TOURISM Principles Practices Philosophies Charles R Goeldner J

TOURISM ______________ Principles, Practices, Philosophies Charles R. Goeldner J. R. Brent Ritchie TWELFTH EDITION © 2012 John Wiley and Sons, Inc. All Rights Reserved

CHAPTER 19 TOURISM MARKETING © 2012 John Wiley and Sons, Inc. All Rights Reserved

LEARNING OBJECTIVES • Appreciate the Internet’s impact on tourism marketing. • Become familiar with the marketing mix and be able to formulate the best mix for a particular travel product. • Appreciate the importance of the relationship between the marketing concept and product planning and development. • Understand the vital relationship between pricing and marketing. • Be able to do market segmentation to plan a marketing program for the business you are most interested in. • Demonstrate the linkage between tourism policy and tourism marketing. © 2012 John Wiley and Sons, Inc. All Rights Reserved

MARKETING MIX The marketing mix is composed of every factor that influences the marketing effort • Timing • Image • Brands • Advertising • Packaging • Selling • Pricing • Public relations • Channels of distribution • Service quality • Research • Product © 2012 John Wiley and Sons, Inc. All Rights Reserved

WHAT IS MARKETING The American Marketing Association defines Marketing as: • “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. ” © 2012 John Wiley and Sons, Inc. All Rights Reserved

PRODUCT LIFE CYCLE Introduction Growth Maturity Saturation © 2012 John Wiley and Sons, Inc. All Rights Reserved Decline

FACTORS THAT INFLUENCE PRICE POLICIES • Product quality • Cost of distribution • Product distinctiveness • Margin of profit desired • Extent of the competition • Seasonality • Special promotional prices • Psychological considerations • Method of distribution • Character of the market • Cost of the product and service © 2012 John Wiley and Sons, Inc. All Rights Reserved

PRICE SKIMMING Skimming is appropriate when the product or service has the following characteristics: • Price inelasticity • No close substitutes • High promotion elasticity • Distinct market segments based on price © 2012 John Wiley and Sons, Inc. All Rights Reserved

PENETRATION PRICING Penetration pricing is appropriate when the following factors are present: • High price elasticity • Economies of scales • An easy fit of the product into consumer purchasing patterns © 2012 John Wiley and Sons, Inc. All Rights Reserved

SELECTION OF CHANNELS OF DISTRIBUTION Channels of distribution are selected by • • Analyzing the product Determining the nature and extent of the market Analyzing the channels by sales Determining the cooperation you can expect from the channel • Determining the assistance you will have to give to the channel • Determining the number of outlets to be used © 2012 John Wiley and Sons, Inc. All Rights Reserved

PROMOTION In order to sell the product it is necessary to: • Attract attention • Create interest • Create a desire • Get action © 2012 John Wiley and Sons, Inc. All Rights Reserved

TYPICAL BASES FOR MARKET SEGMENTATION • • Geographic Demographic Socio-economic Psychographic Behavior patterns Consumption patterns Consumer predispositions © 2012 John Wiley and Sons, Inc. All Rights Reserved

TYPICAL BASES FOR MARKET SEGMENTATION Typical bases for market segmentation. Source: W. Zikmund and M. D’Amico, Marketing, 3 rd ed. , copyright © 1984, New York: John Wiley & Sons, Inc. ; adapted by permission of Prentice-Hall, Englewood Cliffs, N. J. , from Philip Kotler, Principles of Marketing, copyright © 1980, p. 297. © 2012 John Wiley and Sons, Inc. All Rights Reserved