Tourism Marketing Fall 201 - PowerPoint Presentation

1. Tourism MarketingFall 2017Bertan Kaynatma

2. Manna restaurant http://www.mannasbounty.com/

3. Core Concept of MarketingProcess by which companies create value for customers and society, resulting in strong customer relationships that capture value from customers in return

4. Reap benefits from MarketsExchanges & RelationshipsUnderstand Needs, Wants & DemandsDevelop Marketing OfferingsCreate Value & Satisfaction

5. Marketing Environment Consists of outside forces and actors that affect a company’s ability to build and maintain successful relationships with its target customers

6. MicroenvironmentFactors close to the company that affect its ability to serve its customers, the company itself, marketing channel firms, customer markets, and a broad range of publicsSuppliersCompetitorsThe CompanyCustomersManagementOrientationsPublicsIntermediaries

7. CompanyCompetitorsSuppliersMarketing Intermediaries CustomersPublics

8. MicroenvironmentCompanyMarketers must work closely with top management and other departmentsE.g.: finance dept finds the money to conduct a marketing planE.g.: accounting measures how effective marketing dept is, and whether it is achieving it’s goalsMarketing decisions made within strategy set by top managementCourtyard Marriott

9. MicroenvironmentExisting CompetitionPart of micro and macro-envirnonmentMust adapt to customers, as well as competitionGoal is to create strategic advantage and superior positioning relative to othersStrategy is not “one size fits all”Text eg. Small company vs large company

10. MicroenvironmentCompetitionShare ofMarketShare ofMindShare ofHeart

11. MicroenvironmentCompetitionCompetitor’s share of the target marketShare ofMarket

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15. MicroenvironmentCompetitionMost immediate association between company and industry% of customers who think of the company first when asked about the industryCoffee house or cafeCandy barBeer Airline HotelHamburgerShare ofMind

16. MicroenvironmentCompetitionThe percentage of customers who named the competitor in responding to the statement, “Name the company from whom you would prefer to buy the product.”Share ofHeart

17. Competition4 LevelsCompanies that offer similar services to the same customers at a similar priceCompanies that make the same product or class of productsCompanies that supply the same serviceCompanies that compete for the same consumer dollars

18. Product Form competition: Fast food hamburgersSubwayTaco BellKFCBurger KingProduct CategoryCompetition: Fast food restaurantsGeneral Competition: Prepared foodBudget Competition: Food and entertainmentFull-service restaurantsMarket deliFrozen mealGrocery StoreMovie Theater

19. MicroenvironmentSuppliersThe firms and individuals that provide the resources needed by the company to produce its goods and servicesGoal to choose them wisely, maintain good relationshipHotel? Restaurant? Destination?Restaurant dangersLate food deliveriesCost increasesSeafood example

20. MicroenvironmentSuppliersHotels outsourcing restaurants or F&B operationsBranded restaurant in hotel Celebrity chefChick-fil-A and THRIVE FarmersEmployee focusHigh-quality and uniqueCost-saving by shortening supply chain

21. MicroenvironmentMarketing IntermediariesHelp the company promote, sell, and distribute its goods to the final buyer

22. Expedia brands: http://www.expediainc.com/expedia-brands/ Priceline group: https://www.pricelinegroup.com/about/ Ctrip: http://english.ctrip.com/ Online Travel Agencies

23. MicroenvironmentMarketing IntermediariesThe internet effectDisintermediation the elimination of intermediariesInsertBrandName.comPrice transparency

24. MicroenvironmentMarketing IntermediariesMore of a partnership than ever beforeCoke and its marketing assistanceHelp me, help youCarnival

25. MicroenvironmentMarketing IntermediariesHelp formulate and implement mktg strategiesMarketing Services AgenciesFinancial IntermediariesIntermediariesHelp finance transactions and insure the risks associated with buying and selling of goods and services

26. MicroenvironmentCustomersConsumer marketsBusiness marketsResellersGovernmentsInternational

27. MicroenvironmentPublicsFinancial PublicsMedia PublicsGovernment PublicsCitizen-Action PublicsLocal PublicsGeneral PublicInternal Publics

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29. MacroEnvironmentConsists of forces that shape opportunities and pose threats to the companyPoliticalNaturalTechnologicalEconomicDemographicCulturalManagementOrientations

30. MacroenvironmentFuture CompetitorsBarriers to Entry and Exit

31. MacroenvironmentFuture CompetitorsBarriers to Entry and ExitImplications of high and low barriers? Hotel industry Restaurant industryEntry of competitors is UnpredictablePorter’s 5 Forces

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37. MacroenvironmentDemographicsHuman population defined in terms of size, density, location, age, gender, race, occupation…and it can go on and on

38. MacroenvironmentDemographicsHow can changing trends in demographics affect strategic planning in regards to opportunities and threats?Age structureFamily structureGeographic populations shiftsEducational characteristicsPopulation diversity

39. MacroenvironmentDemographicsBaby BoomersGeneration XMillennialsBorn1946 – 19641965 – 19761977 – 2000Number78 million49 million83 millionCurrent Age53 – 7141 – 5217 - 40

40. MacroenvironmentDemographicsBaby BoomersGeneration XMillennialsMost money to spendOlder but feel youngLike traveling frequently, restaurantsExotic trips, adventureDo something before it is too lateEnvironmental concernsSocial issuesEconomically cautiousResearch for quality and unique experienceFamilies Spend moreMost difficult to reachMost potentialSaturated with media messagesUniversity continuing educational toursCruises for the valueUpscale biking toursAndaz by Hyatt incorporates unpretentious luxury, focusing on unique designs and local flavors and experienceshttps://andaz.hyatt.com/en/andaz.html Marriott MoxycitizenMhttp://moxy-hotels.marriott.com/en

41. MacroenvironmentDemographicsChina’s “little emperors”Starbucks and ChinaUS: 80% of business is takeoutChina: 90% is on-site

42. MacroenvironmentEconomicFactors that affect consumer purchasing power and spending patternsPer Capita Disposable Income

43. MacroenvironmentEconomicSuper rich: top 0.5% of population with 39% of wealthLondonFour Seasons: 4 week around world $135,000https://www.fourseasons.com/privatejet/ Cunard 120 nights on Queen Maryv2: $234,000http://www.cunard.co.uk/cruise-search/book-a-cruise/results/?tids=WORL&d=&dr=7&pg=2&rt=5&sort=

44. MacroenvironmentEconomicCurrency fluctuationsExchange rateshttp://www.xe.com/currencycharts/?from=TRY&to=EUR&view=5Y

45. MacroenvironmentNaturalTrends to be aware ofRaw materials shortages-Sao Paulo https://www.youtube.com/watch?v=1xpbN-cmet0http://edition.cnn.com/videos/world/2015/02/25/wbt-sao-paulo-brazil-water-shortage.cnnPollutionGlobal warming extreme example

46. Gunabara Bay, Rio de Janeiro, Brazil2016 Olympics

47. Gunabara Bay, Rio de Janeiro, Brazil2016 Olympics

48. MacroenvironmentNaturalRaw materials shortagesPollutionIncreased government intervention

49. Government Intervention in Environmental issues Sulfur EmissionsWorldwide allowance: 3.5%New Regulation: 1.0%Newest Regulation: 0.1%

50. Result?Costs: low-sulfur fuel adds 70-100% $180 million on new scrubber technology42 / 101 ships$400 million on 70 / 101 shipsChange routes of shipsEliminate Baltimore and Norfolk homeportsJobsNo ships flagged / registered in the USA

51. MacroenvironmentTechnologicalGuest experience more efficientSelf serviceHospitality operations more efficientData analysis toolsTheft prevention in hotelsMarketing reach extended globallyVideoconferencingSmart phonesSocial mediaInternet tracking

52. MacroenvironmentTechnologicalHen-na hotel and robot front desk: https://www.youtube.com/watch?v=oCDY3kNz5hw BBC: https://www.youtube.com/watch?v=FogiE8_3fPE Smart cruise shipsRFID chips in laundryInteractive Customer ExperienceSmart phonesPanera tablet orderingMcDonald’s: https://www.youtube.com/watch?v=DbWfmWCkauQ

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55. MacroenvironmentPoliticalLaws, government agencies, and pressure groups that influence and limit the activities of various organizations and individuals in society

56. MacroenvironmentPolitical TrendsMore legislation and regulationFood safety PermitsTaxesEmploymentHealth and safety building codesTrade practices and competition

57. MacroenvironmentPolitical TrendsAntitrustAlcohol Minimum wagesInternational boycotts

58. MacroenvironmentGoals of RegulationFed Trade CommissionPrevent unfair practicesDeceptive pricing / advertisingAntitrust and MonopoliesProtects companies from each other

59. MacroenvironmentGoals of RegulationDeceptive advertising, pricing, packagingUnsafe productsProtect consumers from businesses

60. MacroenvironmentGoals of RegulationPollution, overcrowding, congestion, littering, Protect Society’s interests

61. MacroenvironmentPolitical TrendsEnforcement: Federal Trade Commission, the Food and Drug Administration, the Interstate Commerce Commission, the Federal Communications Commission, the Federal Power Commission, the Civil Aeronautics Board, the Consumer Products Safety Commission, the Environmental Protection Agency, and the Office of Consumer AffairsThese agencies can have a major impact on a company’s marketing performanceSocial responsibilityMADD resulted in bars and restaurants being more accountable for alcohol abusePETA and the treatment of animalsIndustry Support: countries as a brand

62. MacroenvironmentCulturalInstitutions and other forces that affect society’s basic values, perceptions, preferences, and behaviorsCore beliefsReally can’t be changedPassed on from parents to children, then reinforced by school, government, business, etc.Secondary beliefsOpen to changeText example: Marriage Others LGBT, Drinking, Women’s appearance, Religion

63. MacroenvironmentCultural cocnernsIsraeli hotels are kosherEast Asian countries and Feng shuiVarying degrees of ethics, social responsibilityDrunk tourists in Muslim countries

64. Responding to the Marketing EnvironmentOption 1View it as “uncontrollable”Adapt to marketDon’t try to change anythingIdentify the given opportunities and threats

65. Responding to the Marketing EnvironmentOption 2Environmental management perspectiveTake action to change environment LobbyForm trade organizations and cozy up to lawmakersPersuasive advertisingMedia events

66. Extra credit homeworkWhat environmental trends will affect the success of a first class hotel chain, such as Hyatt or Sofitel, over the next 10 years? If you were corporate director of marketing for this type of hotel, what plans would you make to deal with these trends?Go to the websites of travel or hospitality companies and find examples of how they are taking measures to sustain and improve the natural environment. Which companies that you examined do you think have the best programs? Explain your answer.

67. SourcesKotler, Bowen, and Makens. Marketing for Hospitality and Tourism. 6e. Pearson Higher Education. 2014.Datamonitor. Industry Profile – Global Hotels, Resorts, and Cruise Lines. Datamonitor.com. Mar 2010. Marketline. Global Hotels, Resorts, and Cruise Lines. Marketline.com. Nov 2014,Hugo, Martin. Carnival to spend 400 million to cut cruise ship pollution. LA Times. May 22, 2014. Web. Mar 2014. http://www.latimes.com/business/la-fi-carnival-400-million-cruise-ship-pollution-20140522-story.html