MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY(MUST)

DEPARTMENT OF TOURISM AND HOSPITALITY

MUST PALLANDRI CAMPUS
 Tourism Marketing
TM-2041
Lecture no 1_ What is Marketing Management

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 COURSE DESCRIPTION
This course is concerned with the development, evaluation, and implementation of
marketing management in present day environments. The course deals primarily with an in-
depth analysis of a variety of concepts, theories, facts, analytical procedures, techniques,
and models. In implementing marketing management strategies the actors and activities
may differ but a systematic framework and understanding of marketing management and
strategy helps to design and implement the appropriate program? Accordingly the students
will develop a solid foundation of the fundamental marketing decision-making tools and
management of all of the elements of the marketing plan.

TOURISM AND HOSPITALITY:2019-23 3

 COURSE OBJECTIVES
At the end of the course the students should be able to:
• Understand the nature and purpose of marketing in business.
• Application of marketing concepts in different types of the business environments.
• Understand the internal and external environment and decision making in both
environments.
• Determination of the market demand and development of the corporate strategy to
fulfill this demand.
• Apply and practice the concepts of marketing in the marketplace within the ethical
standards of cultural diversity, religion and mankind.

TOURISM AND HOSPITALITY:2019-23 4

 COURSE SCHEDULE
Weeks Course Contents
Week-1 Understanding marketing management
What is marketing management?, Functions of marketing management
Scope of marketing management, Evolution of marketing management, Develop culture value and relationships through
marketing, Customer perceived value, monitoring satisfaction.

Week-2 Scanning the marketing environment

Analyzing the macro environment, Needs and trends, Identifying the major forces, Demographic environment, Social-culture
environment, Economic environment, Natural environment, Technological, Political-legal, Influence of these forces over
marketing decisions.
Linking marketing and corporate strategies
Developing marketing strategies and plans, The value delivery process, The value chain process, Core competencies, Central role
of strategic planning, Define corporate or business mission, Establishing strategic business units/ SWOT analysis, Marketing
innovation.

Week-3 Consumer behavior

What influence consumer behavior, Cultural factors, Social factors, Personal factors, Psychological factors

TOURISM AND HOSPITALITY:2019-23 5

 COURSE SCHEDULE
Week-4 Organizational markets
Business markets v/s consumer markets, Market structure and demand, Institutional markets, Government markets

Week – 5 Turning marketing information in action

Definition, Gathering information, Marketing database system, Marketing intelligence, Marketing research process, Steps involve
in marketing research

Week – 6 Identifying market segments& targets

Levels of market segmentation , Segment marketing, Niche marketing, Local marketing, Bases for segmenting consumer markets,
geographic, demographic, psychographic, behavioral. Market targeting, Effective segmentation criteria , Evaluating & selecting
the market segments, Additional considerations

Week – 7 Developing new products

New product options Make or buy, Types of new product, Challenges in new product development, The innovation imperative,
New product success, New product failure, Organizational arrangements. Budgeting for new product development, Organizing
new product development

TOURISM AND HOSPITALITY:2019-23 6

 COURSE SCHEDULE
MID TERM
Week – 9 Managing products and brands
Concept development and testing, Marketing strategy development, Product development, Market testing, Commercialization,
The consumer adoption process, Stages, Factors influencing the adoption process

Week – 10 Designing and managing marketing channels

The importance of channels, Channel development, Developing distribution channels
, Roles of marketing channels, Channel management decisions, Channel integration and system

Week – 11 Wholesaling & Retailing

Trends in wholesaling, Types of retailers, The retail environment, Marketing decisions

Week – 12 Integrated marketing communication and direct marketing

The role of marketing communications, Marketing communication, brand equity and sales. The communication process model,
Select the communication channels, Deciding on the market communication mix

TOURISM AND HOSPITALITY:2019-23 7

 COURSE SCHEDULE
  Advertising, sales promotion and public relations
Week-13 Developing and managing advertising program, Setting objectives, Deciding the advertising budget, Deciding media and
measuring effectiveness, Sales promotion, Objectives, Major decisions, Public relations, Marketing public relations, Major
decisions in marketing public relations

Week-14 Personal selling and sales management

Principles of personal selling, The six steps, Sales force structure, Sales force size, Managing sales force, Recruiting and selecting
representatives, Training and supervising, Monitoring, evaluating

Week -15 Building the price foundation

Arriving the price foundation, Setting the price
Step:1 selecting the price objective, Step;2 determining demand, Step:3 estimating costs, Step:4 analyzing competitors, Step:5
selection pricing model, Step:6 selecting final price, Adopting price

Week – 16 Group Presentations

Final Examination
TOURISM AND HOSPITALITY:2019-23 8
 COURSE TEXTBOOKS

1. Philip Kotler Kevin lane kller,Araham Koshey, 13th edition

2. Mc-Graw Hill, Co, 11th edition
3. Marketing management; by Peter R Dickson, 2nd edition.
4. Marketing a strategic approach; McColl-Kennedy & Kiel

TOURISM AND HOSPITALITY:2019-23 9

 COURSE GRADING

Mid Term: [30%] for example: 20%

Quizzes: [5%]
Assignments: [5%]
Semester Project: [10%]
Final Exam: [50%]

TOURISM AND HOSPITALITY:2019-23 10

 Tourism Marketing
TM-2041
Lecture no 1_ What is Marketing Management

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Introduction

 Marketing management facilitates the activities and functions which are involved
in the distribution of goods and services.

 Marketing management is concerned with the chalking out of a definite program,

after careful analysis and forecasting of the market situations and the ultimate
execution of these plans to achieve the objectives of the organization.

Subject Name Tourism Marketing 12

 Definition

 According to Philip Kotler: “Marketing management is the analysis, planning,

implementation and control of program designed to bring about desired exchanges
with target markets for the purpose of achieving organizational objectives. It relies
heavily on designing the organizations offering in terms of the target markets
needs and desires and using effective pricing, communication and distribution to
inform, motivate and service the market.”

Subject Name Tourism Marketing 13

 Importance of Marketing Management

 Responsible for the flow of goods and services from the producers to the
consumers.

 Accountable for planning, organizing, directing, coordinating, motivating and

controlling the marketing activities.

 It is the demand management under customer oriented marketing philosophy.

 It is a matter of planning, implementing and controlling the marketing programs.

Subject Name Tourism Marketing 14

 Cont.

 It sets marketing objectives, develops marketing plans, organizes marketing

functions, puts marketing plans and strategies in action and monitors the
marketing programs in the final analysis.

 Marketing management is the marketing concept in action.

Subject Name Tourism Marketing 15

 Requirement for Marketing Management

The ability and the skill of highest order.

 Close appreciation of the consumer and an understanding of forces of change

impacting consumer buying habits and motives.

 Fertile imagination and creative skill in planning to meet the changing conditions
of the market place.

 Skills of coordinating and controlling the wide-spread and complex activities of a

dynamic organization.

Subject Name Tourism Marketing 16

 Objectives of Marketing Management

 Satisfying the needs of customers and giving profits to the business enterprise.

 Creating Customers_ exploring and identifying the needs and requirements of

customers. If a firm is to go and stay in business, it must create new customers.

 Satisfying Customer’s Needs _ requiring regular supply of goods and services of

reasonable quality at fair prices.

Subject Name Tourism Marketing 17

 REFERENCES

• Sharma, M. (n.d.). Marketing Management: Meaning and objectives.

Retrieved from yourarticlelibrary.com:

• Marketing Management: An Asian Perspective - 5th Edition Philip

Kotler, Kevin Lane Keller

Subject Name Tourism Marketing 18

THANKS
 Tourism Marketing
TM-2041
Lecture no 2_ Evolution of Marketing Management

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Evolution of Marketing Concept

 Great Industrial Revolution and change in Marketing Philosophy

 Later half of 18th century and first half of 19th century

 Four periods and captions of change in Marketing Philosophy:

production orientation period

sales-orientation period

customer-orientation period

social orientation period.

Subject Name Tourism Marketing 21

 1. Production Orientation Philosophy

 Duration: Till 1930s

 Concept:

“Good wine needs no push.”

 If the product is really good and the price is reasonable, there is no need for
special marketing efforts.

Subject Name Tourism Marketing 22

 Assumptions:

 Anything that can be produced can be sold

 The most important task of management is to keep the cost of production down.

 A firm should produce only certain basic products.

Subject Name Tourism Marketing 23

 Illustration:

 Production is the starting point. The product acceptability occurs after the product
is produced.

Subject Name Tourism Marketing 24

 2. Sales Orientation Philosophy

 Duration: During 1940s

 Essence:

“Goods are not bought but sold.”

 Effective sales-promotion, advertising and public- relations are of top importance.

High pressure salesmanship and heavy doses of advertising are a must to move the
products of the firm.

Subject Name Tourism Marketing 25

 Assumptions:

 Producing the best possible product.

 Finding the buyer for the product.

 The management’s main task is to convince the buyers through high pressure
tactics, if necessary.

Subject Name Tourism Marketing 26

 Illustration:

Subject Name Tourism Marketing 27

 3. Customer Orientation Philosophy

 Duration: During 1950s

 Essence:

“To commence with the consumer and end with the requisite product.”

 To study and understand the needs, wants, desires and values of potential
consumers and produce the goods in the light of these findings so that consumer
specifications are met totally.

Subject Name Tourism Marketing 28

 Assumptions:

 The firm should produce only that product as desired by the consumer.

 The management is to integrate all its activities in order to develop programs to

satisfy the consumer wants.

 The management is to be guided by ‘long-range profit goals’ rather than ‘quick

sales’.

Subject Name Tourism Marketing 29

 Illustration:

Subject Name Tourism Marketing 30

 4. Social Orientation Philosophy

 Duration: During 1970s and 1980s

 Caring for not only consumer satisfaction but for consumer welfare or social
welfare.

 Speaking of pollution-free environment and quality of human life.

Subject Name Tourism Marketing 31

 Examples:

 A firm manufacturing a pack of cigarettes for consumer must not only produce the
best cigarettes but pollution-free cigarettes.

 An automobile not only fuel efficient but less pollutant one.

Subject Name Tourism Marketing 32

 REFERENCES

Hutton, J. G. (1996). Integrated Marketing Communications and the Evolution of Marketing Thought.
Journal of Business Research, 155-162.

Sharma, M. (n.d.). Evolution of Marketing Concept (With Diagram). Retrieved from

yourarticlelibrary.com: http://www.yourarticlelibrary.com/marketing/evolution-of-marketing-
concept-with-diagram/48793

Subject Name Tourism Marketing 33

THANKS
 Tourism Marketing
TM-2041
Lecture no 3_ Develop Culture Value and Relationships Through Marketing

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Cultural Influences on Marketing Strategies

 People make decisions about consumption of a product based on cultural

influences.

 Focusing on specific cultural groups can open up new markets for companies.

 Product diversification and growth demand consideration of cultural influences of

the society where a new product is being introduced.

Subject Name Tourism Marketing 36

 Cultural Values of a Society

 Values of a society dictate what is acceptable and unacceptable behavior.

 The way this plays out in marketing strategies is that ads focused on individuals
do better in individualistic countries while group advertising works better in
countries with collective group values.

Subject Name Tourism Marketing 37

 Cont.

 Values can sometimes be broadly generalized for an entire country.

 Cultural values vary within a country as well.

 Symbols and Symbolism including language, folklore, drama, music etc _A marketer
would need to conform advertising in such a country into language symbols
acceptable to the population of that particular country.

 Thought Processes can Vary Among Cultures effecting affect the way a marketing
strategy is perceived.

Subject Name Tourism Marketing 38

 Cont.

 Rituals Play a Role (Rituals are patterns of behaviors that are learned and repeated)_
Rituals play an important role in marketing strategies as they focus on consumers'
everyday interactions and how these interactions will play into the promotion and
selling of a product or service.

Subject Name Tourism Marketing 39

 What Is Culture Marketing?

 Culture marketing is a way to translate your culture into compelling content that
piques interest, inspires people, and helps you form a stronger relationship with
them.

 It’s a way to promote what you care about and attract the people who share your
values, from employees, to customers, to business partners.

Subject Name Tourism Marketing 40

 Culture Marketing: A Better Way to Connect and
Compete
 Existing customers: It’s always easier to retain existing customers than recruit
new ones. Through content marketing, you can form a relationship with them at
every stage of their buyer’s journey, including long after your sale is completed.

 Potential customers: Culture marketing helps people get to know who you are
and what you stand for. Whether your culture marketing educates, entertains, or
inspires them, it can be the extra nudge they need to make a buying decision.

 Current Employees: Employee satisfaction is crucial to growing a successful

brand. Culture has a huge effect on their work life. Celebrating that culture
through content helps employees feel more engaged, making them more invested.
Subject Name Tourism Marketing 41
 Cont.
 Prospective Employees: Culture marketing is one of the best ways to attract like-
minded talent. Whether it’s your vision, work space, or team energy that draws them to
you, it’s a great recruiting tool.

 Partners: There are many people outside your immediate eco-system who want to
know who you are before they decide to hire or partner with you (think vendors, non-
profits, industry partners, sponsors, etc). Culture marketing helps them do this.

Subject Name Tourism Marketing 42

 How to Do Culture Marketing

Article/blogs Videos
Interactive Graphics
Data Visualization
Slideshows
Motion Graphics

Infographics

Photos

E-books

Subject Name Tourism Marketing 43

 Key to Successful Culture Marketing

Identifying the stories which are:

Interesting: Culture marketing gives you an awesome opportunity to capture

people’s attention by telling fresh, new stories. These can be found everywhere;
you just have to uncover them.

Unique: One of the biggest advantages of your culture is that it’s entirely unique
to you. Only you have your experience, your specific team, your vision.
Highlighting these traits is a great way to create compelling culture marketing.

Subject Name Tourism Marketing 44

 Creating an Awesome Culture Marketing

1. Start With a Culture Checkup Reassess your core identity

 Identifying core identity which includes: Whether you have a fully documented core
identity
Purpose: Why do you exist?
If it’s accurate
Vision: What future do you want to help
If it’s articulated appropriately
create?
How and where your culture can be better
Mission: How do you create that future?
aligned
Values: Who are you? How do you
work?

Subject Name Tourism Marketing 45

 Cont.
2. Brainstorm Content Ideas

 coming up with 10-20 ideas for each theme

 Share Your Core Values by articulating

 Content inspiring values

Do Good Work
Value Our Partners
Be Good to Each Other
Be Humble
Experiment Often
Subject Name Tourism Marketing 46
 Cont.

3. Showcase Your People

Whether its employees, partners, customers, or leadership, think of ways to shine

the spotlight on the people who make things happen

4. Tell Your Origin Story

A good origin story tells that tale honestly, including both the struggle and the joy.
There are many ways to craft your origin story, whether as an article, interactive,

video, or combination.

Subject Name Tourism Marketing 47

 Cont.

4. Share Your Successes and Failures

Talking about what you’ve learned humanizes you, and helping others avoid your
mistakes is an act of kindness and generosity.

5. Take People behind the Scenes

Trust is crucial to build a relationship, and transparency is a great way to cultivate

trust. Thus, giving people a behind-the-scenes look at your business can make a
powerful impression.

Subject Name Tourism Marketing 48

 REFERENCES
• Alizadeh, H. (2015). Exploring The customer perceived values as Antecedent of purchase behavior. Serbian
Journal of Management .

• Arussy, L. ( 2013, May 1). The Role of Culture in Customer Relationships. Retrieved from destinationcrm:
https://www.destinationcrm.com/Articles/Columns-Departments/Customer-Experience/The-Role-of-Culture-
in-Customer-Relationships-88803.aspx

• Customer Relationships. (n.d.). Retrieved from lumenlearning:

https://courses.lumenlearning.com/boundless-business/chapter/customer-relationships/

• Yildirim, S., Acaray, A. and Candan, B. (2016), "The relationship between marketing culture and
organizational commitment: An empirical study in Turkey", World Journal of Entrepreneurship, Management
and Sustainable Development, Vol. 12 No. 1, pp. 66-80. https://doi.org/10.1108/WJEMSD-08-2015-0035

Subject Name Tourism Marketing 49

THANKS
 Tourism Marketing
TM-2041
Lecture no 4_ Linking Marketing and Corporate Strategies

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 What Is a Corporate Strategy?

 The classic understanding describes corporate strategy as a planned package of

measures for the company to achieve its long-term goals. It focuses on how to
manage resources, risk and return across the business.

 Features:

It is the highest-level document in business.

It lays the foundation for how the business will run.

Short-term objectives are subordinate to the corporate strategy.

Subject Name Tourism Marketing 52

 What Goes Into a Corporate Strategy?

 Corporate strategy force you to make the following clear choices:

What products or services should you develop?

How should you design your organization?

How will you allocate your resources between the various job functions and
projects?
How will balance the level of risk versus return across the organization?

 These four decisions are called the "four pillars" of corporate strategy.

Subject Name Tourism Marketing 53

 Pillars of Corporate Strategy

Portfolio Management

 It includes:
 Deciding which products and services to develop and invest in.
 A SWOT analysis (analysis of your Strengths, Weaknesses, Opportunities and Threats) to
determine what might be helping or standing in the way of you achieving your goals and
objectives.
 Monitoring the growth rate of your products and the actions of competitors to ensure that
you're taking full advantage of any market trends.

Subject Name Tourism Marketing 54

 Cont.
Organizational Design

 It Includes

What business units will you establish?

How much autonomy will those business units have?

How will you allocate resources between the various tasks or functions?

What is an appropriate delegation of authority?

How will the various teams, departments or functions report to each other?

How will you monitor performance, to ensure that nothing gets stuck within a
department and nothing falls between the cracks?
Subject Name Tourism Marketing 55
 Cont.

Allocation of Resources

 Decisions involved are:

Which people have the most valuable skill sets to your business? Are they in
the place they are needed the most? Are you getting the most value out of
them?
Is talent distributed equally across the firm?

How's the hiring pipeline? Will you have the right people with the right skills
to meet business demand in the future?

Subject Name Tourism Marketing 56

 Cont.
Is your capital invested in assets that are making you money? What financial
returns are you getting for every asset you own?

Subject Name Tourism Marketing 57

 Cont.
Strategic Trade-offs

 It includes:

 Analyzing high-risk strategies against the expected level of return, to ensure the
business does not cross its own red lines.
 Looking at what has happened before, both to the business and to its competitors,
and modifying any proposed strategy based on the required level of risk.
 Ensuring the business does not have all its eggs in one basket so a change in
market conditions will not result in disaster.
 Spreading risk over multiple timelines to minimize the impact.
Subject Name Tourism Marketing 58
 What Is a Marketing Strategy?

 A marketing strategy focuses on how to attract and retain customers for the goods
and services your business offers.

 Features:

It is the functional-level strategy.

The marketing strategy is your middle layer, linking marketing and corporate
strategies.

Subject Name Tourism Marketing 59

 What Goes Into a Marketing Strategy?

 Who is the ideal customer?

 What does this customer need and how does your business satisfy that need?

 How will you go about attracting this customer?

 How can you talk to this customer to get them interested in your product?

Subject Name Tourism Marketing 60

 Pillars of Marketing Strategy

Product Policy
 Making the product as attractive as possible to the target audience

 Adding value to the customer

 Stopping customer heading off to a competitor

Subject Name Tourism Marketing 61

 Cont.

Pricing Policy

 Variables involved:

If price is higher than customer’s bearing capacity, then sale will be lesser.

If underprice product is there, customer would assume it as low quality.

 The pricing policy strikes a balancing act between these variables.

Subject Name Tourism Marketing 62

 Cont.

Placement Policy

 The placement policy looks at how you're going to get the product to the
customer.

 Placements also look at distribution and distribution of the product once it has
been purchased.

 Depending on the product, a mix of placement policies may achieve the best
results.

Subject Name Tourism Marketing 63

 Cont.

Promotion Policy

 The promotion strategy is all about communication:

How will you get the word out about your product?

Which advertising channels will you use?

What are the core messages that will resonate with the target audience?

 The marketing strategy will look at the overall budget and decide how will it be
allocated among the different channels.

Subject Name Tourism Marketing 64

 Difference Between Corporate and Marketing
Objectives
Corporate Strategy Marketing Strategy
High level strategy Functional level strategy
Complex Simpler
Geared towards long-term business Geared towards daily basis targets
growth

Tourism Marketing 65
 References

Strategic Marketing: Linking Marketing and Corporate Planning Frederik D.

Wiersema European Journal of Marketing Publication date: 1 June 1983

Ryerson.M,(2000), LINKING MARKETING AND CORPORATE STRATEGIES

Deflorin.P (May 7, 2007),Linking Corporate, Marketing and Manufacturing

Strategy:

Subject Name Tourism Marketing 66

THANKS
 Tourism Marketing
TM-2041
Lecture no 5_ Functions of Marketing Management

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Functions of Marketing Management
 Selling

 Buying and Assembling

 Transportation

 Storage

 Standardization and Grading

 Financing

 Risk Taking

 Market Information
Subject Name Tourism Marketing 69
 1. Selling:

 Core of Marketing

 Involves transfer of ownership of goods to the buyer

 Determines business’ profitability volume

 Could be enhanced by personal selling, advertising, publicity and sales promotion

Subject Name Tourism Marketing 70

 2. Buying and Assembling:
 Buying involves what to buy, of what quality, from whom, how much, when and at what
price.

 Types of Buyers:
 Businessmen buy to increase sales or to decrease costs
 Retailers buy for resale after determining the needs and preferences of their customers
 Manufacturer buys raw materials, spare parts, machinery, equipment for carrying out
his production process and other related activities
 A wholesaler buys products to resell them to the retailers

Subject Name Tourism Marketing 71

 Assembling:
 Assembling means to purchase necessary component parts and to fit them
together to make a product.

 Assembly Operation:

Arrival of individual component parts at the work place

Issuance of these parts to be fastened together

Forming an assembly or sub-assembly

 Assembly line indicates a production line made up of purely assembly operations.

It is an arrangement of workers are machines to pass to pass work from one to
other with specific duties until the product is ready.
Subject Name Tourism Marketing 72
 3. Transportation:
 Physical movement of goods from place of production to the place of
consumption.

 Importance of transportation:

Essential from the procurement of raw material to the delivery of finished

products
Determine the extent of the marketing area

Determine the regularity in supply

Determine uniform price maintenance

Determine easy access to the supplier or seller

Subject Name Tourism Marketing 73
 4. Storage:

 Holding of goods in proper condition from the time they are produced until they
are needed by customers or by the production department.

 Goods may be stored in various warehouses

 Importance:

protects the goods from deterioration

helps in carrying over surplus for future consumption or use in production

Subject Name Tourism Marketing 74

 5. Standardization and Grading:

 Standardization means establishment of certain standards or specifications for

products based on intrinsic physical qualities of any commodity.
This may involve quantity (weight or size) or it may involve quality (color,
shape, appearance, material, taste, sweetness etc).

 Grading means classification of standardized products into certain well defined

classes or groups.
It involves the division of products into classes made of units possessing
similar characteristics of size and quality.

Subject Name Tourism Marketing 75

 6. Financing:

 Financing is use of capital to meet financial requirements of agencies dealing

with various activities of marketing.

 Need: for working capital and fixed capital.

 Kinds:

short-term finance

medium-term finance

long-term finance.

Subject Name Tourism Marketing 76

 7. Risk Taking:
 Risk means loss due to some unforeseen circumstances in future.

 Risk bearing in marketing refers to the financial risk interest in the ownership of
goods held for an anticipated demand.

 Reasons:

Changes in market conditions

Natural causes and human factors

Changes in fashion or inventions

Legislative measures of government may also cause risks

Subject Name Tourism Marketing 77

 7. Risk Taking:
Course of transportation.

Decay, deterioration and accidents

Fluctuation in the prices caused by changes in their supply and demand.

Subject Name Tourism Marketing 78

 8. Market Information:

 Marketing information makes a seller know when to sell, at what price to sell,
who are the competitors, etc.

 Importance:

reduce the aforesaid risks

contribute to cost reduction

Subject Name Tourism Marketing 79

 8. Market Information:

 Who need Market Information:

Business firms collect analyses and interpret facts and information

Retailers need to know about sources of supply and about customers

Manufacturers need to know about retailers and advertising media

Consumers need to know about availability of products, quality standards,

prices after sale service facility

Subject Name Tourism Marketing 80

 REFERENCES

 Chand, S. (n.d.). 8 Main Functions of Marketing | Marketing Management.

Retrieved from yourarticlelibrary.com:

 http://www.yourarticlelibrary.com/marketing/marketing-management/8-main-
functions-of-marketing-marketing-management/27958

81
Subject Name Tourism Marketing
THANKS
 Tourism Marketing
TM-2041
Lecture no 6_ Marketing Strategies

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Marketing Strategy

 Marketing strategy is all of a company’s marketing goals and objectives combined

into a single comprehensive plan.

 It is a strategy designed to promote a good or service and make a profit.

 Purpose:

helps companies identify their best customers

helps to understand consumers’ needs

helps implementing the most effective marketing methods

Subject Name Tourism Marketing 84

 Developing a Marketing Strategy

 It is a wide-reaching and comprehensive strategic planning tool that:

describes your business and its products and services

explains the position and role of your products and services in the market

profiles your customers and your competition

identifies the marketing tactics you will use

allows you to build a marketing plan and measure its effectiveness

Subject Name Tourism Marketing 85

 Writing a Successful Marketing Strategy

Identify your Business Goals

 Your business goals might include:

increasing awareness of your products and services

selling more products from a certain supplier

reaching a new customer segment

Subject Name Tourism Marketing 86

 Writing a Successful Marketing Strategy

 A simple criteria for goal-setting is the SMART method:

Specific - state clearly what you want to achieve

Measurable - set tangible measures so you can measure your results

Achievable - set objectives that are within your capacity and budget

Relevant - set objectives that will help you improve particular aspects of your
business
Time-bound - set objectives you can achieve within the time you need them.

Subject Name Tourism Marketing 87

 Cont.
State your marketing goals
 Define a set of specific marketing goals based on the business goals.

 They should be clear and measurable

 Have time frames for achievement

 Should be flexible, could be changed according to change in environment.

Subject Name Tourism Marketing 88

 Cont.

Research your market

 Gather information about your market, such as its size, growth, social trends and
demographics.

 Keeping an eye on your market so you are aware of any changes over time, so
your strategy remains relevant and targeted.

Subject Name Tourism Marketing 89

 Cont.

Profile your potential customers

 Use your market research to develop a profile of the customers you are targeting
and identify their needs.

 The profile will reveal their buying patterns, including how they buy, where they
buy and what they buy.

Subject Name Tourism Marketing 90

 Cont.

Profile your competitors

 Develop a profile of your competitors by identifying their products, supply chains,

pricing and marketing tactics.

 Use this to identify your competitive advantage - what sets your business apart
from your competitors.

Subject Name Tourism Marketing 91

 Cont.

Develop strategies to support your marketing goals

 List your target markets and devise a set of strategies to attract and retain them.

Subject Name Tourism Marketing 92

 Cont.

Use the '7 Ps of marketing

 Identify your tactical marketing mix using the 7 Ps of marketing.

 If you can choose the right combination of marketing across product, price,
promotion, place, people, process and physical evidence, your marketing strategy
is more likely to be a success.

Subject Name Tourism Marketing 93

 SWOT Analysis

What Is a SWOT Analysis?

 SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT Analysis is a technique for assessing these four aspects of your business.

 You can use SWOT Analysis to make the most of what you've got, to your
organization's best advantage. And you can reduce the chances of failure, by
understanding what you're lacking, and eliminating hazards that would otherwise
catch you unawares.

Subject Name Tourism Marketing 94

 Cont.

How to Do a SWOT Analysis

 Strengths are things that your organization does particularly well, or in a way that
distinguishes you from your competitors.
Think about the advantages your organization has over other organizations.
These might be the motivation of your staff, access to certain materials, or a
strong set of manufacturing processes.

Subject Name Tourism Marketing 95

 Cont.

 Weaknesses is to consider your organization's weaknesses.

Weaknesses, like strengths, are inherent features of your organization, so focus

on your people, resources, systems, and procedures. Think about what you
could improve, and the sorts of practices you should avoid.

Subject Name Tourism Marketing 96

 Cont.

 Opportunities are openings or chances for something positive to happen.

 They usually arise from situations outside your organization, and require an eye to
what might happen in the future.
 They might arise as developments in the market you serve, or in the technology you
use.

 Threats include anything that can negatively affect your business from the outside, such
as supply chain problems, shifts in market requirements, or a shortage of recruits.
 It's vital to anticipate threats and to take action against them before you become a
victim of them and your growth stalls.
Subject Name Tourism Marketing 97
 References
 https://www.entrepreneur.com/article/299335

 https://www.slideshare.net/NishantAgrawal14/chapter-2-developing-marketing-
strategies-and-plans-58792263

 https://www.business.qld.gov.au/running-business/marketing-sales/marketing-
promotion/strategy

 Book Name:Marketing Strategy customer and competition written by Steven

P.Scnaars, Second and revised Addition

 https://www.mindtools.com/pages/article/newTMC_05.htm

Subject Name Tourism Marketing 98

THANKS
 Tourism Marketing
TM-2041
Lecture no 7_ Environmental Analysis

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Environmental Analysis

 All relevant external forces should be analyzed as part of an ongoing planning

process, in order to identify any changes in the operating environment, which
could either represent a threat to the firm’s current position or an opportunity to
gain additional competitive advantage. This process is known as environment
scanning or analysis.

Subject Name Tourism Marketing 101

 External Forces

 The external forces, also known as the macro environment, are often outside the
control of the firm: the macro environment is made up of those variables that
affect the entire economy, and it includes factors such as GDP, monetary and
fiscal policy, government expenditure, employment rate, and inflation.

Subject Name Tourism Marketing 102

 Needs and Trends of the Macro Environment

 Needs:

Stability

Proper macroeconomic strategy

 Trends

Often interfere with needs

Like changes in market prices, strikes, and tariffs on exports

Subject Name Tourism Marketing 103

 Concept of Macro environment and Its Dimensions
Macro Environment

 According to Gerald Bell, “Organization’s external environment consists of those

things outside a company such as customers, competitors, government units,
suppliers, financial firms and labor pools that are relevant to a company’s
operations.”

 Philip Kotler defines it as: “The environment is the totality of forces and
institutions that are external and potentially relevant to the firm and it consists of
four levels-the task environment, the competitive environment, the public
environment and the macro environment.”
Subject Name Tourism Marketing 104
 Dimensions of Macro Environment
 Economic Environment is concerned with the analysis of all economic
developments that directly and indirectly affect the product-market complex of the
company.

 It consists of:

general economic condition

industrial condition

state of supply of essential resources for production

major supply factors that directly bear upon the operation of a company

Network of supplies of inputs

Subject Name Tourism Marketing 105
 Cont.
 Technological Environment deals with the shape of manufacturing technology,
rate of development of new products and processes and new usage of existing
products, rate of technological obsolescence, etc

 Stages of Technological change:

invention

innovation

diffusion

Subject Name Tourism Marketing 106

 Cont.
 Aspects of change:

change brought about for marketing reasons, often involving the creation of
entirely new products or new uses for existing products
change in processes, production methods and other technology, which bring
about change in the way in which the existing product is made and packed

Subject Name Tourism Marketing 107

 Cont.
 Competitive Environment

 Reasons:

technological restructuring

growing similarity of countries in terms of available infrastructure

fluid global capital markets

growing adoption by most of the developing nation

the policy of integrating economies to global economy

liberalization

deregulation and changing attitudes of the multitudes

Subject Name Tourism Marketing 108
 Cont.
 Political Environment has an impact on the operations of a company right from its
incorporation to liquidation, is concerned with the study of attitudes and actions of political
and government leaders and legislators.

 Important considerations:

stability of the government

relations between central and state governments

economic policies and laws of the government

foreign policy of the government, and diverse roles being played by the government

relations between ruling and opposition political parties

Subject Name Tourism Marketing 109
 Cont.

 Demographic Environment: scanning the demographic environment and

identifying the broad characteristics of the population that affects a company.

 Factors:

trends in size

Ageing

geographical shifts

literacy of population

Subject Name Tourism Marketing 110

 Cont.

 Socio-Cultural Environment is concerned with analysis of the attitudes, values,

desires, expectations, degrees of intelligence and education, beliefs and customs
of people in a society traditions and social institutions, class structure and social
structure and social group pressure and dynamics.

 Important Considerations:

changing values and expectations of different sections of the society

their likely impact on the operations of the enterprise

Subject Name Tourism Marketing 111

 References
Camilleri, M. A. (2018). The Marketing Environment. In Travel Marketing,
Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham,
Switzerland.

Collinson,E.(n.d). The Marketing Environment

Gerald D. Bell, organisation and the External Environment, J.W. Me. Guire (ed.)
Contemporary Management, Prentice Hall, Eaglewood Cliffs, N.J. Prentice Hall,
1974, p. 26

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982, pp 95-96
Subject Name Tourism Marketing 112
THANKS
 Tourism Marketing
TM-2041
Lecture no 8_ Tourism Marketing

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 CONSUMER BEHAVIOR

Consumer:

  Consumers are those individuals who purchase commodities for deriving utilities
and using them to satisfy their needs

Behavior:

 Behavior is defined as “the series of innumerable responses portrayed by

individuals.”

Subject Name Tourism Marketing 115

 CONSUMER BEHAVIOR

 Consumer behavior is the study of how people make decisions about what they buy,
want, need, or act in regards to a product, service, or company.

 According to Louden and Bitta, ‘consumer behavior is the decision process and
physical activity, which individuals engage in when evaluating, acquiring, using or
disposing of goods and services’.

 According to Engel, Blackwell, and Mansard, ‘consumer behavior is the actions and
decision processes of people who purchase goods and services for personal consumption’

Subject Name Tourism Marketing 116

 Example

 A recent example of a change in consumer behavior is the eating habits of

consumers that dramatically increased the demand for gluten-free (GF)
products. The companies that monitored the change in eating patterns of
consumers created GF products to fill a void in the marketplace.

Subject Name Tourism Marketing 117

 Why is consumer behavior important?
• Studying consumer behavior is important to understand what influences consumers’
buying decisions.
• To make better strategies for increasing profits.
• To take into consideration customer’s health, hygiene & fitness.
• To know the buying decisions and how consumer make consumption.
• Consistent change in Consumer’s tastes or preferences.
• Consumer behavior study is necessary to make pricing policies.

Subject Name Tourism Marketing 118

 Why is consumer behavior important?
• To avoid future market failures
• To identify the products that are needed and the products that are obsolete.
• It helps marketers decide how to present their products in a way that generates
maximum impact on consumers.

Subject Name Tourism Marketing 119

 Types of Consumer Behavior:

Types of
Consumer
Behavior

Variety Dissonance
Complex Habitual
Seeking Reducing

Subject Name Tourism Marketing 120

 Types of Consumer Behavior
There are four main types of consumer behavior:

1. Complex buying behavior

This type of behavior is encountered when consumers are buying an expensive, infrequently bought
product. They are highly involved in the purchase process and consumers’ research before committing
to invest. Imagine buying a house or a car; these are an example of a complex buying behavior

2. Dissonance-reducing buying behavior

The consumer is highly involved in the purchase process but has difficulties determining the differences
between brands. ‘Dissonance’ can occur when the consumer worries that they will regret their choice.
Imagine you are buying a lawnmower. You will choose one based on price and convenience, but after the
purchase you will seek confirmation that you’ve made the right choice.

Subject Name Tourism Marketing 121

 Cont.
3. Habitual buying behavior

Habitual purchases are characterized by the fact that the consumer has very little
involvement in the product or brand category. Imagine grocery shopping: you go to the
store and buy your preferred type of bread. You are exhibiting a habitual pattern, not strong
brand loyalty.
4. Variety seeking behavior
In this situation, a consumer purchases a different product not because they weren’t
satisfied with the previous one, but because they seek variety. Like when you are trying out
new shower gel scents.
Subject Name Tourism Marketing 122
 What influence consumer behavior?
Culture
factors

Factors
Social Factors
Influencing Personal
Factors
Consumer
Behavior

Psychological
Factors

Subject Name Tourism Marketing 123

 What influence consumer behavior?

Consumer behavior is often influenced by different factors .There are three categories of
factors that influence consumer behavior:
1. Personal factors:
An individual’s interests and opinions that can be influenced by demographics (age,
gender, culture, etc.).
2. Psychological factors:
An individual’s response to a marketing message will depend on their perceptions and
attitudes.

Subject Name Tourism Marketing 124

 Cont.

3. Social factors:
Family, friends, education level, social media, income, they all influence consumers’
behavior.
4. Cultural Factors:

Culture factor expert a broad and deep influence on consumer Behavior. Marketers need
to understand the role played by the buyer’s culture, sub Culture and social Class

Subject Name Tourism Marketing 125

 References

Principles of Marketing by Philip Kotler & Gary Armstrong 16th Edition (pp 166-
182)

Subject Name Tourism Marketing 126

THANKS
 Tourism Marketing
TM-2041
Lecture no 9_ Tourism Marketing

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Factors Influencing Customer Behavior
We have four main factors that affect consumer behavior they are;

Culture Groups and Age and Life

Social factor

Personal
Cultural Factors

Psychological
Motivation
Sub Culture social Networks Cycle Stage
Perception
Social Class Family Occupation Learning
Roles and Status Economics Beliefs and
Situation Attitude
Life Style
Personality and
Self Concept

Subject Name Tourism Marketing 129

 Cultural Factors:
• Culture is a very complex belief of human behavior it includes the human society, the
roles that the society plays, the behavior of the society, its values customs and traditions.
Culture needs to be examined as it is a very important factor that influences consumer
behavior.

• Every Group and Society has a culture, and cultural influence on buying behavior may
vary greatly from country to country.

• Marketers are always trying to spot cultural shifts so as to discover new products that
might be wanted.

Subject Name Tourism Marketing 130

 Sub culture:

 Each culture contains different subcultures such as religions, nationalities,

geographic regions, racial groups etc. Marketers can use these groups by
segmenting the market into various small portions. For example marketers can
design products according to the needs of a particular geographic group.

 Examples of three important subculture groups are Hispanic American, African

American and Asian American Consumers

Subject Name Tourism Marketing 131

 Social Class:

• Every society possesses some form of social class which is important to the
marketers because the buying behavior of people in a given social class is similar.

• In this way marketing activities could be tailored according to different social

classes. Here we should note that social class is not only determined by income
but there are various other factors as well such as: wealth, education, occupation
etc.
Upper Middle Working Lower
class Class Class class

Subject Name Tourism Marketing 132

 Social Factor

 Social factors also impact the buying behavior of consumers. The important social
factors are:

1. Reference groups Reference

2. Family
Groups

3. Role and status

Role and
Family
Status

Subject Name Tourism Marketing 133

 Reference Group
 Reference groups have potential in forming a person attitude or behavior. The
impact of reference groups varies across products and brands.

 For example if the product is visible such as dress, shoes, car etc then the
influence of reference groups will be high. Reference groups also include opinion
leader (a person who influences other because of his special skill, knowledge or
other characteristics).

Subject Name Tourism Marketing 134

 Membership & Reference Group:

 Groups that have a direct influence and to which a person belongs are called
membership group

 Reference group server as direct face to face interaction or indirect points of

comparison or reference in forming a person’s attitude and behavior. People often
are influenced to which they do not belong.

Subject Name Tourism Marketing 135

 Family
 Buyer behavior is strongly influenced by the member of a family. Therefore
marketers are trying to find the roles and influence of the husband, wife and
children.

 If the buying decision of a particular product is influenced by wife then the

marketers will try to target the women in their advertisement. Here we should note
that buying roles change with change in consumer lifestyles.

Subject Name Tourism Marketing 136

 Role and Status

 Each person possesses different roles and status in the society depending upon the
groups, clubs, family, organization etc. to which he belongs.

 For example a woman is working in an organization as finance manager. Now she

is playing two roles, one of finance manager and other of mother. Therefore her
buying decisions will be influenced by her role and status.

Subject Name Tourism Marketing 137

 Word of mouth influence and Buzz marketing

 Word of mouth influence can have a powerful impact on consumer buying

behavior. The personal words and recommendations of trusted friends, associates
and other consumer tend to be more credible than those concerning from
commercial source

 Opinion leader- a person within a reference group who, because of special skills,
knowledge, personality or other characteristics, exerts social influence on others.

Subject Name Tourism Marketing 138

 References

Principle of marketing by Philip Kotler and Gary Armstrong 16th edition ( pp 168-
172)

http://EzineArticles.com/?Factors-Affecting-Consumer-Behavior&id=4602848

Subject Name Tourism Marketing 139

THANKS
 Tourism Marketing
TM-2041
Lecture no 10_ Environmental Analysis

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Environmental Analysis

 All relevant external forces should be analyzed as part of an ongoing planning

process, in order to identify any changes in the operating environment, which
could either represent a threat to the firm’s current position or an opportunity to
gain additional competitive advantage. This process is known as environment
scanning or analysis.

Subject Name Tourism Marketing 142

 Factors Influencing Customer Behavior
We have four main factors that affect consumer behavior they are;

Culture Groups and Age and Life

Social factor

Personal
Cultural Factors

Psychological
Motivation
Sub Culture social Networks Cycle Stage
Perception
Social Class Family Occupation Learning
Roles and Status Economics Beliefs and
Situation Attitude
Life Style
Personality and
Self Concept

Subject Name Tourism Marketing 143

 Personal Factors:
 Personal factors can also affect the consumer behavior. Some of the important
personal factors that influence the buying behavior are:

 lifestyle

 economic situation
Lifestyle
 occupation

 age Economic
Situation

 personality
Occupation Age

 self concept
Subject Name Tourism Marketing 144
 Age:

 Age and life-cycle have potential impact on the consumer buying behavior. It is
obvious that the consumers change the purchase of goods and services with the
passage of time.

 Family life-cycle consists of different stages such young singles, married couples,
unmarried couples etc which help marketers to develop appropriate products for
each stage.

Subject Name Tourism Marketing 145

 Occupation:

• The occupation of a person has significant impact on his buying behavior.

• For example a marketing manager of an organization will try to purchase business

suits, whereas a low level worker in the same organization will purchase rugged
work clothes.

Subject Name Tourism Marketing 146

 Economic Situation:

 Consumer economic situation has great influence on his buying behavior.

 If the income and savings of a customer is high then he will purchase more
expensive products.

 On the other hand, a person with low income and savings will purchase
inexpensive products.

Subject Name Tourism Marketing 147

 Lifestyle:

 Lifestyle is a person's pattern of living as expressed in his or her psychographics.

 Lifestyle of customers is another import factor affecting the consumer buying

behavior.

 Lifestyle refers to the way a person lives in a society and is expressed by the
things in his/her surroundings. It is determined by customer interests, opinions,
activities etc and shapes his whole pattern of acting and interacting in the world.

Subject Name Tourism Marketing 148

 Personality:

• Personality refers to the unique psychological character that distinguish a person or group.
Personality is usually describe in terms of traits such as self confidence, dominance,
sociability, autonomy, defensiveness, adaptability and aggressiveness

• Personality changes from person to person, time to time and place to place. Therefore it
can greatly influence the buying behavior of customers. Actually, Personality is not what
one wears; rather it is the totality of behavior of a man in different circumstances.

• It has different characteristics such as: dominance, aggressiveness, self-confidence etc

which can be useful to determine the consumer behavior for particular product or service.

Subject Name Tourism Marketing 149

 Psychological Factors:
 There are four important psychological factors affecting the consumer buying
behavior.

 These are:

 Perception

 Motivation
Beliefs

 Learning Attitude
Learning
Motivation
 Beliefs Perception

 Attitudes

Subject Name Tourism Marketing 150

 Motivation:

 A Motive is a need that is sufficiently pressing to direct the person to seek

satisfaction.

 The level of motivation also affects the buying behavior of customers. Every
person has different needs such as physiological needs, biological needs, social
needs etc.

 The nature of the needs is that, some of them are most pressing while others are
least pressing. Therefore a need becomes a motive when it is more pressing to
direct the person to seek satisfaction.

Subject Name Tourism Marketing 151

 Perception:
 Selecting, organizing and interpreting information in a way to produce a meaningful
experience of the world is called perception.
There are three different perceptual processes which are:

 selective attention,
SelectiveRetention
Selective Distortion
Attention

 selective distortion

 selective retention.

 In case of selective attention, marketers try to attract the customer attention. Whereas, in
case of selective distortion, customers try to interpret the information in a way that will
support what the customers already believe.
Subject Name Tourism Marketing 152
 Beliefs and Attitudes:

• Customer possesses specific belief and attitude towards various products. Since such
beliefs and attitudes make up brand image and affect consumer buying behavior
therefore marketers are interested in them. Marketers can change the beliefs and
attitudes of customers by launching special campaigns in this regard.

Subject Name Tourism Marketing 153

 References

Collinson,E.(n.d). The Marketing Environment

Factors Affecting Consumer Behavior by Asifo Shah, Submitted On July 04, 2010

Philip Kotler, Principles of marketing. 16th Edition pp 175-180

Subject Name Tourism Marketing 154

THANKS
 Tourism Marketing
TM-2041
Lecture no 11_ Organizational Market

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Organizational Market
 Organizational markets are markets in which companies and individuals purchase
goods for purposes other than personal consumption. These markets are characterized by
having fewer buyers, but larger purchase volumes, than consumer markets do.

 Organizational Market have four components Non Profit Market

 Industrial Market Government

Market
 Reseller Market Reseller Market

 Government Market
Industrial Market
 Non Profit Market

Subject Name Tourism Marketing 157

 Business Market
 Business Market sells products and services to other businesses for use in their
daily operations or for making other products and services

 Business organizations buy products & services to satisfy many objectives like
production of other goods & services, making profits, reducing costs, & so on.
Characteristics of Business market are:

 Relationship driven

 Maximize the value of the relationship

 Small, focused target market

Subject Name Tourism Marketing 158

 Business Market
 Multi-step buying process, longer sales cycle

 Brand identity created on personal relationship

 Educational and awareness building activities

 Rational buying decision based on business value

Subject Name Tourism Marketing 159

 Consumer Market
 Consumer marketing is the marketing of products & services to individuals, families, &
households. The consumers buy products & services for their own consumption.

 Characteristics of Consumer markets are:

 Product driven

 Maximize the value of the transaction

 Large target market

 Single step buying process, shorter sales cycle

 Brand identity created through repetition and imagery

 Merchandising and point of purchase activities

Subject Name Tourism Marketing 160
 Business market Vs Consumer Market
Areas Business Market Consumer Market
 Market Characteristics • Geographically concentrated • Geographically Distributed
• Relatively Fewer buyers • Mass Markets
 Product Characteristics • Technical Complexity • Standardized
• customized
 Service Characteristics • Service, timely delivery & availability is very • Service, timely delivery & availability is somewhat
important important

 Buying Behavior • Involvement of various functional areas in both • Involvement of family members
buyer& supplier Firms • Purchase decision are mostly made on
• Purchase Decisions are mainly made on psychological/Social/psychological needs
rational/performance basis. • Less technical expertise
• Technical expertise • Non personal relationship
• Stable interpersonal relationship between buyer &
seller

 Channel Characteristics • More Direct • Indirect

• Fewer intermediaries • Multiple layers of intermediaries
 Price Characteristics • Competitive bidding • List price or maximum retail price
• List price for standard products

Subject Name Tourism Marketing 161

 Consumer Market

Subject Name Tourism Marketing 162

 Business Market

Subject Name Tourism Marketing 163

 References

Collinson(E.n.d). The Marketing Environment

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982

Philip Kotler, Principles of Marketing 16th Edition

• A Guide to Types of Market Structures Posted November 28, 2017 By Aurora
University.

Subject Name Tourism Marketing 164

THANKS
 Tourism Marketing
TM-2041
Lecture no 12_ Market Structure and Demand

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Market Structure and Demand

Fewer and
Larger Buyers

Geographic
Concentration
Derived Demand
1.Inelastic Demand
2.Fluctuating Demand
Buyer and
Seller
dependency
Subject Name Tourism Marketing 167
 Market Structure and Demand
• Business markets involve much more volume in terms of dollars and items than consumer
markets.

• The major industries in B2B marketing are agriculture, forestry and fisheries; mining;
manufacturing; construction; transportation; communication; public utilities; banking, finance
and insurance; distribution; and services.

• The business marketer normally deals with far fewer buyers than the consumer marketer. These
are generally large buyers having close supplier ‐customer relationships which allow sellers to
customize their offerings.

• The demand for business goods is derived demand– i.e., demand is ultimately derived from the
demand for consumer goods.
Subject Name Tourism Marketing 168
 Market Structure and demand
• Marketers must closely monitor the buying patterns of ultimate consumers. Many
business goods and services exhibiting elastic demand– they are not much
affected by price changes, especially in the short term. Drug companies won’t
vary the amount of Sulphur they buy because of the price, but may change
suppliers.

• Finally, the demand for business goods and services tends to be more volatile and
fluctuating than the demand for consumer goods and services. This is especially
true of the demand for new plant and equipment.

Subject Name Tourism Marketing 169

 Market Structure and demand

A small percentage increase in consumer demand can cause large increases in
business demand. Sometimes a rise of only 10 percent in
consumer demand can cause as much as a
200 percent rise in business demand during the next period.

Subject Name Tourism Marketing 170

 Market Structure and demand

Subject Name Tourism Marketing 171

 Types of Market Structures
• There are four basic types of market structures.

Pure Competition

Monopolistic
Competition

Oligopoly

Pure Monopoly

Subject Name Tourism Marketing 172

 Pure Competition
• Pure or perfect competition is a market structure defined by a large number of
small firms competing against each other. A single firm doesn’t have significant
marketing power, and as a result, the industry produces an optimal level of output
because firms don’t have the ability to influence market prices .

• Supply and demand determine the amount of goods and services produced, along
with the market prices set by the companies in the market. Products are identical
to competitors’ products, and there are no significant barriers to entering and
exiting the market.

Subject Name Tourism Marketing 173

 Monopolistic Competition

• Monopolistic competition is a market structure referring to a large number of small firms

competing against each other. However, firms in monopolistic competition sell similar but
highly differentiated products. Lowest possible cost production, which leads to optimal
output in a pure competition market structure, is not assumed.

• These factors give firms in a monopolistic competition market power to charge higher prices
within a certain range. The products are remarkably similar, but small differences become
the basis for firms’ marketing and advertising. Differentiation can include style, brand name,
location, packaging, advertisement, pricing strategies and more

Subject Name Tourism Marketing 174

 Monopolistic Competition
• Examples include fast food restaurants, clothing stores, breakfast cereal companies,
service and repair markets, tutoring companies and beauty salons and spas. Products and
services at a beauty salon are quite similar, but these companies will use certain value
propositions, such as quality of services and appealing pricing, to draw more customers.
They may even advertise brand-name beauty products that are themselves in monopolistic
competition — there is little that separates makeup and hair products, as far as what
constitutes these products and their use.

• Producers freely enter the market when profits are attractive. There is easy entry and exit
in monopolistic competition.
Subject Name Tourism Marketing 175
 Oligopoly
• An oligopoly is dominated by a few firms, resulting in limited competition. They
can collaborate with or compete against each other to use their collective market
power to drive up prices and earn more profit.

• Entering into an oligopoly is difficult. The most powerful companies have control
over raw materials, patents and financial and physical resources that create
barriers for potential entries. This is what helps set high prices. However, if prices
are too high, buyers will head to product substitutes in the market.

Subject Name Tourism Marketing 176

 Oligopoly
• An Products may be homogenous or differentiated. Typically, there are three to five
dominant firms, but this number can vary depending on the market. For instance,
video gaming consoles are an oligopoly with three companies — Microsoft, Sony
and Nintendo — dominating the market. Other examples of oligopolies are the
automobile and gasoline industries.

• Pricing, profits and production levels change as the dynamic relationship between
sellers and buyers changes.

Subject Name Tourism Marketing 177

 Pure Monopoly
• A monopoly exists when there’s a single firm that controls the entire market. The
firm and industry are synonymous. This firm is the sole producer of a product, and
there are no close substitutes. Because there are no alternatives, the firm has the
highest level of market power. Hence, monopolists often reduce output, increase
prices and earn more profit.

• Entry or exit is blocked in a pure monopoly. This can occur for more than one
reason, as seen in two of the best examples for pure monopolies: public utilities and
professional sports leagues.

Subject Name Tourism Marketing 178

 Oligopoly
• Public utilities are considered natural monopolies because they have economies of
scale a firm receives certain cost advantages due to its size in an extreme way. New
firms cannot start up because it would be incredibly expensive to reach scale in a
short amount of time. Building a maze of pipes and wires to be able to compete
with the firm would require a lot of capital, and there would be legal barriers to
entry. That’s why there are typically government monopolies (or government
regulations) for natural monopolies.

Subject Name Tourism Marketing 179

 References

Collinson(E.n.d). The Marketing Environment

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982

Philip Kotler, Principles of Marketing 16th Edition

• A Guide to Types of Market Structures Posted November 28, 2017 By Aurora
University.

Subject Name Tourism Marketing 180

THANKS
 Tourism Marketing
TM-2041
Lecture no 13_ Organizational Market

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Organizational Market
Industrial Government Non Profit
Reseller Market
Market Market Organization
• Manufacturers • Wholesaler • National • National
• Farms, • Retailers • Local Groups like
Fisheries, boys Scouts,
forestry, Red Cross,
Mining Knights of
operations, Columbus
Construction
firms

Financial Institutions Local Groups like

churches, colleges,
museums
Other services providers
like transports, firms,
utilities, Hotel, lawyer,
Doctors

Subject Name Tourism Marketing 183

 Industrial Markets

  Industrial market, which includes individuals and companies that

buy goods and services in order to produce other goods and services.

 Reprocess a product or service they buy before selling it again to the

next buyer.

 The industrial markets include over

 11 million firms

 26% selling physical products

 73% selling diverse services.

Subject Name Tourism Marketing 184

 Reseller Market

  Wholesalers and retailers who buy physical products and resell them

again without any reprocessing.

 1.6 million retailers

 521,000 wholesalers

Subject Name Tourism Marketing 185

 Government Market
• The government market offers large opportunities for many companies, both big and s
mall. In most countries, government organizations are major buyers
of goods and services. Government buying and business buying are similar
in many ways. But there are also differences that must be
understood by companies that wish to sell products and services to governments. To su
cceed inthe government market, sellers must locate key decision makers, identify the f
actors that affect buyer behavior, and understand the buying decision process.

Subject Name Tourism Marketing 186

 Government Market
Government organizations typically require suppliers to submit bids, and normally they award th
e contract to the lowest bidder. In some cases, the government unit will make allowance for the
supplier's superior quality or reputation for completing contracts on time. Many companies that
sell to the government have not been marketing oriented for a number of reasons.

Subject Name Tourism Marketing 187

 Government Market
• Total government spending is determined by elected officials rather than by any marketing effort to
develop this market. Government buying has emphasized price, making suppliers invest  heir
effort in technology to bring costs down. When the product's characteristics are specified carefully,
product differentiation is not a marketing factor. Nor do advertising or personal selling matter
much in winning bids on an open-bid basis.

• Federal, state, and local agencies that buy goods and services for the constituents they serve.

• 88,000 government units

Subject Name Tourism Marketing 188

 Institutional Market

• The institutional market consists of schools, hospitals, nursing homes, prisons, and institu
tions that provide goods and services to people in their care. Institutions differ from one
another in their sponsors and in their objectives. 

• Many institutional markets are characterized low budgets and captive patrons. For examp
le, hospital patients have little choice but to eat whatever food the hospital supplies. 

Subject Name Tourism Marketing 189

 Institutional Market

A hospital-purchasing agent has to decide on the quality of food to buy for patients. Because the food is provided as a part of

a total service package, the buying objective is not profit. Nor is strict cost minimization the goal patients receiving poor-
quality food will complain to others and damage the hospital's reputation.
 Thus, the hospital- purchasing agent must search for institutional-food vendors whose quality meets or exceeds a
certain minimum standard and whose prices are low. Many marketers set up separate divisions to
meet the special characteristics and needs of institutional buyers

Subject Name Tourism Marketing 190

 References

Collinson(E.n.d). The Marketing Environment

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982

Philip Kotler, Principles of Marketing 16th Edition

• A Guide to Types of Market Structures Posted November 28, 2017 By Aurora
University.

Subject Name Tourism Marketing 191

THANKS
 Tourism Marketing
TM-2041
Lecture no 14_ Environmental Analysis

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Database Marketing
 Database marketing is a form of direct marketing. It involves collecting customer data like
names, addresses, emails, phone numbers, transaction histories, customer support tickets,
and so on. This information is then analyzed and used to create a personalized experience
for each customer, or to attract potential customers.

 Traditional direct marketing involves creating direct mail pieces like brochures and catalogs
and mailing them to a list of potential or current customers in the hopes it evokes a positive
response.

 Database marketing takes that strategy a step further by seeking to understand how
customers want to be marketed to, and then applying those insights to fulfill.
Subject Name Tourism Marketing 194
 Benefits of Database Marketing
 Today’s consumers expect a personalized experience with your brand. To deliver one,
marketers need a unified view of each customer across every touchpoint. Only then can
they understand the customer’s journey and engage them in a meaningful way. Database
marketing strategies make that easier. Customer Debates can help you

 Identify customer groups – from your most loyal, high-value customers to first-time
customers and occasional purchasers

 Create detailed customer segments based on demographics, behaviors, or even personal

interests

 Design highly personalized messages for both current and prospective customers
Subject Name Tourism Marketing 195
 Benefits of Database Marketing

 Determine the best channel and time to engage customers

 Improve your marketing efficiency by not wasting time and money sending
campaigns to those who are unlikely to respond

 Build effective loyalty programs that provide the right incentives for repeat
purchases

 Improve customer service by providing support staff with a 360° view of the
customer’s interactions with your brand

Subject Name Tourism Marketing 196

 The Sources of Customer Data Used in Database
Marketing
 There are many internal sources and external sources of data that companies can aggregate
in order to construct a single customer view database.

These include:

 Acquisition data – when and how the customer came to the site/app initially, via which
channel/affiliate, in response to which promotional campaign, etc.

 Demographic data – age, gender, marital/family status, education, physical address, etc.

 Website/app activity history – pages visited, frequency of visits, products browsed or

games played, features used, etc. (including activity recorded before registration or first
purchase)
Subject Name Tourism Marketing 197
 The Sources of Customer Data Used in Database
Marketing
 Purchase/spend history – number of purchases, number of items purchased (total and
avg. per purchase), prices of items purchased, dates/intervals of previous purchases

 Campaign response history – how many campaigns have customers received, how and
how often did they respond, to which types of campaigns did they respond and via which
channels

 Loyalty program data – loyalty tier earned, points earned, promotions redeemed, etc.

 Customer surveys and questionnaires – customer answers to surveys, and even the fact
that the customer took the time to complete a survey!

Subject Name Tourism Marketing 198

 The Sources of Customer Data Used in Database
Marketing
 Correspondence history – records of all interactions between a customer and the brand

 Location data – geo locations recorded on the user’s mobile devices

Subject Name Tourism Marketing 199

 The Sources of Customer Data Used in Database
Marketing

 Social media activity – topics and brand names discussed, app ratings, profile
details, etc.

 Third-party ad tech data – other sites browsed, ads clicked, purchase intent data,
demographic indicators, etc

 It is important that the various data sources are combined in such a way that the
data is clean (free of errors), up-to-date and correctly linked to each individual
customer.

Subject Name Tourism Marketing 200

Subject Name 201
 Marketing Intelligence

 Marketing intelligence is the external data collected by a company about a

specific market which it wishes to enter, to make decisions. It is the first set of
data which the company analyses before making any investment decision.

 Marketing intelligence is usually the first data set analyzed by a company about a
specific market. It could be related to population age in that area, infrastructure
facilities, spending habits of consumers, state or government regulations etc.

Subject Name Tourism Marketing 202

 Marketing Intelligence

Market intelligence is closely associated with market research and can be explained
in three simple parts as follows:

 Competitor Intelligence – Competitor intelligence can be explained as the

collection of data about your competitor using ethical methods such as
government databases and public records. For example, Japanese automotive
companies were able to capture the US markets and even dominate them using
competitor intelligence. Understanding the need for high quality, fuel-efficient
cars led them to strategize and penetrate the US market successfully.

Subject Name Tourism Marketing 203

 Marketing Intelligence
• Product Intelligence – Product intelligence is gathering data related to competitor
products or similar products in the market.

• For example, A telecommunications company needs to monitor the prices of

competitive mobile phones in the same segment. A price drop in the competitor product
can mean the company is introducing a new model in the market. Understanding such
information can enable a company to strategically launch their models at the right time
and price.

Subject Name Tourism Marketing 204

 Marketing Intelligence
• Market understanding – Market understanding is knowing the market share of your
company, trends in the market, the size of the market and which is your target market.
Understanding the demand in the market, and customer wants can help a company
tremendously to increase their revenues and market share.

• For example, A comprehensive market research can give valuable insights to a brand,
for instance, the target market is age 20-40, upper-middle-class family and the trend in
the market is for CrossFit training to get fit and healthy. A particular gym can use this
information and provide services specific to this requirement enabling them to penetrate
the market much faster than the usual gyms

Subject Name Tourism Marketing 205

 Advantages of Market Intelligence

 Market intelligence not only helps companies to distinguish their brand from its
competitors but also helps in providing valuable information to stay in the game
and excel at it. Following are some of the benefits that market intelligence
provides.

 Holistic view of the market – Understanding the market completely can lead a
company to success in no time. Market intelligence is gathering data in real time
from the market and further understanding the customers, trends, behaviors, etc,
thus enabling a company to stay competitive and meet market demands.

Subject Name Tourism Marketing 206

 Advantages of Market Intelligence
 Customer retention – No matter how old a customer is to a company, they are always
being monitored and attacked by the competition. Understanding when the customer is
dissatisfied and the reasons behind it can prevent loss of customers. Market intelligence
can help you analyze and give you insights into the areas of improvements that are needed
by the customers and thus help you retain them and understand customer lifetime value.

 Improve sales process – Businesses having a variety of products and a large number of
customers often face an issue, i.e. which product to target to which groups? Market
intelligence helps you to determine market segmentation, thus allowing the company to
understand which product will succeed with which group of people.

Subject Name Tourism Marketing 207

 Advantages of Market Intelligence
 Boost process efficiency – Market intelligence helps businesses to boost overall
efficiency and productivity by identifying gaps, giving actionable insights to devise
crucial strategies and provides an organization with real time data and analytics.

 Gives a competitive advantage – First mover advantage or the launch of a product at the
perfect time is a well heard off statement in a lot of business conversation. These are
possible only by using market intelligence. Market intelligence helps you keep a watch
on the competition, the upcoming trends, and gives a complete picture of the market,
which allows a company to penetrate the market or capture the market share by
launching a product or a new feature at the right time thus giving them a competitive
advantage.
Subject Name Tourism Marketing 208
 why market intelligence is crucial to any business?

 To understand your position in the market – Collecting market intelligence

through surveys allows you to understand the market in-depth. It will give you
insights into what the competitors are doing, what is the market demand and who
will be your target audience and many more. Analyzing this information will enable a
company to evaluate its position in the market and make strategies accordingly.

 To evaluate your product – Conducting marketing intelligence surveys will give

you actionable insights on the product trends in the market, the demand for specific
features and product specification currently in demand. Such information helps you
to evaluate your product and make wise business decisions accordingly.
Subject Name Tourism Marketing 209
 why market intelligence is crucial to any business?

 To know your target audience – Gathering market intelligence will allow a

company to understand the needs of the audience and using surveys, businesses can
shortlist their target audience for specific products/services.

 To conduct competitor analysis – Market intelligence is a vast field. Conducting

surveys to gather intelligence about your competitors is vital in today’s business
environment. Using such information, businesses can modify their products as per
the need, understand competitors failures or successes, and devise strategies based on
the competitor’s position.

Subject Name Tourism Marketing 210

 References

Collinson,E.(n.d). The Marketing Environment

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982, pp 95-96

Philip Kotler , Principles of marketing edition 16th

Subject Name Tourism Marketing 211

THANKS
 Tourism Marketing
TM-2041
Lecture no 15&16_ Turning Marketing Information in Action

Mehvish Zeb
(Lecturer )

Dated:

TOURISM AND HOSPITALITY :2018-22

 Marketing Research

 Process of defining a marketing problem or opportunity, systematically collecting

and analyzing information, and recommending actions to improve anorganizations
marketing activities.

Subject Name Tourism Marketing 214

 Goal of Marketing Research

 Management is faced with many choices involving possible marketing actions.

The goal of marketing research is to provide management with actionable
information that will allow managers to make better decisions and ultimately
reduce risk.

Subject Name Tourism Marketing 215

 Market Research

Subject Name Tourism Marketing 216

 Step 1. Define the Problem

 Set the Research Objectives

 Identify Possible Market Action

 Measures of Success

Subject Name Tourism Marketing 217

 Step 2. Develop the Research Plan
 Specify constraints

 Identify Data needed for marketing Actions

 Determine How to Collect Data

 Concept

 Methods

 Probability Sampling

 Non Probability Sampling

 Statistical inference

Subject Name Tourism Marketing 218

 Step 3. Collect Relevant Information

Subject Name Tourism Marketing 219

 Step 3. Collect Relevant Information
• Secondary Data

• Internal Secondary Data

• External Secondary Data

• Primary Data

• Observational Data

• Questionnaire Data

• Panel and Experiments

• Advantages and Disadvantages

Subject Name Tourism Marketing 220

 Step 3. Collect Relevant Information

 Using information technology to trigger Marketing actions

 Marketing manager views of sales drive

 Key elements of an information systems

 The challenge in mining marketing data

 Data mining is approach to searching data oceason

Subject Name Tourism Marketing 221

 Step 4. Develop Findings

 Analyze the Data

 Present the findings

 Make recommendation

Subject Name Tourism Marketing 222

 Step 5. Take Marketing Actions

 Identify the action Recommendations

 Implement the Action Recommendations

 Evaluate the results

Subject Name Tourism Marketing 223

 Market and Sale forecast

 Basic forecasting terms

 Market and industry potential

 Sales or company forecast

 Two Basic Approaches to forecasting

 Top down forecast

 Buildup forecast

Subject Name Tourism Marketing 224

 Step 5. Take Marketing Actions

Subject Name Tourism Marketing 225

 References

Collinson,E.(n.d). The Marketing Environment

Philip Kotler, Marketing Management Prentice Hall ofIndia Pvt. Ltd., New Delhi,
1982, pp 95-96

Subject Name Tourism Marketing 226

THANKS