Assignment Code: BTMC-136/TMA/2023-24

Course Code: BTMC-136

Assignment Name: Tourism Marketing

Year: 2023-24

Verification Status: Verified by Professor

Section A

Answer the following in about 500 words each.

Q1) What are the different variables for market segment? Explain with examples.

Ans) The different variables for market segment are:

Geographic Segmentation:

Geographic segmentation is a foundational method used to divide markets based on location-based similarities among consumers. By clustering neighbourhoods or regions with shared lifestyles, demographics, and consumption patterns, marketers target broader segments defined by geographic proximity rather than individual consumer traits. This segmentation relies on dividing markets into geographical units such as cities, states, countries, or regions.

For instance, consider a travel agency catering to medical tourism from Yemen to India. To effectively segment this market, the agency would analyse various geographic attributes such as demographics, income levels, and lifestyle preferences of potential Yemeni medical tourists. Age, gender, income, and nationality are fundamental demographic variables that play a significant role in shaping travel preferences and purchasing behaviours.

a) Age: Preferences for travel destinations vary across age groups. A child might seek a trip to a theme park, while a young adult may prefer adventure tours. Middle-aged individuals might opt for business or "leisure" travel, whereas seniors might favour pilgrimage or heritage tours.

b) Gender: Travel products and services might differ based on gender-specific preferences. Security concerns might be more relevant for women travellers, influencing their choices in air travel or accommodations.

c) Income: Income levels significantly influence travel expenditures. High-income tourists might opt for luxury tours with premium services, while budget-conscious travellers might seek more affordable options.

d) Nationality: Different nationalities exhibit distinct travel behaviour influenced by cultural and environmental factors. For example, domestic tourism in India is heavily influenced by religious travel.

e) Occupation: Professionals, businesspeople, and farmers from the same income bracket may have different travel preferences, necessitating segmentation to tailor products and services accordingly.

f) Religion: Religious tourism varies across different faiths, with Hindus visiting temples, Muslims traveling to their holy sites, and so on.

g) Generation: Different generations, influenced by distinct cultural experiences, develop preferences for music, movies, and travel destinations. Understanding these preferences helps in targeted marketing efforts.

Demographic Segmentation:

Demographic segmentation divides markets based on identifiable characteristics like age, gender, income, occupation, religion, nationality, social class, family size, and life cycle stage.

Life stage segmentation could target soon-to-be-married couples for wedding tourism or engineering students during their final college years for industrial tours. Social class segmentation considers consumer preferences for products, from airline seats to hotel categories, influenced by changing trends and societal status symbols.

Psychographic Segmentation:

Psychographic segmentation focuses on consumer values, personality traits, and lifestyle preferences to align products with specific segment needs.

a) Value: Segmentation based on consumer spending patterns and purchase history allows companies to adjust product value accordingly.

b) Lifestyle: Different lifestyles dictate consumer preferences. For instance, a segment might prefer shopping festivals in Dubai or carnival festivals in Brazil.

c) Personality: Psychographic segmentation, exemplified by Plog's tourist typology, divides travellers into categories like allocentric seeking new experiences and psychocentric favouring familiarity.

Behavioural Segmentation:

Behavioural segmentation categorizes consumers based on their online shopping habits, actions on websites, usage rates, loyalty status, and interactions with brands.

For instance, identifying loyalty status—ranging from hard-core loyals to switchers—helps in tailoring marketing strategies. Understanding how users interact with brands online, their purchase frequency, and loyalty aids in developing targeted content and services.

Firmographic Segmentation:

In business-to-business contexts, firmographic segmentation classifies customers based on shared organizational attributes. This practice guides marketing strategies by providing deeper business insights for more effective campaign strategies.

Q2) Discuss the factors influencing Pricing of a product with suitable examples.

Ans) Pricing is a subtle decision in the tourist business, which is influenced by a multitude of internal and external elements, each of which plays a key part in deciding the final price of a product or service. The pricing strategy of an organisation is influenced by several elements, which allow the business to navigate a competitive market while simultaneously accomplishing its goals and satisfying the needs of consumers..

Internal Factors:

a) Cost of the Product: The fundamental factor in pricing decisions is the cost incurred in manufacturing or creating the service. This includes expenses for various components like airfare, accommodations, transportation, and promotional activities. Understanding variable costs (dependent on production volume) and fixed costs (incurred regardless of production) aids in determining the total cost of the product or service. The final price usually includes both costs and a margin of profit to ensure sustainability.

b) Organizational Goals and Objectives: The goals set by the organization significantly influence pricing strategies. Whether aiming for short-term objectives like profit maximization or long-term goals like market share growth, pricing strategies are tailored to align with these goals.

c) Image of the Firm: The perceived image of the organization in the market plays a vital role in pricing decisions. Luxury brands often charge higher prices to maintain their premium image, while value-focused brands may keep prices lower to match their positioning.

d) Product Life Cycle: The various stages of a product's life cycle necessitate the implementation of distinct pricing methods. While corporations may offer low costs during the introduction phase in order to achieve market share, established products may utilise pricing as a tool for various aims due to the fact that they are already established.

e) Channels of Distribution: The distribution network influences pricing. Longer distribution channels involving intermediaries tend to increase costs and consequently raise prices. In contrast, direct distribution channels like company-owned retail outlets often lead to lower distribution costs and, therefore, lower prices.

External Factors:

a) Value Perception: When comparing the value they receive to the price they pay, consumers make an evaluation. Because of the perceived value that is connected with their products and services, brands that place an emphasis on quality, luxury, or one-of-a-kind experiences are able to charge higher costs.

b) Competition: Market competition significantly impacts pricing decisions. Organizations analyse competitors' prices to set their own, aiming to remain competitive and avoid sales loss in highly competitive markets.

c) Government Control: Pricing may be influenced by the government's regulations, initiatives, and taxation policies, all of which have the potential to be implemented. There is a potential that the ability of an organisation to freely establish pricing could be hampered by price ceilings or tax laws that have been decided upon by the government.

d) Economic Conditions: The general economic climate, including inflation or recession, impacts consumer spending habits. During economic downturns, organizations often lower prices to stimulate sales, while in prosperous times, they might charge higher prices when consumer confidence is high.

e) Currency Rates: Fluctuations in currency rates directly affect pricing, especially in international tourism. Variations in exchange rates can lead to changes in pricing for services quoted in different currencies.

Section B

Answer the following questions in about 250 words each.

Q3) Discuss the different Marketing Philosophies in brief.

Ans) Marketing philosophy guides a firm's approach to identifying and meeting customer needs.

Six competing concepts shape these philosophies:

a) Production Concept: Focuses on internal capabilities rather than customer desires. For instance, a restaurant offering cuisine based on available raw materials, overlooking customer preferences. While internal efficiency is valued, neglecting customer needs may limit success.

b) Product Concept: Emphasizes innovation and improved features. However, continuous feature addition without customer value assessment might lead to unnecessary services, such as a hotel offering numerous facilities that might not align with guests' needs.

c) Selling Concept: Relies on aggressive sales tactics assuming customers will not buy without forceful persuasion. This approach overlooks understanding customer needs and long-term brand impact, often seen in businesses using excessive discounts or high-pressure sales methods.

d) Marketing Concept: Centres on understanding and fulfilling customer needs. Recognizing varied customer motives for travel (e.g., cultural exploration or relaxation) is pivotal. Hotels embracing this focus on customer satisfaction, feedback, and service enhancement.

e) Societal Marketing Concept: Extends the marketing concept by integrating social responsibility. Hotels adopting eco-friendly practices or promoting responsible tourism embody this philosophy, balancing profit with societal interests.

f) Holistic Marketing Concept: A modern approach aiming for synergy in marketing strategies. It encompasses:

g) Internal Marketing: Engaging all employees in marketing efforts to ensure customer-centricity across departments.

h) Relationship Marketing: Building enduring relationships with customers, employees, partners, and communities for long-term profitability.

i) Integrated Marketing: Coordinating all marketing activities to provide a seamless customer experience, ensuring alignment in messaging across platforms.

j) Performance Marketing: Evaluating both financial and non-financial impacts, considering ethical, legal, environmental, and social effects of marketing strategies. For example, assessing a campaign's sales impact and its environmental footprint, ensuring compliance with local laws, and preserving local culture in tourism marketing.

Q4) Explain the steps of Marketing Research Process with the help of a suitable example.

Ans) The marketing research process involves several systematic steps to gather, analyse, and interpret data to make informed marketing decisions.

a) Identifying the Problem: Suppose a company wants to launch a new line of organic skincare products. The first step is to define the research problem, like understanding consumer preferences for organic skincare and identifying potential market segments.

b) Developing the Research Plan: The company outlines objectives, research questions, and the type of data needed. It decides to conduct both qualitative (focus groups, interviews) and quantitative (surveys) research to gather insights.

c) Collecting Data: Employing surveys, the company gathers quantitative data from a wide range of consumers about their skincare preferences. Simultaneously, it conducts focus groups and interviews to delve deeper into attitudes and perceptions regarding organic skincare.

d) Analysing Data: After collecting data, the company uses statistical tools to analyse quantitative data, identifying patterns and preferences. Qualitative data undergoes thematic analysis to extract insights into consumers' emotions and motivations for using organic skincare.

e) Interpreting Results: Based on the analysis, the company identifies key findings. They discover that a significant segment of consumers is willing to pay a premium for certified organic skincare due to health and environmental concerns.

f) Presenting Findings: The company prepares a comprehensive report outlining findings, implications, and recommendations. They suggest focusing on eco-certified products and highlight marketing strategies to target environmentally conscious consumers.

g) Implementing Action: Utilizing the insights gained, the company designs and launches a marketing campaign emphasizing the organic, eco-friendly aspects of their skincare line.

Q5) What is the role of Media in Tourism Promotion?

Ans) By sending information to prospective tourists in order to lure them, tourism marketing has the potential to dramatically influence the destinations that they choose to visit. An essential advertising strategy is gaining an understanding of the specifics of the destinations that tourists want to visit.

Various media categories are instrumental in this dissemination:

a) Print Media: Includes newspapers offering local/international news and entertainment. Magazines focus on lifestyle, food, and travel, often inspiring readers with destination details. Travel books provide in-depth guidance, while travel journals offer personal experiences.

b) Banners, Billboards, Brochures: Display and convey service information prominently, attracting attention in public spaces. Travel brochures highlight destinations, hotels, and tours, commonly found at tourist spots, hotels, and information centres.

c) Broadcast Media: Television channels cater to diverse content preferences. Specialized travel channels like Travel XP or shows on National Geographic and Discovery showcase travel-related programs. Radio serves entertainment and informative content.

d) Movies: Globally accessible, movies significantly promote cultures and social awareness.

e) Internet Media: Social networking sites engage users in trip research, decision-making, and sharing experiences. Travel websites offer reviews and fares. Podcasts, like 'The Musafir Stories - India Travel Podcast,' facilitate sharing knowledge and experiences.

These news organisations play critical roles in disseminating information about destinations, which in turn influences the decisions that tourists make. Travelers, for example, examine travel periodicals for in-depth information, interact with social media platforms in order to learn about genuine experiences, and watch travel channels in order to get ideas about potential destinations. The fact that various channels collectively promote locations and have a substantial impact on the choices that tourists make exemplifies the significant role that they play in the marketing of tourism.

Section C

Answer the following questions in about 100 words each.

Q6) Define Branding. What are the characteristic of a good brand?

Ans) Branding is crucial for both products and services, providing them with distinct identities.

A strong brand possesses specific characteristics:

a) Memorability: A good brand is easy to recall.

b) Positive Association: It evokes positive connections or connotations.

c) Reflects Positive Image: It suggests a positive image or perception.

d) Avoids Linguistic Pitfalls: Steers clear of linguistic issues or misinterpretations.

e) Communicates Benefits: Clearly conveys the advantages or benefits of the product/service.

f) Relates to Users: Connects with the target audience, reflecting something about its users.

g) Reinforces Product Concept: Aligns with the essence or concept of the product/service.

h) Ease of Pronunciation: Is easy to pronounce, possesses mnemonic qualities, and is concise and distinct.

Q7) What is meant by Product Differentiation? What are the criteria for Product differentiation?

Ans) Product differentiation involves creating distinctions or unique features in a product or service to set it apart from competitors within the market. It aims to highlight specific qualities that make it more appealing or valuable to consumers.

Criteria for effective product differentiation include:

a) Uniqueness: Offering features or attributes not found in competing products.

b) Quality: Ensuring superior standards or reliability.

c) Design: Creating visually distinct or innovative aesthetics.

d) Brand Image: Associating the product with a positive brand identity.

e) Customer Service: Providing exceptional support or after-sales services.

f) Price: Offering value that justifies potentially higher costs.

g) Functionality: Delivering additional or enhanced functionalities compared to alternatives.

Q8) Explain the different levels of Tourism Product with example.

Ans) Tourism products encompass a range of elements, often classified into different tiers based on their significance to tourists. This categorization hinges on the importance visitors attribute to these offerings in shaping their overall tourism experience. While certain products or services hold paramount importance for tourists, others may be deemed less crucial. For example, in Goa, a hotel with air conditioning might be considered an essential provision, whereas a spa service could be viewed as non-essential to the overall tourism experience. This classification aids tourism service providers in prioritizing their offerings, helping them focus on creating products or services that align more closely with tourists' preferences and needs.

Q9) What are the criteria of classifying the services?

Ans) Services can be classified based on several criteria:

a) Nature of Service: Tangible or intangible offerings.

b) Customer Contact: High or low interaction with customers during service delivery.

c) Customization: Degree of customization or standardization in services.

d) Service Process: Variability in service delivery processes.

e) Service Tangibility: Tangible elements accompanying the service.

f) Service Variability: Consistency or variability in service quality.

g) Service Perishability: Perishable or non-perishable nature of services.

h) Service Ownership: Owned or rented services.

Q10) Write short notes on any two of the followings.

a) Disadvantages of Digital Marketing.

Ans) Digital marketing, while advantageous, carries notable drawbacks. Competition intensifies as user numbers grow, with 90% undecided on brand choice and 33% influenced to switch brands by competitor information. Technological dependency poses challenges with access issues due to bans, errors, or limited connectivity for tourists. Managing digital platforms requires substantial time due to content generation and feedback. Security concerns arise from misleading data on social media, impacting decision-making. Travel industry fraud contributes to false bookings, with up to 25% false declines yearly, affecting the airline sector's booking reviews and hotel industry scams.

b) Destination Marketing Organisations.

Ans) Destination Marketing Organizations (DMOs) are entities responsible for promoting and developing a specific location as a tourist destination. These organizations focus on enhancing the area's appeal to tourists, attracting visitors, and maximizing economic benefits through tourism. DMOs collaborate with stakeholders, including government bodies, businesses, and local communities, to devise marketing strategies, create promotional campaigns, and organize events. Their objectives typically involve increasing visitor numbers, boosting local revenue, and improving the overall image of the destination. DMOs play a pivotal role in shaping a location's identity, highlighting its attractions, and showcasing unique experiences to draw tourists.