Unit 1. Strategic marketing of tourism companies and products
1.1. Promotion in the marketing mix of a tourism company
Tourism marketing is the systematic and coordinated adaptation of both public and private tourism enterprises, at the local, regional and international levels, to fully satisfy the needs of specific consumer groups and thereby obtain an appropriate profit.
becomes
The main instrument available to stimulate the operation of the tourism system and thus to exchange tourist flows to receptive regions, so that their effectiveness, to a large extent, the success of tourism development plans undertaken by countries and destinations.
Commercial strategies must include certain instruments that communicate and remind the potential buyer of the existence of the product and its benefits compared to other alternative offers, and that stimulate and persuade him to perceive certain attributes, benefits and differences.
These communication and persuasion actions must be carried out in one way and not in another; that is, in such a way as to contribute efficiently to the marketing mix of the strategy. These instruments are grouped in the marketing variable called PROMOTION. Promotion thus encompasses the instruments and strategies necessary to promote the company's offer and the company itself to the target market, in order to stimulate the acceptance of the offer.
Instruments and decisions that have to do with massive and impersonal promotion, i.e. advertising: where to advertise, how many times, etc.
Instruments and decisions related to the direct and personal promotion carried out, if any, by the company's salespeople. E.g. How to distribute them throughout the geographical territory.
All other instruments and decisions included in the marketing mix that serve to directly promote the interest and, therefore, the purchase of the product, i.e. its sales. Distribution of free samples, e.g., or conducting a sweepstakes.
1.2. The marketing mix in the strategic tourism plan
The product, from a marketing point of view, is the first and most important marketing mix variable.
If a company does not have the right product/service to stimulate demand, it cannot effectively carry out any commercial action. It can be said that the product is the starting point of the marketing strategy.
From a commercial point of view, product designates any good or service, or combination of both, that possesses a set of physical and psychological attributes that the consumer considers a good to have in order to satisfy his wants or needs.
Price is the amount of money that the buyer pays in exchange for a product which he expects to provide him with advantages and satisfactions that compensate for the sacrifice represented by the expenditure made.
its importance
It is an instrument with which it is possible to act, within limits, with speed and flexibility, more so than with other marketing instruments.
It has an important psychological impact on the consumer or user. It is used by the consumer to evaluate the quality of the product .
Distribution for some businesses such as restaurants, cafes, and travel agencies, the location or point of sale is the most important thing. Instead of talking about distribution, we talk about location.
For other businesses, localization is not enough and it is necessary to have a sales network operating far from the production site due to the distance between consumer and borrower, the desire to attract new customers, the need to generate advance sales, i.e. bookings.
The distribution function in tourism
If we understand that the physical distribution of products consists of bringing the product closer to the customer, when applying this concept to tourism, it refers to the approach and delivery of documentation (vouchers, tickets), which justifies that the tourist product has been acquired.
Communication is not enough to have a good product/service, and to market it through the most appropriate distribution channel, with a good price.
/and marketing it through the most appropriate distribution channel, with a good price. It is also necessary to communicate its existence.
The instruments to carry out this activity form what is called the communication mix:
Advertising: Non-personal, paid communication for the presentation and promotion of goods, services or ideas, carried out by an identified sponsor.
its objectives are:
Inform, persuade and keep the memory.
Sales promotion: Short-term incentives to encourage the purchase of a product or service.
Tools: Discounts, more content for the same price, direct or deferred gifts, sweepstakes, samples, tastings.
Tools: Mass media, circulars, letters.
1.3. Tourism promotion in the public and private sector. Differences and similarities.
Official or Public Initiative:
Through the programming of events, including a calendar, for holding congresses, conventions, fairs and festivals, round tables, rallies, forums and/or any type of activity that motivates or mobilizes people or groups of people to participate in the programmed activities. Professional associations, trade unions or any type of workers' association, religious groups, student associations, constitute important markets for the promotion of this type of activities, both nationally and internationally.
Promotion and publicity in this regard, as well as the cooperation of tourism companies, are actions of vital importance to ensure the success of this strategy.
Private Initiative:
Promotion of offers through discounts on fares and prices of other goods. Especially in hotels, transportation, restaurants and recreational sites during non-tourist seasons. The creation of festive and recreational environments, such as the promotion of contests, special prizes, contests, sports competitions for amateurs, and any other mechanism for entertainment and recreation, is recommended.
Mixed Initiative:
To ensure the success of the strategies outlined above, the joint participation of both the public sector (local, regional and national at all levels) and the private sector is necessary.
In both cases, the forms of promotion should take advantage of modern technology for advertising graphic design, cable and satellite television, magazines, magazines, newspapers and weeklies, both in circulation and internationally.
The use of posters and brochures is quite convenient, but there are limitations to their distribution and/or getting the information to potential clients. However, serious research should be undertaken to decide on the most suitable means of promotion.
Differences
Public companies belong to the public sector (central or local government), and private companies belong to private individuals and can sell their shares on the stock exchange.
Public companies sometimes sell part of their shares to private individuals, but they are considered public as long as 51% of the shares are held by the public sector.
The distinction between public and private companies is not absolute. On the one hand, there are mixed companies, whose capital stock is partly public and partly private. On the other hand, a private company may become a public company if the government decides to nationalize it. Similarly, a public company may be transferred to the private sector after a privatization process.
Similarities
Mixed Development: Joint participation of both sectors:
a. Formulation of integrated tourism development and marketing plans.
b. Establishment of tourist information agencies
c. Creation of tourism associations with the participation of both the public and private sectors, such as chambers, corporations and organizations of integral cooperation for tourism development and formulation of tourism operation policies at the regional, national and international levels.
1.4. The company's promotion department: transport, accommodation, intermediation and other supply sectors.
Transportation Companies
They are not the first to serve the traveler, but they are usually the first to start service production.
They facilitate the first essential attribute of the tourism product: the tourist's physical journey.
Transportation brings together: accommodation, attractions, travel operations (tourist office and boards), which makes each one to make the demand respond? Each of these sectors exerts its own influences individually: the destinations (e.g. at trade fairs), the product offer, transport.
Lodging companies
These companies offer a basic product, which is lodging or accommodation in a building.
The attribute "location of the establishment" is particularly relevant in the case of lodging (the category of a hotel varies, among other things, according to its location).
Intermediaries
Travel intermediaries par excellence are travel agencies.
There are companies whose main function is the intermediation between the client/tourist and the producers of the different services.
Two generic functions:
1. Basic distribution function: Acting as a common intermediary between the tourist and the producer of tourism services at some point in the distribution channel. This function is mainly manifested in the management of reservations and in the distribution or sale to other agencies or to tourists of tourism products produced by other tourism companies.
- Production function: to act as producer of a specific product called tourist package, for which it uses the services purchased from other tourist companies or travel agencies (accommodation, catering, transport, etc. .... - companies that supply travel agencies-).
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