The present report is going to discuss about the travel and tourism sector for being an important business and crucial turnover to the global economy. The rate of progress and growth for a nation are largely dependent upon the growth of the tourism sector of the country Further the report is going to discuss the detailing of the various concepts that are utilized and applied within the travel and tourism sector.
This report elaborates the core concepts of marketing in reference to tourism sector. An assessment of the impacts of marketing plan of First Choice in context of Spain was done here. Apart from this, the factors affecting the consumer demand in this sector were discussed here along with the principles of marketing segmentation in context of First Choice.
Marketing is the backbone for every business. In this report, a discussion on the core concepts of marketing in context of tourism sector is done. In addition to this, an assessment of the impacts of the marketing on the First Choice with reference to Spain and Turkey. Moreover, a discussion on the factors influencing the consumer demand in the tourism sector has been carried out. The report ends with an analysis of the principles of segmenting the market and its uses in marketing plans of First Choice.
The concepts of the marketing revolves around the features, such as needs, wants and demands, products, value, satisfaction & quality, relationships, transaction, exchange and market. Marketing in context of tourism starts from the demand and need of the customers and ends after they achieve a level of satisfaction. It is the duty of the manufacturers to provide the quality products and services so as to develop a brand and earn customers' loyalty. Since the tourism market is ever-changing, therefore it is the prime responsibility of the service providers to study and analyse the current trends and changing needs of the customers. Consumers are more interested in comparing the value of the service with its quality. Before making any payment, customer usually evaluate the worthiness and usefulness of the service. The figure 1 shows the core concept of marketing as a cyclic process (Armstrong, et.al, 2015).The travel industry of the Turkey and Spain are the fastest growing in the world. Therefore, First Choice has to adapt to the situation and should work in accordance with the cycle of as mention later in this section.
Need are the quintessential for survival. It is more of a state of deprivation. The needs of consumer plays a crucial part in the tourism mechanism. If a business fails in identifying the needs of the customers in tourism sector, then it may have some serious consequences. If needs are not fulfilled, then this may leads to dissatisfaction. The need are necessary to sustain the global demands of the tourism.
Specific wants are the source of travel motives that a consumer desire to experience. Wants include, desert safari, bird century visit, camping in the woods, etc. Tourism businesses must understand the demands of the tourist and plan their strategies in accordance with them only.The present situation have led to ever increase in the satisfactory level of the customer.
The customer demands are the inner feelings for experiencing the new things. It is characterised by the willingness to buy need or want. These can be influenced by external pull factors. In addition, demands are highly influenced by the wants of the tourism industry.
To satisfy the customers’ needs, wants, and demands, businesses in tourism sector have designed and launched various services, such as enclave tourism, resorts, water cities, fun parks, etc. These are further bifurcated into services as per the socio-economic status of consumers (Armstrong, et.al, 2015).
Value, Satisfaction, Quality: Customer compare the value of the commodity with its quality. If the two matches, then this leads to satisfaction of the customer.If this goes in the opposite direction, then it may create dissatisfaction.
Exchanging the interest of the customer and there needs through the customer are looked upon the tourist establishment. Before making any payment, customer usually evaluate the worthiness and usefulness of the service.
The important techniques and principles are promoted for instance through photography, destination blog, article and many more. They often play the major role in awarding the people of the destination extraordinary features.
Marketing environment is composed of both internal and external factors that directly or indirectly influence the business. First Choice is a travel and tourism organisation that functions as a subsidiary of TUI Travel. Due to the market uncertainties, the company is reshaping its marketing strategies in Spain. Marketing environment is influenced by the customers’ need, rising competition, pricing strategy of rivals, other demographic and psychological factors. Understanding the interrelationship between the business and the customers is important. The strategic and marketing mechanism of First Choice operates within three types of marketing environment.
Macro Environment:It comprises political, economic, and social factors.
Micro Environment:It includes business-related internal factors, such as business plans, marketing strategies, workforce segment, etc.
Market Environment:Market environment, consumers, suppliers, and third parties.
There are many reasons for people to travel, such as family living in other city, work trips, to recreational and pleasure. Destination and mode of travel depend on multiple factors that affects the consumer behaviour. Those factors have been discussed below:-
Personal Budgets: The mode of travel and travel destination choices are based on the savings of individuals. Some might prefer to travel via flights, whereas a few might have desires to travel via ships. All depends on budget. Similarly, for booking the hotels, some might choose suite or luxury rooms, whereas some may book cheap motels.
Safety and Security: It is the motivating factors. Nobody wants to travel to Syria right now because of the terrorist activities of ISIS. One may not feel safe in such environment. On the other hand, Switzerland, London are the most famous travel destination because travellers feel safe in there.
Environment: Countries having a soothing environment and are full of natural resources are most opted travel location. It drives the travellers to come and live in harmony with nature.
Personal Factors:It includes tourist personality, attitude, lifestyle, perception, age, reference groups. These are also called individual explicable variables.
Social Factors: Factors like family, culture, beliefs, social status, etc., define the traits of an individual. Therefore, these factors have a strong effect on individual’s behaviour.
It is a well-known fact that the service sector is quite dynamic and unstable sector. The market keeps on diversifying and changing. Therefore, market analyst and business strategists have bifurcated the market into different segments (Buhalis and Foerste, 2015). “Market segmentation” is the process of segmenting the market into different sections in which consumers of similar traits are grouped in one section. The whole principle behind the segmentation is to satisfy the needs of the different customers in the best way possible. In context of First Choice, the segmentation could be done on the basis of socio-economic status and varying needs and wants of the customers.
Forming a business plan in order to grow the business in Spain requires a focus on different sub-group. This will help in the growth. It is important that First Choice should focus on more than one sub-section as the needs might be varying.
There are four crucial variables in market segmentation that are explained below:-
Demographic Segmentation:this is based on the income, age, gender, education, economic status, etc.
Geographic Segmentation:This is based on the nations, region, state, postal codes, etc.
Psychographics Segmentation:This is based on physical characteristics of people, such as lifestyle, social group, etc.
Behavioural Segmentation: This is based on the past purchasing behaviour of the customers.
Market segmentation is important because of the following reasons:-
For First Choice, there are numerous benefits of strategic marketing planning that are intrinsically connected with the success and growth of the organisation(Buhalis and Foerste, 2015).The importance of the strategic marketing and its utilization over the First Choice marketing plan in Spain are discussed as follows:
Market research is the biggest factor to sustain any business as market research helps the company to understand the needs and demands of the customers. For a tourism company like First choice the demands of the customers leads the company to their motive and runs the business efficiently. The following points briefly discusses the importance of market research
An important part of the marketing is that it cannot take place without the existence of society. The marketing is itself made for exploiting the society in order to benefit the population and expand the growth opportunities. The process of management within a business operations of First Choice are always targeted towards identifying the ways through which they can fulfil the customer demands and reach beyond their expectations. The role of promotion and marketing is one for the crucial elements of marketing which deals with the running trends over the society. There are other factors within the marketing operations which include direct marketing, advertising and sales promotion along with public relations. Further, the marketing have been an integral part of the society (Buhalis and Foerste, 2015). This is because the people have become habituated over getting influenced through reading and advertising over the audio and visual medium. It is the people who feel that they need to get aware through the marketing of different tour and travel destination. As per the business environment the marketing strategies are set and made to attract the maximum of the target population to a particular destination.
Role of the marketing mix in the travel and tourism sector
Date: June 22, 2018
Marketing mix is considered to be one the essential components for any business field. It is the crucial tool for developing an effective marketing strategy. In this article, the issues in different elements of marketing, such as price, product, place, and promotion have been discussed in context of First Choice Summer Deals 2019. Along with this, an assessment of the importance of mix elements in tourism sector has been done. In the last, the application of the different concepts of the “total tourism product” to First Choice has been done.
Issues in the product, price and place elements of the marketing mix
The elements of the marketing mix have their individual weaknesses that underemphasize certain important marketing tasks. First Choice Summer Deals 2019 is the service offered specifically for Spain and Turkey, there might be some issues mentioned below in product, price, and place elements of marketing mix(Töytäri and Rajala, 2015).
Product: Identification of the needs of the customers is the main issue. Missing out even a single feature (complimentary breakfast) can divert the attention of the customers. Next is branding strategies is another challenge for the First Choice.
Price: The problems here is that customer compares the price of the service with the quality and when they find the similar product at lower price they will deviate towards it. Price sensitivity of customer is the issue.
Place:This is the platform where the buyers look for the service of First Choice. This could be a website or offline mode of bookings. The issues arise in place is the right access of the distribution channels, competitors strategies, ease of availing the services.
Importance of service sector mix elements to the travel sector
Tourism is basically a part of the hospitality industry that provides services to the customers in return of certain amount of charge. As a result tourism industry sustains and functions with the other service industries such as hotels, restaurants etc. So for a travel agency such as First Choice while travelling to a new country the tourists need to be provided with accommodation and fooding services. It is not possible for any company to buy hotels in every city so the tourism company deals with certain chain of hotels and always keeps the customers in those same hotels (Schegg and Stangl, 2017). Today Spain have accomplished being the most prevalent decision of the traveller goal. Besides, the planning cost in the end came to be viable after the stream of traveller helped in catching the top level augmentation towards the economy of the country.
This ensures that the tourists get same level of service all the time. Thus the mix of the service industry ensures better and all-round service provided to the customers and enhance their travelling experience. First Choice has got linked with the top hotels in Spain and Turkey as a result tourists travelling with First Choice has the luxury to experience the best hotels of the city. Thus this mix in service business helps in the development of the whole hospitality industry together.
Concept of the total tourism product to an individual tourism business such as First Choice
Every tourism product include different aspect of offering travelling experience and First Choice similarly covered various aspects of travel offerings to the tourist from different parts of the world. To an individual business consumer are willing to take the most of the benefits associated with the customer benefits and also make an impact over the budget of the customers. A single stop solution for all the other aspects of travelling such as sightseeing to accommodation and fooding and providing transportation service.
For instance when First Choice designs a voyage through Spain at that point factors, for example, cost of going to well-known visitor spots around Barcelona or Madrid or cost of visit amid the celebrations will be higher so remembering that the touring should be finished. There are in excess of one online networking stage because of which the objective populace extended to limitless open doors in a little timeframe (Horner and Swarbrooke, 2016). For the present scenario, Spain and Turkey are going to be the host of offer in them whole package service and products in the forms of summer deals.
This report tried to explain the promotional mix of an organisation dealing in the tourism sector i.e., First Choice. An assessment of the key function and the role of promotional mix was done in here. In addition, an integrated promotional campaign had been planned for the First Choice Summer Deals 2019 holidays.
The aim of this report is to make an attempt to use the promotional mix in the tourism sector. To do that an assessment of integrated nature of the promotional mix is done along with its role in context of First Choice. Also, a plan for the integrated promotional campaign for First Choice Summer Deals 2019 holidays is created in this section.
The promotional mix can be referred to the combination of different tools and elements that are brought into use by the business organisation in order to promote its services. In context of tourism sector, this can comprise the use of persuasive communication with prospective consumers, use of media, etc. Businesses are using some uniqueness in their promotional strategies. For example, hotels are offering the complementary free breakfast for their customers along with a major discount on room booking (Wilden and Gudergan, 2015). Tourism sector is a service sector where promotional mix is quite significant.
By making use of integrated nature of the promotional mix, consumers can be made aware of the product specifications. Information like who develop the product, what are the guidelines, terms and conditions associated with the product, etc. The significance of an integrated promotional campaign is given below:
The promotional mix can be classified into two components:-
Traditional Marketing: This includes telephonic promotions, public relations, advertising campaigns, news coverage, etc.
Direct Marketing: In this, the hotels, bars, restaurants, etc., promote their services by providing various discount offers, gift cards, coupons, etc. The advantage of this type of marketing approach is that it forms a two-way communication between the promoters and consumers (Töytäri and Rajala, 2015).
The role of promotional mix can be elaborated as follow:
The most effective promotional campaign are witnessed by Turkey and Spain have where the nation experienced a high boost in the economy through the tourism sector. First Choice is totally involved within the marketing campaign and the highlight the discoveries that are most likely to gain the tourist attractions. The process of forming a social interaction and blurring them through the single platform of promotional campaign would help in gaining the most recognition of its made offers and its advantages over the available competitors. The prime aim for the planning is to provide the tourist with never before experience and also adopt the most attractive form of offers. The economy of each nation is additionally influenced profoundly by the development of the tourism business which came to be alive after the relaxation exercises got its build-up (Isiket al. 2018). The ascent in pay level of the general population has empowered them to accept the open door of going on the travel easily of transport and web communication through promotional campaigning.
Further, First Choice Summer Deals 2019 holidays program are promotionally integrated to maximize the flow of tourist over the destination through bailing their service and benefit them by providing unmatchable experience.
The report began with explaining the promotional mix of an organisation dealing in the tourism sector i.e., First Choice. Later on, an assessment of the key function and the role of promotional mix was done in here. Before ending, an integrated promotional campaign had been planned for the First Choice Summer Deals 2019 holidays.
The present study is completed for highlighting the various aspects of marketing within the tourism industry and how does it play an important role in expanding the economy of a nation. For the present study the Turkey and Spain has been chosen as the location with respect to understanding the activities of the First Choice tour company of TUI group. The summer deals of the First choice are planned and promoted through the implementation of various elements of marketing mix. In the First Choice will acquire the most extreme benefits in the wake of meeting with the client necessities and create different openings. To start with decision will embrace the patterns for the present time and procuring the greatest benefits.
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