This assignment is developed on the topic of marketing travel and tourism which includes description of marketing concepts and principles in reference with TUI, which is world’s leading integrated tourism group. The assignment includes the discussion of the role played by marketing related with travel and tourism sector which further includes the description of the significant of planning in marketing sector, relevance of marketing research and information to managers and marketing influence on society. The assignment further includes the discussion of the role marketing sector related with tourism and travel sector in reference with TUI and description of the use of promotional mix in travel and tourism sector. All together the assignment aims to provide a description of the concepts and principles related with marketing sector in reference with TUI in the travel and tourism sector.
Article for publication
Core Concepts of Marketing for the Travel and Tourism Sector
Marketing refers to the concept of understanding the wants and desires of both the existing and new customers in order to provide satifaction to the customers and developing plans in order to maintain customer satisfaction through meeting the demands of customers as the increment in the sales of company depends on customer satisfaction. TUI requires to develop a clear knowledge about the preference of customers and management functions as management functions is known as a core concept of marketing (Aléssio, et al., 2015). The management functions of marketing includes the function of organizing and directing activities related with business which furhter involve analysis of the purchasing power of customers in to effective demand of customers towards TUI services for travel and tourism purpose in order to achieve profit and objectives of company. Moreover TUI is also required to know about the aspects of marketing concepts such as given below:
Customer Orientation: The customer orientation aspect of marketing concept indicates to the steps that TUI need to include its marketing strategy for increasing the participation of customers through customer feedback and providing new offers to customer for customer satisfaction.
Integrated Marketing: The concept of integrated marketing refers to the need to develop the infrastructure of TUI in order to provide best services to customers and build strong relation with customers (Altinay, et. al., 2015).
Dual-Core Marketing: The dual-core marketing concept reflects to the indication of marketing job to identify the needs of customers and the process of providing new offers to meet the satisfaction of customers.
Source: Marketing Environment
Impact of the Marketing Environment on Individual Travel and Tourism Businesses
The marketing environment includes factors related with internal and external marketing that influence and impact the marketing operation of businesses of individual travel and tourism such as TUI and tourist destinations such as Mexico and Costa Rica. The marketing environment impact the business operation of TUI and tourist destinations in both positive and negative ways such as stated below:
Internal Factors of marketing environment is also known as microenvironment which includes the all those factors that are available within the organization and impact the business operation of TUI and the tourist destinations, Mexico and Costa Rica. The internal factors further include the following factors:
Resources: Resources of internal factor includes TUI financial position, TUI range in travel and tourism sectors and access to technology which impacts the business operation of TUI and resources available at tourist destination, Mexico and Costa Rica also impacts the business operation as customers prefer the tourist destination on the basis of resources available at destination for tourist (Gretzel, et. al., 2015).
Employees Skill: The other factor that impact the business operation of TUI is the skill of employees as customers rely on employees interaction and skills to meet the requirement of customers and the tourist destination, Mexico and Costa Rica also impacted from the factor of employees skill as the tourist usually seek the skill of employees at the destination place to interact with the customers.
External Factors refers to the marketing refers to teh factors related with available outside the organization and impact the business operation of TUI and tourist destination, Mexico and Costa Rica while the external factors includes the following factors:
Economic Factors: The economic factors that impact the business operation of TUI as the economic factors includes economic system, stability and income distribution pattern of TUI and the tourist destination, Mexico and Costa Rica are impacted from economic factors of currency ratio of Mexico and Costa Rica (Xiang, et. al., 2015).
Technological Factors: The technological factors states the impact on the business operation of TUI from advanced and new technologies as the company is required to be updated in order to meet the requirement of customer and it impact the tourist destination of Mexico and Costa Rica from the availability of technology.
Source: The Tourist Route System- Model of Travelling Pattern
Factors Affecting Customer Motivation and Demand
The main factors that has ability to impact the customer motivation and demand towards the sector of travel and tourism in marketing in reference with TUI are given below:
Personal Budget: The personal budget of customer affects the demand of customer towards travel and tourism sector as mostly people who seek to travel search for suitable travel deals and cost effective plan which saves money (Rajaobelina, 2018).
Social Class: The social needs of customers refer to the preference of different culture tourist towards places, events and different types of tourism. Moreover the information and feedbacks from friends and families motivates other customers towards the demand in travel and tourism sector.
Psychology of Customer: The psychology of customer also affects the demand of customer towards the sector of travel and tourism as the psychology needs of customers usually alters and generally prefers flexibility, good services and safety needs to meet the customer satisfaction (Baum, 2015).
Principles of Market Segmentation
Market segmentation refers to the practice that determines and divides target market of organization in order to meet all the target markets through satisfying the wants of customers in market. TUI undertakes the consideration of market segmentation in order to determine the services, sales and strategies of market in accordance with the target market and it plays a significant role in the sector related with travel and tourism in order to divide the tourist in various segments in reference with similar or different needs of the tourist. The principles related with market segmentation along with it uses in marketing plan at TUI are given below:
Demographic Segmentation: The demographic segmentation divides the customers or market on the basis of age, income, gender, family size, occupation, nationality and more. It is also the most commonly used segmentation of market and as it is mostly used by organization to get the right population associated with the organization. TUI could use demographic segmentation in its marketing plan for dividing the population on variable basis in order to further determining the services of TUI for customers (Tussyadiah, et. al., 2016).
Behavioral Segmentation: This type of market segmentation generally depends on dividing the market on the basis of customer’s behavior and decision making pattern. TUI could use this market segmentation in market planning in order to develop a target market approach for travel and tourism through seeking the behavior of customers.
Psychographic Segmentation: This type of market segmentation divides the market on the basis of customer’s lifestyle, activities, interests and opinions. TUI could use psychographic segmentation in marketing plan in order to seek the psychological aspects of customers for offering travel and tourism packages.
Geographic Segmentation: This type market segmentation divides the market or customers on the basis of geographical boundaries as the potential of customer interests, needs and preference differ accordingly with the geographies of customers. TUI could use geographic segmentation in its marketing plan for determining the preferences and interest of its customers over different geographies for further determining its services for its customers (Papatheodorou, et. al., 2017).
Source: Understanding Target Market Segmentation
Marketing as a tool of management in the sector of travel and toursim plays an important as management tool of marketing such as marketing plans, marketing research and information are required while analyzing market trend for the sector of travel and tourism purpose. The report also includes the influence of marketing on society.
This report includes the description of the importance marketing strategies and marketing plan for determining the purpose of business related with the travel and tourism sector along with the implication and influence of marketing research and information on business operation of tourism and travel sector. The influence of marketing of traveling sector on the society along with its impact on the working of society.
Analyze the importance of strategic marketing plan for a selected travel and tourism business (TUI) and tourist destination (Mexico and Costa Rica).
Strategic marketing plan refers to a process through which an organization creates and develops effective marketing strategies and plans to implement in the target market and it is also known as creative process for stable flow of business of organization. The significance of marketing plan for TUI and tourist destination, Mexico and Costa Rica are given below:
- Evaluate Current Environment: Strategic marketing plan helps both the travel and tourism business of TUI and tourist destination, Mexico and Costa Rica to evaluate the current environment of both the organization and the tourist palace (Gretzel, et. al., 2015). TUI through strategic marketing plan would be able to identify and analyze the current prevailing environment and situations at the organization and market moreover for tourist destinations such as Mexico and Costa Rica the strategic marketing plan is important to seek the availability of resources and the current environment of the places.
- To identify the Action to Achieve Goals: The strategic marketing plan helps TUI to identify the actions required to achieve its goal and gain benefits in its business as it helps TUI to establish a planned approach of actions to achieve the goals. Moreover the tourist destinations, Mexico and Costa Rica through strategic marketing plan would be able to identify the needs and desires of customers (Lane, et. al., 2015).
Discuss the relevance of marketing research and market information to managers in the travel and tourism sector in reference with TUI.
Marketing research refers to the process through which relevant marketing informations are collected in a systematic manner as the information which could integrate business organization in depth analysis to accomplish long term goals in marketing sectors. Marketing research is important in travel and tourism sector for understanding the placement of marketing elements to meet the satisfaction of customers. The manager of TUI need to sustain relevance marketing research and market information in order to reflect customer satisfaction, functions, requirements and in developing effective marketing and business decisions. Moreover the marketing research and marketing information enables the manager of TUI to forecast the future sales of TUI, drive effective marketing strategies and could measure the demand of the tourism trends in the sector of travel and tourism. The marketing research and informations also help the manager of TUI to understand the market and customers preference and also to maintain effective relation with both the existing and new customers (Abubakar & Ilkan, 2016).
Assess the influence of marketing on society.
Marketing leads both positive and negative impact on society as an organization usually operates on the basis of a society. The role of marketing function in the sector of travel and tourism for understanding the demand of the customers and the trend in the tourism market sector. The positive impact of tourism marketing on society is informing and educating customers about the practical information to assist the package of tourism, to effectively managing customer expectations, to drive the economy of consumer in the society and to understand and modeling customer behavior. The negative impact of marketing function on society such as wastage of money and also impact the ethics of society. Moreover the marketing of travel and tourism sector helps the society to provide information about different travel packages (Mariani, 2016). The marketing activities thus need to provide accountability to society for positive impact of marketing on the society.
The report aims to provide the description of the importance of marketing for the business operation of sector related with travel and tourism with the discussion of marketing aspects such as marketing strategies, marketing research and market information. This report also aims to provide the discussion of the impact and influence of travel and tourism marketing on the society towards travelling purpose.
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| Role OF Marketing Mix in Travelling and Tourism Sector|
The marketing mix is the practice adopted by different organizations for accomplishing competitive advantage. Travelling and tourism sector use the marketing mix to achieve a better and suitable outcome for the sector. Services and offers introduced by the firm are influenced by the marketing mix used by companies (Ciriković, 2014). Case study of the TUI group has been selected for better understanding.
Issues in elements of service sector mix elements with reference to TUI.
The main components of mix elements are product, price and place which are used in the travel and tourism industry. Product as in case of TUI is services offered by the company such as aircraft, travel agencies, cruise lines etc. In terms of product, it has been observed that if the services or products given by TUI is the same as other companies then it will lead to failure of products offered. The price of TUI should also be such that it is different and reasonable than other travelling companies (Menon and Edward, 2013). If this is not achieved then the failure of price takes place.
Importance of service sector mix elements to the travel sector
The value of mix elements is very important in the travelling sector. 4Ps of the mix elements are used in the travel sector. Product, price, placement and promotion are elements which are used. Product in the travelling sector, are the services or factors that the company is trying to promote. It includes a bus tour, hotel facilities etc. Price of the travelling sector should be such that it should be reasonable and better than other tourism services. Use of promotion is also considered by many tourism industries. It is the practice of advertisement or marketing of services and products of the company. It includes places of travelling, offers offered during travelling, promotion of services etc. The place is the element of the marketing mix which determines the connectivity of services and products with the customers or passengers.
Concept of total tourism product, to an individual tourism business as TUI.
Total tourism product is a method of fulfilling consumer needs. All the components required for satisfying consumer needs are brought in the core concept of the total tourism product. TUI is an organization that performs multiple tasks such as hotels, aircraft and cruise liners. They all are considered a single facility for customers and work is done on all of these different aspects but they are considered a single resource. It is done in order to achieve an overall experience of tourist, tourism product plays a significant role in it (Magatef, 2015). The development of the product should be done and for this feedback should be collected and implemented. These products should be services related to aircraft, hotels and cruise liners in case of TUI.
Various issues are there in implementing mix elements in travelling and tourism sector. These issues arise in products, price and placement. Importance of mix elements is very high and contributes to better performance and output for travelling and tourism sector. Total tourism product is the concept used for gathering all components of travelling together increasing sufficiency and service of these components.
The promotional mix is used by companies in order to achieve suitable outcomes for the organization. Travelling and tourism sector also adopt this method to achieve better performance in the industry. Many organizations related to the travelling sector are using this component for overcoming competition in the market.
For overcoming competition and to achieve suitable outcomes for the organization promotional mix is the strategy used by the firm. Product, price, placement and promotion are the components used of the promotional mix.
Integrated nature and role of the promotional mix
The promotional mix is the elements used by firms for the promotion and performance of their company and services (Ciriković, 2014). TUI as serving a number of services thus use of promotional mix is essential for them so that all the customers and passengers are aware of their different service and products.
- Product – It refers to the product offered by the company. Main products or service offered by TUI are aircraft, cruise liners, hotels. These should be improved for achieving better results.
- Promotion – It is the practice of promoting services offered by the company. TUI is a successful and stable company, use and implication of promotional mix can make them more effective by making people aware about products of TUI.
- Public relations – In this practice, customers are influenced or contacted directly by the firm. This relation is maintained by means of news papers and radios.
- Price – TUI is organizing summer camps in 2020 to Mexico and Costa Rica. For attracting significant number of customers it is important that price of services should be reasonable.
Plan and justify integrated promotional campaign for TUI summer deals.
Being Assistant manager of TUI the main focus is on achieving outcomes for the company and satisfying needs of customers (Law, et. al., 2015). For achieving this best products or services should be offered. It includes offers on rooms, aircrafts etc. After products or services, the next aim should be giving these services in reasonable price. The promotion should be done of these services and offers. Various ways should be adopted for this for example advertisements in news papers, internet, radio etc. All these ways should be adopted for better promotion of services and products. The points or places should be identified where improvement is required (Magatef, 2015). These places could be travelling facilities, rooms for customers etc. all these places should be identified and suitable steps should be identified for achieving this.
Report given above reflects use and result of promotional mix for TUI organization. Product, place, price and promotion are the mixes used by travelling companies for achieving results. Plan is prepared regarding the promotion of services and products offered by TUI for summer deals.
This assignment aims to provide a brief explanation about the significance of marketing concept in reference with the sector related with travel and tourism along with the organization TUI. The assignment aims to provide the discussion of marketing concepts and principles, the role of marketing as management tool along with the description of marketing strategies, research and information and the influence of marketing on society in reference with tourism group, TUI. The discussion of the role of marketing mix along with the discussion of issues related with the elements of marketing mix such as product, place and promotion are also included in the assignment. And lastly the discussion of the use of promotional mix in travel and tourism are also included in the assignment with reference of TUI.
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