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Marketing in Travel and Tourism - TUI Group

University: UKCBC College London

  • Unit No: 8
  • Level: Diploma
  • Pages: 18
  • Words: 4500
  • Paper Type: Assignment
  • Course Code:

    A/601/1740

  • Country: UK
  • Downloads: 0
Question :

An explanation is drawn to understand concepts, principles and roles of marketing and other aspects within travel and tourism.

  • Demonstration of concepts and aspects of marketing within travel and tourism industry.
  • Demonstration of role of marketing within travel and tourism industry.
  • Understanding role of marketing mix within travel and tourism industry.
  • Analysis of promotional mix within travel and tourism industry.
Answer :
Organization Selected : TUI Group

INTRODUCTION

Travel and tourism industry is inclining every year, people are moving around the world for a leisure travel, recreational and business purpose and to stay at a place different from there usual surroundings, where they can find such a joyful experience which they never had before. To offer a convenient and breathtaking holidays travel and tourism industry is expanding vastly, though every year it provides economic and social growth to country, and country aid to give big profit margins through travel and tourism destinations(Buhalis and Foerste, 2015). To encourage revenue of a country there are various organizations came in inception to generate business the same industry through restaurant, hotel, tourist destinations and so on. First Choice is a part of TUI Group, which is planning to create a Summer 2019 Holidays for Turkey and Spain. To initiate the program it needed to do marketing of its products, so that it can allure the latent tourists who wanted to fly across the borders. Marketing is also essential tool for travel and tourism to understand demands of customers, so in this report the core focus is to analyse the concepts and overall impact of marketing on this fertility.

Task 1

P 1.1 Core concepts of marketing in travel and tourism

The heart of the marketing is to offer customer satisfaction through accomplish their needs, a firm embraces the needs of consumers very closely, so as to construct a plan to gather the information and develop the strategies accordingly, so that marketing team can recognize the demands and provide them products and services to attain the goal and objectives. As being an Assistant marketing Manager at First choice travel and tourism organization, one must include some precise and definite points in the concepts which can identify the customer preferences so that company can establish policies and strategies that are valuable for customers and firm both.(Swarbrooke and Horner, 2012) There are basic elements are involved in marketing concepts, such as customer needs, products and services, exchange process, all of these are discussed below-

Customer needs – As it is known that no company can sustain in the market without analysing the customer requirements, so First Choice is one of the old company in the market which offering its services to the society from the past 45 years almost. It is not easy to capture the market in the competitive scenario, the success of the business relies on the customer wills, what they want from a market, and what are their desires what they want to have to admire the pleasure. Customer requirements are the priority of the firm, they have to meet the needs to gain prosperity which is the foundation of any business because without knowing the current demands of the market, it is not possible to increase the sales and can rise the business. First Choice analysed the top – notch destinations from travellers point of view that can be use to raise the sales of the organization(Hudson and Thal, 2013).

Products and services – Products and services needed to carefully followed all the new trends, making a plan according to the summer holidays, and tourist places where people can find relax and can participate in summer activities and games, their travel like by flight or cruise that will offer them such a fabulous delightful feeling, that will impress them and plan their stay and itinerary according to the weather, so that they can enjoy.

Exchange process – The exchange process is done in between two parties, where user pays the money to First Choice against the consuming the products and services. First Choice charges some amount regarding there products and services.

P 1.2 Impact of marketing environment on First Choice and tourist destinations like Turkey and Spain

Marketing has a great impact on the business cause it influences the people, as being a Assistant marketing Manager it becomes a responsibility for role to analyse the micro and macro factors which affects a business through internal and external factors. These both kinds of aspects forces the working of a business environment, micro or internal factors are under the control of a First choice whereas the macro aspects are beyond the reach of firm, for example - concern of changing demand and competition in present market. If any alteration occurs in within a firm that is known as micro element(Hall, Timothy and Duval, 2012). All of these constituents affects the business of First Choice, so there is a need to examine the strength and weaknesses of business before be in hurdles.

Micro environment – In the First Choice internal environment includes suppliers, competitors, intermediaries, consumers etc., these are described below-

Suppliers – First Choice requires some suppliers who serves the quality of the services, they firm has a insecurity to face a problem from suppliers side, they are concerning what if the provider refuse to take their agreement ahead and they can also terminate the contract between them, that will have a bad impact on business.

Competitors – Competitors are the biggest promoters of a business because they encourage the crave to extend more in order to give a new direction, that enhances the profit of a business and spread out the area beyond limits(Huang and et. al., 2013).

Intermediaries – In a travel and tourism industry, intermediaries refers to the facilities which are furnished by various types of rooms, clubbing, dinning, on sensible prices, these works between the business organizations tourists, First Choice is cautious about these third parties, because if they would terminate the services, then the business have to struggle for the new beginning.

Consumers – Consumers owes the business quality, so it is mandatory for First Choice to maintain quality of products and services and also analyse the requirements of customers, so that a business can go long.

Macro environment – Macro environment refers to the outside elements which influences a First Choice, it consists of demographic and technological factors.

Demographic - Demographic factors changes in the locations and trends that are being offered to clients, and organization strategies are affected by these two things, First Choice offered different kinds of packages for Spain and Turkey, cause both the countries have diverse features that attracts the tourists. First of all, the research is conducted on various elements then it would be analyse that all the aspects are according to the customer demands, if the answer in yes, then only the package will going to be discussed with them, finding out a best place as per their requirement will give a advantage to the firm.

Technological – Due to the lack of knowledge about the technology public is not able to access the information which is updated on the online websites. Because of the modern advancement in technology business get affected, many people are still unfriendly with the technology(Xiang, Magnini and Fesenmaier, 2015).

P 1.3 Factor affecting consumer motivation and demand

According to the change of motivation in the First Choice, the interests of the customers are predicted, which help to make packages of the tours and planning their marketing strategies, the factors which perturb the business, like emotion, social and personal. Along with these factors there are some government factors are also involved such as monetary and fiscal policies, which leaves a great impact on tourism business, if there is any variance in currency value then it will make a huge impact on business, and similar to that increase and decrease in such component agitates a business. The few elements which have a drastic impacts on business are as follows -

Consumer behaviour model – The consumer behaviour model is based on loyalty, sociology and psychology.

  • Loyalty – Some clients are stiff for a product and they are very loyal towards the brand and company, they don't seek for any substitute in the market until they won't find any weakness in the product, First Choice customers are very loyal for its products and they are stick to I only by the time when it offers some package.
  • Sociology – In present trends buying decisions are changing frequently due to availability of various competitors, who are putting their efforts to convince consumers(Stonehouse and Campbell, 2012).
  • Psychology - It's a human psychology that they want something better and different from previous one they had, they strive to get the best product, that is necessary for a company to offer such packages stay constant in the marketplace, otherwise the firm can loose their position and consumer can go to other companies to fulfil their desires.

The main determinants of a consumer motivation has an influence on consumer decision making, a user always seeks for flexibility and satisfaction which directly motivates them to stay in touch with a company to purchase a product next time with the same company, they stick with firm to buying decision.

P 1.4 Principle of marketing segmentation and uses in marketing plan

Market segmentation refers to reach out the people to meet their goal with consumers satisfaction. Marketing segmentation is divided into four division to meet the target customers, such as demographic, geographic, psychographic and behaviour. These diversification is based on the lifestyle, needs n social class, habits, etc.

Demographic segmentation – Demographic segmentation includes gender, age, ethnicity, occupation, educational level, income, household size and family situation.

Geographic segmentation – In this segmentation, potential customers are grouped according to their locations, their requirements are depended on the area where they lives(Moutinho and Vargas-Sanchez, 2018).

Psycho-graphic segmentation – Psycho-graphic segmentation refers to lifestyle, living , priorities, opinions, attitudes and interest. It also analyse the buying behaviour of customers.

Behaviour segmentation – Under this division population divides on the basis of their behaviour, usage and decision patterns, it watches the all these elements to determine customers behaviour.

Through market segmentation it is becomes easy to prepare a market plan according to the requirements of clients, if it is clear that what kind of customer are looking for a best and luxury plans it will be simple to promote a business and make a strategies for these high standard clients because they are conscious about the expenses, and there are some people who are living in the cold place then they may wanted spend their holidays at a place where they find the moderate temperature or want to involve in some activity. First Choice will use to prepare a market plan for diverse requirement of the clients that should satisfy their needs and also be in their budget(Hays, Page and Buhalis, 2013).

Task 2

P 2.1 Importance of strategic planning for Spain

A successful strategy can be define as to satisfies the consumer needs and earn profits in the business, without a strategic plan an organization can face so many hurdles, that can never gain the benefits. First Choice is making a strategic plan to recognize and analysis the strength and weaknesses of the firm, and then it will be capable to make different packages for tourist that can provide contentment to the customers.

SWOT analysis : To know the strength, weaknesses, opportunity and threats on a tourist destination, here Spain is chosen to analyse these factors. This will aid to know the place better with all of its good points that can pull more tourist, they can come with a fact that it has pleasant weather, a variety of landscapes. The opportunities are also take under consideration to know a broad area where it can expand through exploring in ecotourism, adventure, leisure. The SWOT analysis identifies the positive and negative aspects for the business(Evans, Park and Oh, 2012).

TALC (Tourist Area Life Cycle) : Tourism companies never opens all the details about the destinations, that creates the confusion about the city, area, location, but that is important to it to the consumers. TALC is the small which is used to tell the details to the customers regarding hotel, destinations, site seeing locations and research marketing will be done on these basis. First choice plan tourism regarding marketing of its products on various stages of this model, first as being Assistant Marketing Manager, initially analyse the facts and then it will maximise the extent development of destinations during different situations(Hall, 2013).

P 2.2 Relevance of marketing research and market information

Marketing information defines all the necessary information which is beneficial for First Choice to develop new plans, and which is useful for further progress. Marketing information is gathered by the professional research team, through including some questionnaires that is answered by the targeted customers, which describes the requirements and thoughts of the customers what they want to go for vacations, this research shows there interest that emphasizes latest products and sales. Market research aid to understand market in which stream a company should try to step in for prosperity, there are so many

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