Concept of Marketing for Travel and Tourism Sector
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Marketing is considered as one of most critical aspects that can lead every business towards the impressive level of success. In other aspect, it can be said that it is a technique that provides effective development and creation of various factors which are beneficial for the organisational success. It mainly focuses on maintaining brand image, organisational culture, effectiveness of place and product quality. It includes various innovative plans and ways that can be used by travel and tourism sector for the effective development of tourist destinations (Smith, 2011). Marketing of tourist destination determines new tactics and procedures for the promotion of specification of a tourist destination in all over the world.
In the present report, learning will focus on various aspects of marketing that are beneficial for the effective improvement in work culture of travel and tourism sector. It will have spot light on the concepts and principles of marketing in travel and tourism sector. It will also provide better understanding regarding the roles of marketing as a management tool in travel and tourism sector. Learning will also provide information in the context of participating marketing mix in the operational activities. Furthermore, it will also focus on the use of various promotional mix in travel and tourism sector.
1.1 Discuss the core concept of marketing for travel and tourism sector
As per the structured study, it can be said that the marketing plays a key role in effective development of travel and tourism sector. It facilitates in effective understanding of key needs or expectations so that tour plans or services can be offered as per the customer’s needs. Classification of key core concepts can be as:
Needs identification and Marketing offer: It is considered as one of most critical aspects for every business and customer’s needs can be vary due to different perception of customers. In order to have competitive development of travel and tourism sector, it is necessary for marketers to identify market and customer’s needs so that products can be designed in most suitable manner (Malviya, 2005). Hierarchical needs can also facilitate business firm to understand the key needs of customers and lead business to the impressive success. It is also essential for management of travel and tourism firm to design product’s quality and features as per the customer’s needs and requirements.
Customer value and satisfaction
In order to make sure about the value and customer satisfaction, it is also necessary for management of travel and tourism firm to provide services or products as per the consideration of customer perception (Huertas, 2010). It means that Thomas Cook must have proper determination of customer needs for enhancing the level of values and satisfaction.
Exchange transactions and relationship
Exchange rate and direct relationship play key role in travel and tourism sector (Alegre, 2009). In this support, it can be said that exchange rate is one of important aspects when consumer acquires travel and tourism services at the international level. It has been spotted that Thomas Cook charges high in respect of its services and custom based tour packages.
It is also essential for business firm to ensure that marketer prospective should be positive in the context of product and services. It will provide strength to marketing activities and facilitate Thomas cook to have effective development of travel and tourism activities.
1.2 Impact of marketing environment on functioning of Thomas Cook and tourist destinations
With an assistance of micro and macro environment factors, business organisation can develop tourism activities in an effective manner. Moreover, changes in micro and macro elements also have great impact on the operational activities of Thomas Cook.
It has been spotted that Edinburgh is a significant part of Scotland. It means that UK governance and EU policies are need to be followed by Thomas Cook while operating its business in Edinburgh (Bharwani, 2012). For example, government of UK has increased the tax rates on service industry or travelling activities then it will impact business of Thomas Cook in a negative manner and may decrease organisational profit margin ratio.
UK economy and Scotland economic system are now stable that clearly indicates that the Thomas Cook can have better opportunities in Edinburgh. Moreover, changes in UK or Scotland economic system can impact the operations of Thomas Cook in diverse aspects (Hall, 2012). For example: recession can force management to decrease the cost of products and services.
Social perception is also one of the significant aspects and it can also influence operational activities. For example, social group is now more attracted towards adventure and eco-friendly tourism, so that management must focus on the development of services as per the needs of customers otherwise business may face issues (Matzler, 2003).
Thomas Cook focuses on various technological tools in order to have effective accomplishment of operational activities. Firm is now focusing on social media tools and mobile applications for communicating effectively with the customers.
Other than this, it is also necessary for management of Thomas Cook to focus on macro factors such as industrial needs and competitors activities as it provides better understanding about various factors that can lead business to the impressive level of success (Pesonen, 2013). Activities of competitors can also influence the business operations of Thomas Cook in a diverse manner. Organization must have effective consideration on competitive aspects present within UK and Scotland in order to protect business from the functioning of various local tourism companies.
1.3 Factors affecting consumer motivation and demand in travel and tourism sector.
There are number of factors that can impact the motivation level of customers in the context of Edinburgh. Classification of factors can be as Tourist places, connectivity, supportive services availability and other factors.
Edinburgh is one of most significant places in Scotland and number of tourists or travellers are attracted towards destination to experience optimistic environment. There are number of destinations present in Edinburgh such as Holyrood Palace, Calton Hill, Edinburgh Castle, Scottish national Gallery, etc (Swarbrooke, 2012). These kinds of attractive places motivate travellers to visit Edinburgh and explore the culture and heritage of Scotland.
Effective transportation and better services in the context of connectivity also motivate travellers to visit Edinburgh. Travellers from diverse geographical areas in world can easily visit to Edinburgh by accessing airline services (Wong, 2012). These kinds of factors provide better convenience and attract different kinds of visitors.
Supportive services availability
Hotel, food, accommodation, shopping, etc are also key factors that motivate travellers to visit Edinburgh. It has been spotted that Edinburgh covers various luxuries hotels and accommodation services that provide convenience and attract more and more customers towards destination (Keillor, 2007). Easy access for shopping and other services also attract more and more customers towards destination.
Environmental conditions and behavioural aspects of local citizens also motivate travellers to visit Edinburgh. Local community is very friendly and humble that enhance the level of motivation and attract travellers to visit destination.
1.4 Principles of market segmentation and it uses in marketing planning
Marketing planning and market segmentation principles play key role in the success of every organisation. It facilitates management of Thomas Cook to divide market in various sections as per the consideration of demographic features and lifestyle of people. In order to have effective segmentation, it is necessary for management to focus on various aspects that can impact the growth aspects (Robinson, 2009). Segmentation process helps in marketing in order to estimate demand as well as interest of consumer who belongs form different social back ground.
Demographic and Psycho-graphic segmentation are the most beneficial sections that can boost business of Thomas Cook in Edinburgh. Destination is mainly considered as a part of one of the developed economic systems so number of business firms are looking forward to expand business in Scotland (Swarbrooke, 2012). It means that management can focus on conducting merger with various international business groups so that their holiday and corporate needs can be accomplished in an effective manner. Moreover, products and services of Thomas Cook are related to high price so that they can also focus on people who are looking for premium services. Lifestyle can be considered as an essential factor as number of travellers visit destination as per the consideration of their lifestyle (Culver, 2006). Principles of Market segmentation plays an important role in strategic marketing planning in order to have effective promotion of Edinburgh as a unique destination. Tourism and travel based organisations can use lifestyle and demographic factors for the better development and present destination as a new emerging market for leisure travellers.
2.1 Importance of strategic marketing planning for Thomas Cook
It has been spotted that strategic marketing planning is one of most significant factors for every business organisation as it leads business to the impressive level of success. In support of this, it can be said that it provides ability to develop tourism activities that can provide long term sustainability and create effective image within the market (Culver, 2006). With an improved level of focus on the strategic marketing planning, business organisation can attract more and more visitors towards destination which is beneficial for the effective development of travel and tourism sector in Edinburgh. It also assists in effective determination of various internal factors that can help in overcoming various issues and obstacles. It provides effective understanding about strengths and opportunities that are beneficial to defeat threats and overcome weaknesses.
As per the consideration of SWOT analysis, it can be said that Thomas Cook is one of the well-established tourism firms that provides a wide range of services. Company is having effective presence in global tourism market that helps management to reduce the impact of competitor’s activities. Increased level of global customer base is also one of the most advantageous factors that helps in reducing the impact of competitor’s market share (Robinson, 2009). In order to have effective development of tourism activities in Edinburgh, management can use online booking mediums as it will increase market share and provide convenience factor. Company can also use its global customer base to improve tourism conditions within Edinburgh.
2.2 Discussing the relevance of marketing research and marketing information to manager
In this respect, it can be stated that marketing research and marketing information are the most significant aspects for business organisation or its managers as it facilitates in effective development of strategies that can provide long lasting advantages. It has been spotted that market research and information gathering are the integrated activities that provide detailed examination of consumer needs and demand with an enhanced analysis of market trends (Keillor, 2007). With an assistance of collected information, management of Thomas Cook can have effective development of strategies that can boost business opportunities in Edinburgh market. Number of primary and secondary sources can be used to access information and take various advantages.
In other aspect, it can be said that managers of Thomas Cook can easily identify current trends of sector and needs of customers in an easy manner so that Edinburgh tourism opportunities can be enhanced. Moreover, with an assistance of market information, manager can have effective evaluation of diverse international visitors and quality of services in order to have effective development of destination (Wong, 2012). Collected information also helps manager in creating better image or awareness about destination among international market. These kinds of factors also have some influences on the customer selection process and decision making procedure.
2.3 Influence of marketing on society
It has been spotted that marketing activities bring number of positive as well as negative aspects for business so it is necessary for management to understand these factors in an appropriate manner. With an assistance of marketing activities, management of Thomas Cook can improve its market share in Edinburgh as it provides increase in the number of visitors towards destination. It also has direct positive impact on the GDP and economic system of Scotland which is beneficial for the improvement in living standard of citizens (Swarbrooke, 2012). It will also create awareness among business corporates in the context of resources available in the city so that they can expand their business in Edinburgh. These kinds of factors are beneficial for the improvements in job opportunities within society. It creates unique image within market that attracts more international travellers and provide effective exposure to culture (Pesonen, 2013).
On the other side, negative impact can be that increase in number of international visitors to destination may influence the perception of local citizens that can impact the culture and beliefs. In other words, it can create some negative influence on tradition and domestic cultural aspects.
3.1 Discussing the issues in product, price and place elements of marketing mix
Marketing mix is one of critical aspects for every business organisation while designing products and services. It is consisted of four key factors that are essential sections of every business such as product, price, place and promotion (Matzler, 2003).
In this respect, it can be said that management of Thomas Cook must focus on designing of its products and services as per the needs and expectations of customers or market needs. If company will not have development of product as per the needs then management can face product failure issues which may impact business negatively (Hall, 2012). By identifying trends and needs, new holiday package can be developed in an appropriate manner.
Business organisation also needs to determine the price of products or services so it is necessary for managers to ensure that selected price is appropriate for the targeted group as per their needs otherwise, product acceptance issues can be faced by company. Competitive pricing policy is beneficial for organisation in order to boost business opportunities (Bharwani, 2012).
In support of this, it can be said that company also faces various issues in the context of offering convenience. It means that it is necessary for management of Thomas Cook to ensure about location of store or branch office so that travellers can have easy access to the products and services.
It is one of most significant aspects of marketing mix and management of Thomas Cook must use various promotional tools that can lead business to the impressive success. In this respect, number of communication and advertising tools can be used to create awareness regarding the product and services (Bharwani, 2012).
3.2 Importance of service sector mix elements in travel and tourism sector
It is essential for service sector to have improved level of focus on various elements that can boost the effectiveness of operational activities. With an improved focus on marketing mix elements, management of Thomas Cook can have effective design of interactive strategies which can boost organisational opportunities (Smith, 2011). Number of changes can also be taken into account as per the examination of service sector mix. It also facilitates in ensuring that marketing campaign is effective and it will increase sale definitely.
In the context of tourism sector, it can be said that service industry mainly focuses on key elements such as people, package, programming and partnership. In this respect, it is necessary for management to focus on training and development activities so that skilled workforce can be acquired for the better accomplishment of organisational goals (Malviya, 2005). In the respect of packaging, it can be said that Thomas Cook can include all the essential services and ensure pre planning of conveyance, food and accommodation. It will also help in attracting more customers. Company also requires partnership with various service industry organisations in order to provide effective services such as transportation, hotels, etc.
3.3 Applying the concept of total tourism product to individual tourism business
As per the structured study, it can be said that tourism sector is considered as one of most significant sectors that plays a key role in economic development. It includes number of diversified services that boost industrial opportunities such as accommodation, transportation, local connectivity, etc. In the respect of total tourism, product means a tour package or combination of activities that cover all the operational activities of travel and tourism sector (Alegre, 2009). It is necessary for Thomas Cook to develop total tour product for the effective development of opportunities in Scotland. It will also facilitate in reflecting the enhanced level of brand image within market. Management can design total product as per the customer’s needs or consideration of segmentation.
Total product for Edinburgh includes various factors such as:
- Air ticket in economy class.
- 4 nights stay in Edinburgh.
- Continental Breakfast and food.
- Stay in three star hotel.
- Visit to local attractions (Bharwani, 2012).
- Beach activities and other tourism activities.
- Return air ticket in economy class.
4.1 Integrated nature and role of promotion mix
There are number of roles that hold by promotional mix as it is considered as a collective activity that facilitates in meeting organisational goals. Classification of key elements that are needed to be considered by management is as follows:
In this respect, it can be said that with an assistance of advertising activities, business firm can create better brand recognition in the market. It will boost the sales of organisation and market share (Sustainability report. 2015). Company can advertise its products and services at various platforms such as television, radio, newspapers, etc.
Public Relation and Personal Selling
Improved level of relationship with customers and other supportive factors will also create better brand image and provide various advantages to the business. It is also beneficial for the improvement in market share. It also allows sales professional to communicate with target customers in order to build better relationship (Smith, 2011).
Company can provide various offers and discounts to increase the sales of product. Organisation can provide discount on its premium products if sales ratio is low as per the expectations.
4.2 Plan and justify the integrated promotional campaign for Thomas Cook
In order to create better awareness regarding tour package of Thomas Cook, management can focus on integrated promotional mix. In this respect, company can use brochures distribution channel at branch offices within UK and Scotland. Company can also focus on various online marketing channels to promote its products and services in an effective manner. Thomas Cook can advertise its tour package with an assistance of internet marketing and social media tools. It will create better awareness among citizens and improve the sales of organisation. Company can also design e-brochures so that customers can access to significant information by using their online web portal. These kinds of activities are beneficial for the improvement in sales as well as market share.
As per above study, it can be said that marketing activities plays a key role in effective development of travel and tourism activities. Number of business organisations are using marketing techniques in order to boost the operational effectiveness and creating better awareness among people. In the support of this, it can be said that marketing activities and strategic actions provide ability to develop tourism activities that can provide long term sustainability and create effective image within the market. It has also been spotted that marketing mix also facilitates management to develop sustainable product in order to boost opportunities.
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