Describe their wants, desires, attitudes, demographics, brand preferences, shopping habits, and any other characteristics you can think of. Each profile should be as accurate as possible in order to provide you and your company with a thorough understanding of the people who make up each chapter. You'll be able to compare segments for strategy purposes as a result of this. 4. Evaluate the attractiveness of each segment Cross-referencing your findings with available market data and consumer research will help you assess which of your constructed segments can bring in the biggest return on your investment. Consider factors like segment size, growth rates, price sensitivity, and brand loyalty. With this information, you will be able to evaluate the overall attractiveness of each segment in terms of dollar value. Fig 2.8 5. Select target audience/s Now that you have accurate details on all of your segments, you must decide the ones are the most appropriate to use as target audiences. You'll need to consider your overall market strategy, the segment's attractiveness, and the level of competition in that segment. Cluster analysis is the most effective method for determining the most viable section. Clustering in the sense of eCommerce segmentation refers to the use of mathematical models 51 CU IDOL SELF LEARNING MATERIAL (SLM)
to classify groups of customers that are more similar to one another than those in other groups. Clustering is a complex and technical subject in and of itself (check out this guide for more information). Your ideal consumer segment is one that is both broad and still growing, as well as one that you can reach through marketing. You'll also want a segment that aligns with your business plan – it's pointless to concentrate on a segment of Australian men if you're discontinuing your menswear and don't provide free shipping to Australia. 6. Develop a positioning strategy Next, you need to develop a positioning strategy that will give you the best edge to compete in the selected target audience. Determine how to effectively position your product, taking into account other competitors – focus on how your positioning can win the largest amount of the market share. There are several positioning strategy paths you can follow: 1. Category-based positioning – This calls for determining how are your products or services better than the existing solutions on the market. 2. Consumer-based positioning – This calls for aligning your product/service offering with the target audience’s behavioral parameters. 3. Competitor-based positioning – This is a pretty straightforward approach that calls to prove you are better than competitor X. 4. Benefit-based positioning – This calls for proving the benefits that customers will get from purchasing your product or service. 5. Price-based positioning – This calls for distinguishing based on the value for the money people get when purchasing your product/service. 6. Attribute-based positioning – Competitors, price, and benefits aside, this calls for zeroing in on a unique selling proposition that makes your product or service stands out from the rest. 7. Prestige-based positioning – This calls for proving that your products supply a certain boost in status to those who purchase. 7. Choose your marketing mix The last and final step in this long and winding process is to actually implement your strategy. For that, you will need to determine a marketing mix that will support your positioning and help you reach the target audience(s) that you’ve chosen. 52 CU IDOL SELF LEARNING MATERIAL (SLM)
A marketing mix consists of the so-called 4 Ps: Product, Price, Place, and Promotion: • Product takes into consideration factors like variety, quality, design, branding, features, packaging, services, availability, convenience. • Price takes into consideration factors like pricing strategy, list price, penetration price, premium, discounting, payment methods, credit terms, payment period. • Place takes into consideration factors like channels, coverage, location, inventory, logistics, trade channels. • Promotion takes into consideration factors like advertising, public relations, social media, sponsorship, influencer marketing, content marketing, product placement, sales promotion. A carefully-curated marketing mix will ensure business success. However, if you do leave gaps in it, all the precious work you did at the previous stages might go to waste. Fig 2.9 Here's an illustration of a bad marketing mix: Assume you're trying to market a high-end skincare product to women in their 40s. Your aim is to place it as a high-end addition to their skincare routine that addresses mature and ageing skin concerns. So you invest in print advertising and get your product advertised in a couple of well-known women's magazines aimed at women aged 30 and up. You should also ensure that the product is priced appropriately to represent the luxury category. 53 CU IDOL SELF LEARNING MATERIAL (SLM)
Your packaging, on the other hand, is low-cost and poorly made, despite the fact that your product is available in drugstores. This inconsistency, which isn't in line with the overall positioning strategy, will keep you from hitting your target audience in the first place; those who do reach them will be dissatisfied, which will lead to negative word-of-mouth, which will ultimately put your sales on hold. Businesses may use the STP method to determine their most desirable consumer segments and develop goods and marketing messages for them. This enables you to develop engaging, tailored marketing campaigns with a high conversion rate of visitors to customers. If you want to use behavioural targeting and clever segmentation in your eCommerce marketing plan, Position Your Offering The aim of the final step is to figure out how you want to place your product to appeal to the most desirable consumer segments. After that, you can choose the marketing blend that will work best for both of them. Consider why consumers should buy your goods instead of one of your rivals'. Create a positioning map to explain how each segment perceives your product, brand, or service by defining your specific selling proposition. This will assist you in determining how to best position your product. Next, consider each segment's wants and needs, as well as the problem that your product solves for them. Create a value proposition that illustrates how your service can satisfy this criteria better than all of your competitors' offerings, and then create a marketing strategy that effectively communicates this value proposition to your target audience. 2.6.4 What to watch for in segmentation, positioning and targeting marketing strategy Ascertain that the market is big enough to matter and that consumers can be reached easily. 54 CU IDOL SELF LEARNING MATERIAL (SLM)
Use market analysis to ensure that the solution adds value to the existing consumer experience that is superior to that of rivals. Consider the trends in relation to the product/service as the industry becomes more nuanced to support digital marketers' desires and needs. Benefits of STP Marketing Marketing becomes hyper-personalized as STP focuses on identifying a particular target group and positioning products/services in the most likely manner to appeal to that audience. With customization, you can: Your marketing mix becomes more crystallised and produces a higher return on investment because you're no longer investing budget on channels that your audience obviously ignores; Your brand advertising becomes more personal and empathetic because you have customer personas and know exactly who you're referring to; Your marketing mix becomes more crystallised and generates a higher return on investment because you're no longer spending budget on platforms that your audience clearly ignores; When you know who to ask for advice and suggestions throughout the development process, market research and product creativity become more fruitful. According to a recent report by Yieldify, eCommerce leaders are adopting personalization at a breakneck speed, with 74 percent of eCommerce sites claiming to have adopted some kind of personalization strategy. What exactly are their justifications? Personalization, according to 58 percent of respondents, helps boost consumer retention, 55 percent believes it helps increase conversion, and 45 percent believes it actually helps lower the cost of new customer acquisition. 2.7 SUMMARY • Tangible Products can be shown by Demonstration. • Services Intangible can be Harder to show Value. • Traditional difference of Product and Services like Customization , Delivery , Ownership Expiration and Time. • Incredible India is a famous campaigning for Tourism. 55 CU IDOL SELF LEARNING MATERIAL (SLM)
• SWOT Analysis views all positive and negative factors inside and outside the firm that affects the success. • Positive impacts in Tourism industry like border opening, Government stability, • Tax incentive are the positive pros for Tourism, • Michael Porter’s five Forces is a fantastic tool for analyzing competition of an industry. • Segmentation, Targeting, Positioning continues to become more sophisticated, to support digital marketers' wants and needs, consider the developments in relation to your product/service. 2.8 KEYWORDS • SWOT — Strength , Weakness , Oppourtunities , Threats. • PESTEL --- Product Economic Socio-cultural Technology Environment Legal. • STP -- Segmentation , Targeting , Positioning. • TAM - Total Available Market • SAM - Serviceable Available Market • SOM - Serviceable Obtainable Market 2.9 LEARNING ACTIVITY 1. Conduct a SWOT analysis to a specified tourism destination in your nearest locality. _________________________________________________________________________ _______________________________________________________________________ 2.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Marketing management? 2. Explain Tourism Market Segmentation? 3. What is SWOT analysis? 4. What are Porter’s five forces? 5. What is PESTEL? Long Questions 1. Explain in detail Porter’s five forces? 2. Give Detail explanation about PESTEL? 56 CU IDOL SELF LEARNING MATERIAL (SLM)
3. Explain STP. 4. List the examples of political risk. 5. What is marketing environmental pest? B. Multiple choice Questions 1. _______ Stability is a major factor of the success of tourist destinations. a. Government b. Political c. Economic d. Social. 2. _________ can be either tangible or intangible a. Weakness b. Threats c. Strength d. Oppourtunities 3. __________ is a Famous Campaigning in Indian Tourism a. Hamara india b. Great india c. Incredible india d. NITI 4. The acronym DMO stands for: a. Destination Management Organization b. Development Management Organization c. Dual Marketing Organization d. Destination Management Operation 1. ___________________positioning proving that your products supply a certain boost in status to those who purchase. a. Attribute-based positioning b. Prestige-based positioning 57 CU IDOL SELF LEARNING MATERIAL (SLM)
c. Benefit-based positioning d. Price-based positioning 2. __________________positioning aligning your product/service offering with the target audience’s behavioral parameters. a. Attribute-based positioning b. Consumer-based positioning c. Benefit-based positioning d. Price-based positioning 3. STP stands for a. Segmentation , Targeting , Positioning b. Sales , Targeting , Positioning c. Segmentation , Tailoring , Positioning d. Segmentation , Targeting , Planning 4. TAM stands for a. Total available Market b. Total attribute Market c. Total attribute maker d. Till available Market 5. SAM stands for a. Serviceable available Market b. Serviceable attribute Market c. Service available Market d. Serviceable available Maker Answer 1-c 2.a 3.b 4.a 5.b 6.b 7.a 8.a 9.a. 58 CU IDOL SELF LEARNING MATERIAL (SLM)
2.11 REFERENCE 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 59 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 3: MARKETING MIX Structure 3.0 Learning objectives 3.1 Introduction of Marketing Mix 3.2 Concept of Marketing Mix 3.3 What are the 5P’s 3.4 Elements of Marketing Mix 3.5 Developing of Marketing Mix 3.6 Summary 3.7 Keywords 3.8 Learning activity 3.9 Unit end Questions 3.10 References 3.0 LEARNING OBJECTIVES After studying this unit, the student will be able to • Defines an idea about what is marketing Mix. • Evaluate the 5P’s of Marketing Mix. • Analyze the concept of 7P’s • Apply the elements of 7P’s in his forthcoming Projects • State the concept of Product ,price, process, procedure ,place, promotion physical evidence. 3.1 INTRODUCTION OF MARKETING MIX Since manufacturing is meaningless until products are sold, management must pay special attention to the selling or distribution of goods. The marketing mix is the process of developing and combining different marketing elements in order to ensure that business goals are met. Marketing is still an art form, and the marketing manager's job as head chef is to creatively marshal all of his marketing efforts to advance his company's short and long-term goals. Many modern marketing strategies and business practises are built on a foundation of the marketing mix. But what exactly is it? What are the elements of it? And why do so many people depend on it? 60 CU IDOL SELF LEARNING MATERIAL (SLM)
3.2 CONCEPT OF MARKETING MIX In the 1960s, Neil H. Borden, a professor and scholar, expanded on James Culliton's definition of the marketing mix and coined the term \"marketing mix.\" Company executives, according to Culliton, are \"mixers of ingredients,\" with the ingredients being various marketing ideas, aspects, and procedures. The marketing combination is referred to as the 4 Ps & 7 Ps. However, it is now generally known that Jerome McCarthy was the one who came up with the idea. After all, it was McCarthy who coined the term \"marketing mix\" in the form of \"The 4Ps of Marketing\": product, location, price, and promotion. Fig 3.1 The 4 Ps have been associated with the marketing mix concept But later on in 1981 Booms & Bitner added 3 new Ps to the 4 Ps Principle. These 3Ps were directly related to the service provider industry. From then it is called 7 Ps of marketing mix. The product marketing mix consists of the 4 P’s which are Product, Pricing, Promotions, and Placement. Later other 3 Ps are being added which are People, Process, and Physical evidence 3.3 WHAT ARE THE 5 P’S OF MARKETING? The 5 P’s of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically. The 5 P’s of Marketing, also known as the marketing mix, are variables that managers and owners control to satisfy customers in their target market, add value to their business, and help differentiate their business from competitors. 61 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 3.2 3.4 ELEMENTS OF 7 PS OF MARKETING MIX WITH EXAMPLE Product It is possible for a product to be both tangible and intangible. If the product quality is good in both cases, it can be promoted in the industry. In the other hand, if the product is subpar, it would not be able to compete or provide service in the highly competitive market. Before manufacturing or serving goods, market research is needed. Producers must ensure that the target market is large enough. Successful businesses often look for consumer needs and wants before developing their products. In today's world, the first \"P\" includes services as well, but when the Marketing Mix was first developed, it was solely focused on goods. For example, if a company wishes to manufacture Rolls Royce cars in a specific country, they must first consider if Rolls Royce will satisfy the demands of the customers or whether they will lose market share. Price Pricing has a major impact on how a product is viewed and branded. Pricing influences not only the amount of profit made by a company, but also the value of its goods. Many consumers would judge the quality of a product based on its price. Customers will compare prices before making a buying decision. For instance, if a business wants to sell cars at a high price, it would choose expensive and high-quality vehicles. Customers would gladly pay a higher price for a higher quality product and service in return for the higher price. 62 CU IDOL SELF LEARNING MATERIAL (SLM)
Place “Being in the right position at the right time” refers to the importance of location in marketing. For both biological and service goods, a business should be located where its consumers want it to be. Location is an important part of the marketing mix. Customers should be able to fulfill their demands at places that are convenient for them. A shift in location may often result in a significant increase in revenue. Entrepreneurs must choose the best location for their customers' convenience in receiving their vital service or product. On the highway or in the capital, for example, is the best place to open a gas station. A less- trafficked spot is not the best place to open a gas station. Promotion Another important P to consider is promotion. It's a form of expression. Advertising, public relations, special deals, and promotions are all examples of promotion. The aim of good promotion is to get the word out about the advantages of the goods and services. Websites may also be indicators of marketing in some situations. Customers' first impressions of a company are usually formed by visiting the website. Websites must be more user-friendly and well-organized. Sales, ads, sales promotion, public relations, direct marketing, online messaging, and personal selling are only a few examples. People In a service marketing mix, people are the most important component. From the front-line salesperson to the Managing Director, everybody in a business is reliant on the people who run it. Employees with expertise, staff managers, operations, and other customers all contribute to the service or product's advantages and appeal. Software engineers, for example, define as people in an IT company; chefs and service workers define as people in a restaurant. Process The method and tactics by which a service or product is distributed to the final customer are known as process. The manner in which the service is provided is, once again, a part of what the customer is paying for. It's all about the business-to-consumer interface and how they interact with one another at various points, i.e. in the process. One of the most important aspects of a successful purchase is pace. This definition of speed applies to the delivery of 63 CU IDOL SELF LEARNING MATERIAL (SLM)
goods ordered over the internet. The customer should be at the centre of the business operation, not the other way around. More salespeople, for example, are now interested in conversion. Physical Evidence The material aspect of a company or service is physical proof. It's all about providing a positive customer experience. Customers are unfamiliar with an organisation when they first interact with it. In this situation, the company must give physical evidence to the customers in order to gain their trust. Buildings, vehicles, signs and logos, business records, brochures, websites, and even business cards are all forms of tangible proof. 3.5 DEVELOPING MARKETING MIX Product Product is the combination of tangible and intangible elements. The tourism product, which is mainly the destination, can only be experienced. The views of the location travel to the destination, the accommodation and facility as well as the entertainment at the destination all form the tourism product. Thus it is a composite product combination of attraction, facilities and transportation. Each of these components has its own significance in the product mix and in the absence of even single components, the product mix is incomplete. Price Tourism pricing is a complicated operation. Other services such as air travel, buses, trains, and hotels are included in the pricing. Any of this is included in the tourist kit. The cost of a trip is often determined by the destination's geographic location. Seasonality has an effect on pricing as well. The most critical factor in pricing is seasonality. To balance demand and supply, tour operators strive to get either a discount or a freebie. In India, for example, the Taj Mahal is a popular tourist destination. Pricing is also dependent on that of rivals. Government policies also affect pricing. Changes in the price of air travel, for example. Tourism packages change as well; if hotel rates change, so do tourism packages. Because of its diverse nature, tourist product pricing is a difficult task. The pricing decision is influenced by the destination's geographic location. Seasonality and varying demand cannot be ignored at the same time. The aim of pricing in every other firm is to obtain a target market share, avoid competition, and account for demand price elasticity. The travel and 64 CU IDOL SELF LEARNING MATERIAL (SLM)
tourism industry reacted to their highly dynamic pricing circumstances in a number of ways, one of which is to function on two levels. The first stage refers to the marketing strategy, which addresses product positioning, value for money, and long-term return on investments, among other things. The second level pertains to marketing activities or strategies that manipulate rates to balance current demand and competition. Three main factors must be considered when determining the product's price: Operating costs − Both fixed and variable costs are included in operating costs. Fixed costs, such as construction, insurance, and equipment costs, remain constant regardless of revenue. Wages, power, energy, washing, repairs, repairing, manufacturing materials, office stationery, linen, food, petrol, equipment, uniforms, bank fees, publicity research expenses, and expenses for advertising, ads, brochures, and hosting customer or trade events are all examples of variable costs. Profit Margins − This is determined by comparing the competitors’ offers and the own product offers. Profit margins are set without compromising the competitive advantage. Commissions of Intermediaries − Working with intermediaries incurs commissions. Commissions are the fees paid to the intermediaries to distribute and sell your product. Fig 3.3 Target Market 65 CU IDOL SELF LEARNING MATERIAL (SLM)
Tourism Product Pricing Policies Commonly followed pricing policies include − Discount Pricing − This strategy calls for reductions to a basic Price of product or services. It is a form of sales promotion which at times proves to be rewarding for the customers. Variable Pricing − pricing varies with respect to the variation in features of a product. Loss Leader Pricing − It is selling few products at prices lower than the actual prices. It helps to settle the loss by attracting customers to buy more number of products. Promotional Pricing − It is selling a product for free with another product with the objective of promoting the free product. Customer interest is generated to use the free product thereby increasing the sale. PLACE Tourism marketing may use a variety of delivery methods. Travel is used to sell tourism as a commodity. The internet is still commonly used. There is also a small agent who plays a position of place and is dispersed throughout the area. Large travel companies such as Thomas Cook, Cox & Kings, SOTC, and others operate as wholesalers and retailers, respectively. Since most tourist destinations are natural or historical attractions, the tourism marketer does not have an appropriate choice of tourist centre. However, infrastructure, transportation, and communication are critical for the tourist center's growth. The channel of choice and channel representatives are the most important decisions made by the tourism marketer when it comes to distribution. The prevailing role of intermediaries is the tourism industry's uniqueness. The distribution system performs two main roles in tourism marketing: To increase the number of transactions or access points outside of the area where services are performed or delivered. To make it easier to buy services in advance. Depending on the company's overall goals, different delivery methods can be chosen. Tour operators may act as a middleman, purchasing tourism products in bulk and distributing them to retail travel agents. Airline seats, hotel accommodations, buses for local sight-seeing, and other tourist goods are among 66 CU IDOL SELF LEARNING MATERIAL (SLM)
the items purchased by tour operators, who can also sell directly to consumers. The Internet is the most recent method of reaching out to tourists. Ticket reservations can also be made via the Internet, with credit card payment. PROMOTION The effect of raising awareness is far-reaching. Tourist organisations are responsible for appropriately educating, persuading, and sensing potential visitors. Marketers must make the best use of the different promotion components in order to increase the number of repeat customers. By providing new tourist products in the same country to areas that have remained untapped or partially tapped, promotion aids in optimising the length of stay and frequency of visit. The following are the different aspects of tourism promotion: 1. Advertising 2. Publicity 3.Sales Promotion 4.Word-Of-mouth 5.Personal Selling 6.Tele-Marketing 7.Exhibition Advertising: Advertisements provide crucial information to current and future visitors. It has a wide range of applications. Advertising is directed at the general public in order to raise awareness of the resort's travel packages and attractions in order to influence their purchasing decisions. Visual exposure of scenes and occurrences can help to compensate for intangibility. We can model hotel rooms, well-designed restaurants and cafeterias, swimming pools, and other amenities. Publicity: It focuses on bolstering public relations efforts by cultivating relationships with journalists and obtaining their customised assistance in publicising the business. It aids in the projection of a positive picture of tourist organisations because prospects place interest in the news items reported by the media. Daily advertising articles and photos to newspapers, travel 67 CU IDOL SELF LEARNING MATERIAL (SLM)
editors, and correspondence with magazines on stories are all part of the publicity programme. Publicity includes ads. Sales promotions: Sales promotion initiatives are short-term activities used to help promote a new product or assist an ailing or updated one in order to ensure that the company obtains market share during peak demand times. Sales promotions are a marketing tactic that is intended to cater to consumers who are price sensitive. There are a variety of strategies for promoting sales, and the tourist professional must employ them in light of their needs and changing market patterns. As an example, A travel company in the tourism industry can give away items such as flight bags, ticket wallets, Foreign Exchange (Forex), and passport covers to their customers. Shoe shine clothing, first aid sewing kits, shower caps, and shampoo are among the amenities provided by the hotels. In addition, VIP customers receive fruits and flowers in their rooms. Word-of-mouth Promotion: The majority of tourism information is spread by word-of-mouth, which is also known as word-of-recommendation. In the tourism industry, word-of-mouth promoters are discovered to act as a secret sales force, assisting in the selling process. The high magnitude of effectiveness of this promotional tool is due to the channel's high reputation, especially in the eyes of potential tourists. Because of the tool's sensitivity, tourist organisations must focus on the quality of services they promise and provide. Marketers and tourist organisations must keep their eyes open, recognise the outspoken individuals or opinion leaders, and provide special attention to them in order to keep the process of stimulating and generating demand going forward. Personal Selling Personal selling is dependent on an individual's personal abilities. The travel and hotel industries depend heavily on personal sale. Due to well-educated and qualified sales staff, the growth of travel and tourism has been possible. Since travel agents and travel guides serve as knowledge carriers, their services have influenced the growth of the tourism industry. Personal sale entails making a personal presentation to consumers of a tangible commodity, intangible services, or ideas. It's worth noting that in the tourism industry, the people who look after tourists are an integral part of the product, such as salespeople who negotiate with 68 CU IDOL SELF LEARNING MATERIAL (SLM)
visitors behind the counter, resort representatives who look after tourists once they arrive at their destination, and so on. They all play an important role in ensuring that visitors are satisfied with tourism items. Telemarketing: It's a sales technique in which a well-trained telemarketer promotes a business. The effectiveness of this aspect is determined by the quality of the technology and the capacity of the telemarketers to communicate. Travel agents, airlines' departments, receptionists, and secretaries all work effectively in tourism if the telephonic facilities aren't up to par. It's also important to hire someone who is known to be a competent, personally dedicated salesperson with a strong sense of creativity, innovation, and imagination. Exhibitions: State and national tourism promotion boards, travel agents and tour operators, airlines, car rentals, cruise liners, holiday financiers, technology companies, hotels and resorts, and hospitality and tourism education institutions are among the participants. Foreign tourism promotion boards, such as Dubai Tourism and Mauritius Tourism, have increased their presence over time in order to actively promote their respective countries. PEOPLE It is extremely significant in the tourism industry. Local people are very important in people's lives, and how they handle tourists is very important. The people are the travel agents, guides, travel company employees, salespeople, and so on. People also include travel companies such as railways, airlines, and so on. Normally, a visitor guarantees the standard of tourism, such as hotels and travel agencies. Personnel who cater to the needs of visitors are an important component of tourism marketing. Behind the counter, the salespeople are in charge of dealing with the customers. Customers engage with airline and transportation crews when flying. When tourists arrive at their destination, representatives from the resort or hotel pay attention to their needs. The people factor of tourism marketing is made up of tourist guides who communicate with customers at tourist attractions. These contract workers would need to be educated in interpersonal skills as well as product awareness. Travel agents and travel guides are the two most influential people in the tourism industry who talk a lot about it. As a result, they must 69 CU IDOL SELF LEARNING MATERIAL (SLM)
always perform at their highest level. Travel guides, in particular, are supposed to have a lot of patience, a strong sense of humour, tact to turn infrequent visitors into regulars, extensive knowledge of the locations, linguistic skills, and so on. PROCESS The operation phase of a tourism company will be determined by its scale. The following are the measures involved in the distribution of tourist goods in order: Provision of travel information: Travel information is made available in a convenient place where a potential tourist can get answers to his questions about his planned trip. Itineraries are prepared in the following manner: It's a set of tasks that must be completed in order to schedule a trip. Contracts with suppliers of different services, such as transportation firms, hotel accommodations, and coaches for local sightseeing, must be entered into before any mode of travel is offered over the counter to a customer. Tour planning and costing: After the contracts and plans are finalised, the process of planning and costing the tour begins. This can vary depending on the tour chosen as well as individual needs. Ticketing: The computerized reservation system has in recent years revolutionized the reservation system for both rail and air travel. Provision of foreign currency and insurance: In case of foreign travel the final task provide foreign currency as well as insurance PHYSICAL EVIDENCE The tourist attraction, which is costly to the consumer, must be tangible by tangible things such as comfortable seats when travelling, resort layout and design, natural service distance, and so on. Directional signs, road maps, facts about the tourist spot's rules and regulations, and signs indicating public services such as toilets and telephone booths are all part of the physical evidence. Brochures and other printed materials play an important role in the growth of tourism. In tourism, the result is intangible. There is a need to thoroughly explain the product, which is 70 CU IDOL SELF LEARNING MATERIAL (SLM)
accomplished by creating an elaborate brochure that demonstrates how various aspects of the programs are meticulously designed to provide all required details to make the holiday creates expectations of quality, value for money, product picture, and status, all of which must be met when the product is delivered. 3.6 SUMMARY • Marketing Mix called as 4P’s and 7P’s. • .Marketing mix is the process of designing and integrating various elements of marketing in such a way to ensure the achievement of enterprise objectives • Jerome Mc Carthy offered 4P’s in Marketing. • Product Marketing Mix consists of 4P’s – Product, Pricing , Promotion and Placement. • Boom & Bitner Added 3P’s which is Service Provider-People, Process ,Physical evidence. • 5P’s are key Marketing elements used to Position a business strategy. • Concept of 7P’s of marketing in Tourism. • Developing Tourism industry through promoting concepts like “Incredible india” “Athithi Devo Bhava” 3.7 KEYWORDS • 3p’s – people, pricing ,physical evidence. • 7P’s – place pricing, promotion , promotion , people , process , physical evidence. • SOTC – SITA On-line Tourism Corporation. • Variable Pricing − pricing varies with respect to the variation in features of a product. • Profit Margins − This is determined by comparing the competitors’ offers and the own product offers. 3.8 LEARNING ACTIVITY 1. Select any 5 countries ,Tourism promotion campaign videos ,advertising method and compare with India and find marketing techniques to promote Indian tourism. ______________________________________________________________________ _______________________________________________________________________ 71 CU IDOL SELF LEARNING MATERIAL (SLM)
3.9 UNIT END QUESTIONS 72 A. Descriptive Questions Short Questions 1. What is Marketing Mix ? 2. What are 5P’s in Marketing ? 3. What are the Elements of 7P’s ? 4. What is tourism strategy? Long Questions 1. Explain in detail the Elements of 7P’s ? 2. Explain the various dimensions of Tourism Promotion ? 3. What is marketing mix with example? B. Multiple Choice Questions 1. The concept of Marketing Mix came about in --------- a. 1950 b. 1970 c. 1960 d. 1980 2. Culliton described business executives as----------- a. Mixer of Marketing b. Mixer of Ingredients c. Marketing Techniques d. None of these 3. ---------- gives importance to the actual and political tourists. a. Advertising b. Tele-marketing c. Publicity d. None of these 4. SOTC stands for CU IDOL SELF LEARNING MATERIAL (SLM)
a. SITA On-line Tourism Corporation. b. SITA On Tourism Corporation. c. SOTC On-line Tourism Corporation. d. SITA On-line Travel Corporation. 5. The ‘5 As’ (attractions, activities, accessibility, amenities, accommodation) describe: a. A tourism organization b. A destination c. A stakeholder d. A tourist information network 6. Maps, tour guides, plaques, signs and videos are examples of tools of: a. Tourist direction b. Ecolabelling c. Revenue generation d. Tourist interpretation and education 7. The total assortment of products that a company makes or sells is called _________. a. the marketing mix b. the promotional mix c. the pricing mix d. the product mix 8. Which of the following are the four basic elements of the marketing mix? a. executive summary, situation analysis, marketing strategies, and evaluation and control b. demographic, psychographics, behaviouristics, and politics c. coupons, ads, direct mail, and broadcasting d. product, price, place, and promotion 9. The national on tourism was established by ---------- a. Tourist commission b. Planning commission c. Travel commission d. None of these. 10. A person who moves from one location to another is known as ------------- 73 CU IDOL SELF LEARNING MATERIAL (SLM)
a. Traveler b. Tourist c. Visitor d. None of these Answer 4.a 5.a 6.d 7.a 8.d 9.b 10.a 1.c 2.b 3.a 3.10 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 74 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 4: TOURISM PRODUCTS 75 Structure 4.0 Learning objectives 4.1 Introduction of Tourist Product 4.2 Definition of Tourist Product 4.3 Types of Tourism Product 4.3.1 Tourism Oriented Products (TOP) 4.3.2 Residents Oriented Products (ROP) 4.4 Characteristics of tourism Product 4.4.1 Intangibility 4.4.2 Inseparability 4.4.3 Heterogeneity 4.4.4 Perishability 4.4.5 Ownership 4.5 Tour operator’s product and services 4.6 key principles of tourism products and services 4.7 Reasons for growth of services 4.8 Summary 4.9 Keywords 4.10 Learning activity 4.11 Unit End Questions 4.12 References 4.0 LEARNING OBJECTIVES After studying this unit, the student will be able to • State the meaning of Tourism Product and Services. • Recognize the characteristics of Tourism Product and Services. • Analyse the difference between General product and Tourism product • Explain the key principles of tourism product and services. • Define the reasons for the Growth of Services. 4.1 INTRODUCTION OF TOURISM PRODUCT CU IDOL SELF LEARNING MATERIAL (SLM)
The tourism industry as a whole survives because of various tourism products and services. The products of tourism cannot be easily standardized as they are created for the customers of varied interests and demands. As the tourism products are mainly the tourists’ experience, they can be stored only in the tourists’ memories 4.2 DEFINITION OF TOURIST PRODUCT A tourist commodity is a term made up of several different elements. These include tourist attractions, modes of transportation, accommodation, and related amenities, as well as sources of entertainment. In the tourism industry, these components can be provided by a single company or a group of companies. It also includes tourists enjoying these items from the moment they leave their homes before they return home. A tourism/tourist commodity can be described as the amount of the physical and psychological satisfaction it offers tourists while they're en route to their destinations. Since the travel and tourism industry is made up of so many different industries that promote travel-related services. These businesses are known as travel vendors, and their services and goods are referred to as \"travel items.\" Physical plant, facilities, hospitality, freedom of choice, and a sense of involvement are the five key components of a tourism product. Thus, tourism goods refer to facilities that are provided to visitors for consumption, regardless of natural or man-made resources. The following are examples of services: ‘Any operation or gain that one entity may provide to another that is simply intangible and does not result in the possession of something is referred to as a service. Its development may be linked to a physical product or not.' – Kotler, Armstrong, Saunders, and Wong (Kotler, Armstrong, Saunders, and Wong) 4.3 TYPES OF TOURISM PRODUCTS The product is always characterized by pull factors. As it motivates the consumer to purchase it as it has the ability to satisfy the need of the consumer. Let us understand more about tourism products and services 76 CU IDOL SELF LEARNING MATERIAL (SLM)
The tourism products are grouped into the following types Tourism Oriented Products (TOP) Residents Oriented Products (ROP) 4.3.1 Tourism Oriented Products (TOP) These are the products and services created primarily for the tourists and also for the locals. These products need a great share of investments in private sector. A few of them are − • Accommodations; For example, Taj, ITC Hotels. • Transportation; For example, Owning taxis, luxury buses, and boats. • Retail Travel Agents • Tour Operators • Shopping Centers such as malls • Cinema Theatres such as PVR • Restaurants for Food and Beverages • Tourism Information Centers • Souvenirs Outlets • Museums, Temples, Gardens, and Theme parks 4.3.2 Residents Oriented Products (ROP) Here, the products and services are created mainly for the local residents staying at a particular tourist destination. This category requires investment in public sectors more. Some of them are • Hospitals • Public Parks • Banks and ATMs • Petrol Pumps • Postal Service 1. Convenience tourism goods: Convenience tourism products are purchased to meet a specific need. There are low-cost goods that don't take a lot of work to find. Tourists usually buy convenience items without much thought. Convenient tourism products include fast food, cold beverages, small souvenirs, and museum visits. 77 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Products for tourism shopping: These tourism goods are usually more costly than convenience products, and visitors only purchase them after comparing prices. Purchasing these items necessitates time and effort. Tourists want to compare service agencies and efficiency. There's a half-day tour, a dinner schedule, and so on. 3. Tourism products with a niche: Specialty tourism goods are costly and come with a high level of risk from the tourist's perspective. They devote a significant amount of time and effort to purchasing these items. In fact, every tourism product contains a component of specialty merchandise. Specialty tourism items include purchasing an international tour, airline tickets, mountaineering, and expeditions. 4. Tourism products that aren't in high demand: Tourists are unfamiliar with undemanded tourism items. This factor is present in all tourism products in order to provide shopping pleasure. Buying is referred to as 'Shopping for Fun' in the travel industry. They're new vacation spots, resorts, or sports. 5. Products for industrial tourism: These items are purchased for further processing or for commercial purposes. The distinction between a consumer product and an industrial product is made based on the reason for purchase. A trekking trip necessitates a hotel, a city, and transportation. Every resort, too, is sponsored by transportation. 6. Things of importance: These products aid in the development or operation of a company. They make it easier to produce and manage finished products. The capital in tourism in business includes land and buildings, natural beauty, heritage, cultural hospitality, consumer confidence, picture, goodwill, and service standardisation. Intangible Products of Tourism 78 They include − Bookings of accommodations, theatres, and at various sites. CU IDOL SELF LEARNING MATERIAL (SLM)
Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity. Tourists’ memory which is created by storing the details of events and experience on the tour. The high degree of satisfaction or dissatisfaction is often stored as a long term memory. Transportation of tourists and their luggage from one place to another. Inflexibility The tourism industry is highly inflexible in terms of capacity. The number of beds in a hotel or seats on a flight is fixed so it is not possible to meet sudden upsurges in demand similarly restaurants tables, hotels beds and flights seats remain empty and unused in periods of low demand. Inventory / Perishability It has to do with the fact that travel goods are made to be consumed right away. For example, an airline must sell seats on each flight, and a hotel must sell rooms each night. If an airline or a hotel is unable to sell all of their seats on a flight or all of their rooms for the night, the ability to sell the product is lost forever. Stock can't be held in the service sector like it can in the retail sector. To address this problem, the travel industry has devised a number of marketing strategies. Overbooking is one choice. An airline will overbook its seats to a degree in the hopes that even if some passengers do not show up, the flight will be completely seated. Multiple distributions is another technique. A consumer can purchase an airline ticket from an airline, a tour operator, or a travel agent, for example. Perishability is less of a concern. The opportunity is missed if the tourist is unable to visit the place. As a result, this becomes one of the main characteristics. Inconsistency A general norm is that in Travel and Tourism industry the product or the package of the tourism can be standardized i.e. for example of 2 days 3 night in so and so hotel, but the actual experience of consuming this package is highly inconsistent. We hear a lot of travel stories which becomes a portrayal of a lot of bad experiences for example the tourist guide may not be good, the hotels lodging and boarding was bad etc. Therefore there is high level of inconsistency prevailing. 79 CU IDOL SELF LEARNING MATERIAL (SLM)
Intangibility Trip experience on an aircraft, cruise on an ocean liner, a night's stay in a hotel, a view of the mountains, a visit to a museum, a good time in a night club, and several other travel items are untouchable. 4.4 CHARACTERISTICS OF TOURISM PRODUCTS Several authors have pointed out a number of unique characteristics that make tourism products so different from other consumer products. The most commonly characteristics ascribed to tourism products are: I. Intangibility; II. Inseparability; III. Heterogenity; IV. Perishability; and V. Ownership 4.4.1 Intangibility When you purchase a tour package in tourism, you are essentially purchasing a dream, a concept, or an idea. It is impossible to touch, see, or detect it. When you buy a package or other tourism product, you can only imagine what you'll see when you get there, while when you buy a bathing soap, you can see it, smell it, touch it, feel it, and use it to test its cleaning effectiveness. When purchasing a product, you can instantly check its benefits, while when purchasing a tourism product, there is no set method for determining the amount of satisfaction or value for money that a tourist would get. There are tangible and intangible dimensions of tourism goods. When selling a hotel room, for example, the room is tangible because of its location, physical facilities provided, and so on, but services associated with the room, such as room service, laundry, food and drinks, back office, and so on, are intangible aspects of tourism items. 4.4.2 Inseparability The seller and the tourism product are inextricably linked. After a demonstration at the store, a consumer purchases a television set and takes it home. The seller may or may not be present when the goods are consumed or used. The guide, on the other hand, must be present during his product introduction, and a visitor loves the guide's description of the destination. 80 CU IDOL SELF LEARNING MATERIAL (SLM)
A travel agent offers a commodity, airline cabin crews attend to passengers' needs, and a front-office executive greets visitors are all examples of tourism services. A consumer product, such as body talk, is made in Calcutta but brought and sold in Delhi, while a tourism product, in most cases, cannot be isolated from the individual or firm that provides it. To provide the services, a plumber must be physically present, a guide must accompany the party, and a beautician must be available to administer the massage. 4.4.3 Heterogeneity Services linked to tourism Humans assist human beings. Since the human factor is so important in delivering and making services, standardisation is a difficult task to accomplish. A restaurant chef who prepares the best cuisines in the most attentive manner possible, but who may act differently each time he prepares or presents the same cuisine. The new bank clerk may not be as effective as the previous one, requiring you to devote more time to the same task. There are common procedures for booking a bed, a seat, or a corner in hotels, airlines, restaurants, and other establishments. The Computerised Reservation System (CRS) was created to reduce human interaction, but when you arrive at the hotel, there will be a well-dressed and qualified individual at the reception who will hand over the keys; his behaviour will be an important factor in your overall evaluation of the hotel's service quality. As a result, the people who communicate with you will determine whether you have a positive or negative impression of the hotel. 4.4.4 Perishability Tourism is a perishable commodity. If a cell phone is not available in a store, it can be sold the next day or after a month with a discount. A day's unsold hotel room and a flight with an empty seat, on the other hand, are forever lost. Time-variable demand is a problem for the tourism industry. During the peak season, tourism demand is usually higher. In the off- season, the rooms are left vacant for a period of time in order to raise the overall cost of the commodity. This is the most crucial aspect of tourism marketing, particularly when it comes to product pricing. Pricing strategies can help disperse demand by providing significant discounts during off-season periods. Tourism products are perishable by default, which means they cannot be stored for an extended period of time. When tourists are present, production and consumption take place. A tourist commodity cannot be stored by a travel agent or tourism operator who sells it. Only when the customer is present will production take place. And once consumption starts, it is impossible to stop, interrupt, or change it. If a product is unused, the opportunity is lost; 81 CU IDOL SELF LEARNING MATERIAL (SLM)
for example, if visitors do not visit a specific location, the opportunity at that time is lost. During the off-season, hotels and transportation providers provide significant discounts due to the tourism industry. 4.4.5 Ownership You become the owner of a product when you purchase it, whether it's a pencil, book, shirt, refrigerator, or car. You just pay for the use of a tourism product or service; you never own it. You book a flight from Delhi to Bombay for yourself, but you just pay for the use of the plane seat; you do not own it. You can rent the services of a baby sitter for a set period of time by paying salaries, but you cannot own it. As a people-oriented business, tourism necessitates people serving other people. It has been an important part of this industry for decades. Since the advent of the market-oriented approach, tourism goods and services have faced significant challenges, not just in terms of quality but also in terms of diversity. People used to travel for particular reasons, such as trade or religion, in the past. As a result, their classification process was straightforward, and their needs were easily assessed. However, today's travel motivations are so varied that not only is it difficult to categorise them, but it has also influenced the product design process. As a result, product design should be undertaken with extreme caution. You should be aware that one of the unique characteristics of tourism-related facilities is that they are extremely sensitive to both internal and external influences. The tourism industry has been severely harmed by the latest travel restrictions imposed as a result of the worldwide lockdown imposed in response to the COVID-19 pandemic. There are ample reasons to conclude that tourism services are more vulnerable to sensitive issues than other services. As a result, all of these problems and considerations must be kept in mind when developing tourism goods or services. 4.5 TOUR OPERATOR’S PRODUCTS AND SERVICES Service by professional and trained workers is required to understand the facilities and experiences that a tourism product provides. The standard goods and services offered by the tour operator are as follows: Service Marketing's Nature: It stems from the fact that it covers a wide range of activities. It contains the following items: 82 CU IDOL SELF LEARNING MATERIAL (SLM)
I. It's a complex operation, for starters. II. It is centred on the consumer. III. It's innovative. IV. It is immaterial. V. There is no way to transfer ownership. VI. It's a mixed bag. VII. It has no expiration date. VIII. Services and development are inextricably linked. IX. It's a perishable item. X. It's a social operation, after all. XI. It serves an economic purpose. XII. It entails consumer involvement Elements of a tourism product The onion shell diagram below illustrates the components of a tourism product. The diagram depicts the progressive loss of direct management control as the elements progress from central to outer shell. It demonstrates that the buyer is most active at the outermost shell. Tourism is not simply the existence of all five elements; it is also the interaction of these elements. 83 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 4.1 Elements of a tourism product The Actual Plant: It is real and consists of a variety of resources on which tourism is based. Simply placed, the physical plant is a tourist attraction with visually pleasing architecture that enhances the visitor experience. It's possible. • A natural feature such as a landscape, abundant wildlife, or a natural structure. • A constructed attraction, for example, a spa. • A fixed asset, such as a residence. • A conveyance, such as a ship or an aeroplane. • A natural or man-made situation at the destination, such as the weather, crowds, or infrastructure. The physical plant's features or facilities are put to use for the benefit of tourists during activity. Providing programmes necessitates a substantial investment in human resources. Its aim is to carry out activities for the benefit and enjoyment of tourists. Serving food in a hotel, for example, is a service offered by hotel employees. The attitude that goes along with providing service is known as hospitality. Providing service with a smile, enthusiasm, unwavering loyalty, and dedication is what hospitality means. Organizing guest room equipment and preparing food and drinks in a presentable manner are examples of hospitality. It is offering a suitable range of options to tourists in order to improve their experience. The amount of freedom depends on the type of tourism (recreational, service, family, or other), the tourist's budget, previous experience, knowledge, and reliance on a travel agent. Customers must have some degree of choice when purchasing a good tourism product. The product gives tourists a sense of power by giving them some autonomy. The ability to choose an airline, a route, a seat, a hotel, or a restaurant will boost a tourist's satisfaction significantly. Furthermore, liberty entails fun surprises. When tourists come across unforeseen events, they have the feeling of being extremely fortunate to be in the right place at the right time, which adds value to their stay. 84 CU IDOL SELF LEARNING MATERIAL (SLM)
Participation: It is dependent on the inner four elements' consistency. On a physical, analytical, and/or emotional level, these elements prepare tourists to engage in tourism services. Not only physical participation, but also a sense of dedication to an activity, whether recreational or technical, is included in involvement. The further interested tourists are in friendly interaction with others, the more eager and curious they are to try new stuff, and time passes quickly for them. As a result, the best tourist product would be a mix of tourist interaction, choice, service with hospitality, and the perfect destination (with all A's present). 4.6 KEY PRINCIPLES OF TOURISM PRODUCT DEVELOPMENT A tourism product can be of any type from cultural, educational, recreational, heritage site, or a business hub. Tourism Product Development should − • Be authentic and should reflect the unique attributes of the destination. • Have the support of the host community. • Respect the natural and cultural environments. • Be different from the competitors, avoiding copying developments blindly. • Be of sufficient scale to make a significant economic contribution, but not very large to create high economic leakage. The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product – Primary Intermediate Inputs Intermediate Output Final Output (Tourist Inputs (Resources) (Tourism Facilities) (Tourism Services) experiences) Human Accommodations Vehicle parking service Social contacts resource Material Transport terminals Tour guide service Business contacts Equipment Vehicles/Ships/ Hospitality at serviced Satisfaction/Memories Boats/Airbuses/ accommodations/ hotels/ 85 CU IDOL SELF LEARNING MATERIAL (SLM)
Ferries. restaurants. Fuel/Energy Restaurants/Food Cultural performances Recreation Joints Agricultural Convention/ Festivals/Events Education product Shopping Centres. Capital Museums Relaxation Primary inputs such as resources, raw materials, other building materials, energy, and fuel are used to start the product manufacturing process. This may also include agricultural products needed for the preparation of tourist food. Via manufacturing or construction, the primary inputs are converted into intermediate (or processed) inputs. Tourism facilities such as gardens, parks, museums, art galleries, shopping malls, convention centres, lodging, restaurants, and gift or souvenir shops serve as intermediary inputs. They help to grow tourism by promoting it and assisting in its growth. Before being packaged as intermediate outputs, intermediate inputs are further optimised by professional management, human capital, and technological resources. The tourism-related services are the intermediate outputs. For example, after a tourist has occupied a hotel space, it remains a commodity until it is integrated into a tourism product by incorporating the occupant's experience. Similarly, food served in restaurants must be cooked and presented by restaurant employees, and guests must order and consume the food. The tourist's personal experience acquired through service usage and involvement in various tourism-related events are the final outputs. Tourists use intermediate outputs (or services) to create intangible yet high-value experiences like happiness, leisure, completing a business project, or keeping in touch with friends and family. 86 CU IDOL SELF LEARNING MATERIAL (SLM)
Steps of Tourism product development The following general steps are taken in the production of tourism products: Market Research: The tourism marketing team conducts market research to identify opportunities at this stage. This includes a look at the economy, a look at various consumer segments and their specific needs, historical market data, and a look at current market and tourism trends. Match the Product to the Market: After analysing market segments and tourism conditions, different packages are created for different market segments to meet the needs of each group of people. Assess the Destination: The product development team visits a potential tourism destination to evaluate its tourism potential and capacity to accommodate and serve tourists, as well as the destination's specific characteristics and shortcomings, since destinations serve as the foundation for product growth. It's used to see if a place meets the requirements for accommodations, attractions, activities, and amenities. It is also looked over for usability. Recognize the Stakeholder Role: The development of tourism goods is the result of multiple stakeholders working together. It involves identifying all private and public sector stakeholders, as well as DMOs, tourism and related businesses, and their respective positions in the development or production of a tourism product. Meetings with stakeholders are conducted to establish a project plan. The project's goals are established to ensure that a long- term vision, medium-term action plans, and short-term progress reports are all realised. At this stage, the product is actually designed, with the help of resources and experts, to create intermediate inputs (facilities and amenities) and intermediate outputs (services). It covers not only infrastructure but also support for one-of-a-kind activities and experiences. Marketing & Promotion: The tourist destination's market has been trained on the practical and emotional benefits of tourism. The marketing department produces brochures, places advertisements on company websites, and makes contact with media outlets to promote the destination and product on television and radio. They also use a number of other marketing techniques to increase product awareness. 87 CU IDOL SELF LEARNING MATERIAL (SLM)
Providing Human and Technical Resources: This entails providing skilled personnel and cutting-edge technology to effectively respond to tourist needs, coordinate all tourism-related activities at the destination, and communicate with employees. 4.7 REASONS FOR GROWTH OF SERVICES Manufacturing industries developed as a result of their ability to manufacture tangible products that met man's physiological needs for food, shelter, and clothing. As the basic need was met, there was a demand for higher levels of satisfaction, which resulted in a proliferation of product variants and a slew of companies involved in its production. The growth of service industries can be traced back to society's economic development and the sociocultural changes that came with it. Changing environmental trends have pushed the economy's 12 different types of services to the forefront. These external forces, alone or in combination, result in a new form of operation. The factors listed below are responsible for the creation of a new service. • Consumer affluence: Due to the fast rise in the income of consumers, they are attracted towards the new areas like clubs, health clubs, domestic services, travel and tourism, entertainment, banking, investment, retailing, insurance, repairs, etc. and these are growing much faster than ever before. There is a significant change in the pattern of family expenditure. • Working women: During the recent times a large number of women have come up variety of professions. The work performance of women in most of services sector like bank, insurance, airlines, etc. is highly appreciable. In short, women are getting involved in almost all male dominated activities. Due to increasing involvement of women in commercial activities, the services like domestic activities, fast food restaurants, marriage counselling, personal care, financial services, retailing, etc. have emerged in the recent times. • Double income no kids (DINK): Dinks are the working couples who have consciously postponed parenthood plans indefinitely or in an increasing number of cases, have decided not to have any children ever. The dink culture is getting stronger and spreading wider day by day. The realisations that parenthood is likely to result in more commitments at home and demands on their time, thereby slowing down their career 88 CU IDOL SELF LEARNING MATERIAL (SLM)
plans and ambitions, make them postpone their parenthood plans. Whatsoever be their life style, they have double income and no kids, resulting in the emerging and enhancing of services like, entertainment, hotels and restaurants, career institutes, domestic services, travel resorts, personal care, etc. • Leisure time: People do get some time to travel and holiday, and therefore, there is a need for travel agencies, resorts, hotels and entertainment. There are others who would like to utilise this time to improve their career prospects, and therefore, there is a need for adult education, distance learning, part time courses, etc. • Greater life expectancy: According to the World Development Report and World Human Resource Index, the life expectancy of people has increased significantly all over the world barring few developing countries. It may be due to the advancement in the medical technology, and greater awareness about health and education. Greater life expectancy invites opportunities in services like hospitals, Nursing Homes, entertainment, leisure services, investment banking and so on. • Product innovations: In the changing time the consumers have become more conscious of quality than cost. They need high quality goods at par with international standards. Having this in mind the manufacturers have focused their attention on quality improvement, innovations, etc. In this process many more services have emerged on account of product innovation. Some of them are servicing services, repairs, computer, training and development, education, etc. • Product complexity: A large number of products are now being purchased in households which can be serviced only by specialized persons e.g. water purifiers, microwave oven, computers, etc., giving rise to the need for services. The growing product complexities create greater demand for skilled specialists to provide maintenance for these complex products and brings out other services like expert advice, consultancy services, etc. • Complexity of life: Certain product and services have made human life more comfortable and complex as well. Also, life itself has become more complex due to the socio-economic, psycho-political, technological and legal change. This has brought about the emergence of services like legal aid, tax consulting, professional services, airlines, courier services, insurance, banking, etc. • New young youth: Every new generation has its own characteristics and enjoys a different life style. There is a lot of difference between the generations in respect to their 89 CU IDOL SELF LEARNING MATERIAL (SLM)
living conditions/ styles, maturity, thinking, attitudes, behaviour, beliefs, satisfactions, performance values and so on. Today’s generation with all these changes provide more opportunities to services like entertainment, fast food, computers, travel, picnic resorts, educational institution, counselling, retailing, etc. • Resource scarcity and ecology: As the natural resources are depleting and need for conservation is increasing, we have seen the coming up of service providers like pollution control agencies, car pools, water management, etc. • Corporate crowd: The phenomena of globalization, privatization and liberalization coupled with faster urbanization have created the corporate world crowd and its support services. This crowd is responsible in bringing the new services, and redefining the old ones. The services like hotels and restaurants, banking, insurance, travel and tourism, advertising, airlines, courier services, marketing research, health care, legal services, etc. will emerge and flourish more and more. The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product – Primary Intermediate Inputs Intermediate Output Final Output (Tourist Inputs (Tourism Facilities) (Tourism Services) experiences) (Resources) 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 90 CU IDOL SELF LEARNING MATERIAL (SLM)
Agricultural Convention/ Festivals/Events Education product Shopping Centers. Capital-+ Museums Relaxation 4.8 SUMMARY • Tourism Products are inseparable from its seller. • The product always characterized by Pull factors like • TOP –Tourism Oriented Product • ROP – Resident Oriented Product • A travel agent or Tourism operator who sells a tourism product cannot serve it. • The growth of service industries can be traced to the Economic Development of society and the socio- cultural changes that have accompanied it. • The characteristics of tourism products are intangible, inseparable, perishable, heterogenous, absence of the owner, produced by various manufacturers, and the demand is not at all stable. 4.9 KEYWORDS • TOP – Tourism Oriented Product • ROP – Resident Oriented Product • Dink – Double Income No Kids. • Inseparability - The seller and the tourism product are inextricably linked • Heterogeneity - Services linked to tourism Humans assist human beings. 4.10 LEARNING ACTIVITY 1. Collect Information the factors responsible Environment pollution and make a chart about eradication measures, how to implement that in tourist destinations. ___________________________________________________________________________ ____________________________________________________________________ 4.11 UNIT END QUESTIONS 91 A. Descriptive Questions CU IDOL SELF LEARNING MATERIAL (SLM)
Short Questions 92 1. List the nature of service marketing? 2. Definition of Tourism Product? 3. State the types of Tourism Product? 4. What are the key principles of tourism product development? 5. What is consumer affluence? Long Questions 1. Describe the Characteristics of Tourism Product? 2. Give the reasons for the growth of services? 3. What are the steps of tourism product service? 4. Define: Tourism product. 5. Explain the challenges of tourism product service. B. Multiple choice Questions 1. Tourist Product is a concept that is made up of many------- a. Product b. service c. tangible d. Component 2. A -------is any activities or benefit that one party can offer to another. a. Service b. Tourist c. Growth d. Product 3. TOP needs a great share of-------- in private sector. a. industry b. Service c. Traveller d. Investment CU IDOL SELF LEARNING MATERIAL (SLM)
4. Tourism industry is highly inflexible in terms of a. Product b. benefit c. capacity d. perishable. 5. Product and service are created for ------- residents a. Domestic b. international c. social d. Local 6. TOP stands for a. Tourism Oriented Products b. Travel Oriented Products c. Tourism Oriented Perishable d. Tourism Oral Products 7. ROP stands for a. Residents Oriented Products b. Resources Oriented Products c. Residents Oral Products d. Residents Oriented Places Answer 1.d 2.a 3.d 4.c 5.d. 6.a 7.a 4.12 REFERENCES 93 Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. CU IDOL SELF LEARNING MATERIAL (SLM)
• 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 . 94 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 5: MOTIVATION FOR TRAVEL 95 Structure 5.0 Learning Objectives 5.1 Introduction 5.2 Motivation for Travel 5.3 Internal factors of Motivation 5.4 External factors of Motivation 5.5 Factors that Motivate consumer attract towards Tourism 5.6 Consumer Motivators 5.7. Inter-Personal Motivation 5.8 Status, Prestige & Progress 5.9 Crompton has identified Seven Socio-Cultural motives 5.10 Socio-economic & Socio demographic factors 5.10.1 Income 5.10.2 Age 5.10.3 Gender 5.10.4 Employment Status 5.10.5 Household consumption and housing type 5.10.6 Universal Accessibility 5.10.7 Neglected Influence of city specific factors such as topography 5.11 Summary 5.12 Keywords 5.13 Learning activity 5.14 Unit End Questions 5.15 References 5.0 LEARNING OBJECTIVES After Studying this unit, the Student will be able to • Define about motivation in travel. • Analyse the factors that motivate consumers towards travel • Identify Crompton’s seven socio-cultural motives CU IDOL SELF LEARNING MATERIAL (SLM)
• Classify the internal and external factors. 5.1 INTRODUCTION Tourist motives are factors that influence people's desire to travel. They want to feel fulfilled on a personal level (Coltman, 1989). Crompton (cited in Van Harssel, 1994) discovered that the majority of respondents thought of travel as a break from routine. However, it did not imply a change in their way of life; instead, people continued to do the same things in a different environment and physical background. He also mentioned that travel can provide opportunities for self-discovery, enthusiasm, and social interaction. People fly around the world for these reasons. Tourists would not understand anything from their daily lives, television, or books. Since their impressions would be unedited by someone else, it is preferable for them to have them on their own. After that, travel can make a significant difference in schedules, and it can provide tourists with thrilling, unusual, or weird experiences. Furthermore, the high-tech environment encourages people to interact with one another. People will go to the cinema, shopping malls, or concerts with their friends and colleagues, for example. Sex, age, social status, retirement, unemployment, social relationships, personalities, and socialisation can all influence tourism decision-making (Argyle, 1996). Company tourism, health tourism, cultural tourism, sport tourism, and recreational tourism are among the travel purposes identified by Wahab (1975, cited in Burns, 1999). It's easy to understand why people fly in the first place. Freedom and entertainment, which can be described as pleasure travel, are the two main reasons for travelling (Argyle, 1996). Tourists hope and assume that taking a holiday will fulfil some or all of their needs and desires (Mill and Morrison, 2002). Some forms of motivation, according to Ryan (1991, cited in Burns, 1999), are determinants of people who fly. Escape, relaxation, strengthening family bonds, wish and self-fulfillment, reputation, shopping, social contact, and sexual opportunity are all examples of tourist motives. Other factors also influence tourists' decision to fly. For example, television can entice viewers to visit new places and learn about new cultures (Van Harssel, 1994). Because of their interest, tourists hope to learn about different cultures and meet new people all over the world. It is the driving force behind all travellers (Hudman and Hawkins, 1989). Credit cards are becoming more widely accepted around the world, making it easier for visitors to travel without or with a small amount of cash. Generally, they use credit cards to pay for their lodging and leisure. Furthermore, being well-educated will encourage and motivate people to 96 CU IDOL SELF LEARNING MATERIAL (SLM)
take vacations because education piques people's interest. They also intend to broaden and enrich their knowledge (Van Harssel, 1994). 5.2 MOTIVATION FOR TRAVEL Various attempts to study the travel industry have been made since the advent of mass tourism, especially after World War I. Travel motives were divided into four groups by Sir Mc Inthash. The realm of human psychology is where the tourists' motivation comes from. It's the thing that determines whether or not you'll be satisfied. Motivational factors can be divided into two categories: internal and external. 5.3 INTERNAL FACTORS OF MOTIVATION Internal factors arouse, direct, and integrate a person’s behavior and influence his decisions for travelling. Intrinsic Motivation − Many people use tourism to meet psychological needs such as travel, recreational activities, discovering innovation and skills, self-expression and self-assurance, creativity, competitiveness, relaxation, and belongingness. The intrinsic motives are concerned with ensuring one's emotional capabilities. Tourists choose tourism for intangible benefits such as pleasure, assurance, and other emotional needs due to intrinsic motivation. The following are some of the other intrinsic motivation factors: Attitudes of Tourist − Knowledge of a person, place, or object + Positive or negative feelings about the same. Tourist’s Perception − By observing, listening, or getting knowledge, a tourist forms the perception about a place, person, or an object. Values or Beliefs − A tourist believes or values a specific mode of conduct which is acceptable personally or socially. Personality of the Tourist − The nature and physique of a tourist plays an important role towards motivation in tourism. 5.4 EXTERNAL FACTORS OF MOTIVATION There are external motives in tourism that can influence tourists and pull them towards a certain motivation and subsequent decision. 97 CU IDOL SELF LEARNING MATERIAL (SLM)
Extrinsic Motivation − Here, a tourist gets motivated by external factors such as money and the need to feel competent on the scale of expenditure and performance. Place of Origin − The tourist's grooming is determined by the country of origin. For example, tourism may rank last on the list of things Indian married women want to do, while tourism may rank much higher for American women. Family and Age − When it comes to structure and wealth, the family is crucial. Today, nuclear families with two incomes are more likely to choose long-distance, opulent tourism than joint families or families with a single earning member who want to visit domestic locations. Tourists have different preferences for destinations based on their age. Tourists between the ages of 5 and 45, for example, can enjoy visiting Disneyland in the United States more than senior citizens. Culture or Social Class − Tourists of different cultures prefer different places, events, and different types of tourism. In addition, if friends and families who have visited a place earlier spread the first hand information that motivates the others to visit the place too. Market − Ever-changing market variables alter tourism. Changes in value of currency, political situations, and economic well-being of the country influence the decisions of a tourist. Abraham Maslow, A Twentieth-Century American Psychologist And Scholar, Formulated A Theory On The Hierarchy Of Human Needs Which We Have Discussed Already In The Unit- 1. It Can Be Viewed As A Representation Of The Five Fundamental Motivational Needs That Any Human Being Possesses. These Requirements Are As Follows: • Physiological (Or Biological) • Security • Social • Self Esteem • Self-Actualization Consumer Behaviour Is A Hot Topic Of Research In The Tourism Industry. This Research Examines Why A Tourist Prefers A Specific Destination And The Factors That Affect His Travel Decision. Factors Affecting Tourist Behaviour 98 The Following Variables Have A Significant Impact On Tourist Behaviour: CU IDOL SELF LEARNING MATERIAL (SLM)
Geographical Factors: Some Physical Factors Such As Environmental And Climatic Conditions, The Facilities And Services Available At The Destination, And The Advertisement And Marketing Undertaken By Tourism Businesses All Influence The Tourists' Decision-Making. Social Factors: A Few Social Factors, Such As A Person's Social Network, Can Influence A Person's Decision To Visit Or Not Visit A Particular Location. Tourist Activity Varies Considerably Depending On The Country To Which They Belong. North Americans Pride Themselves In Adhering To Their Own Cultural Structure. Japanese And Korean Visitors Prefer Group Tours. Tourism Destination: It Plays A Significant Role In Influencing Tourist Behaviour. If A Destination Is Well-Equipped With Basic Facilities Such As Electricity, Water, Clean Surroundings, Adequate Connectivity, And Amenities, And Has Its Own Historical Significance, It Will Attract The Majority Of Visitors. Tourist Education : The More Educated A Tourist Is, The More Options, Excitement, And Awareness Of Places He Will Have. This Influences The Decision-Making Process When It Comes To Destination Selection. Intrinsic and Extrinsic Tourist Behavior The difference is as follows − Intrinsic Behavior Extrinsic Behavior They record higher level of satisfaction and They record comparatively lower level of enjoyment as they see an activity as a mean enjoyment as they go through the stress of of enjoyment itself. competition. Time passes faster for them. They are focused on passage of time. 99 CU IDOL SELF LEARNING MATERIAL (SLM)
They record a higher level of enjoyment. They tend to be tensed for performance and could be apprehensive, which hinders their enjoyment and relaxation. They look forward to the next similar They look forward to the same experience in experience in the moderate to long span of the short span of time. time. 5.5 FACTORS THAT MOTIVATE CONSUMER ATTRACT TOWARDS TOURISM 1. Physical Motivators : Which are related to physical relation, rest, specific medical treatment etc. All this activities are connected with individuals broadly health and wellbeing 2. Pleasure : It is probably the most powerful incentive, and it stems from an individual's deep desire and need for pure pleasure. He enjoys having fun, excitement, and a good time while travelling. Travel agents and tour operators are taking advantage of this. 3. Relaxation Rest and Reservation : The modern early life has made it much more important for people to get away from all of this busy environment and relax in order to keep their bodies and minds safe as a result of industrialization and urbanisation. Various topics, such as relaxation and rest, as well as changing environments and visiting tourist attractions, may be involved. 4. Health : People's desire to see good health led to the establishment of the spa department during the Roman Empire. Sanatarias arose from people's understanding of the benefits of good health in Switzerland and Russia. Many visitors come to this location for medical care and rehabilitation. 5. Participation in Sports : There has been increasing participation in a variety of sporting activities such as skiing, boating, trucking etc. 100 CU IDOL SELF LEARNING MATERIAL (SLM)
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