5.6 CULTURAL MOTIVATORS Which are linked to people's desire to travel in order to learn more about other countries and people, as well as to research their cultural heritage as reflected in art, music, literature, and other forms of expression. People travel to different places, especially those with significant historical and cultural events. Many tourists flock to places that host unique art and music festivals. Curiosity is another reason why people want to travel to different countries to learn about their technological advancements. 5.7 INTER PERSONAL MOTIVATION Ethnic & Family Every year thousands of American visits European countries. They feel that they are visiting their home land and it is an ethnic motivation. Visiting ones relatives and friends and making new peoples also as a personal motivation Religious Travel for spiritual reasons like visiting religious places is also a personal motivation. For Christian a visit to Jerusalem or to Rome and for the Muslims a visit to Mecca is many auspicious. In India there are many pilgrims’ centres and holy places of all major religions of the world where every year large number of pilgrims from all over the world come. 5.8 STATUS, PRESTIGE AND PROFESSION It is very popular for professionals to attend concessions and conferences related to their career. Businesspeople travel extensively as part of their employment. Missionaries from various religions are now making travel a part of their work. In most situations, the meaning of a \"break from routine\" is either relocating or shifting the prevailing social background from one's work environment. 5.9 CROMPTON HAS IDENTIFIED SEVEN SOCIO-CULTURAL 101 MOTIVES AS FOLLOWS: • Escape from a perceived mundane environment, • Exploration and evaluation of self, • Relaxation, • Prestige, CU IDOL SELF LEARNING MATERIAL (SLM)
• Regression (less constrained behaviour), • Enhancement of kinship relationships, • Facilitation of social interaction, • Novelty and education. Grinstein described the regressive aspect as: lying on warm sand, being buried in the sand, and being naked are all examples of pleasures that are partial regression manifestations. Rest and relaxation opportunities are improved as a result of tourism. Leipet differentiates between recreational and artistic leisure, which results in the development of something new. He sees leisure as serving three purposes: Rest, which allows you to recover from physical or mental exhaustion; Relaxation, or the release of tension; and Entertainment, or the release of boredom. Iso-Ahola suggested a theoretical motivational model in which an element of escaping is combined with a portion of searching. An individual's desire to escape his or her personal environment (personal problems) and/or interpersonal environment provides one set of motivational powers (co-workers, family members and friends). Another collection of forces arises from the urge to achieve some psychological benefits by travelling to a new place. 5.10 SOCIO ECONOMIC AND SOCIO DEMOGRAPHIC FACTORS To assess some kind of relationship on travel habits, socioeconomic factors are more important to examine. Age, wages, family size, and car ownership are all socioeconomic factors. Trip makers like age, gender, and ethnicity are used in travel for two reasons: one, because they can directly influence travel behaviour, and two, because they can be used as proxies for more difficult to observe variables like desires, tastes, choices, resource constraints, and social norms. Income and vehicle access, for example, are good measures of a person's resource access, while gender, age, and ethnicity variables only give a partial picture of a person's tastes and travel preferences (Daniels, 2012). 5.10.1 Income Household income, or household income per person when normalised to a family size, has a significant effect on mode preference. Upper-income families and individuals are thought to place a higher emphasis on the comfort and convenience of owning a car, particularly for non-work trips. 102 CU IDOL SELF LEARNING MATERIAL (SLM)
Regardless of the intent of the ride, vehicle ownership and access to a driver's licence play a significant role in travel conduct. It has been observed that the wealthy in the city travel more than the poor. The poor will often choose to live closer to their jobs in order to save money on transportation, which is highly unlikely in the case of the wealthy. They will live a long way from their workplaces and commute there. Often, when the poor use public transportation, access is a major problem because, in many areas, feeder services are still inadequate and costly, particularly when compared to what a typical poor person can afford for travel (Daniels, 2012). As a result, the income factor has a strong influence on travel behaviour and mode selection. 5.10.2 Age The relationship between age and travel behaviour is multi-faceted. Young children, for example, are far less likely than adults to make any type of independent trips. Teenagers on the other hand, want to travel anywhere and everywhere without and specific agenda, they probably need a reason to get out of their homes. Adults tend to travel out for necessity or for recreational purposes. Older people have the desire to walk or bicycle and spare their time in a qualitative way, but there might be physical constraints. Hence attitude towards specific modes also varies generationally, with older generations more familiar with, if not predisposed towards transit (Reilly, 1996). 5.10.3 Gender The relationship between gender and travel behaviour is another important factor that influences mode selection. What may or may not be true for some men and women may not be true for others. Many women, as opposed to men, are less likely to embark on trips or use modes because they believe they are dangerous. Memory biases have also been recorded in cases where women have seen or heard something particularly unpleasant, which may prevent them from using public transportation. In addition, the clothing worn by women in various cultures has a significant influence on the mode of transportation chosen. In Indian contexts, for example, how comfortable would it be for a woman to run around in sarees for public transportation? Safety considerations may also be considered, such as what if the pallu becomes trapped somewhere by mistake. As a result, it is critical to consider gender-related problems such as transportation and street facilities in order to ensure women's high usage and make them as secure as possible. 103 CU IDOL SELF LEARNING MATERIAL (SLM)
5.10.4 Employment Status Employed people might have greater demands on their time and thus, prefer quicker and more convenient modes of transportation, as private car, compared to slower or less convenient modes. Also, the location of their work places has a great impact on the mode choice and again the affordability and time compared to their income is a strong determinant of the same. 5.10.5 Household consumption and housing type If a household is a family, interrelationships can have a significant effect on each person's decision. When members of a household are unrelated, they may exchange knowledge or tastes, but their behaviour is supposed to be less interdependent. The more children in a household, the more likely the adults are to avoid taking public transportation because they must pay a fare for each infant. Finally, a household's dwelling unit form and tenure have long been considered a taste variable that can influence mode choice indirectly. Living in a single-family home or owning a home is supposed to increase a person's probability of driving. 5.10.6 Universal Accessibility To a large degree, an individual's skill decides their mode of choice. It is important to provide facilities that can accommodate a person's abilities in order for a city's transportation system to be inclusive. Other infrastructure that accommodates short-term issues, such as if we have luggage, if a woman is carrying an infant, or a sense of safety and security due to the existence of street infrastructure, the rate at which a public space is used, and so on. 5.10.7 Neglected Influence of city specific factors such as topography As a city's public transportation network is planned, several factors must be considered, including coverage, frequency, route planning, and other factors such as terrain and topography, climatic conditions, political and economic impact, target group's preferred modes, and so on. These are the factors that influence the preparation of city development plans and the formulation of policies, as well as investments and funding. This is essential to assess a user's accessibility, usability, and comfort in order for them to choose a specific mode of transportation as their preferred mode of transportation. When a city's network planning choices are made, topography is frequently overlooked. However, by conducting the appropriate analyses, forecasts, and studies on preparation, 104 CU IDOL SELF LEARNING MATERIAL (SLM)
extension, operations, and public transportation use; measuring the nature of walk access in providing coverage; ensuring planning guidelines consider topography in measuring walking access; and selecting the most efficient mode topographically while ensuring other policies support multimodal networks, this can be enhanced. Climate and topographical features, including water features such as harbours, bays, and rivers, and land features such as peninsulas, ridges, cliffs, and elevations, are all part of the physical landscape. When designing public transportation in towns, we must always keep in mind that \"one size does not suit everything.\" As thorough studies are conducted for various cities, development plans are created that take into account land use, topography, accessibility, and affordability of public transportation. This will help to increase the operating and maintenance costs of those modes, as well as the ridership. For example, Table 5.1 -The operational impacts of topography on Public Transport by mode Mode Operational Effect Rail Curves and gradients to overcome topographical features reduce operating speed, increasing travel time, affect passenger comfort, and Bus reduce patronage. Topographically- Ferry difficult terrain usually results in increased maintenance and operations costs. Spacing and location of bus stops with bus stops required at closer spacing in steeper areas or with areas with topographical barriers to prevent severance impacts and to ensure coverage. Closer stops increase dwell time and reduce overall operating speed, increase total travel time and reduce patronage. Location of wharves has impact on journey time and operational costs. Ferry services that need to divert into a bay have a longer 105 CU IDOL SELF LEARNING MATERIAL (SLM)
journey time and higher cost through travelling greater distances. Different marine environments within the network (open harbour crossings and shallow rivers) increase vehicle mix, with consequential increases in maintenance costs and a potential to reduce reliability through vessel availability. Tidal flows affect timetabling and the ability to create legible networks. Overall, the discussion on public transport planning, operations, and use. Factors Affecting Tourist Behavior The following factors immensely alter tourist behavior − Geographical Factors − Some physical factors like geographical and climatic conditions, facilities and amenities available at the destination, advertising and marketing conducted by tourism business alter the decision making of the tourists. Social Factors − A few social factors such as a person’s social network, which provide first had information that can alter a person’s decision of visiting or not visiting a particular place. Place of Origin − There can be a broad spectrum of tourist behavior depending upon the place they belong to. North Americans like to follow their own cultural framework. Japanese and Korean tourists like to visit places in groups. Tourism Destination − It is a major contributing factor altering tourist behavior. If a destination has all basic provisions such as electricity, water, clean surroundings, proper accessibility, amenities, and has its own significance, it largely attracts tourists. Education of Tourist − The more educated the tourist is, the wider range of choices, curiosity, and the knowledge of places he would have. This drives the decision making when it comes to choosing a destination 5.11 SUMMARY • There are many motivating factors that give impact on tourism. • Crompton identify ed Seven Socio-cultural Motivation • Internal and External factors that affect tourism. • Demographic factors make change in consumer behaviour. • There can be a broad spectrum of tourist behavior depending upon the place they belong. • Japanese and Korean tourists like to visit places in groups. • North Americans like to follow their own cultural framework. 106 CU IDOL SELF LEARNING MATERIAL (SLM)
5.12 KEYWORDS • Extrinsic Motivation - a tourist gets motivated by external factors such as money • Intrinsic Motivation − For many people, tourism is a way of satisfying their psychological needs such as travelling. • Religious - Travel for spiritual reasons like visiting religious places 5.13 LEARNING ACTIVITY 1. Explain the Socio Economic And Socio Demographic Factors ___________________________________________________________________________ ____________________________________________________________________ 5.14 UNIT END-QUESTIONS A. Descriptive Questions Short Questions 1. What is inter-personal motivation? 2. Describe socio economic factors that are related with travel. 3. Describe the operational impacts of topography on Public Transport by mode 4. What is intrinsic behaviour? 5. List out the external factors for motivation of travel? Long Questions 1. Describe motivation on Travel. 2. Differentiate internal and external factors of motivation 3. List Out Factors That Motivate Consumer Attract Towards Tourism. 4. List Out The Factors Affecting Tourist Behaviour 5. Write short notes on cultural motivators with example. B. Multiple choice Answers: 107 1. Which type of travelers are not interested in travel information. a. Moderates b. Adventures c. Home bodies CU IDOL SELF LEARNING MATERIAL (SLM)
d. None of these. 2. Which travelers give less priority to comfort and safety a. Budget b. Adventures c. Moderates d. Hand bodies 3. Which travelers are more Economy oriented a. Budget b. Vacationers c. Moderates d. None of these. 4. In the following which is not a life style factor that determines tourism demand a. Income b. Education c. Race d. Family Size 2. In the following which is not a basic purpose of travel in ancient times a. Trade b. Seeking Knowledge c. For religious purposes d. Recreation 3. In which segmentation the stress is on the tourists behavior with respect to the given tourism product. a. Demographic b. Behaviouristic c. Psychographic d. Geographical 108 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Which tourism market segmentation assumes that the tourist’s purchasing behavior would be affected by his personality or lifestyle. a. Psychographic b. Behaviouristic c. Geographical d. None of these. 5. . Which is the only public tourism undertaking in India a. TAAI b. IATO c. ITDC d. None of these. 6. Which of the following is a scienic tourist attraction a. Health resort b. Climate c. Spa d. Flora and fannua 7. which of the following is not a traditional turist attraction 10.c. a. Arts b. Handicrafts c. Wildlife d. Music Answer 1.c 2.b 3.a 4.d 5.d 6.b 7.b 8.c 9.d 5.15 REFERENCES Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 109 CU IDOL SELF LEARNING MATERIAL (SLM)
Text books • Specific Country Guide Books of Lonely Planet Publication. • DK Eyewitness Travel Guide: Europe • A.K Bhatia – International TourismMgt. • International Geography for Travel and Tourism by John P.Wrades 110 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 6: PACKAGING OF TOURISM PRODUCTS Structure 6.0 Learning Objectives 6.1 Introduction 6.2 Advantages of developing a package 6.3 Packaged tour 6.4 Types of Package 6.5 Branding 6.6 Concept of New Product Development 6,7 Summary 6.8 Keywords 6.9 Learning Activity 6.10 Unit end Questions 6.11 References 6.0 LEARNING OBJECTIVES After learning this unit, the student will be able to • Identify the concept of packaging and branding. • Explain the Types of packages • Recognizes the concept of new product development. • Classifies the difference between branding and packaging. 6.1 INTRODUCTION - PACKAGING & BRANDING The company produces an appealing package, cover, wrapper, or jar during the packaging process to enclose the product for distribution and sale to consumers. Proper packaging serves two purposes: it creates an enticing package for the product and it keeps the product secure and in its original condition. Since it is the first thing consumers see about a product, packaging is one of the most critical aspects of marketing. As a result, it aids in product marketing at the point of sale. Packaging offers brand information and aids in the simple presentation of a brand. As a result, the primary goals of packaging are: 111 CU IDOL SELF LEARNING MATERIAL (SLM)
identification of a brand acting as a way of communicating product details, including both descriptive and convincing information distributing the commodity and making sure it doesn't get harmed acting as a form of product promotion at the point of sale. Various tasks related to designing, testing, and developing the wrapper, jar, envelope, or other means of enclosing a product are used in packaging. Branding Branding is a marketing technique that involves creating a distinct name, image, or logo for a product in order to attract consumers' attention. Its aim is to give a product a distinct identity that distinguishes it from other companies' products. It also aims to cultivate consumer trust and loyalty for the product. It not only creates a positive image of the product in the minds of buyers, but it also creates expectations for the brand. Companies use branding as a marketing strategy to raise awareness of their products among their consumers. The branding process is ongoing, and the marketer uses it to build a long-term relationship with consumers by identifying their evolving needs and delivering goods that meet those needs. Because of branding, a product can be easily recognized. A brand-conscious person can only choose a brand in which he or she has full confidence and will not consider trying other brands. BRANDING-VS-PACKAGING Meaning Creating a unique product/service, that is The process of designing, assessing and different from those of competitors so to creating the packet, wrapper, container, etc. attract customers and develop trust. for wrapping the product. Purpose Its purpose is to make the products unique and Its purpose is to promote the product and keep distinct from other competing products in the it secure from any kind of damage so that it 112 CU IDOL SELF LEARNING MATERIAL (SLM)
market. reaches customers in its original form. Elements It includes name, color, logo, sign, etc. It includes color, font, logos, description, etc. Advantages It helps in establishing trust and long-term It helps in gaining the attention of customers associations with customers. It seeks to retain and drawing them towards the product existing customers by increasing loyalty. 6.2 ADVANTAGES OF DEVELOPING A PACKAGE Packaging’s intent is to create user-friendly products. It is intended to make carrying out business more convenient for both the business and the customer. Advantages For The Customer • It increases convenience for the clients by combining services that would otherwise have to be purchased individually, often with some difficulty. • It makes vacations more affordable and less time consuming to plan. • It allows customers to budget and more closely predict the cost of their vacations. It can provide some security of product quality Advantages For The Business • It increases the number of sellable features, allowing the business to appeal to wider markets • It creates unique products, because elements are usually different than the packages of other tours. • It provides newer businesses the opportunity to partner with well-established, high- quality products. • It facilitates tourism and regional economic development by increasing demand for some components of packages • It encourages participation in tourism development. • It may maximize revenue for the package partners by decreasing marketing costs. 113 CU IDOL SELF LEARNING MATERIAL (SLM)
• It increases marketing effectiveness through a well-organized effort. • It enables operators to provide control over the visitor’s experience through the selection of appropriate partners. Disadvantages of developing a package • Partners have not got as much control over the quality of the total product. • Package may increase the logistics required to handle a client. • Packages may increase the potential for things to go wrong, as more players are involved in the package. • Packages may create client volume that a partner does not have the capacity to handle. • Package may create the feeling of inflexibility among customers, since most packages have predetermined components and often have pre-determined dates. 6.3 PACKAGED TOURS A pre-planned, organized travel experience consisting of several and separate elements operated over a fixed itinerary and time frame. These programs may encompass a wide spectrum of interests, events and activities but must, by regulatory requirement, contain at least one night's confirmed accommodation any two of the following components: • Air transportation • Surface transportation • Local transfers • Car or recreation vehicle rental • Sightseeing or guide services • Meals and/or entertainment Realistically, from an external sales and marketing point of view, The basic requirements for qualifications are: • Accommodation • Transfers • Sightseeing These are accepted by regulatory authorities to constitute a packaged offering and qualify for a variety of promotional air fares and tariffs which provide competitive pricing of the product. Packaged tour sales are especially attractive to travel agents as they derive increased 114 CU IDOL SELF LEARNING MATERIAL (SLM)
commission rates on the air transportation segments of the program. Packages take many forms. For example: • A local canoe-guiding business and the hotel down the road get together to market a day long canoe trip with overnight accommodations to residents of a nearby city. • A bus-tour company buys accommodation and meals at a community lodge to include in the bus-tour company's own package. • A guest farm and a foreign-language school organize a farm stay for the language school's students. • European travel wholesaler combines air travel, bus transport, hotel accommodation, meal vouchers, city tours, and outdoor activities, such as rafting and horseback riding, for Europeans who want to come to Canada 6.4 TYPES OF PACKAGES The most significant difference between package forms is between party and individual travel packages. Both types of package buyers are looking for a comprehensive experience at a fair price. Furthermore, these packages are divided into two categories: touring/trip-oriented and destination-oriented. Packages for groups A Group Inclusive Tour (GIT) is a pre-paid tour for a set number of people who will ride together. GITs are typically travel-escorted on chartered transportation and generally include all baggage handling, entrance fees, taxes, and some meals in the N.W.T. Most group tours in the N.W.T. are composed of 10 to 35 people (standard coach size is 47 passengers). GITs are usually travel-escorted on chartered transportation and generally include all baggage handling, entrance fees, taxes, and some meals. As the name implies, this is a special operation designed to accommodate a group of people who have common interests. This tour product is often used to serve long itineraries that include a combination of facilities, transportation, lodging, and attractions. They are divided into three groups based on their length and areas of operation: • Escorted • Hosted • Unaccompanied Packages for individual travellers 115 CU IDOL SELF LEARNING MATERIAL (SLM)
A Fully Inclusive Tour (FIT) is a pre-paid tour for one to ten people who are not escorted or accompanied by a tour guide. The booking is usually initiated by an airline. Customers usually use public transit or take a U-drive. Accommodation, lodging, and sightseeing are usually included in FITs. Each part of the package is provided to the traveller as a \"voucher.\" Individual travellers are normally responsible for taxes and baggage handling. S.I.T: SPECIAL INTEREST TOUR This group of tour designations caters to an increasingly growing segment of the tourist market. It is somewhat similar in composition and function to the G.I.T., but it is almost only used on small dedicated groups. The main implementation areas are well-known outdoor activities that encourage client involvement, such as: • Fishing • Hunting • Canoeing and River Rafting • Trail Riding Furthermore, no consumptive pursuits have seen the greatest increase in market growth, notably: • Environmental research teams • Historic and educational activities • Wildlife observation • Safaris for Photographers There has been an increasing demand among affluent travellers to experience and add unpredictable and often strenuous vacations to their itinerary. WHAT SHOULD BE INCLUDED IN A PACKAGE? Packages can contain a broad range of components and can be tailored to a specific theme or key feature. Transportation to or inside the destination area may be one of the components (flights, vehicle or bicycle rental; van, boat or bus transport). • Lodging on the way to or at the destination (hotel, motel, bed and breakfast, cottage, camp ground). • Meals at the destination or on the way there (bed and breakfast plan, all meals included, meal vouchers at a variety of restaurants). • Events or entertainment, which may or may not be the primary reason for the package, depending on the tour (adventure, recreational or educational activities; workshops or conventions; visits to museums or galleries; evening slide presentations; sightseeing). • Souvenirs or mementos (T-shirts, photos of the client participating in an activity, gifts of local arts or crafts). • Programs that are related (interpreters, translators, guides, instructors, equipment rental or sale, equipment service, welcome reception, baggage handling). 116 CU IDOL SELF LEARNING MATERIAL (SLM)
• Added and/or artistic features (photo service and film delivery, self-help coffee, discount coupons from local gift stores). Ways To Make A Package Successful As a package maker, you should: • prepare ahead of time to ensure that no essential details are overlooked; • build the package around a key activity or attraction that is appealing to the target market. • preserve consistency • pay attention to specifics and impress your customers with your professionalism • interact clearly with your customers to prevent surprises when they arrive • make an acceptable profit! In order to create a box, there are six steps to follow. First and foremost, you must have an idea of how you want your package to appear. Then, by following the six measures, you can see if it's feasible. Step 1: Determining Your Goals and Objectives Your goals and objectives will vary from package to package, depending on target market, region, and availability of services. It is helpful to clearly articulate the goals for your proposed package to maximize its potential. These may be: • to bring new visitors to your region, • to develop new markets and diversify your products, • to increase income during low or off-peak seasons, • to partner with an upcoming event or festival, or • to diversify economic development in your community Step 2: Identifying Strengths and Opportunities Identifying the strengths and opportunities within your community, region, or your business, and those of neighboring businesses will help you decide who and what to include in your package. It would be helpful to create an inventory of the existing tourism services, attractions and strengths in your region as a way to identify new opportunities. A community asset inventory would be a great start in identifying the strengths and opportunities in your community. 117 CU IDOL SELF LEARNING MATERIAL (SLM)
Step-3 Depending on where you live, your community leaders or economic development officers (EDO) may already have an asset inventory completed. Reaching out to you community EDO would be a great first step An inventory of the existing services and attractions in your region may include an analysis of: • Your product and services, • Transportation availability, • physical attractions, • natural history and wildlife, • cultural and heritage attractions, • entertainment, • special events and their dates, • guides, naturalists and interpreters, • accommodations, and • restaurants. Step-4 When designing a tourism product or package, it is critical to identify your target market. It will decide the package's form, size, activities, and price. You'll need to convey the availability of your package through marketing and/or ads once you've found a target market. Tourism and Parks, which is part of Industry, Tourism, and Investment, has training tools dedicated to tourism product creation and marketing. STEP 5: Obtaining partners services and suppliers Traditional competitive business means being self-sufficient, trying to control all of the operational services, employees, infrastructure and marketing as a single company. A new, emerging trend is to shift to partnerships by focusing on your basic products and services and then by collaborating with others to help reduce your costs while making your business more appealing to target markets. This allows you to share expertise and offer a better experience to clients. It also allows you to concentrate on what you do best. Obtaining suppliers, services and partners occurs in the areas of, for example: • Entertainment, e.g. music, storytelling, cultural performers, artisans 118 CU IDOL SELF LEARNING MATERIAL (SLM)
• Accommodations • Travel transportation/charters • Meal suppliers, e.g. restaurants, caterers, community organizations • Rental services, e.g. skis, bicycles • Local businesses, e.g. retail • Guides, e.g. tour guides, scientists, aboriginal guides, non-government staff, etc. 6.5 BRANDING There are several components to branding, including the selection of a product's name, emblem, picture, colour, and design in order to differentiate it from similar products produced by competitors. Branding enables a business to claim control and give its product a distinct brand identity in order to differentiate it from the products of rivals. Tourism advertisers have recently made an effort to \"brand\" their destinations. Although the strategy has considerable potential, adapting it from conventional goods and services to the tourism setting presents some challenges. According to one especially useful transference of branding from goods to tourism destinations, \"location branding\" serves four primary functions. To begin, destination brands act as \"communicators,\" as they serve as a signifier of ownership and a method of destination differentiation through legally protected names, logos, and trademarks. Second, they create an image for the destinations, which is described by a set of associations or attributes to which consumers ascribe personal significance. Thirdly, brands function as \"value enhancers,\" generating brand loyalty for the destination through increased potential revenue streams. Finally, a destination brand can be considered to have a personality that enables it to establish rapport with the tourist. Branding strategy in tourism: 119 CU IDOL SELF LEARNING MATERIAL (SLM)
Tourist brands have begun to be seen as assets within the national tourist offer that must be preserved and invested in in the modern era. This is an ideal setting for the creation of the concept of brand equity. Branding strategy, as shown by the \"BPD\" model, can also be viewed as a financial asset. Brand equity is a marketing term that refers to the ability of a brand to predict potential tourist revenue through brand loyalty, distribution, and recognition. Such perspectives have necessitated the continuation of the brand's growth through brand management. Brand management is the process by which a tourist trademark, specifically its identity, is managed. The tourism industry's brands contribute to the development of added value for visitors. For them, the brand acts as a risk mitigater when it comes to vacation quality, standards, and other aspects. Tourists' confidence in the brand mitigates business risk. Tourists in this case are well aware of what they are purchasing from a brand. Well-known tourist brands enjoy loyal visitors, high rates, and year-round tourist traffic, both of which have a direct impact on total tourist revenue. The success of all brand management tasks is largely determined by the degree of consumer success achieved by the brand. The ultimate goal should be to establish a leading tourist brand. This path is difficult and usually requires constant capital investment. Their growth period is prolonged, as is their lifespan. Appropriate brand management is critical for the brand's potential success today. To summarise the activities involved in the creation of the tourism branding strategy, it is critical to note the following: • To gather and analyse consumer data on rivals and guest perceptions; • To develop new strategies and tactical programmes that are consistent with the brand's target future guests' demand; • To support the brand's sales forces; 6.6 CONCEPT OF NEW PRODUCT DEVELOPMENT: A new product is something that is novel to the business introducing it, even though it has been manufactured in a similar form by others. In the field of toilet soaps, the various brands launched by each company are new products in their own right. New products are those that 120 CU IDOL SELF LEARNING MATERIAL (SLM)
significantly alter the consumer experience to the point that marketing campaigns must be designed or redesigned. Product production follows product planning. Product production is the method of determining whether a product can be manufactured. It entails determining whether or not it is possible to manufacture the commodity and whether or not it is profitable for the company to do so. According to W.J. Stanton, M.J. Elzel, and B.J. Walker, a 'modern product' is \"one that is truly revolutionary and distinguishes itself greatly from current and imitative products that are new to the business.\" The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product − Primary Inputs Intermediate Inputs Intermediate Output Final Output (Tourist (Resources) (Tourism Facilities) (Tourism Services) experiences) Human Accommodations Vehicle parking Social contacts resource service Material Transport terminals Tour guide service Business contacts Equipment Vehicles/Ships/ Hospitality at serviced Satisfaction/Memories Boats/Airbuses/ accommodations/ Ferries. hotels/ restaurants. Fuel/Energy Restaurants/Food Cultural performances Recreation Joints Agricultural Convention/ Festivals/Events Education product Shopping Centers. Capital Museums Relaxation Table 6.1 121 Steps of Tourism Product Development The following general steps are taken for tourism product development − CU IDOL SELF LEARNING MATERIAL (SLM)
Research the Market At this step, the tourism marketing force conducts research on the current market to identify the opportunities. In includes economy, study of various market segments and their varied requirements, past market data, and current market and tourism trends. Match the Product with Market By assessing the market segments and conditions for tourism, different packages are created for various market segments such that they can satisfy the requirement of each segment of individuals. Assess the Destination Since destinations form the basis of product development, the product development force visits the prospective tourism destination to assess its tourism potential and its ability to accommodate and serve the tourists, features of the destination, and its shortcomings. It is assessed to judge if the destination is fulfilling the requirement of Accommodation, Attractions, Activities, or Amenities. It is also checked for the ease of Accessibility. Understand the Stakeholder Role The creation of tourism products is the outcome of concerted efforts by a variety of stakeholders. It entails identifying all stakeholders in the private and public sectors, as well as DMOs, tourism and related companies, and their respective roles in developing or producing a tourism product. Stakeholder meetings are held to develop a project plan. The project's objectives are defined to ensure the realisation of a long-term vision, medium-term action plans, and short-term progress reviews. Product Building At this step, the product is actually built using required resources and consultations of the expertise to create intermediate inputs (facilities and amenities) and intermediate outputs (services). It encompasses not only development of destination infrastructure but also support for special activities and experiences. Marketing & Promotion 122 CU IDOL SELF LEARNING MATERIAL (SLM)
The functional and emotional benefits of the tourism at the tourist destination are communicated to the market. The marketing people create brochures, place advertisements on the business portals, and contact media to promote the destination and the product on the television and radio. They also use various other marketing techniques to increase the product visibility. Providing Human and Technical Resource It includes providing skilled staff and contemporary technology to cater the needs of tourists efficiently, to handle all tourism related operations at the destination effectively, and to communicate with the staff easily. 6.7 SUMMARY • Tourist brands are created as a consequence of growing competitiveness on the global tourist market. • Specialized tourist products are good platform for the right branding strategy. • Branding strategy and brand management Advances In Management • Packaging provides information about the brand. • Packaging is the most important element of Marketing. • Product development is the process of finding out the possibility of producing a product. 6.8 KEYWORDS • EDO – Economic Development Offices. • SIT - Special Interest Tour. • FIT - Fully Inclusive Tour • GIT - Group Inclusive Tour • Brand - A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. 6.9 LEARNING ACTIVITY 1. Prepare a logo of your own for a Travelling Company and make it as a Brand and sell it within your friends. 6.10 UNIT END QUESTIONS 123 CU IDOL SELF LEARNING MATERIAL (SLM)
A. Descriptive Questions Short Questions 1. Define Branding 2. Difference between Package and Branding? 3. Describe the advantages of promotion of a product? 4. What is tourism product? 5. What are the tourist products? Long Questions 1. What are the advantages of Developing of a Package? 2. Explain the types of Packages? 3. Describe the steps of Tourism Product? 4. Describe Packaged Tour ? 5. What is tourism products and examples? B. Multiple choice Answers: 1. --------- is the important element in Marketing. a. Branding b. Package c. Product d. None of these 2. In FIT Customers usually travel by -------- transport a. Public b. social c. local. d. None of these 3. Market research, product promotion, and product distribution are all steps in _________. a. the promotional mix b. the marketing process c. an environmental analysis d. defining a mission 124 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Product decisions include _________. a. Naming and deciding how to package a product b. Naming and determining the price of a product c. Determining price and selecting advertising media d. Deciding how to package and where to place a product 5. The concept of conveying the value of products through placement, adequate information, and easy exchange is known as _________. a. Practicality b. business's purpose c. utility d. Goal 6. Product specification determines ________. a. temperature and humidity b. cut of meat, weight, fat content c. the cost of the food item d. the house manager's control Answers 4.a 5.d 6.c 1.c 2.a 3.b 6.11 REFERENCES Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 Text books • Specific Country Guide Books of Lonely Planet Publication. 125 • DK Eyewitness Travel Guide: Europe • A.K Bhatia – International TourismMgt. • International Geography for Travel and Tourism by John P.Wrades CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 7: PRODUCT LIFE CYCLE Structure 7.0 Learning objectives 7.1 Introduction-Product life cycle 7.2 Definition 7.3 Product life cycle 7.4 Stages of Product Life Cycle 7.5 Marketing strategies in introduction stage 7.5.1 Rapid Skimming Strategy 7.5.2 Slow Skimming Strategy 7.5.3 Rapid Penetration Strategy 7.5.4 Slow Penetration Strategy 7.6 Marketing strategy in growth stage 7.7 Summary 7.8 Keywords 7.9 Learning activity 7.10 Questions 7.11 References 7.0 LEARNING OBJECTIVES After learning this lesson, the student will be able to • Identify the concept of Product life cycle. • Explain the stages in product life cycle. • Analyse the marketing strategies in PLC • Define the marketing strategy in growth stage. 7.1 PRODUCT LIFE CYCLE -- INTRODUCTION A Product's Lifecycle (PLC) The word \"Product Life Cycle\" was coined by Theodore Levitt in 1965 in an article titled \"Exploit the Product Life Cycle\" that appeared in the Harvard Business Review on November 1, 1965. Having a consistent and growing revenue stream from product sales is important for the stability and development of a company. Consultants and managers may use the Product Life Cycle model to ascertain a product's or industry's 126 CU IDOL SELF LEARNING MATERIAL (SLM)
maturity level. Knowing the level at which a product is at allows you to predict future market demand and decide the types of tactics that should be implemented. The life cycle of a product is an analysis of its (sales) past. It details its launch, rapid acknowledgement, ascension to the pinnacle of its status, descent from the pinnacle, and eventual demise. A product undergoes several phases over the course of its life. The word PLC is important in both marketing theory and practise. It's worth remembering that we will conduct a PLC analysis only when the product reaches the end of its useful life. 7.2 DEFINITIONS The term ‘product life cycle can be defined as under: 1. Philip Kotler: “The product life cycle is an attempt to recognize distinct stages in sales history of the product.” 2. We can define PLC as: PLC is concerned with the analysis of the market's acceptance of a commodity over time. It details significant revenue increases and decreases over the course of its life. 3. The product life cycle diagram depicts the relationship between revenue and benefit. As a result, we can describe the definition as follows: Consumer life cycle management is the analysis of the relationship between sales volume and benefit over the course of a product's life. 4. To put it more succinctly and comprehensively, we may describe it as follows: The product life cycle is the examination of the product's (sales) history. It details when it was launched, when it gained rapid recognition, when it reached the pinnacle of its position, when it began to fall from the pinnacle, and when it vanished. During the course of a product's life, it goes through many phases. 7.3 PRODUCT LIFE CYCLE The Product Life Cycle is a stage-by-stage progression of a new product from introduction to development, maturity, and decline. 127 CU IDOL SELF LEARNING MATERIAL (SLM)
This definition is used by management and marketing professionals to determine when it is necessary to increase ads, decrease costs, extend into new markets, or redesign packaging. Older products eventually lose popularity, while demand for new or modern products typically increases rapidly following their launch. Given that the majority of companies are aware of the product life cycle stages and that the products they market have a limited lifetime, they invest heavily in new product creation to ensure that their organizations continue to grow. 7.4 STAGES OF PRODUCT OF LIFE CYCLE Tourism destinations are by their very nature dynamic. The destination is a place where goods are gathered. Destinations, like products, have a life. The term \"Tourism Product life cycle\" is used to describe the evolution of a specific destination and the successive stages it undergoes over time. In tourism and tourism-related industries, success requires an understanding of the entire process. Tourism product life cycle theory has the potential to be applied in the planning of tourist destinations. This concept paints a clear image of the process of transition occurring within tourist destinations. It offers a conceptual framework for forecasting the long term gap, allowing for the implementation of policies and strategies for sustainable land use, economic development, and marketing. 128 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 7.1 Stages of Product Of Life Cycle Numerous models have been developed over time to investigate the evolution of destinations, but the majority are purely descriptive. As a result of mass tourism's exposure, an increasing number of researchers have proposed evolutionary models in which the term reflects additional stages of destination growth, such as saturation and decline. This adds to the assumption that all tourism destinations undergo some stage of growth. As a result, every type of tourist product must pass through many stages, collectively referred to as the tourism product life cycle. The following stages of the product life cycle are discussed in terms of \"destination\" as a tourism product, as tourism cannot occur without a destination, which is one of the most important tourism products. Exploration Stage It is the initial stage in the life cycle of a tourism product. This stage involves the discovery and introduction of new tourism items. A small number of visitors begin to arrive at the unspoiled venue. Typically, thrill seekers and nature lovers travel to uncharted destinations in search of new experiences and adventures. Tourists seeking variety in their vacations can discover places that are unique due to their natural beauty, traditions, history, landscape, and culture. At this time, no or restricted tourist services will be available. Due to a lack of understanding about tourism and its benefits, local residents are uninvolved in tourist revenue-generating activities. There is a negligible social and economic effect due to the small number of visitors, inadequate facilities, and a lack of infrastructure built specifically for tourism purposes. Involvement stage This is the second stage in the life cycle of a tourism product. At this point, the number of visitors begins to increase steadily, and the host community of the destination becomes aware of the increase in movement to their location/destination. Additionally, these hosts become involved in tourism-related events. Local governments have also begun to engage in tourism- related programmes. 129 CU IDOL SELF LEARNING MATERIAL (SLM)
Local areas also begin establishing their own businesses to offer a variety of tourist-related amenities and facilities, including lodging, meals, tour guides, and transportation. Participating in these tourist events also helps to boost the locals' quality of life and creates work opportunities. Additionally, it assists the local population in earning money and achieving their goals and aspirations. Thus, tourist destinations begin to expand, and adequate infrastructure is constructed and expanded. This stage initiates marketing, ads, and publicity. Since locals begin to participate in tourism activities, they gain knowledge about the various natural resources in their surroundings and also gain an appreciation for their culture and traditions. Via engagement activities, understanding of the importance of environmental conservation begins to grow. Participation of the local community also contributes to the improvement of their basic needs such as hygienic food, health and medical services, and education. Additionally, there is an increase in the number of people participating in various sports, and work prospects begin to grow or increase. This increased involvement and employment opportunities contribute to the improvement of the destination's economic and social system. This is the point at which locals begin to recognise business or start-up prospects, and the potential for development definitely increases. Locals begin to market their culture and practises as tourist items as a result of their involvement. To increase the number of visitors, which tends to result in the development of USPs and an improvement in the destination's picture. Development Stage The development stage is the third stage in the life cycle of a tourism product. Where tourist arrivals are significantly higher than at the previous level. And it is at this stage that foreign investment begins to flow into the destination as a result of the establishment of a well- defined tourism market. As a result, multinational hotel chains, food companies, and entertainment venues take an interest in the destination and develop operations with the aim of offering world-class amenities and profiting from the destination. Numerous large corporations begin investing in tourism facilities at the destination as they recognise the area's emerging potential. The pace of development accelerates, which further increases the quality of life for local residents; the destination becomes more available. Marketing and advertisement is very time-consuming. Infrastructure is modernised. Tourist attractions, both natural and man-made, are created. 130 CU IDOL SELF LEARNING MATERIAL (SLM)
This stage demonstrates the equal participation of the government, local residents, and private players. This also aids in increasing the number of tourists and creates a significant number of jobs for the local community. At this point, marketing and promotional campaigns typically play a significant role, as the destination begins to develop a following among travellers. Numerous stakeholders make numerous efforts to expand the destination and increase tourist traffic to the destination. At this point, there is tremendous opportunity for job creation in a variety of sectors and for investment in tourism-related businesses. Additionally, the development stage boosts the destination's economy and contributes to the nation's growth by generating foreign exchange. Consolidation stage This is the fourth stage in the life cycle of a tourism product. At this point, the local economy is almost certainly dominated by tourism-related activities. At this point, the local community begins to earn a significant amount of financial resources, which aids in enhancing the hosts' quality of life. At this point, the local economy becomes reliant on tourism. The destination's tourist volume is constantly rising. Increased promotional and marketing campaigns are made to draw more tourists to the destination. Both national and international tour operators offer tourist services. Suppliers/businesses. Slowly, the destination's popularity wanes as the goods on offer become obsolete, and negative impacts of tourism activities can be seen on the destination, its natural beauty, natural resources and climate, on culture, on the attractions, and so forth. If appropriate steps and policies are implemented at this point, the destination's life can be extended and the destination can be sustained for future generations. At this point, careful execution of planned policies is required, and the destination and its resources can be preserved. Local communities begin to withdraw from other industries or activities such as farming and fishing during this stage, resulting in the demise of these industries. Historically significant infrastructure, such as buildings, is converted into accommodation units such as heritage hotels, guest houses, and homestays. As a result, some historic structures lose their distinctive characteristics or elegance or become unattractive, potentially resulting in a decrease in clientele. 131 CU IDOL SELF LEARNING MATERIAL (SLM)
Stagnation Stage This is the fifth stage in the life cycle of a tourism product. This stage occurs when the destination's carrying capacity approaches its final limit or is surpassed. As a consequence, economic, social, cultural, and environmental problems grow. Artificial attractions begin to supplant natural or cultural attractions, elevating the destination's trendy status. This would result in the loss of the destination's unique characteristics, implying that the destination has begun to lose its allure and USPs. And the number of visitors visiting that particular destination gradually declines or decreases. Additionally, there is an increase in rivalry from other players, which may result in the loss of authentic and exclusive features, as well as rowdiness. Which further results in a decline in tourist visits and a significant impact on local businesses and services? For instance, if the destination is a beach that has become overcrowded and overrun with garbage and rubbish, this will almost certainly halt the destination's development. At this point in time, decisive action is required; otherwise, the number of tourists visiting the destination will begin to decline, affecting local businesses and services. Which would ultimately have an impact on the destination's economy, culture, and current climate. Decline or rejuvenation Stage This is the final and sixth stage of the life cycle of a tourism product. From the point of stagnation, there are two possible outcomes: decline in tourist movement or rejuvenation, which entails the destination's re-growth or re-introduction of new tourism items such as attractions and other tourist facilities. A destination's decline can be gradual or sudden. The number of visitors will begin to decline or decrease, and frequent visitors will be replaced by tourists seeking an affordable/cheap vacation or ride. Tourists' travel patterns begin to change, and they are drawn to new and stunning destinations. The destination devolves into a tourism slum or becomes completely devoid of tourism activity. Since the number of visitors visiting the destination is rapidly declining, there are more negative consequences for the destination. And the attractions begin to lose their allure and unique selling points. High prices, overcrowding, environmental pollution, political 132 CU IDOL SELF LEARNING MATERIAL (SLM)
uncertainty, high crime rates, and overrated attractions are only a few of the major factors contributing to a destination's decline or stagnation in tourist arrivals. Which results in a decrease in the number of visitors visiting the destination, which almost always results in the destination declining or declining. Rejuvenation is the process of rationally altering and reestablishing the resource base. Numerous investments are made by private businesses, governments, or both for the purpose of transforming the destination and launching new tourism product lines. Additionally, they begin developing a new range of artificial attractions inside the original destination in order to increase its popularity and draw additional visitors. Additionally, previously untapped natural resources are used. This will eventually result in the start of another loop. The reasons for a destination's rejuvenation include thorough research and analysis of product development, appropriate measures by the local administration, identification of new development areas, and the development of world-class infrastructure. Otherwise, the destination will experience a permanent decline. 7.5 MARKETING STRATEGIES IN THE INTRODUCTION STAGE Marketing managers must develop plans for the product's introduction stage. You are aware of the four fundamental marketing mix components: commodity, price, promotion, and distribution. In terms of marketing mix components, a business can opt for a skimming or penetration strategy. It can employ either a rapid or a slow skimming strategy. Similarly, the organization can choose a strategy of rapid or slow penetration. 7.5.1 Rapid Skimming Strategy If the company chooses the rapid skimming approach, it arbitrarily raises the price of the commodity to entice the early consumer. This technique is used to maximise benefit in the short term. Additionally, businesses following this strategy can focus on producing higher-quality goods, aggressively marketing them, and distributing them through selective distribution channels. This strategy will work well if a sizable percentage of potential consumers are unaware of the product's existence; they are willing to pay a premium price for the product's higher quality; and the delivery meets their requirements. 133 CU IDOL SELF LEARNING MATERIAL (SLM)
7.5.2 Slow Skimming Strategy The slow skimming strategy involves offering a product to the consumer at a premium price, but with less aggressive marketing than the fast skimming strategy. Following this approach, the business will earn a sizable profit. Due to the fact that the marketing costs are lower but the price is higher, the company is able to earn a sizable profit. A company's slow skimming strategy may be effective if the majority of potential customers are aware of the product, willing to pay a premium price, and competition is either non- existent or minimal. 7.5.3 Rapid Penetration Strategy In comparison, the rapid penetration strategy requires the firm to maintain a low price when actively promoting it. The aim is to deter competition and initially cater to a larger segment of the market. This strategy could be successful if the market is sizable, the majority of the market is unaware of the product and extremely price sensitive, and there is little possible competition. By lowering the price and receiving a lower profit margin, fewer entrants will enter the market than would be the case for a skim approach. The executive now has more time to strengthen its market position and increase market share. 7.5.4 Slow Penetration Strategy The slow penetration strategy involves the introduction of a commodity into the market at a low price. Additionally, promotion under this strategy is not offensive. If the company determines that the market is sizable, that consumers are largely aware of the product and price sensitive, and that competition exists, it may opt for the slow-penetration strategy. It will assist the company in capturing a sizable portion of the market by leveraging its high price and low promotional costs. Penetration technique is typically used when the executive plans to hold the product on the market for the duration of the product's life cycle, or for the majority of it. Rather than easily recouping expenses and profiting like a skim approach does, the marketing executive aims for even greater long-term income. While firms have effectively employed both techniques, penetration is the more prevalent. It is used in almost every form of product, while skim is usually reserved for trend, fad, and novelty pieces with a relatively short shelf life. 134 CU IDOL SELF LEARNING MATERIAL (SLM)
7.6 MARKETING STRATEGIES IN THE GROWTH STAGE Sales increase steadily during the growth stage; profits plateau and then begin to decline. Numerous new variables define the growth stage of a product's lifecycle. To begin, sales and profits increase rapidly. Second, competitors have drawn more competitors to the growing market than would survive. Third, cash flow may remain negative as a result of the firm's efforts to gain a significant market share advantage over competitors. At this point, the product is prosperous. If the commodity gains consumer recognition, distribution networks become more available as wholesalers and retailers demonstrate an increased willingness to carry it. This prosperity will also attract other businesses, resulting in the most rivals entering the market. When confronted with an increasing variety of items, the customer can become confused and unsure about which to choose. During the growth stage, the market is turbulent as new entrants join and compete for market share. Also determining the precise market share is difficult due to the rapid growth of new users. This is not to say that profits are not possible at this point. Profits generated are reinvested to accelerate the growth of the product. It is possible that a business makes more profit at this point as profits increase and promotional expenses are distributed over a greater volume of sales. Additionally, as the business gains experience, the cost of output per unit decreases, resulting in increased profit. Due to the increased competition and expansion of the business during the growth stage, the marketing executive shifts from a strategy of cultivating demand to one of market entrenchment – the battle for brand recognition and market share. In a similar vein, increased rivalry and the ability to expand market share aim to mitigate any minor price reductions. However, the price remains reasonably high, and the business profits handsomely. During the growth stage, the marketer's position changes to one of persuading customers and continuously informing them of the product's benefits, ensuring ease of purchase by 135 CU IDOL SELF LEARNING MATERIAL (SLM)
expanding distribution channels, manipulating price to keep the product affordable, and reinforcing the product's brand image. The growth stage is crucial for a product's survival because competitive reactions to the product's success during this stage would have an effect on the product's life expectancy. During the growth stage, a business develops a marketing plan to foster high brand loyalty and competes against aggressive product emulation. An company attempts to increase its market share by defining and highlighting the product's benefits. At this point, a business can also pursue aggressive price reductions. Additionally, it can diversify its product lines and provide a broader selection in order to compete. Another option is to pursue a market segmentation strategy and sell the product under a variety of distributor- or other producer-owned labels. Additionally, a business may conduct a creative promotional campaign to entice potential buyers. Additionally, marketers may change warranty and service terms to make them more appealing than they were previously. The alternative is to make the commodity widely accessible in order to hit a mass market. Adopting one or more of these tactics will help a business maintain a competitive edge. Maturity is the third stage. Almost all goods will experience a period of slower development. This is the period of a product's lifecycle that we refer to as maturity. At this point, demand for goods is levelling off, and competition is eroding profit margins. At this point, a business needs an extremely efficient organisational structure, such as a functional pyramid, in order to maximise profits from consistent sales. The maturity stage is defined by the peaking of the product's revenue and benefit curves. This stage can be divided into three parts. Growth maturity is the first step of this stage, which occurs when the rate of revenue growth begins to slow. While revenues continue to increase during this period, the pace of growth is significantly slower. When the product enters this point, all distribution networks are secured. 136 CU IDOL SELF LEARNING MATERIAL (SLM)
The product reaches the majority of potential buyers, with the exception of a few laggards who may begin purchasing during this process. The second stage is stable maturity, by which the market has already been saturated and as a result, profits have flattened. Due to the market's saturation, potential revenues will be determined by replacement purchases and population growth. The final step of this stage is decaying maturity, during which sales begin to decline rapidly. This stage is marked by intense rivalry, as the marketplace is saturated with competing brands. Competitors highlight the enhancements and variations in their product models. As a result, weaker competitors are pushed out or lose interest in the product at this time. Businesses that do not achieve a healthy market share during the growth period fail to survive. Sales growth slows as the majority of future customers are attained. Profitability is strong but begins to erode as industry leaders reduce prices in order to capture market share. Profits remain high, and mature products become the company's cash cows, generating funds for new product growth. At this stage, the price of a commodity would also fall precipitously as a result of widespread availability of a substitute. As revenue growth slows, companies face overcapacity, resulting in intense competition. To compete effectively in today's market, businesses greatly increase their advertisement, marketing, and research and development expenses. These increased costs further erode firms' earnings. As a result of this condition, weaker firms are forced to withdraw from the market, and only the most competent firms remain. Among the survivors, two groups of companies exist in the marketplace: those that are giants, like the quality leader, service leader, and cost leader, and those that serve and fulfil their limited target markets. Marketing Strategies in the Maturity Stage To compete successfully in this form of business setting, the marketing executive can extend the product line by offering a range of models and designs in order to widen the product's appeal, creating something for all in the hope of retaining sales. 137 CU IDOL SELF LEARNING MATERIAL (SLM)
However, this results in an increase in the product's costs as shorter production runs are required for each model and style and inventory are built up, both of which result in diseconomies of scale. Reduced rates combined with increased costs result in a decreasing profit curve. Indeed, as the maturity stage progresses, some rivals will withdraw their goods due to insufficient or non-existent earnings. Many who remain in the market invest in new promotional and distribution efforts; advertisement and dealer-based marketing are both popular during this time.There is no reason to believe that a mature product is static; enhancements to the basic product can be created, and variants can be provided. Although market leaders typically have the capital to broaden their offerings, gaining market share is challenging and costly. Thus, the best-managed companies strive to maintain and increase their share marginally while diverting revenues from profitable mature products into product production and introduction. At this point, a company must weigh the benefits of revitalising the product, allowing it to decline gradually, or discontinuing it and preparing a replacement. There are several options for a business to revitalise its products, and the method chosen will depend on the reason(s) for the product's initial decline. If this happened as a result of the launch of a new competitive product with additional benefits, the business may choose to enhance its existing product with similar benefits, to introduce new but distinct services, or to reduce its current price and emphasise its value for money, possibly in order to reach a new, more price-sensitive market. If, on the other hand, the organisation believes that the competing product is not superior to its own, the decision to increase advertisement spending or launch a promotional incentive to reclaim market share can be made. Marketing is about developing plans that are either intended to mitigate risks or to capitalise on market opportunities. If you recall the marketing's 'four Ps,' you'll notice that a firm's actions are restricted to one of four areas: the commodity, the price, the advertising strategy, or the location – where and how the product can be purchased. Any of the above tactics is intended to increase the market's size. This can be accomplished by converting nonusers to users, expanding into new consumer segments, acquiring 138 CU IDOL SELF LEARNING MATERIAL (SLM)
customers from rivals, ensuring repeat sales, increasing the volume of use peruse by customers, and broadening the product's uses. Stage 4: Decline At some point in time, the sale of a product is bound to decline. This point is termed as the decline or the final stage of the product’s life cycle. Most products eventually pass from maturity to a fourth stage of the life-cycle: decline and eventual elimination. This stage is characterized by a further dropout of competitors until only a few remain. Profits begin to decline precipitously at this stage, often as a result of the firm's excess ability. The product's marketing is curtailed or terminated. Any residual profit will not be reinvested in the commodity, and no effort will be made to re-establish demand. However, with proper management, a diminishing product's existence may be extended for some time. There are a variety of reasons why a product's sales decrease. One of the primary reasons for this is the availability of new revolutionary goods as a result of technological advancements. The other possibility is that social patterns or consumer preferences change, causing the product's sales to plummet. Due to declining earnings, companies alter their strategies; some firms also withdraw from the industry. The remaining firms could reduce their product offerings in order to make their operations more cost effective. Others can exit unprofitable segments. Yet others can significantly reduce their promotional budgets in order to further reduce the prices of their offers. Certain businesses can often plan to raise the price of their product because customers often purchase it as a replacement or for a specialised need. Only when companies begin to liquidate inventories in preparation for the product's withdrawal will they begin to reduce prices. Perhaps a very small number of firms would benefit from this point. The manufacturing costs will be relatively modest, and marketing activities will essentially cease, allowing for a reasonable profit margin. Thus, a business could continue to sell the commodity for an extended period of time. However, at some point during the decline stage, the marketing executive must remove the product. Profitability can 139 CU IDOL SELF LEARNING MATERIAL (SLM)
cease to exist, or the product's and company's reputation can suffer as remaining consumers migrate to newer products. If sales of a product decrease, the reputation of respectability and quality deteriorates, and the business cannot afford to be directly associated with it. For a declining industry, a marketer may employ a harvesting strategy, a divestiture strategy, a niche or concentrate strategy, a differentiation strategy, or a low-cost strategy. Marketing Strategies in the Decline Stage While nothing can be done regarding fundamental changes in customer tastes and the entry of competitive goods, the firm has a variety of options for products with declining sales. Prior to considering alternatives, it is important to recognise marginal goods. Managers must make decisions about their destiny after they are found. Identifying poor or mediocre goods is a critical challenge for marketers. In smaller businesses, managers are aware of deteriorating goods, and therefore no formal evaluation process is needed. When product lines are extensive, a committee should be formed to find weak points. Due to the risk of prejudice, this duty should not be completely delegated to the rest of the marketing department. The product review committee should be composed of executives from marketing, manufacturing, buying, control, human resources, and research and development. The evaluation process should be two-staged. Prior to screening products, pricing patterns, market share trends, gross margin trends, and overhead trends should be considered. If a product does not meet the minimum requirements for any of the above variables, it should be subjected to further analysis. In the second level, goods should be scaled according to their market ability, contribution, and relationship to other products' sales, among other factors. This research would aid the organisation in formulating product strategies. These tactics can include the following: Perhaps the simplest way to address declining revenues is to expand into new international or domestic markets. This may necessitate the recruitment of new distributors or the expansion of the company's current sales force. Businesses may attempt to repurpose the product among current users. 140 CU IDOL SELF LEARNING MATERIAL (SLM)
Businesses can attempt to reintroduce ageing products by redesigning packaging and enhancing consumer convenience. Additionally, businesses can invest heavily in various consumer promotions, displays, and so forth. Companies can also attempt to resurrect a failing product by changing the advertising firm in the hope that the new firm can create and launch a more innovative marketing campaign. A business could decide to discontinue an existing item from its product line based on the product review committee's report (s). The first course of action that a business can take in this situation is to do nothing and wait until the item is no longer in demand. Here, the business will discontinue all promotional efforts and rely entirely on repeat purchases from existing customers. Another option is to continue selling a declining product but produce it through a contract with another business. Another possibility is to manufacture the item but market it by other licensing agreements. The alternative approach is to sell the item to another company and delegate production and marketing to them. If none of the above tactics proves to be appropriate, the firm can dispose of the commodity with the least amount of inconvenience to the parties concerned. To ascertain the following: the company's or a particular product line's strengths, limitations, opportunities, and challenges. 1. Strengths: All the good and useful resources and capabilities what can help to develop and maintain an advantage on the market. Examples: patents about technology or processes, know-how, exclusive access to various resources, advantage in location, great previous customer satisfaction etc. 2. Weaknesses: All the things what could be strengths, if a marketer could have them, but at analysed time they are not present. Examples: Lack of technology and equipment, lack of special resources, poor location, high cost structure, weak brand etc. 3. Opportunities: field of improvement in case of profit and growth because of changes and easy to use opportunities, what has advantage for the company. Example: new technologies, cheaper resources, free but effective viral marketing, loosening of regulations. 141 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Threats: Changes in the external and/or internal environment, what presents disadvantage for the company. Example: more expensive resources, more strict regulations, changes in international law etc. 1. The internal environment: That part of the company and its products environment what can be effected and changed by the company, is called internal environment. First of all it focuses on “Target costumers”, than to support it, “Product, Price, Promotion, Place”. Also all the marketing activities belong here: the “Marketing Planning – Marketing Implementation – Marketing Control – Marketing Analysis”. The least effected internal environment elements are the: “Marketing Channels, Publics, Competitors, Suppliers ” 2. The task environment : Markets: The scale, development, geographic distribution, and profitability of markets. Define significant market segments Customer feedback on product quality, operation, and price. Analyze customer purchasing decisions. Concurrents: Compile a list of major competitors. SWOT analysis of competitors. Channels: How well are the most frequently used channels for product distribution performing? Suppliers: Study of resource availability and supplier patterns. Publics: Important publics for identifying opportunities and risks. How to handle them. 3. The public environment: The public realm is a subset of the vast internal world. The public environment encompasses a range of various sized groups of individuals and organisations. They have a synergistic effect on goods and services. The corporation has some influence over them. The macroenvironment consists of the following: The world that surrounds a business has an impact on it, but the business has no influence over it. It is composed of the following 142 CU IDOL SELF LEARNING MATERIAL (SLM)
components: the demographic-economic environment, the technological-natural environment, the social-cultural environment, and the political-legal environment. The life cycle of the tourism product Fig 7.2 Life Cycle As in other economic sectors, tourism follows a \"product life cycle\", with a curve similar to that of the above graph. In this process several stages can be identified: Stage 1: Discovery : During the cycle's initial \"discovery period,\" a small number of unobtrusive tourists arrive in search of \"untainted\" destinations. The majority of these early \"explorer\" visitors speak the local language and associate with the indigenous community. The social impact is generally minimal at this point, and resident attitudes toward tourism are generally favourable. Stage 2: Launch : This stage sees a rise in the number of incoming visitors. The host group provides facilities in response to the growing number of tourists. Businesses continue to be family-owned, and the relationship between visitor and resident is still harmonious. Toward the end of this point, visitor numbers increase and the community develops into a tourist destination. External stakeholders become active in the development of businesses and visitor facilities. This is usually the stage at which foreign investment by TNCs (Transnational Corporations) joins the period. Migrant workers attracted to tourist-related jobs could join the community, reducing resident-visitor interaction. As the novelty of new visitor arrivals decreases, the tourist 143 CU IDOL SELF LEARNING MATERIAL (SLM)
relationship transforms into one of company. Culturally conscious \"explorers\" migrate to new \"unspoiled\" regions, where they are supplanted by the mass market. Stage 3: Stagnation : The stage in which saturation is reached. The quality of tourist services falls, demand levels off, and the environmental degradation of the tourist destination begins to be obvious and worrying. The tourist destination at this stage is said to have reached 'maturity'. Mature tourist destinations Stage 4: Decline which represents the current state of mature tourist destinations on the Costa Brava in Spain. Falling profits lead to foreign-owned businesses withdrawing and the community is left to \"pick up the pieces 7.7 SUMMARY • The most notable characteristic of the maturity stage is the peaking of the product’s sales and profit curves. • During the growth stage, sales rise rapidly; profits reach a peak and then start to decline • Stagnation stage in which saturation is reached. • Migrant workers, attracted by the prospect of tourist-related jobs, may enter the community and reduce resident contact with visitors. 7.8 KEYWORDS • TNC : Trans-national corporation • PLC : Product life Cycle • Ecotourism: Defined by The International Ecotourism Society as ‘responsible travel to natural areas that conserves the environment and sustains the well-being of local people’. • Market segment: the concept of dividing a market in parts 7.9 LEARNING ACTIVITY 144 CU IDOL SELF LEARNING MATERIAL (SLM)
1. Prepare a PPT and chart showing the growth declane maturity stage of produce life cycle. ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- 7.10 UNIT END QUESTION A. Descriptive Question Short Questions 1. What is product life cycle ? 2. List out the 4 stages of product life cycle? 3. What is Slow skimming strategy? 4. What is Rapid Penetration Strategy? 5. Describe involvement stage of PLC Long Questions 1. Explain in detail the 4 stages of life cycle? 2. Describe Marketing strategy in growth stage? 3. Describe Marketing Strategies in the Maturity Stage 4. Difference between Rapid Skimming Strategy and Slow Penetration Strategy 5. Describe Exploration stage in detail. A. Multiple choice Questions 1. Which stage of the product life cycle is characterized by retailers gradually carrying the product and consumer demand increasing along with profits rising and competitors taking notice? a. Introduction b. Growth c. Maturity d. Decline 2. Exploration, involvement, development, consolidation and stagnation are stages of: a. Doxey’s Irridex (1975) b. Bryan’s Leisure Experience Continuum (1977) 145 CU IDOL SELF LEARNING MATERIAL (SLM)
c. Butler’s Tourist Area Lifecycle (1980) d. Plog’s (1991) Psychographic Continuum 3. Which is the last stage of the life style of a product a. Maturity stage b. Growth stage c. Decline stage d. None of these. 4. which stage attracts the maximum number of tourists a. Growth stage b. Maturity stage c. Introduction stage d. None of these 5. Which is the second stage in the product life cycle. a. Introduction b. Maturity c. Growyh d. None of these. 6. The national on tourism was established by ---------- a. Tourist commission b. Planning commission c. Travel commission d. None of these. 7. A person is considered to be a resident in a country if the person has lined for ---------- --- in the country. a. 6 months b. One year c. 8 months d. Two years 146 CU IDOL SELF LEARNING MATERIAL (SLM)
8. The demand for a given brand of product or service is known as-------------- a. Selective demand b. Primary demand c. Usual demand d. None of these. Answer 6.b 7.b 8.a 1.a 2.b 3.b 4.a 5.c 7.11 REFERENCES Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 Text books • Specific Country Guide Books of Lonely Planet Publication. • DK Eyewitness Travel Guide: Europe • A.K Bhatia – International TourismMgt. • International Geography for Travel and Tourism by John P.Wrades 147 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 8: TOURISM PROMOTION Structure 8.0 Learning Objectives 8.1 introduction tourism Promotion 8.2 Tourism Promotion 8.3 Promotion Mix 8.4 Publicity 8.5 Sales promotion 8.6 Personal selling 8.7 Summary 8.8Keywords 8.9 Learning activity 8.10 Unit end Questions 8.11 Reference 8.0 LEARNING OBJECTIVE After learning this unit, the student will be able to • Identify the prominent mode of advertisement used in promoting tourism. • Define about Promotion Mix • Explain the methods of Advertising. • Recognises the concept of personal selling. 8.1. INTRODUCTION TO TOURISM PROMOTION Tourism promotion refers to activities, operations, and expenditures aimed at increasing tourism, such as advertising, publicising, or otherwise disseminating information for the purpose of attracting and welcoming visitors; developing tourism expansion strategies; operating tourism promotion agencies; and funding the marketing or operation of special events and festivals. The tourism industry is unique in that instead of selling a commodity, you're selling a location and everything it has to offer. When you encourage tourism in a given destination, you are competing with the entire world, and this high degree of competition necessitates an innovative and special approach. To be effective, your marketing must continually project the 148 CU IDOL SELF LEARNING MATERIAL (SLM)
best possible picture of your destination while generating widespread interest in as many ways as possible. 8.2 TOURISM PROMOTION When it comes to positioning the tourism company, marketing organisations are focusing their attention on promotional efforts. The most critical factor in the successful growth of a tourism industry is an efficient advertisement campaign. The secret to success is meticulous planning and innovative ideas. When it comes to promoting tourism for a specific destination, partnerships help you get the most out of your marketing dollars by reaching a larger and more attractive audience. Piggyback with a partner who already has the scope in a way that helps all parties, rather than trying to build a large base of followers and a global reach. Enter into a marketing agreement with a national travel agency, for example. In return for national access to the client base, offer the organisation exclusive offers and promotions for its clients. Of course, you'll have to pay for the privilege, but the benefits will often outweigh the costs, and creating your own national network is often unattainable. Trade Shows in the Travel and Tourism Industry Every travel and tourism supplier in the area and beyond, every travel seller and business who sells or wants to sell your destination, and the general public who is interested in what you're selling can all be found at trade shows. The findings can be helpful if you attend established trade shows around the country or plan your own to bring publicity and forward motion to your destination. Trade shows bring together all aspects of the travel industry in one location, allowing time for meetings, networking, and new business opportunities. They also attract the attention of the newspapers, the general public, and, if big enough, national travel agencies and their millions of customers. Advertisement in Trade Magazines Place advertisements in trade publications to bring your services to the attention of travel agents around the world. Create a destination brand that reflects what you have to offer and why you do it. For example, the \"What Happens in Vegas, Stays in Vegas\" campaign in Las 149 CU IDOL SELF LEARNING MATERIAL (SLM)
Vegas contributed to the city's secretive escapist image. Find the destination's identity and explain it to the general public so that they can see why they should come. The final piece of the puzzle is to position your advertisements in an intelligent and targeted manner. For example, instead of advertising in \"GQ,\" if you're in control of tourism promotion for an outdoor adventure destination, you should advertise in \"Field & Stream.\" Making the most of the advertising dollars is crucial to getting the job done. Sponsoring and Giving Away at Events Sponsored activities and giveaways that are related to your destination and add to the brand's prestige. Sponsorships come in a variety of sizes and forms, ranging from local parades to national events, each with its own target audience and package of benefits. Examine upcoming activities in the regions you want to visit that have a direct connection to your tourism destination. Consider local open-air art shows or national art conventions as potential sponsors if you're supporting a great new art scene. Televised activities often benefit from local and often national media attention, which greatly increases the future commercial reach. It also has the effect of increasing the sponsorship expense. Influencer marketing and social media Destinations will communicate with a target market by leveraging brands that the end user already loves through social media, blogs, and online videos. For example, a Florida theme park might benefit from partnering with a well-known mommy blogger to promote new family features at the park and the overall vacation experience. A ski resort, on the other hand, might find a suitable partner in an Instagram celebrity who specialises in high-end living. Both content providers now meet the target demand for potential visitors that the destination desires. E-mail Marketing with a Purpose Resorts have used targeted e-mail marketing campaigns to improve contact with previous guests and promote return visits, especially during the off-season. Mammoth Mountain, for example, created weekly and regular time-sensitive alerts on snow conditions to entice frequent tourists with last-minute getaway offers when conditions were ideal. The number of visitors tripled as a result of this marketing strategy. 150 CU IDOL SELF LEARNING MATERIAL (SLM)
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