Intro to Tourism & Hospitality
Chapter 8

Copyright
Introduction to Tourism and Hospitality in BC by
Morgan Westcott, Editor, (c) Capilano University is used
under a CC-BY 4.0 International license.
This chapter is by Ray Freeman and Kelley Glazer and is
used under a CC-BY 4.0 International license.
Learning Outcomes
 Explain the meaning of services marketing
 Describe the differences between marketing
services and marketing products
 Describe the characteristics of a marketing
orientation and its benefits
 Define key services marketing terminology
(Freeman & Glazer, n.d.)
Learning Outcomes
 Explain the PRICE concept of marketing
 Provide examples of the 8 Ps of services marketing
 Gain knowledge of key service marketing issues and
trends
(Freeman & Glazer, n.d.)
Marketing
Figure 8.1 A vintage ad marketing the cost-effectiveness of Econo-Travel hotels from the July 1978
National Geographic
Marketing
Marketing is a continuous, sequential process through
which management plans, researches, implements,
controls, and evaluates activities designed to satisfy the
customers’ needs and wants, and meet the
organization’s objectives.
(Freeman & Glazer, n.d.)
Services Marketing
Morrison (2010) indicates, services marketing “is
a concept based on a recognition of the uniqueness of
all services; it is a branch of marketing that specifically
applies to the service industries”(p. 767).
Marketing
Marketing Tourism and Hospitality
 We must understand the difference between
marketing goods and marketing services
(Freeman & Glazer, n.d.)
Evolution of Marketing
Table 8.1: Evolution of marketing in the 20th century
Timeframe
Marketing Era
1920-1930
Production orientation
1930-1950
Sales orientation
1950-1960
Marketing department (marketing
orientation, internal agency)
1960-1970
Marketing company (marketing orientation,
external agency)
1970-Present
Societal marketing
1995-Present
Online marketing
Data source: Morrison, 2010
Services Marketing
Four key differences between goods and services. Services
are:
1. Intangible
2. Heterogeneous
3. Inseparable (simultaneously produced and consumed)
4. Perishable
(Regan; Rathmell; Shostack; Zeithaml et al. in Wolak, Kalafatis, &
Harris, 1998)
Services Marketing
PRICE Concept:
P: plan (where are we now?)
R: research (where would we like to be?)
I: implement (how do we get there?)
C: control (how do we make sure we get there?)
E: evaluate (how do we know if we got there?)
(Morrison, 2010)
Services Marketing
Figure 8.5 Services marketing triangle (adapted from Morrison, 2010)
Services Marketing
8 Ps:
1. Product
2. Place
3. Promotion
4. Pricing
(Morrison, 2010)
Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria’s harbour, is different from selling a tube
of toothpaste.
Services Marketing
8 Ps Continued:
5. People
6. Programming
7. Partnership
8. Physical evidence
(Morrison, 2010)
Figure 8.2 A 1970s Peter Max-designed ad for the American
Cancer Society urging people to not smoke
IMC
Integrated Marketing Communications (IMC):
 Involves planning and coordinating all of the
promotional mix elements (including online and
social media)
 Superior to using each element separately and
independently
(Eliason, 2014)
Consumer Behaviour
1. Personal factors - reflect needs, wants,
motivations, previous experience, and
a person’s lifestyle
2. Interpersonal factors - culture, social
class, family, and opinion leaders
Perception is Reality
 Perceptual Biases
 Selective Retention
 Closure
(Morrison, 2010)
Figure 8.7 All people view things through their own perceptual filters.
Consumer Decision Making
5 step pattern for consumer decision making:
1.
Need recognition
2.
Information search
3.
Pre-purchase evaluation
4.
Purchase
5.
Post-purchase evaluation.
(Kollat, D., Blackwell, R., & Engel, J., 1972)
Reaching the Consumer
Traditional Channels
1. Mass Media
2. Out-of-home (OOH)
3. Print Media
4. Online Channels
(Freeman & Glazer, n.d.)
Social Media
Social Media and Reputation Management
1. Social Media
2. Word of Mouth in the Age of Social Media
3. Advertising and Trust
4. Online Reviews = Business Success
Bringing it all together
 The role of Destination BC
 Marget Segmentation
 CTC’s Explorer Quotient
BC’s Key Markets
1. Nearby Markets – BC, Alberta and Washington State
2. Priority Markets - Ontario, California, Germany,
Japan, United Kingdom, South Korea and Australia
3. Emerging Markets – China, India and Mexico
(BC Ministry of Jobs, Tourism and Innovation, 2011)
Trends and Issues

Demographic shifts (aging population, the rise of millennials), and
socioeconomics (cultural changes, economic decline/growth)

Political, economic, and geographic changes (emerging or declining
economies)

Trip purpose (growth of multipurpose trips)

Psychographic changes (special interests, healthy lifestyles, sustainability)

Behavioural adaptations (free independent travel, decreasing brand
loyalty)

Product-related trends (emerging niches)

Distribution channels (online travel agencies, virtual travel)
(Freeman & Glazer, n.d.)
References
British Columbia Ministry of Jobs, Tourism and Innovation. (2011). Gaining the edge: A five year strategy for tourism in British Columbia. Retrieved from:
www.jtst.gov.bc.ca/tourismstrategy/documents/mjti_tourismstrategyreport_fnl.pdf
Canadian Tourism Commission. (2008). The explorer quotient: A deeper understanding of the modern traveller. Retrieved from:
www.ttracanada.ca/sites/default/files/uploads/ctc._the_explorer_quotient_-_a_deeper_understanding_of_the_m.pdf
Eliason, K. (2014, December 23). The importance of integrated marketing communications. Retrieved from www.portent.com/blog/internet-marketing/rainingmarketing-importance-integrated-marketing-communications.htm
Freeman & Glazer, (n.d.) Services Marketing. In Westcott, M. Editor, Introduction to Tourism and Hospitality in BC (pp. 124-147). Retrieved from
http://opentextbc.ca/introtourism/chapter/chapter-8-service-marketing/
Kollat, D., Blackwell, R., & Engel, J. (1972). The current status of consumer behavior research: Developments during the 1968-1972 period. Proceedings of the Third
Annual Conference of the Association for Consumer Research. Chicago, IL : Association for Consumer Research, pp. 576-585.
Morrison, A. M. (2010). Hospitality & travel marketing (4th ed., international ed.). Clifton Park, NY: Delmar Cengage Learning.
Wolak, R., Kalafatis, S., & Harris, P. (1998). An investigation into four characteristics of services. Journal of Empirical Generalisations in Marketing Science, 3, 22-43.
Retrieved from http://members.byronsharp.com/empgens/emp1.pdf
Attributions
Figure 8.1 Vintage Ad #1,203: This Cheap Hotel Does Not Compute by Jamie is used under a CC BY 2.0 license.
Figure 8.2 1970s Advertising – Poster – Peter Max Don’t Smoke Cigarettes (USA) by Daniel Anyes Arroyo is used under a CC BY-NC
2.0 license.
Figure 8.3 British Columbia Parliament Christmas Lights by James Wheeler is used under a CC BY-NC-SA 2.0 license.
Figure 8.5 Services Marketing Triangle by LinkBC is used under a CC BY-NC-SA 2.0 license.
Figure 8.7 Army Photography Contest – 2007 – FMWRC – Arts and Crafts – Eye of the Holder by US Army is used under a CC BY 2.0
license.