long term, impersonal, one way communication
 Personal selling: relationship, personal interaction, needs tools – promotional
kits
 Sales promotion: assortment of tools, quick sales, two way communication
 Public relation: create positive image through publication, events, news,
speeches, etc.
 Direct marketing: telemarketing, relationship marketing, direct mail
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Process in service delivery - the gap analysis model
Word-of mouth
Personal needs
Past experience
Expected services
Gap 5
Perceived service
Tourist
Gap 1
Service delivery
(incl.
Pre & Post-contact)
Gap 3
Translation of perceptions
Gap 2
Marketer
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Management perceptions of
tourist expectation
Gap 4
External
communication
People as internal marketing
• Tourism is unique in that people - employees are part of the
products, thus, they should be excited about the company they
work for.
• Internal marketing uses a marketing perspective to manage the
company’s staffs.
• It is aimed internally at the firm’s employees
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Marketing Concept in Indonesian Tourism
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Conclusion
• Marketing in a destination management is a way to created and
maintained profitable customers, stakeholders’ satisfaction and
high quality employee performance.
• Customer satisfaction leading to profit is the central goals of
tourism planning and marketing.
• The uniqueness of tourist product makes marketing in the tourism
became a strategic matter which can be manage.
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