Assignment Code: BTMC-136 / 2021-22

Course Code:BTMC-136

Assignment Name: Tourism Marketing

Year: 2021-2022

Verification Status:Verified by Professor

Assignment A

Answer the following in about 500 words each.

Q1) Discuss the different marketing philosophies with examples. 20

Ans) The firms marketing activities are influenced by six competing marketing philosophies.

Production Concept: The production concept prioritises internal production or service capabilities over customer needs and desires. With this mindset, marketers will always focus on firm capabilities rather than customer expectations. For example, a restaurant will serve food based on the chef's skill or the availability of ingredients, rather than the desires of the tourist. Those in charge will ask, “What services does the firm need to offer?” This concept assumes that customers will buy whatever is made available to them at low prices. This hotel's philosophy creates cheaper accommodation options (like budget hotels/hostels) without much focus on customer needs.

Product Concept: The product concept assumes that customers prefer innovative products or services with enhanced features and a higher emphasis on quality. Marketers who subscribe to this tenet will keep adding product features regardless of whether customers value them. Such a hotel would provide multiple experiences to create a high-end property. For the customers, many of these services may be of limited value

Selling Concept: This approach assumes that customers will not buy unless they are aggressively pushed to do so. Even intermediaries will not aggressively promote a product unless told to do so.

For example, a hotel that believes in this concept will use aggressive sales techniques like discounts or commission agents to sell rooms, without regard for long-term brand equity. Many souvenir shops in tourist destinations adopt this philosophy and push their products even if the likelihood of a tourist visiting the shop is low.

Marketing Concept: This philosophy is based on ‘customer orientation,' which means understanding customer needs. Customers buy products or services that meet their needs. Some travel to a place to learn about the culture. Others may go to see natural beauty. Others may go to buy souvenirs or local handicrafts. They are all going to the same place, but their reasons for going are different.

Societal Marketing Concept: To preserve or enhance individuals or society's long-term interests, this concept is a refinement of marketing. Marketers who subscribe to this philosophy will emphasise corporate social responsibility. For example, a hotel that embraces this philosophy will recycle and reuse linen. Marketers who subscribe to this philosophy will also promote sustainable or responsible tourism. In simple terms, this philosophy requires marketers to balance three factors: company profits, consumer needs and wants, and societal interests.

Holistic Marketing Concept: This is a modern marketing philosophy that involves designing marketing strategies that are interlined and interdependent to achieve marketing synergy. This philosophy recognises that in today's competitive environment, a holistic approach is required to be effective. For example, a Chef and his staff working in kitchen should understand customer needs in order serve the customers well. Similarly, the staff working in housekeeping department should also embrace marketing principles to ensure that the rooms are prepared in line with the expectations of the customers. Internal marketing calls for alignment across all departments so that every employee understands and supports the marketing effort.

Q2) Enumerate and explain the variables used for market segmentation. 20

Ans) Markets can be identified by a variety of subcategories and characteristics, but only four types of market segmentation are recognised. Subcategories can be found in dozens of subcategories for each of the four types of segmentation. Market segmentation into four types serves the purpose of assisting businesses in achieving similarity within each segment.

Demographic

The demographic market segmentation is all about the customer. Whether you run a B2B or B2C business determines which traits go into the demographic market segment. If you run a B2B company, you would likely include industry, company size, tenure, and role in this segment. A B2C company would include age, education, gender, occupation, family status, and income. This is a common market research segmentation type used to determine a company's main target audience. This data is also easily obtained. All you need is census data to get this information. Auto dealers can use this data to target specific genders, age groups, and income levels. This type of market segmentation allows you to directly respond to your customers' wants and needs.

Geographic

If your customers' location influences their purchase decision, you can use geographic market segmentation to effectively split your entire audience. The geographic segmentation traits and segments include region, continent, country, city, and district. This is a popular segmentation method because most customers are influenced by their location. If a large portion of your audience is British, you can create a co.uk website. This type of segmentation is ideal for multinational corporations. A marketing campaign can target customers from different countries based on their wants and needs. Many businesses consider this the simplest form of market segmentation. It's also great for small businesses on a budget. Because online ads outperform TV and print ads in most cases, this data can help you allocate your budget effectively.

Psychographic

The psychographic market segmentation divides the audience based on personality traits. Lifestyle, attitudes, interests, and values are all included in this segmentation. However, identifying demographics based on personality requires extensive research. Your marketing platform can be modified to reflect your target audience's core values, such as quality and energy efficiency. It's best to cover several psychographic traits when creating your marketing strategy so you don't miss out on an audience's perspective. While difficult to use, many companies believe it can lead to high yields. When you target your marketing to a person's personality, they are more likely to become loyal to your brand.

Behavioural

Behavioural market segmentation divides your audience based on their previous brand behaviour. Consumers who are aware of your business and know your product are the most likely to be segmented. A restaurant is a good example of a business that might use this type of market segmentation. If a restaurant has separate lunch and dinner menus, they could compare purchase patterns between the two. Items on the lunch menu might be more popular if they were available for dinner. The restaurant could use this data to improve existing menus and create new ones targeted to specific demographics.

Assignment B

Answer the following questions in about 250 words each.

Q3) What do you understand by Research Approach? What are the types of Research Approach? 10

Ans) Research Approach: The research approach is a plan and procedure that consists of the steps of broad assumptions to detailed methods of data collection, analysis, and interpretation. It is, therefore, based on the nature of the research problem being addressed.

The research approach is essentially divided into two categories:

1. The approach of data collection.

2. The approach of data analysis or reasoning.

The major research paradigms are quantitative research paradigm and qualitative research paradigm. Quantitative research aims at causal explanation whereas qualitative research is an approach that seeks to understand by means of exploration. Quantitative approach is concerned with discovering facts about social phenomenon by assuming a fixed and measurable reality whereas qualitative approach is concerned with understanding human behaviour from informant’s perspective and assumed dynamic and negotiated reality.

Types of Research Approach

The various types of qualitative research design includes ethnography, phenomenology, grounded theory, historical research, case study, action research. Ethnography is a method of observing human interactions in their cultural context. Phenomenology is known as “science of experience” whose purpose is to describe the appearance of things as lived experience. Grounded theory is study of concepts is used to generate a theory that explains, at a conceptual level, a process, an action or an interaction on the research problem. Historical research is a process of critical inquiry into past events, in order to produce an accurate description and interpretation of those events. A case study is a factual description of events that actually happened at some point of time in the past. Finally, action research is a form of self-reflective enquiry undertaken by participants in social situations in order to improve them. All these methods are quite useful in context of tourism as cross-cultural interactions between host and guests takes place quite frequently.

Q4) Explain the characteristics of Tourism Product. 10

Ans) The characteristics of tourism products are:

Intangible and Tangible Products: Most tourism products are intangible. Tourism products can only be experienced and not touched because they are non-physical. For example, when an airline sells tickets, it is selling a service of transportation. In this case, passengers can only enjoy the airline's services and travel.

Tourism Products are Highly Perishable: Tourism products are highly perishable and cannot be stored for later use. Unlike other products, tourism products expire if not consumed within a certain time frame. Unsold airline tickets or hotel rooms, for example, cannot be stored to be sold later. If an airline ticket is not sold before the plane takes off, it is a waste of money. Due to the short shelf life of tourism products, hotels offer steep discounts during slow seasons to sell remaining inventory.

Fluctuation in Demand: Tourism demand is highly seasonal, resulting in seasonal fluctuations in tourism product demand. For example, hotels in Rajasthan, India, are in high demand during the winter months (September to February) and not so much during the summer months (March to July) due to the extreme heat. The demand for tourism products is influenced by external factors such as global economic and political conditions.

Tourism Products are Composite in Nature: A tourist experience is made up of several components. Instead of a single finished product, a tourism product is a collection of several interrelated products assembled over time. A tourism product is a composite of various interrelated products that are consumed together.

Ownership: Unlike other products, tourism products do not give him ownership of the product. Whereas the purchase of an automobile automatically transfers ownership of that vehicle, a hotel stay only grants access to the hotel's facilities for the duration of the stay.

Production and Consumption happen Simultaneously: The hotel must be physically present to serve the tourist, and the airline must be physically present to transport the passenger. Tourism products cannot be stored for later consumption or transported to another location. Tourism production can only be produced and consumed when the tourist is present at the location and time.

Tourism Products are Heterogonous in Nature: Tourism products are not uniform. In other words, tourism is never consistent. A restaurant meal is not always the same for two people. Similarly, two tourists may not enjoy a museum visit in the same way.

Dominant Role of Intermediaries: Travel agents and tour operators are examples of tourism intermediaries. Putting together a tourism product, which is made up of many interconnected products, can be difficult. Due to this complexity, travel agents, tour operators, and other intermediaries dominate the tourism product supply.

Q5) Discuss the approaches commonly adopted for the planning of a Tourist Destination. 10

Ans) The various approaches adopted for Planning a Tourist Destination are:

System Approach

The future of tourism development is based on systematic data collection and analysis. Following previous trends, this approach helps set appropriate targets.

Comprehensive Approach

A broad-based approach analyses and plans all aspects of tourism. Several external and internal tourism development aspects are incorporated for success. For all tourism sectors, a comprehensive approach that includes internal and external guidelines from organisations like the UNWTO and the WTTC is required.

Integrated Approach

Integrated tourism planning involves all stakeholders directly or indirectly involved in tourism development. The overall planning and management focuses on not only tourism but also the destination's overall welfare. Tourism development is coordinated with other general destination activities like people, culture, and local economic development. Integrated tourism planning always includes state and national welfare and development policies as well as tourism industry needs.

Sustainable Development Approach

Unplanned tourism has significant negative impacts on the environment, society, and culture. Community involvement and community-based tourism, culture and heritage preservation, and sustainable commercialization will all help achieve sustainable development.

Community Approach

The social and political context of the destination is central to community tourism planning. A power relation for tourism development is its focus. It advocates for more destination community input into the process.

Implementation Approach

The implementation approach involves multiple stakeholders, organisations, NGOs, and government departments. The implementation approach is more applicable when establishing a tourist destination, and it is based on the previously prepared blueprint plan. Resources used, accountability, transparency in decision making, rules and regulations set, degree of political power concentration and admiration are all considered in the implementation approach. In addition, the implementation approach eliminates duplication of efforts, bureaucracy, and fragmentation of government departments, public and private authorities. Adopting a plan of action must

Systematic Approach

Successful tourism planning must consider sociocultural, economic, political, technological and geographical factors. Planning and development activities that include short-term and long-term marketing and promotional events. A systematic approach also involves updating the destination ahead of current market demand and improving the facilities needed by all stakeholders.

Assignment C

Answer the following questions in about 100 words each.

Q6) Discuss the approaches of Target Marketing with examples. 6

Ans) Target market refers to a specific and well-defined consumer segment within the business’s serviceable market which the business wants to sell its products and services and direct its marketing efforts to. Defining a specific target market eases the marketing decision making the process as marketers get to know about the most profitable set of customers and use most of their efforts and resources to woo them.

Here are some target market examples:

Target Market of Facebook

The target market of Facebook has evolved along with the company. Facebook has now widened its target market and has positioned itself as a social media platform used mostly by middle-aged (25-34 years) mobile using adults in 157 countries.

Target Market of Snapchat

More than 178 million users below the age of 25 (18-24), most of which are still in high school and college, preferably females, form the target market of Snapchat.

Q7) Explain the concept of Product Differentiation with examples 6

Ans) Product differentiation is a process used by businesses to distinguish a product or service from other similar ones available in the market. This tactic aims to help businesses develop a competitive advantage and define compelling, unique selling propositions (USPs) that set their product apart from competitors. In addition, organizations with multiple products in their portfolio may use differentiation to separate their various products from one another and prevent cannibalization.

Examples

Examples of Horizontal Differentiation: Pepsi vs. Coca-Cola, bottled water brands, types of dish soap.

Examples of Vertical Differentiation: Branded products vs. generics, A basic black shirt from Hanes vs. a basic black shirt from a top designer, the vehicle makes.

Examples of Mixed Differentiation: Vehicles of the same class and similar price points from two different manufacturers.

Q8) Discuss the nature and importance of Distribution Channels in Tourism. 6

Ans) A good distribution channel helps the manufacturer reach the customer and ensures a smooth chain flow of goods and services. The entire process of deciding the channel, managing intermediaries, ensuring inventories, and making it available at the point of sale must be handled. Holloway defines distribution as handling enquiries and sales on behalf of the supplier or principal, and (ii) delivering products to channels and ultimately customers. Due to the service-oriented nature of tourism products, distribution channel decisions are complex.

The distribution channel members' role is to understand the sites, activities, and unique features of the destination. Some of these channels sell multiple products or services while others only provide one. Thus, the distribution channel partner is critical in conveying the benefits of products and services to the next link.

Q9) Explain the different pricing strategies used by an organization with suitable examples. 6

Ans) The different pricing strategies used by an organisation are:

Premium Pricing: Premium pricing strategy is where the seller sets a price for product or services at a higher price as compared to the market price.

Example: Most luxury hotels and airlines use this strategy to create a value perception of being a premium product. Air Vistara, an Indian full-service carrier has adopted this pricing strategy since its inception in 2015.

Economy Pricing: Economy pricing, in contrast to premium pricing, is a strategy where products are priced a lower price.

Example: It is generic food sold at grocery stores. The generic items are priced lower due to the fact that they require very little marketing and promotion expenses.

Price Skimming Premium Pricing: Although organisations this strategy ensures higher sales volumes, lowers the profit margin as the prices are set to barely cover costs.

Example: Apple iPhone, iPad products. Apple iPhones are generally more expensive than similar competitors.

Penetration Pricing: Penetration pricing is usually a short-term strategy intended to enter a market or achieve sales volume goals. The goal here is also to increase usage and brand awareness in the market.

Example: Penetration pricing examples include an online news website offering one month free for a subscription-based service or a bank offering a free checking account for six months.

Price Skimming: Price skimming, contrary to penetration pricing, is a strategy where an organisation chooses to set a high price during the initial phases of market entry.

Example: a luxury cruise line may offer a higher price initially due to novelty of the experience or brand name enjoyed in the market.

Q10) Write short notes on any two of the followings. (2 X 3 =6)

a) 8th P of Marketing Mix

Ans) While the 7Ps of marketing are universally agreed upon, the 8th P of the marketing mix is generally debated. We discussed programmes and performance in section 2.2 as an additional P to the marketing mix. Some experts consider partnerships to be the 8th P of the service marketing mix. Others add the Ps of productivity and quality. Though they are all vital, we will consider performance as the 8th P. Performance marketing also relates to productivity as it is the simplest method of tying marketing costs This is especially true now that online or digital marketing is the future. It is all about improving processes and systems to reduce customer service costs and cycle times. Refocusing on human resources while optimising marketing communication will enable the staff. It promotes continuous improvement and builds long-term brand equity. The last P of the extended marketing mix is proof. This is the service environment. Physical evidence includes all tangible goods and artefacts used to perform services.

b) Social Media as a Marketing tool.

Ans) Publishing was the beginning of social media marketing. Businesses were using social media to promote their content in order to drive traffic to their websites and, hopefully, sales. However, social media has evolved into much more than a platform for disseminating information. Businesses nowadays use social media in a variety of ways. For instance, a company concerned about what people are saying about its brand on social media would monitor conversations and respond to relevant mentions (social media listening and engagement). A company that wants to know how well it's doing on social media would use an analytics tool to look at its reach, engagement, and sales (social media analytics). If a company wants to reach a specific group of people at a large scale, it will run highly targeted social media ads (social media advertising).