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Unit 19 - Travel & Tourism - London School of Science & Technology

Introduction

Marketing is known as the study of management and exchange relationships. It is one of the effective ways through which people become aware of the company's products and services. For an organization, it is essential to carry out marketing activities in order to target a large number of customers and grab their attention. The present report is based on the TUI group which is a travel and tourism company. They focus on making innovative tour package so that customers based can be enhanced and a firm can accomplish success. The present report will cover, factors affecting consumer motivation and demand for London as a tourist destination. Along with this, the principle of market segmentation will be analyzed. Apart from this, the positive and negative influence of marketing on society can be assessed.

Task 1

P1.1 Core concept of marketing for tourism and travel sector

Marketing activities play a significant role in driving an organization towards the accomplishment of marketing as well as overall business objectives. In addition to this, it helps business entities in increasing sales and profitability. Marketing is conducted with the intention of promoting goods, services as well as the brand. The marketing plan is designed by the marketing department in an enterprise to identifying the way for influencing a customer to buy particular goods or services. It is required by marketing team in TUI to develop an understanding about the several principles as well as concepts of marketing. This will assist the marketing manager in the formulation of effective plans or strategies.

Need- Travelers required various facilities or services such as food, security, transportation, safety, accommodation, etc. when traveling. Marketing as well as a management team in TUI company has adopted the strategy to arrange the needs of customers and emphasizes on a high level of satisfaction to tourists.

Demand: This is generated by the customers on the basis of their needs or requirement. There are many factors that influence the demands of products and services, destination choice by visitors, etc. Some of the factors which have significant and direct effect demands of tourism products or services are changes in external factors as social, legal, environmental, economic, technological and political factors.

Products: According to this concept, an organization operating in the travel and tourism sector is required to produce those goods or services which should provide a high level of satisfaction to the customer. As this strategy will help a firm in developing as well as maintaining a strong relationship with the client. It will also help the business entities in gaining customer loyalty and retaining profitable clients for long time.

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P1.2 Analyzing the effect of marketing environment on business activities of TUI company

The marketing environment consists of both macros as well as microenvironmental factors that have direct as well as a major influence on business activities especially marketing in the context of the travel and tourism industry. These external variables have effect on the marketing techniques, decision, plans and strategies, Changes in Marketing environment force companies operating in tourism industry to bring change in promotional strategies Some micro environmental constituent which have great effect on the marketing or business activities of TUI company are

Customers: These are the important stakeholders, as all the marketing activities are conducted to inform people about the product or services offered by an organization

Employees-These are those people without them marketing cannot be conducted by an organization. Employees assists business entity in achieving business as well as marketing objectives.

Availability of resources: This factor has direct influence on the performance of marketing team. Lack of resources can lead to big barriers in accomplishment of marketing objectives

Macro environmental constituent

Political factors: These variables include a political situation in the country, regulation formed by government has a significant effect on the marketing strategy as well as the activity of TUI company.

Economic factors: These variables have direct as well as an important effects on the financial performance of an organization. Economic constituent also has an influence on the budget prepared for conducting marketing activities.

Technological factors: These variables have provided TUI company a big online platform which can be utilized by the firm for promoting goods, service, destination, brand. Technology has provided business entity an opportunity to share the geographical or other essential information

1.3 Constituents consumer motivation and demand in the travel and tourism industry.

There are few factors that have a direct and major effect on customer motivation as well as demand for the products or services offered by tour operators. Some of the variables are social, cultural, psychological, personal factors that have a great impact on the demand in the tourism industry.

Psychological factors: perception about the destination, beliefs, attitude of service user towards an organization providing facilities etc. Perception about a destination and about an enterprise is developed by an individual on the basis of information about firm obtain from other people in the society.

Social factors-This constituents play vital role in inspiring traveler to make purchase of specific product, service or select specific destination such as London for visiting. Some of the social factors are trends, status, values, beliefs etc.

Personal factors- These constituents include experience of traveler at destination, desire to travel, need of travelling etc. have direct as well as significant influence on the motivation of travelers. Marketing manager in TUI company should plan to offers summer holidays or tour packages which might covers historical or religious destinations in London. As per the Cohen model there are principally two constituent which encourages a person to travel these are push as well pull feature.

1.4 Principles of market segmentation

Market segmentation is defined as the activity of dividing market into small parts or portion. The market is divided into small portions in which specific products or services is introduced in the market where the customer has similar demands.

Behavioral market segment-This marketing segmentation principle is based on buying behavior or pattern of a service users.

Demographic market segment-This principle market segmentation is done on the basis of analyzing the family service, age, gender etc.

Psychographic market segment-This form of market segmentation states that market should be divided into small portions by considering the customer interest as well as customer life style.

Task 2

2.1 Importance of strategic market plan for TUI

Strategic market plan is defined as a set of marketing goals and a combination of several plans or strategies adopted by an enterprise for accomplishing marketing objectives. A model that can be used for formulating marketing planning is SOSTAC. An effective marketing plan defines the way activities are to be conducted as well as goals that are to be achieved within the specified time duration. In addition to this marketing plan aids in reducing the chances of overlapping activities and supports business entities in reducing wastage of resources.

Situation analysis-Pestle and SWOT analysis is an effective tool that is utilized by the marketing team in TUI organization for developing understanding about market environment or situation. These analytical techniques will assist an organization in identifying company position in the market.

2.2 Need for investigation of market and information to managers in the travel and tourism industry

Market research is defined as an important process that is executed by the marketing department in a company with the objective of identifying the situation and for analyzing the needs of the service user in the market. It also helps organization in identifying a position in the market. This specific activity supports the marketing manager in making appropriate decisions and formulation of plans and tactics for the accomplishment of specific targets. It also helps the marketing manager in keeping update themselves about the latest market trend. Understanding Market information’s is vital to be collected before the introduction of an innovative item in the market.

2.3 Influence of marketing on society

Marketing activities have adverse and optimistic impact on the society. Marketing is considered to be a vital activity in a business. Marketing function enables an organization to encourage customers to purchase specific goods or services. But some people believes that marketing have negative effect on the society. Promotional activities executed by an enterprise makes society more money-oriented. There are many people in the society who perceives that advertisement and other marketing activities have a negative effect on children's behavior.

Task 3

3.1 Identifying problems in marketing mix

Product: This variable is considered to be the vital element of marketing plan. An organization can earn profit and generates revenue by selling the quality products. Marketing team in TUI group to consider several issues before introducing new item in the market. As this will assist marketing department in identifying the suitable market for positioning goods. Marketing manager in an organization need to emphasis on the above mention issues.

Price: This is considered to be the significant aspect in business. As price is the factors which supports firm in attracting more numbers of customers. Multiple pricing strategy is adopted by TUI company. As this strategy supports an enterprise in minimizing the adverse effect of changes in price of product on profitability.

Promotion: This activity is executed by business entity with the objective of influencing customer to Purchas good or services. It also enables business entity to communicate information about products or services to customers. Limited budget or resources are issues related to promotion

3.2 Implication of Service mix element in tourism industry

People-These are the important element in service marketing mix. Customers helps an enterprise in increase profit and generating revenue. It is required by TUI company to emphasis on providing quality services to customers.

Process-This are the vital part of marketing mix, as it enables firm to deliver services to client.

Physical evidence-This element is differentiator in service marketing. TUI company has employed advance technology at workplace which has provided business entity a chance to additional facilities or services to customer at destination.

3.3 Application of concept of total tourism product to an individual tourism business

All the goods in travel and tourism covers all the features such as from travelling plan to destination. It is essential by management team in a TUI company to consider numerous factors such as the buying capacity of travelers, demand of customers, visitors preference related to the availability of product at specific destination. It also includes providing transportation services to visitors in order to allow tourist to visit from one place to another.

Task 4

4.1 The integrated nature and role of the promotional mix of TUI group

Promotion is one of the essential factors of marketing as with the help of this company can easily create awareness of its product and services among customers in an effective manner. It is one of the effective technique of attracting a large number of customers toward the proposed products with the use of different ways of promotion.

Advertising: Advertising is one of the effective means of communication through which the TUI group can promote its product to a large number of customers. Advertising of new products and services can be done on Television, newspapers, etc (Benson, Tilbury and Wickens, 2012).

Direct marketing: Direct marketing is another approach in which marketing personnel of the TUI group will make direct contact with their clients through phone calls and mails (Moore, and et.al., 2009). It is also one of the effective method as because customers can get detailed information directly of new products and services.

Sales promotion: Sales promotion is known as short term action of marketing which is the type of marketing that can be done with the use of publicity etc (McDonald, 2012). It is consisting of a small message which are being transmitted to customers in respect to avail the offer which is applicable for short period of time with some unique appealing in them.

Public relations: Public relations is known as type of marketing which is related to the work of mouth marketing in which all the offers are directly discussed with the Thomas cook through arranging to campaign etc.

Personal selling: Personal selling is known as one of the most conservative forms of marketing in which all the targeted customers are influenced by the offer of purchasing made by TUI group through sales presenting and meeting etc.

4.2 Plan and justify an integrated promotional campaign

Integrated publicity campaign is known as the medium through which all the activities provided in above questions will be carried out by the firm in order to make sure that their ideas are reaching to customers (Fesenmaier and et.al., 2012). In context to this, TUI group has chosen the method of public relation so that directly interact with customers can be done. Through the use of public relation method company can send their message to customers and ensure that they understand them and motivated toward buying it.

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