Marketing

Marketing is a management process responsible for identifying, anticipating and satisfying

customer requirements profitably.
Definition
Hansen defined Marketing “as the process of discovering and translating customer needs and
wants in the product and services creating demand for this product and services and in turn
expanding the demand”. William J Stanton defines marketing is a total system of interacting
business activities designed to plan prize, promote and distribute prize, want satisfying goods
and services to the present and potential customers.
Tourism marketing
Travel and tourism marketing is the systematic and coordinated execution of business policies
by the both private or public and public sector tourism organizations operating at the local,
regional, national, or international level to achieve the optimal satisfaction of the needs of
identifiable tourist groups, and in doing so to achieve an appropriate return. Tourism
marketing is the collective name given to the various marketing strategies used by businesses
within the tourism industry. This includes, for example, hotels and other forms of
accommodation, along with airlines, car rental services, restaurants, entertainment venues,
travel agents and tour operators.
Importance of marketing
• Customers get to know about the value of the products, their usage and additional info
that might be helpful to the customers.
• It creates brand awareness and makes the business stand out.
• Marketing helps business to keep pace with the changing tastes, fashions and
preferences of the customers.
• Marketing helps the business in increasing its sales volume
• Marketing also helps the business in meeting competition most effectively.
• Marketing Promotes Product Awareness to the Public.
• Builds company reputation
Service characteristics of tourism marketing
❖ Intangibility
❖ Inseparability
❖ Heterogeneity
❖ Non- ownership
CORE MARKETING CONCEPTS

1. Needs: Need simply means necessity. It is the basic human requirement. Marketing tries
to satisfy needs of consumers. Human needs are the state of felt deprivation of some basic
satisfaction. Needs are physiological in nature. People require food, shelter, clothing,
esteem, belonging, and likewise.
2. Wants: Wants are the options to satisfy a specific need. They are desire for specific
satisfiers to meet specific need. For example, food is a need that can be satisfied by variety
of ways, such as sweet, bread, rice etc. Needs are limited, but wants are many; for every
need, there are many wants.
3. Demand: Demand is the want for specific products that are backed by the ability and
willingness (may be readiness) to buy them. Demand is a want for a specific product that
are supported by ability and willingness to buy this.
4. Product: Product can also be referred as a bundle of satisfaction, physical and
psychological both. Marketer can satisfy needs and wants of the target consumers by
product. It can be broadly defined as anything that can be offered to someone to satisfy a
need or want. Product includes both good and service. A product is what a seller sells or
buyer buys.
5. Utility (value), Cost, and Satisfaction: Utility means overall capacity of product to satisfy
need and want. It is a guiding concept to choose the product. Utility is the consumer’s
estimate of the product’s overall capacity to satisfy his/her needs. Cost means the price of
product. It is an economic value of product. The charges a customer has to pay to avail
certain services can be said as cost. Satisfaction means fulfilment of needs. Satisfaction is
possible when buyer perceives that product has more value compared to the cost paid for.
Satisfaction closely concerns with fulfilment of all the expectations of buyer.
6. Exchange, Transaction, and Transfer: Marketing emerges only when people want to
satisfy their needs and wants through exchange. Exchange is an act of obtaining a desired
product from someone by offering something in return. Obtaining sweet by paying money
is the example an exchange. Exchange is a process, not event. It implies that people are
negotiating and moving toward the agreement. When an agreement is reached, it is
transaction. Transaction is the decision arrived or commitment made. Transfer involves
obtaining something without any offer or offering anything without any return. For
example, Mr. X gives gift to Mr. Y. Transfer is a one-way process.
7. Relationships and Network: Relationship marketing is the practice of building long-term
profitable or satisfying relations with key parties like customers, suppliers, distributors, and
others in order to retain their longterm preference in business. Network is the ultimate
outcome of relationship marketing. A marketing network consists of the company and its
supporting stakeholders – customers, employees, suppliers, distributors, advertising
agencies etc.
8. Market, Marketing, Marketer, and Prospect: A market consists of all potential
customers sharing a particular need or want who might be willing and able to engage in
exchange to satisfy this need or want. Marketing is social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
product and value with others.Marketer is one who seeks one or more prospects (buyers) to
engage in an exchange.

DIFFERENCE BETWEEN MARKETING AND SELLING

Selling Marketing

• It refers to transferring goods and It includes not only selling but also other
services to the customer. activities connected with selling such as
Advertisement, marketing, research etc.

• It focuses on the needs of seller It focuses on the needs of buyer

• It aims at maximum sales and profit The aim is profit through customer satisfaction

• Start with product and ends with the It begins before production and continues after
customer sales.

• Selling convert product into cash It converts the customer needs into product

• It is concerned with distribution of Marketing is customer oriented

goods already produced
MARKETING CONCEPT/MARKETING PHILOSOPHY/ORIENTATION
It is the light house for organisations to move in the right direction for the achievement of
business goals.
1. Marketing concept
2. Societal concept
3. Production concept
4. Product concept
5. Selling concept
Marketing concept -This concept holds that the primary task of a business firm is to study
the needs, desires and preferences of the potential consumers and produce goods, which are
actually needed by the consumer. On the other hand marketing concept is outside in
perspective. Marketing concept start with a well-defined market focuses on customer needs
and integrates all the marketing activities that effect consumers.
Societal Concept - In this concept firms should not only consider consumer wants and profit
but also societies interest while making their marketing decisions. According to the societal
concept business firm have to adopt socially responsible marketing policies in order to assure
social welfare in addition to consumer welfare.it holds for sustainable marketing socially and
environmentally that means the present needs the customers and business by preserving the
ability of future generations to meet their needs.
Production Concept -The idea that consumers will favour products that are available and
highly affordable. Therefore the organisation should focus on improving production and
distribution efficiencies.
Product Concept - The product concept holds that consumers will favour products that offer
the most in quality, performance and innovative features.
Selling concept Selling concepts holds the idea that consumers will not buy enough of the
firm’s product unless the firm undertakes a large scale selling and promotion effort. The main
concentration is to maximising sales.
MARKETING MANAGEMENT
Marketing management is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational goals. Marketing management facilitates the activities and
functions which are involved in the distribution of goods and services. According to Philip
Kotler, “Marketing management is the analysis, planning, implementation and control of
programmes designed to bring about desired exchanges with target markets for the purpose of
achieving organisational objectives. Marketing management is concerned with the chalking out
of a definite programme, after careful analysis and forecasting of the market situations and the
ultimate execution of these plans to achieve the objectives of the organisation.
Importance of the marketing management
✓ Introduction of new products in the market.
✓ Increasing the production of existing products.
✓ Reducing cost of sales and distribution.
✓ Export market.
✓ Development in the means of communication and modes of transportation within and
outside the country.
✓ Rise the demand for more goods by the consumers.
Marketing Information System (MIS)
Marketing Information System (MIS) is a permanent arrangement (system or setup) for provision of
regular availability of relevant, reliable, adequate, and timely information for making marketing
decisions. Management Information System is a computer system consisting of software that serves as
the backbone of an organisation’s operations. MIS gathers data from multiple online systems, analyses
the information and reports data to aid in management decision making.
Features of MIS

• Management oriented
• Management directed
• Integrated concept
• Common data base
• Heavy planning
• Flexibility
• Information source
• Future oriented
Components of MIS
According to Philip Kotler, a marketing information system consists of four interrelated components –
Internal Reports (Records) System, Marketing Research System, Marketing Intelligence System, and
Marketing Decision Support System.
1. Internal Records System Internal records system is a major and easily accessible source of
information. It supplies the results data. It consists of all records of marketing operations available
within organisation.
2. Marketing intelligence system The set of procedures and sources used by managers to obtain
every-day information regularly about pertinent developments in the marketing environment. It
provides information about external happenings or external environment.eg; the manager can use
Watching TV, hearing radio, or Internet surfing etc.
3. Marketing Research System Marketing research is a powerful and independent branch of the MIS.
In certain cases, managers need detailed information on the specific problem of the specific marketing
area. Thus, it is a formal study of specific problems, opportunities, or situations. Normally, it is carried
out for solving the specific problem. It is conducted by internal expert staff or external professionals.
4. Marketing decision support system (MDSS) A marketing decision support system (MDSS) is
coordinated collection of data, systems, tools, and techniques with supporting software and hardware
by which an organisation gathers and interprets relevant information from environment and turns it
into a basis for making decisions. MDSS includes tools, techniques or models used for Data
collection, Data analysis, Interpreting results etc.
CONSUMER BUYING BEHAVIOUR
Consumer behaviour is a study of why people buy. It is the actions and reactions of consumer
towards goods and service. In short customer behaviour means the process as to how customers
make their purchase decisions to meet their needs.
Characteristics of consumer behaviour
1.It is the process by which individual decide what, when, from, whom and how much to buy
2.It comprises both mental and physical activities of a consumer.
3.It is an integral part of human behaviour
4.It is influenced by internal factors such as needs, habits, attitudes, motives etc. and also by
external factors like family social groups. Cultures, status etc.
5.It starts before buying and goes even after buying.
CONSUMER BUYING PROCESS/ TOURIST BUYING PROCESS
Need recognition Human behaviour is need based and begins with an effort to satisfy the
unfulfilled needs. This can be both physical and psychological. Need recognition stage is
where the service provider can identify the needs and design how to satisfy it in the best
possible manner.
Information research It may be internal and external. Internal information contains past
experience and may be very useful if a behaviour id to be repeated. External search provides
new information from websites, brochure, advertisement etc.
Attitude formation Attitudes helps tourist in making decisions easily by eliminating all the
options viewed negatively.
Evaluation of attitudes the process of evaluation is the next stage of tourist buying
behaviour. The final decision will be based on chosen criteria.
Purchase This is the stage where the transaction between marketers and tourist takes place.
Tourist pay money and visit the destination for the experience.
Post purchase at this stage the tourist experiences the tour and feel the gap between promises
and actual offer.
Feedback The post purchase experience will influence all stages of buying process in future.
A good experience may convince the tourist to take the tours regularly and a bad one may
discourage the future purchase of tour.
FACTORS INFLUENCING CONSUMER BEHAVIOUR
1. Physical factors 2. Cultural factors
a) Consumers need and motivation a) Culture
b) Perception b) Sub culture
c) Believes and attitudes c) Social class
d) Learnings

3. Social factors 4. Personal factors

a) Reference group a) Age
b) Role and status b) Stages in a life cycle
c) Family c) Occupation and economic status
d) Life style
e) Personality

1. Psychological factors
Need and motivation A need become motive when it is aroused to a sufficient level of
intensity there can be of types of needs like biogenic, physical needs etc.
Perception It is another psychological factor influencing consumer behaviour. It means how
we view the world surrounding us. We see, hear, taste, smell and feel through the five sense
of organs.
Believes and attitudes A belief is descriptive thought that a person holds about something.
Attitudes means person’s feelings towards a particular object or situation.it may be positive,
negative, or neutral.
Learnings Learning greatly influence consumer behaviour. It is the process of accruing
knowledge. Generally learning results in 4 ways- reading, listening, observing and
experiencing.
2. Cultural factors
Culture Culture simply refers to values and believes in which one is born and brought up. It
is a set of ideas, customs and values that are produced and shared by a society and passed on
from generations to generations. Culture include food, language, dressing etc.
Sub culture
Culture within the culture is called subculture. It is based on religion, nationality etc.
Social class Social class is a group of people with similar values, interest and behaviour
within a society. It is based on income, education, social status, occupation, life style etc.
3. Social factors
Reference group Consumer behaviour is influenced by various groups within the society.
These groups are known as reference groups. We have several groups such as family, friends,
relatives, coworkers, classmates etc.
Role and status a person is influenced by the role that he holds in the society. If a person is in
a high position, his buying behaviour will be influenced largely by his status. For E.g. A
person who is a Chief Executive Officer in a company will buy according to his status while a
staff or an employee of the same company will have different buying pattern.
4. Personal factors
Age Need and wants are determined by age.
Stages in life cycle Like child, teenage, aged, couples unmarried etc.
Occupation and status Occupation influences the product choice, brand, belief etc. People
with different occupation and status will buy different products.
Life style This indicates how people live, how they spend their time how and what they
choose and where they shop.
Personality It indicates the personality of the buyer like whether the person bold or shy etc.
S.T.P STRATEGY It is an acronym for SEGMENTATION, TARGETING and
POSITIONING. STP strategy examines the products or services as well as the way to
communicate their benefits to a specific customer segment.
Market Segmentation Market segmentation can be defined as the process through which
tourist with similar needs, wants and characteristics are grouped together or the total market
is divided into smaller parts that share common needs or characteristics.
Segmentation strategies/Approaches/Patterns
Undifferentiated marketing
Under this approach only one marketing strategy for several market segments and has only one
type of product to be produced and marketed. Here combines one product, one price, one
placement and a single promotional effort to reach the maximum number of customers in that
target market.
Differentiated marketing
In the case of differentiated marketing a number of market segments are identified and different
marketing mix is developed for each of the segments. Here a marketer can choose to satisfy
multiple choices of the complete market through its numerous offers. Eg ; Business, first class
and economy class in an airline

Concentrated marketing
It is concerned with the concentration of all marketing efforts on one selected segments within
the total market.

Customised or personalised marketing

In this case the firms view each customer as a separate segment and customised marketing
programmes to that individual’s specific requirements.
Basis or types/ methods of market segmentation
• Demographic segmentation
• Geographical segmentation
• Psychographic and life style segmentation
• Behavioural segmentation
• Business to business market segmentation
Demographic segmentation Demography means study of people or population. Thus in
demographic segmentation the market is segmented on the basis of demographic variables
such as age, gender, economic status, nationality, occupation, religion, family size and life
cycle. For e.g.
Age: - on the basis of age it can be divided into 4. Children, teenage, adults, grown up. For
consumers of different age groups. Different type of product are produced.
Gender: - on the basis of gender market can be divided into males and females.
Geographic segmentation Here the marketer divides the market into different geographical
units such as regions, zones, countries, state, district, cities, climate, topography and political
boundaries.
Psychographic and life style segmentation
Psychographic segmentation is the analysis of people from inside. It is focused on the
customer’s personalities and interests. Like personality traits, hobbies, life goals, life style etc.
Behavioural segmentation
While demographic and psychographic segmentation focus on who customer is, behavioural
segmentation focuses on how the consumer acts. It can be classified according to the following;
• On the level of involvement in the activities
• Usage rate or spending habits
• Loyalty or status
Business to business segmentation Market can be segmented on the basis of business
generated and marketing efforts. So the segments can be large, medium and small
business.
MARKETING TARGETING It is the process of taking decisions regarding the market
segment to be served. It is the process of fixing on one’s target market. Target market consists
of asset of buyers who have common needs or characteristics that the company divide to
serve.
Target marketing strategies or approaches
Total market approach
A company develops a single marketing mix and directs it at the entire market for a particular
product.

Total market
Single approach Target
marketing
market
mix

Concentration approach
Total market may consists of several segments. But the organisation select only one of the
segments as target market.
Concentration Segment 1
approach
Single
Seg 2
marketing
mix
Seg 3

Multi segment approach

An organisation directs its marketing efforts at two or more segments by developing a
marketing mix for each segments.
Multi segment approach

Target seg, 1
Market mix 1

Market mix 2 Target seg, 2

Market mix 3 Target seg, 3

MARKET POSITIONING
After having selected target marketer, the marketer has to decide on what basis he will complete
in the selected segment. In other words he has to position his product or services in the target
consumer’s mind or it creates a brand image in the customer’s mind.
Market positioning strategies
Positioning in relation to product attributes or characteristics
Using product characteristics or benefits as a positioning strategy associates your brand with a
certain characteristic that is beneficial to customers.
Positioning based on prize and Quality
Positioning your products or services based on prize is associating the brand with competitive
pricing. The prize sensitive buyers will often purchase the product without knowing the
actual prize or cost of a particular product. Often the prize and quality of a product align,
certainly in the mind of the consumer, as the high prize is often associated with high quality.
Positioning based on competition
Competitor based positioning focuses on using the competition as a reference point for
differentiation. If a particular product has a larger market share, their positioning strategy must
be attractive to a large group of customers.
MARKETING MIX The combination of specific activities chosen by a firm is usually
called marketing mix.it is also referred to as the set of actions or tactics that a company uses
to promote its brand or product in the market. Generally marketing mix contribute 4 P’s. That
is PRODUCT, PRICE, and PLACE AND PROMOTION. However besides these 4 P’s in
tourism industry added 3 more P’s of PEOPLE, PROCESS and PHYSICAL EVIDENCE.
Product It is the offer of the marketer to satisfy a need or want. It includes product variety,
quality, features, style, brand name, packaging, guarantee etc.
Place Place refers to the distribution of products to the customers. It involves the movement
of product from seller to the buyer, as well as storage at different points to make these
available at convenient time and location to the buyers. It includes channel type,
intermediaries, transportation, storage etc.
Price Price is the value of the product. This is what the buyer pays to the seller including
discounts, allowance etc. price should be such that they create profit. The marketer needs to
plan the prices for a long period till the demand pick up and profit can be generated.
Promotion It is refers to all the methods and tools used to give product information to thr
buyer and persuade them to purchase. It includes advertising, personal selling, public relation,
sale promotion etc.
People People, the human elements involved in the service experience. The most visible
element are those engaged in exchange that is seller and buyer. The people employed in the
organisation decide the quality of services that the customer get.
Physical evidence Physical evidence creates the tangibility for the intangible service. It
provides an image through physical presence such as building. Design. Uniform, equipment
etc.
Process Process of delivery decides the satisfaction of the customer.it includes the procedure
or task schedule activities and routines by which a product or service is delivered to the
customer.
PRODUCT A product is anything that can be offered to a market that might satisfy the want
or need of a customer or it is an item offered for sale. A product can be a service or an item.
Every product is made at a cost and each is sold at a price.
New product development
New product development is concerned with development and commercialisation of new
products according to the product planning.
Stages in new product development
1.Generating product ideas
The first stage of the new product evolution begins with the idea for the product. Ideas may
generate from various sources that is internal and external sources. Internal sources are
employees, company’s sales person, top management etc. external sources are customers,
competitors, distributors, advertisement agencies etc.
2.Screening of ideas
After generating the product idea the next step is screening of these ideas. At this stage the
ideas are collected are scrutinised and evaluated to eliminate unsuitable ideas.
3.Concept development and testing
The product ideas should be converted into product concept. A concept is a detailed overview
of the idea. It is a meaningful expression of the product in the light of customer’s needs. After
developing product concept they are to be tested. The concept testing is a phase in which a
small sample of potential buyers is presented with a product idea through a written or oral
description.
4.Business analysis
At this stage finally selected ideas is analysed to determine the desirable market features of the
product. Market analysis is involves projection of future demand, financial requirement, cost
estimate and profit.
5.Product development
The first 4 stages may be treated as preparation. Now is the time to go into action, but on a
sample basis. Now the idea is converted into a product, but made only in small quantities.
6.Market testing
After the product has been developed, the marketer will have to test the reactions of dealers
and customers in handling and using the product. Here the reactions of customers towards a
product are watched. It helps to find out the product fault, if any.by this future problems can be
removed.
7.Commercialisation
Commercialisation of a product means the large scale production and distribution of a product.
In this stage the product is submitted to the market. Now a product starts its life cycle.
PRODUCT LIFE CYCLE

Introduction stage It is the stage when a product is first offered to in the market. At this stage
includes; A product is not known to buyers, so the sales will be low.
Growth stage At this stage product awareness increases and it start gaining acceptance. The
other features are as follows;
Stagnation/ saturation stage
At this stage marketing strategies are continued.
• The market become stable at this stage
• No competitors will enter at this stage
• Sales stabilize at this stage
• Profit start growing down because of heavy coat of competition
• As a result the marketers start moving out
Decline stage
At this stage the market loses interest in the product as new and better options come in.
2nd life cycle
In second life cycle the product begins its journey again from introduction and continue with
the same process. It is possible to give new life to a product by entering into new markets or
by finding new uses.
PRICING
Price is the amount paid by a buyer to a seller for a product. It is the exchange value of a product
or services in terms of money. It is the key to revenue which in turn is the key to profit for a
company.
Factors affecting pricing decisions
The process of deciding the price is a difficult task. While determining the price the
management has to consider following factors.
 1. Internal factor
Internal factors are those factors which lie within the control of an organisation. The various
internal factors are
a) Cost
b) Objective
c) Organisational factor
d) Marketing mix
e) Product differentiation
f) Product life cycle
Cost
The most important factor influencing the price is the cost of production. The product must
cover the cost of production including materials, labour, administrative and selling expenses
and reasonable profit.
Objectives
Price are to be fixed based on objectives. Maximisation of sales, target rate return, stability in
price, preventing competition etc. are the examples of objectives.
Organisational factor
Organisational factors refers to internal arrangement or mechanisms for decision making or
pricing and its implementation.
Marketing mix
Price, product, place and promotion are the important elements of marketing mix. These
elements are interconnected. Any change in any one of these elements has an immediate effect
on other.
Product differentiation
In order to attract customers product are differentiated by adopting new style, better package
etc. These elements will influence pricing.

.
PRICING STRATEGIES/ APPROACHES
A no. of strategies can be used simultaneously to focus all multiple goals. Important pricing
strategies are as follows;
Market coverage pricing
Market coverage pricing strategy that targets the whole market. They are;

Market skimming
It is a high value low volume strategy. The offering is priced high to maximise profit and
recover cost quickly. This is an effective strategy in case of products with short life cycle.
Here the management or marketer increase the price of a product in the introductory stage.
Market penetration
This is low value high volume strategy. A very low price is fixed for the offer to reach a large
number of buyers and earn profit.
Pricing mix strategies
A number of strategies can be fashioned combining price and quality. Some are as follows;

• Premium A high quality tourism experience is provided at high price. All luxury
tours come under this strategy.
• Budget Price is kept low and quality offered is also the same. Or low quality products
sells on low price. Budget airlines and budget hotels are come under this category.
• Rip-off Here high product is charged for poor quality products. The price is not
justified but the tourist buy the product based on false perception of good quality.
• High value High quality tourism products is offered at low price. This gives very
good value to the tourist.
Discount pricing
It is a short term strategy to motivate the tourist to take advantage of reduced price. Discounts
can be offered in various forms such as following;
• Seasonal discount: - Seasonal discounts are price reductions given for out-of-season.
• Quantity discount; - discounts are offered on bulk buying to encourage large volume
of sales. Hotels give special prices to travel agents or tour operation companies who
use a large number of rooms continuously. Group booking are also given special rates.
• Price discounts: - discounts are given on a specified amount of purchase to encourage
tourist to spend more.
• Time discounts: - demand of the tourism service also fluctuates with time of the day.
These are discounts you offer for a limited time. Typically, businesses offer discounts
toward the end of a product's life cycle. Some businesses choose to offer promotions
during holidays or other big events.
• Cash back: - a part of the total sales value is given back as refund to the tourist after
completing the tour. This ensures that the purchase is made first and refund is offered
later.
Package pricing It is also known as bundle pricing. This is one of the most common form of
pricing in tourism were a product is assembled and sold as a package. Basic components such
as accommodation, food, transportation etc. are combined to make a complete tour and the
overall price is quoted.
Differential pricing This is done by selling the same service or product at different prices to
different tourist..
Psychological pricing Use of certain digits in the prices may have better effects on buying. It
may include the digits 999 to give the false impression of low price.
BRANDING Branding is the practise of giving a specified name to a product or group of
products of one seller. It is the process of finding and mixing the means of identification. This
helps to identify a product and distinguish it from other products and services.
BRAND A brand is a product, service, or concept that is publicly distinguished from
other products, services, or concepts so that it can be easily communicated and usually
marketed.
BRAND NAME A brand name is the name of the distinctive product, service, or concept. It
is a part of brand which can be vocalized (pronounced). It can be a letter, word, name or
combination of them which indented to identify and differentiate the product.
BRAND MARK It is the part of the brand consisting of a symbol, colour, design or a
combination of them to identify the product. It is not capable of being pronounced.
Branding In Tourism Branding in tourism involves creation of brands for diverse products
such as hotels, travel agencies, airlines, trains, destination etc. Destination branding is a
challenging task in tourism.
Destination branding Destination branding refers to the overall impression that the
destination creates in the minds of potential tourist. The brand encompasses the destination’s
physical attributes, services, attraction, name, logo etc. The incredible India campaign was
introduced in the year 2002 which changed the face of India to a high ended tourist
destination in the world. Some of the destination brands include such as Kerala- God’s own
country, Uttarkhand- simple heaven etc.
IMPORTANT PROMOTIONAL TOOLS IN TOURISM

Brochures Brochure are popular form of promotion used for direct sales. These are defind as
booklets used for sales and promotion. The marketers mail these to the potential buyers or use
for personnel selling.

• It can provide detailed information with photographs and testimonials. These has the
following advantages
• It can be targeted more specifically
• It will have greater reminder value
• It can also have secondary or pass along audience. When a brochure is passed from one
person to another those also read who were not originally or primarily targeted.

Events These are used to promote and highlight the tourism potential of a destination.
Without the events destination may not garner the necessary exposure. Attracted by events,
tourist visit places and get to see its attraction that may become popular later. The following
and many more types of events are used or promoting tourism.

1.International trade fair: international trade fairs such as automobile, technology and other
products bring large number of buyers and sellers to a place.
2.Cultural fairs: destination’s specific festivals such as pushkar fair, Goa carnival, Dussehra
etc includes in cultural fairs.
3.Cultural events: cultural events such as film festivals, musical events, laser shows etc. bring
the destination in news.
4.Historical commemorations: historical commemoration such as the special events in the
historical monuments and the 350th anniversary of completion of the Tajmahal in 2004 attract
many tourists.
5.Commercial fairs: such as craft fairs, silk mela, carpet mela bring a number of people to a
place.
6.Sports events: such as IPL, show that tourism can be promoted in smaller cities by organising
such sports.

7.Movies and videos These are the best medium to promote tourist destinations through films
and videos.
Module 4
CHANNELS OF DISTRIBUTION

A channel of distribution means the path or route through which goods moves from the
producers to the ultimate customers or industrial users. It consists of manufactures,
intermediaries like wholesalers, agents, middle man and consumer. A channel represents three
types of flow;

1) Downward flow of goods from producers to consumers

2) Upward flow of cash from consumer to producers
3) Marketing flow in both direction

World tourism organisation suggests that a distribution channel can be described as a given
combination of intermediaries who corporate in the sale of a product.

Functions of channels of distribution

Channels of distribution which bridges the gap between producers and consumers. It works as
a means of moving goods from producers to consumers.

1.Information gathering: channels gather information about potential and current customers,
their behaviour, competitors and other forces which effect the business.

2.Consumer motivation: channels develop and transmit communication to motivate

consumers in buying the product.

3.Placing orders: middle man place orders with producers on behalf of consumers for the
product they need.

4.Bargaining: middle man reach agreement on price and other terms with the consumers on
behalf of the producers.

5.Risk bearing: channel also shares risk. This reduces the burden on the producers.

6.Inventory management: it also provides successive storage facilities and movement of

physical product.

7.Marketing research: it helps in marketing research.

8.Demand forecasting: channels of distribution helps in demand forecasting.

Tour operators They are wholesalers who buy product in bulk from the suppliers, prepare
tour packages and give to travel agents for further selling. They add value through design.
Coasting, designing, and packaging are their important functions. A package can be
developed as standard or customised. A standard package is fixed and sold later. A customised
package is adopted to the varied needs of the buyers.

Travel agents These are retailors in tourism who buy tourism products from the wholesalers
and sell it to the tourist for commission. Travel agents acts as a link between wholesalers and
the tourist.

Online travel companies/ Online travel portals/ cyber mediaries These are new
intermediaries or cyber mediaries. They are present on the internet and may not physically
own any suppliers but purchase from outsides and assembled packages or just display them.
These are offered for sale through the internet and give enough choice to the tourist.

Special agents Special agents deal with specialised product such as conference, meeting,
casinos etc. these can be act as a broker or agent for special services.

DIRECT MARKETING Direct marketing brings the market directly into the home or office
of an individual buyer instead of the buyer having to go to the market. A form of advertising
in which physical marketing materials are provided to consumers in order to communicate
information about a product or service. Direct marketing does not involve advertisements
placed on the on television or over the radio. Types of direct marketing materials include
catalogs, mailers and fliers. Direct marketing removes the “middle man” from the promotion
process, as a company’s message is provided directly to a potential customer. This type of
marketing is typically used by companies with smaller advertising budgets, since they cannot
afford to pay for advertisements on television or any other Medias.
Features of direct marketing
➢ It goes directly to an identified individual or house holder.
➢ It is interactive
➢ It make the use of customer data base
➢ It creates direct relationship between customers and marketers Advantages
• Flexible Targeting
• Cost-Effectiveness
• Rapid Delivery
• Relationship Building Disadvantages
• Competing with existing intermediaries
• Initial customer acquisition costs are high
Direct marketing in tourism
When innate human curiosity leads through daily mail delivery, a vivid travel brochure, or even
a direct mail postcard, can set off fantasy vacation planning reverie. It gets the person’s
attention immediately, even when just a corner temptingly juts out within a stack of mail and it
interrupts the day in a good way.
Flyers for local promotions
Flyers are a great way to promote your hospitality-related business. Consider placing flyers
strategically around town. For example, an excellent and relaxing bed and breakfast, consider
distributing your flyers in locations around town that newcomers and wary travellers might
visit first.
Booklets and brochures
Booklets and brochure-type print media are absolutely ideal for anyone in the hospitality, travel
or tourism industry.
Travel magazines
Many magazines have a travel focus and are excellent ways to market your hotel, restaurant or
tourist attraction etc.
GREEN MARKETING
Green marketing refers to the practice of developing and advertising products based on their
real or perceived environmental sustainability. Examples of green marketing include
advertising the reduced emissions associated with a product’s manufacturing process, or the
use of post-consumer recycled materials for a product's packaging. Some companies also may
market themselves as being environmentally-conscious companies by donating a portion of
their sales proceeds to environmental initiatives, such as tree planting. Green marketing is the
marketing of environmentally friendly products and services. It is becoming more popular as
more people become concerned with environmental issues and decide that they want to spend
their money in a way that is kinder to the planet. Green marketing can involve a number of
different things, such as creating an eco-friendly product, using eco-friendly packaging,
adopting sustainable business practices, or focusing marketing efforts on messages that
communicate a product’s green benefits.
Green Marketing Methods
• Using eco-friendly paper and inks for print marketing materials
• Skipping the printed materials altogether and option for electronic marketing
• Having a recycling program and responsible waste disposal practices
• Using eco-friendly product packaging
• Using efficient packing and shipping methods
• Using eco-friendly power sources
• Taking steps to offset environmental impact
MASS COMMUNICATION
Mass communication is the process of imparting and exchanging information through mass
media to large segments of the population.
Mass communication can be defined as the process of creating, sending, receiving, and
analysing messages to large audiences via verbal and written media. These mediums are
wideranging, and include print, digital media and the internet, social media, radio, and
television.
ADVERTISEMENT
Advertising is a paid form of non-personal communication. That is transmitted through mass
media such as TV, radio, newspaper, magazines. Direct mail, internet etc.
Objectives of advertising
• To prepare a ground for new product
• To create, maintain and increase demand of product
• To face competition successfully
• To create or enhance goodwill
• To create brand preference
• To educate customers
• To capture a place in market
• Advantages/importance
➢ It increases the demand of the product
➢ Advertisement helps to maintain the existing demand and to create new demand for
product
➢ It helps easy introduction of product into the market
➢ It increases the prestige of the dealer
➢ It leads to large scale production
➢ It helps to know when and where the products are available Disadvantages
➢ It may be unnecessary or wasteful
➢ It increases the cost of the product
➢ It creates unhealthy competition in the market
➢ Advertisement misleads the public by giving false statement about product
➢ In some advertisement indecent languages and photographs are used
➢ It may be creates confusion in the consumers mind
ADVERTISING MEDIA
Advertising media is the means or ways or channels to convay the advertisement message to
the public. Advertisement media may broadly classified into two. Indoor media an outdoor
media. In the case of indoor media, the sales message is conveyed right into the home of
consumers. Newspapers, magazines, radio and TV come under this category. In the case of
outdoor media the message is seen by the customer outside his home.
A) Indoor media
1. Press advertising

• Newspapers
• Magazines
• Journals
2. Radio advertisement
3. Television advertisement
4. Film advertisement
5. Direct mail advertisement
B) Outdoor advertisement
• Posters
• Point of purchase
Press media
Advertisement in newspapers, magazines, journals etc. are called press advertisement. It is the
most popular and widely used advertising media.
Newspaper: - newspapers are very useful to advertise all type of goods because all sections
of public read them. Merits
• The message reaches a large number of people
• Message can be conveyed quickly
• It can be changed from time to time Demerits
• Newspapers have short life
• Cannot read illiterate people
Magazines and journals:- these are periodicals published weekly, monthly, yearly etc. these
are also a powerful medium of advertising.
Merits

• Magazines have long life as compared to newspapers

• They are highly selective in nature
• Colour advertisement attracts the people
Demerits
• They reach only a limited section of people
• They are costly as compared to newspapers
Radio advertisement
Radio advertisement is a medium of advertisement has become very popular. To create interest
in listeners these advertisement companies live music,quiz programmes etc. Advantages
• It has wide coverage
• It is useful for even illiterate people
• As compared to newspapers and magazines, it is the quickest medium
Disadvantages
• It is very brief
• Large no. of people may not listen the advertisement
Television advertisement
TV advertisement is of recent origin. It combines the effect of radio and cinema.In other words
it appeals both the eyes and ears. It has the combined impact of light, sound, colour etc.
Advantages
• It is a mass communication media
• It appeals both ears and eyes
• It combines the effectiveness of pictorial presentation with sound Disadvantage
• It is very costly
Film advertisement
Like TV advertisement film advertising is also audio- visual media. The manufactures prepare
films about their products for being shown in cinema houses and promote their products
through films and videos. Advantages
• Conveys the message to large number of people
• It covers all classes of people
 • It is possible to explain the use of a product Disadvantages
• Costly
• Effectiveness cannot be measured
• Only those people who come to the theatre can see the film
PUBLIC RELATION (PR)
PR is the art and science of planning and implementing honest, two way communication and
understanding between a company and many different groups with which it is concerned in the
cause of its operation. Objectives of PR
• To promote mutual understanding
• To persuade individuals, groups etc to buy the product
• Helps in fund raising
• Change the behaviour and attitude of the public
• Influence people
• Prepare and supply the public about the organisation like price, quality, export,
employment and other features.

• Provide information about the activities of the company Create and maintain image

and reputation of the company Promotes goodwill.

PR techniques/ tools
▪ News and feature stories
▪ Press release
▪ Films and videos
▪ Booklets and brochures
▪ Photographs, displays and exhibitions
▪ Advertising
Public Relation in Tourism
PR consists of a number of inter related activities oriented towards creating and maintaining a
favourable positive image for the tourist product. The main tools of PR in tourism promotion
are as follows
❖ Organising familiarisation tours for travel writers, editors, travel agents, photographers
etc. and to get first-hand knowledge about it. These person then write about the country
visited in the well-known travel or other general interest magazines.
❖ Organising press releases and arranging press conference with key personnel connected
with the tourism field with a view to disseminate information about the destination.
❖ Arranging seminars and workshop at a place where the tourist promotion office is
located
❖ Organising cultural programmes, musical and folklore shows, TV interviews
exhibitions etc.
Responsibilities of PR department
➢ Building and maintain relations with public
➢ Project image
➢ Enhancing communication flow
➢ Counselling management
➢ Conducting research
➢ Planning and producing publications (journals, brochures etc.)
➢ Organising institutional activities (exhibitions, cultural events, seminars etc.)
➢ Maintain media relation
➢ Provide promotional assistance for advertising, direct marketing, sales promotion etc.
IMPORTANT PROMOTIONAL TOOLS IN TOURISM
Brochures
Brochure are popular form of promotion used for direct sales. These are defind as booklets used
for sales and promotion. The marketers mail these to the potential buyers or use for personnel
selling.
• It can provide detailed information with photographs and testimonials. These has the
following advantages
• It can be targeted more specifically
• It will have greater reminder value
• It can also have secondary or pass along audience. When a brochure is passed from one
person to another those also read who were not originally or primarily targeted.
Events
These are used to promote and highlight the tourism potential of a destination. Without the
events destination may not garner the necessary exposure. Attracted by events, tourist visit
places and get to see its attraction that may become popular later. The following and many
more types of events are used or promoting tourism.
1. International trade fair: international trade fairs such as automobile, technology and
other products bring large number of buyers and sellers to a place.
2. Cultural fairs: destination’s specific festivals such as pushkar fair, Goa carnival,
Dussehra etc includes in cultural fairs.
3. Cultural events: cultural events such as film festivals, musical events, laser shows etc.
bring the destination in news.
4. Historical commemorations: historical commemoration such as the special events in
the historical monuments and the 350th anniversary of completion of the Tajmahal in
2004 attract many tourist.
5. Commercial fairs: such as craft fairs, silk mela, carpet mela bring a number of people
to a place.
6. Sports events: such as IPL, show that tourism can be promoted in smaller cities by
organising such sports.
Movies and videos
These are the best medium to promote tourist destinations through films and videos.
MARKETING COMMUNICATION

Marketing communication (MarCom) is a fundamental and complex part of a company's

marketing efforts.

The Marketing Communication refers to the means adopted by the companies to convey
messages about the products and the brands they sell, either directly or indirectly to the
customers with the intention to persuade them to purchase.

Integrated Marketing Communication (IMC)

IMC is a marketing strategy that has emerged in the recent past. As defined by the American
Association of Advertising Agency, IMC recognises the value of a comprehensive plan that
evaluate the strategic roles of a variety of communication disciplines, advertising, PR, sales
promotion are combines together to provide clarity , consistency and maximum communication
impact.

It means integrating all promotional tools that so they work together in harmony. It is essential
for organisation to promote their brand. Brand promotion increases the awareness of the
products and services and eventually increase their sales, yielding high profits and revenue for
the organisation.
Various components/ stages of IMC

The foundation As the name suggest this stage involves detailed analysis of both product as
well as the target market.

The corporate culture The features of products and services to be in line with the work
culture of the organisation.
Brand focus It represents the corporate identity of the brand

Consumer experience It refers to what the customer feels about the product

Communication tools It include various modes of promotion such as advertisement, social

media, sales promotion. PR etc.

Integration tools Organisation needs to keep regular track on customer feedback and
reviews. Customer Relationship Management (CRM) which measure the effectiveness of
various IMC tools.

DAGMAR Approach

Russell Colley (1961) developed a model for setting advertising objectives and measuring
result. This model was entitled ‘Defining Advertising Goals for Measured Advertising
Result.’

DAGMAR model suggest the ultimate objective of advertising must carry a customer through
for levels of understanding from unawareness to awareness.it is a marketing tool to complete
the result of an advertising company.

Awareness

Comprehension

Conviction

Action
Awareness

The customer must first aware of a brand or a company

Comprehension (knowledge of the product)

He or she must have a comprehension of what the product is and what benefit.

Conviction

He or she must arrive at the mental disposition or conviction to buy the brand. Here the
customer evaluate different plans to buy the product

Action

Finally he or she actually buy that product.

AIDA Model

The AIDA Model, which stands for

A-Attention
I-Interest
D-Desire
A-Action
It is an advertising effect model that identifies the stages that an individual goes through during
the process of purchasing a product or service. The AIDA model is commonly used in digital
marketing, sales strategies, and public relations campaigns.
The steps involved in an AIDA model are:
Attention: The first step in marketing or advertising is to consider how to attract the attention
of consumers.
Interest: Once the consumer is aware that the product or service exists, the business must work
on increasing the potential customer’s interest level.
Desire: After the consumer is interested in the product or service, then the goal is to make
consumers desire it, moving their mind-set from “I like it” to “I want it.”
Action: The ultimate goal is to drive the receiver of the marketing campaign to initiate action
and purchase the product or service.
BROCHURE
A brochure is essentially a small book/magazine with descriptions and information about your
products and places.
The information is usually more detailed and more than a paragraph long. A brochure typically
highlights prices, products, events. It contains testimonials, itinerary options and suggestions
as well as many calls to actions for the reader.
Things to Include in a Travel Brochure
A Good Cover
Description of the Benefit
Call to Action
Product Explanation
Recreational Activities
Geographic Information
Geographic Information
Pictures