Marketing for Tourism 1
Extra notes
Learning Unit 1:
Marketing Principles
Learning outcomes
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Define “marketing”
Explain the evolution of marketing
Compare and contrast the five (5) marketing orientations
Describe the characteristics and benefits of consumer marketing
orientation
Explain the role of marketing as it applies to the field of tourism
Describe the main processes of marketing
Explain the importance of travel marketing in the travel and tourism
industry.
What is ‘Marketing’?
A social and managerial process by which people and groups obtain what they need
and want through creating and exchanging offerings and value with others.
(Source: George, R. 2011. Marketing tourism in South Africa,page 6)
 The process of determining the needs and wants of consumers and being
able to deliver products that satisfy those needs and wants.
 Marketing includes all of the activities necessary to move a product from the
producer to the consumer.
 Think of marketing as a bridge from the producer to the consumer.
 What is the difference between a NEED and WANT?
Need is a basic living essential. If you do not have it, you would not survive.
Want is something that you really desire. It consist of material things.
The Evolution of Marketing
Marketing as it exists today is a relatively recent phenomenon, even though its roots
reach back into the nineteenth century. Marketing has developed through 3 stages in
manufacturing and goods industry.
1. The Production Era
2. The Sales Era
3. The Marketing Era
1. Production Stage : 1920 – 1930
 ‘Production-oriented’ philosophy.
 Many companies' main priority was the reduction of the cost of production
– Mass production.
 Customers needs and wants were secondary importance.
 The goal of management was to produce as many goods as possible at
the lowest prices.
 E.G Henry Ford of Ford Motors fueled this philosophy when he stated, ‘
Customers can have any color they want, as long as its black!’.
2. The Sales Era : 1930-1950
 Technology advancement
 Increased competition
 Management switched from ‘Production orientated’ philosophy to ‘Selling
orientated’ philosophy.
 Customers needs and wants were still secondary importance.
 Management began to brainstorm effective ways to beat competition.
 Various promotional techniques via T.V and radio
3. Marketing Era: 1950-1960
 Armed with sales concepts developed during the sales era, as well as new
manufacturing capabilities and large research and development.
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Greater competition – more choices for customers.
It was also at this time that many firms realized that the company's
purpose was no longer to manufacture a variety of products, but to satisfy
their customers.
6 Marketing Orientation
1. Production orientation
2. Product orientation
3. Selling orientation
4. Consumer-marketing orientation
5. Societal marketing orientation
6. Online marketing orientation
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Production Orientation
The production concept, the oldest marketing concept
Based on a belief that consumers prefer low prices and product accessibility.
Affordability
To implement the production concept, managers concentrate on:
- low costs
- mass distribution
- high production efficiency.
2. Product Orientation
 This concept is based on the belief that consumers prefer high-performing
and high-quality products that serve an individual or unusual purpose.
 To implement the product concept, managers focus on producing superior
products with innovative features.
 Typically, these products are also easily improved over time.
 One disadvantage of this concept is at times, managers tend to become
extremely engaged with their product and lose track of what the consumer
actually wants.
 E.G – Seafood Restaurant
3. Selling Orientation
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The selling concept is based on the belief that consumers and businesses
will not purchase products from companies without selling and promotional
efforts.
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Selling orientated firms take great importance in sales/promoting and
advertising their products and services to increase revenue.
E.G. Hotels
4. Consumer-Marketing Orientation
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An company with this philosophy considers the needs and wants of its
target market.
Consumer-centric marketing
Selling VS Marketing
Selling
Marketing
Focus on the needs of the seller
Focus is the needs and wants of the
customer rather than the product
(Manufacturer/Marketer)
Product focused
Customer focused
Company Manufactures the product first
Company first determines customers
needs and wants and then decides out
how to deliver a product to satisfy these
wants
Management is sales volume oriented
Management is profit oriented
Planning is short-run-oriented in terms of
today’s products and markets
Planning is long-run-oriented in today’s
products and terms of new products,
tomorrow’s markets and future growth
Views business as a good producing
process
Views business as consumer producing
process satisfying process
Emphasis on staying with existing
technology and reducing costs
Emphasis on innovation on every existing
technology
Selling strategy involves efforts like
promotion and persuasion
Marketing strategy uses efforts in respect
of planning, product, pricing and then
promotion
E.G: Airline company selling seats to a
tour operator to meet their sales target for
the month
E.G: Tour operator does market research
on its customers to find out whether their
is a demand first.
Flight to Mauritius in December
5. Societal- Marketing Orientation
 The societal marketing concept is also based on the belief that a company
should carry out the marketing concept in a manner that enhances or
preserves society's well-being.
 The societal marketing concept takes into consideration how a company's
marking affects society as a whole.
 E.G: South African Tourism, is a non profit organisation whose main goal
is to market the country and increase tourism into the region.
Company
Consumers
Left side of Triangle
The important role of internal marketing (treating employees in the same way as
external consumers) so that the organisation will be successful in delivering its
promises to consumers.
Employees must be enabled – recruited, trained and rewarded for good service- so
that promises are kept.
Right side of Triangle
The external marketing activities that the organisation should contact (‘truthful
communication’). These activities raise consumers expectations and a promise is
made to consumers that these expectations will be met.
Bottom of the Triangle
The actual service delivery takes place. This is known as ‘interactive marketing’. It is
where the organizations employee’s interact directly with consumers and where the
promise is delivered. It is also where service promises are most often kept or broken
by employees.
All 3 marketing activities are interlinked, and are essential for building and
maintaining relationships. A complete marketing effort requires the support of all 3
sides of the service marketing triangle.
6. Online-Marketing
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Orientation
Businesses adopting modern technology marketing orientation.
Customers doing it for themselves- cutting out the middle man
Smartphones and netbooks
How does marketing fit into the subject area of tourism?
EXAMPLE
Marketing fits into tourism (Pages 10-12 in Textbook)
1. The individual business level
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Meetings consumers needs
Informing customers
Generating sales
Satisfying consumers
2. The destination level
 The market
 Travel
 Marketing
 Destination
3. The country level
Importance of travel marketing in the travel and tourism industry
1. Information gathering
 Vital process to understand customers.
 Knowledge about market trends, consumer behaviour derived from market
research.
 Interviews/surveys/feedback sessions with customers or public.
 The information will be used to assist the tourism organisation in making
marketing decisions.
2. Marketing planning
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A systematic way of deciding and communicating the goals and objectives
of the organisation- satisfy unfulfilled customers needs.
Analysis of the organisation internal and external environment
S.W.O.T Analysis of organisation
Identify the gap
The organisation can identify its capabilities with the organisations
strengths and opportunities and develop new objectives – aimed at
satisfying customers needs.
3.Elements of Marketing Mix
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Product - Anything that can be offered to the market for use or consumption
that might satisfy a want or a need.
Price - The amount of money charged for a tourism offering or for using the
tourism offering
Place - The ways in which consumers may gain access to the tourism
offerings
Promotions - All the different techniques used to communicate the attributes
of an offering to potential consumers to persuade them to buy it