Tourism Marketing Fall 2017 Bertan Kaynatma Manna restaurant

Tourism Marketing Fall 2017 Bertan Kaynatma

Manna restaurant http: //www. mannasbounty. com/

Core Concept of Marketing Process by which companies create value for customers and society, resulting in strong customer relationships that capture value from customers in return

Understand Needs, Wants & Demands Exchanges & Relationships Develop Marketing Offerings Create Value & Satisfaction Reap benefits from Markets

Marketing Environment Consists of outside forces and actors that affect a company’s ability to build and maintain successful relationships with its target customers Macroenvironment Microenvironment

Microenvironment Management Orientations Factors close to the company that affect its ability to serve its customers, the company itself, marketing channel firms, customer markets, and a broad range of publics

Company Marketing Intermediaries Suppliers Competitors Publics Customers

Microenvironment Company Marketers must work closely with top management and other departments E. g. : finance dept finds the money to conduct a marketing plan E. g. : accounting measures how effective marketing dept is, and whether it is achieving it’s goals Marketing decisions made within strategy set by top management Courtyard Marriott

Microenvironment Existing Competition Part of micro and macro-envirnonment Must adapt to customers, as well as competition Goal is to create strategic advantage and superior positioning relative to others Strategy is not “one size fits all” Text eg. Small company vs large company

Microenvironment Competition Share of Market Share of Heart Share of Mind

Microenvironment Competition Share of Market Competitor’s share of the target market

Microenvironment Competition Most immediate association between company and industry % of customers who think of the company first when asked about the industry Coffee house or cafe Candy bar Beer Airline Hotel Hamburger Share of Mind

Microenvironment Competition Share of Heart The percentage of customers who named the competitor in responding to the statement, “Name the company from whom you would prefer to buy the product. ”

Competition 4 Levels Companies that offer similar services to the same customers at a similar price Companies that make the same product or class of products Companies that supply the same service Companies that compete for the same consumer dollars

Grocery Store Movie Theater Full-service restaurants Market deli Subway Taco Bell KFC Burger King Budget Competition: Food and entertainment General Competition: Prepared food Frozen meal Product Category Competition: Fast food restaurants Product Form competition: Fast food hamburgers

Microenvironment Suppliers The firms and individuals that provide the resources needed by the company to produce its goods and services Goal to choose them wisely, maintain good relationship Hotel? Restaurant? Destination? Restaurant dangers Late food deliveries Cost increases Seafood example

Microenvironment Suppliers Hotels outsourcing restaurants or F&B operations Branded restaurant in hotel Celebrity chef Chick-fil-A and THRIVE Farmers Employee focus High-quality and unique Cost-saving by shortening supply chain

Microenvironment Marketing Intermediaries Help the company promote, sell, and distribute its goods to the final buyer

Online Travel Agencies Expedia brands: http: //www. expediainc. com/expedia-brands/ Priceline group: https: //www. pricelinegroup. com/about/ Ctrip: http: //english. ctrip. com/

Microenvironment Marketing Intermediaries The internet effect Disintermediation the elimination of intermediaries Insert. Brand. Name. com Price transparency

Microenvironment Marketing Intermediaries More of a partnership than ever before Coke and its marketing assistance Help me, help you Carnival

Microenvironment Marketing Intermediaries Marketing Services Agencies Help formulate and implement mktg strategies Intermediaries Financial Intermediaries Help finance transactions and insure the risks associated with buying and selling of goods and services

Microenvironment Customers Consumer markets Business markets Resellers Governments International

Microenvironment Publics Financial Publics Media Publics Government Publics Citizen-Action Publics Local Publics General Public Internal Publics

Macroenvironment Microenvironment

Macro Environment Consists of forces that shape opportunities and pose threats to the company Management Orientations

Macroenvironment Future Competitors Barriers to Entry and Exit

Macroenvironment Future Competitors Barriers to Entry and Exit Implications of high and low barriers? Hotel industry Restaurant industry Entry of competitors is Unpredictable Porter’s 5 Forces

Macroenvironment Demographics Human population defined in terms of size, density, location, age, gender, race, occupation…and it can go on and on

Macroenvironment Demographics How can changing trends in demographics affect strategic planning in regards to opportunities and threats? • Age structure • Family structure • Geographic populations shifts • Educational characteristics • Population diversity

Macroenvironment Demographics Born Number Current Age Baby Boomers Generation X Millennials 1946 – 1964 1965 – 1976 1977 – 2000 78 million 49 million 83 million 53 – 71 41 – 52 17 - 40

Macroenvironment Demographics Baby Boomers • • Most money to spend Older but feel young Like traveling frequently, restaurants Exotic trips, adventure Do something before it is too late University continuing educational tours Cruises for the value Upscale biking tours Generation X • • Millennials Environmental concerns Social issues Economically cautious Research for quality and unique experience Families Spend more • Andaz by Hyatt incorporates unpretentious luxury, focusing on unique designs and local flavors and experiences https: //andaz. hyatt. com/en/andaz. html Marriott Moxy citizen. M http: //moxyhotels. marriott. com/ en • • Most difficult to reach Most potential Saturated with media messages

Macroenvironment Demographics China’s “little emperors” Starbucks and China US: 80% of business is takeout China: 90% is on-site

Macroenvironment Economic Factors that affect consumer purchasing power and spending patterns Income Per Capita Disposable Income

Macroenvironment Economic Super rich: top 0. 5% of population with 39% of wealth London Four Seasons: 4 week around world $135, 000 https: //www. fourseasons. com/privatejet/ Cunard 120 nights on Queen Maryv 2: $234, 000 http: //www. cunard. co. uk/cruise-search/book-acruise/results/? tids=WORL&d=&dr=7&pg=2&rt=5&sort=

Macroenvironment Economic Currency fluctuations Exchange rates http: //www. xe. com/currencycharts/? from=TRY&to=EUR&vie w=5 Y

Macroenvironment Natural Trends to be aware of 1. Raw materials shortages- Sao Paulo - https: //www. youtube. com/watc h? v=1 xpb. N-cmet 0 - http: //edition. cnn. com/videos/ world/2015/02/25/wbt-saopaulo-brazil-watershortage. cnn 2. Pollution Global warming extreme example

Gunabara Bay, Rio de Janeiro, Brazil 2016 Olympics

Gunabara Bay, Rio de Janeiro, Brazil 2016 Olympics

Macroenvironment Natural 1. Raw materials shortages 2. Pollution 3. Increased government intervention

Government Intervention in Environmental issues Sulfur Emissions Worldwide allowance: 3. 5% New Regulation: 1. 0% Newest Regulation: 0. 1%

Result? Costs: low-sulfur fuel adds 70 -100% $180 million on new scrubber technology 42 / 101 ships $400 million on 70 / 101 ships Change routes of ships Eliminate Baltimore and Norfolk homeports Jobs No ships flagged / registered in the USA

Macroenvironment Technological Guest experience more efficient Self service Hospitality operations more efficient Data analysis tools Theft prevention in hotels Marketing reach extended globally Videoconferencing Smart phones Social media Internet tracking

Macroenvironment Technological Hen-na hotel and robot front desk: https: //www. youtube. com/watch? v=o. CDY 3 k. Nz 5 hw BBC: https: //www. youtube. com/watch? v=Fogi. E 8_3 f. PE Smart cruise ships RFID chips in laundry Interactive Customer Experience Smart phones Panera tablet ordering Mc. Donald’s: https: //www. youtube. com/watch? v=Db. Wfm. WCkau. Q

Macroenvironment Political Laws, government agencies, and pressure groups that influence and limit the activities of various organizations and individuals in society

Macroenvironment Political Trends More legislation and regulation Food safety Permits Taxes Employment Health and safety building codes Trade practices and competition

Macroenvironment Political Trends Antitrust Alcohol Minimum wages International boycotts

Macroenvironment Goals of Regulation Protects • companies from • each other Fed Trade Commission Prevent unfair practices • Deceptive pricing / advertising • Antitrust and Monopolies

Macroenvironment Goals of Regulation Protect • Deceptive advertising, consumers from pricing, packaging businesses • Unsafe products

Macroenvironment Goals of Regulation Protect Society’s • Pollution, overcrowding, interests congestion, littering,

Macroenvironment Political Trends Enforcement: Federal Trade Commission, the Food and Drug Administration, the Interstate Commerce Commission, the Federal Communications Commission, the Federal Power Commission, the Civil Aeronautics Board, the Consumer Products Safety Commission, the Environmental Protection Agency, and the Office of Consumer Affairs These agencies can have a major impact on a company’s marketing performance Social responsibility MADD resulted in bars and restaurants being more accountable for alcohol abuse PETA and the treatment of animals Industry Support: countries as a brand

Macroenvironment Cultural Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors Core beliefs Really can’t be changed Passed on from parents to children, then reinforced by school, government, business, etc. Secondary beliefs Open to change Text example: Marriage Others LGBT, Drinking, Women’s appearance, Religion

Macroenvironment Cultural cocnerns Israeli hotels are kosher East Asian countries and Feng shui Varying degrees of ethics, social responsibility Drunk tourists in Muslim countries

Responding to the Marketing Environment Option 1 View it as “uncontrollable” Adapt to market Don’t try to change anything Identify the given opportunities and threats

Responding to the Marketing Environment Option 2 Environmental management perspective Take action to change environment Lobby Form trade organizations and cozy up to lawmakers Persuasive advertising Media events

Extra credit homework 1. What environmental trends will affect the success of a first class hotel chain, such as Hyatt or Sofitel, over the next 10 years? If you were corporate director of marketing for this type of hotel, what plans would you make to deal with these trends? 2. Go to the websites of travel or hospitality companies and find examples of how they are taking measures to sustain and improve the natural environment. Which companies that you examined do you think have the best programs? Explain your answer.

Sources Kotler, Bowen, and Makens. Marketing for Hospitality and Tourism. 6 e. Pearson Higher Education. 2014. Datamonitor. Industry Profile – Global Hotels, Resorts, and Cruise Lines. Datamonitor. com. Mar 2010. Marketline. Global Hotels, Resorts, and Cruise Lines. Marketline. com. Nov 2014, Hugo, Martin. Carnival to spend 400 million to cut cruise ship pollution. LA Times. May 22, 2014. Web. Mar 2014. http: //www. latimes. com/business/la-fi-carnival-400 -million-cruise-ship-pollution-20140522 -story. html