CRT LEARNING MODULE
Course Code THM07
Course Title Tourism and Hospitality Marketing
Units 3
Module Title Tourism Marketing
College for Research & Technology of Cabanatuan
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 1
Jennifer J. Miranda CRT
HOW TO USE THIS DIGITIZED LEARNING MODULE
Welcome to the module in Tourism Marketing. This module contains training
materials and activities for you to complete this module. This module also covers an
explicit overview of tourism and hospitality industry and the relationship of tourism and
hospitality.
You are required to go through a series of learning activities in order to complete
each learning outcome of the module. Each of the learning outcomes is provided with
Modules. Follow these activities on your own and answer the self-check at the end of
each learning outcome. You may remove a blank answer sheet at the end of each
module (or get the answer sheets from the online facilitator) to write the answers for
each self-check. If you have questions, don’t hesitate to ask your facilitator for
assistance.
This module was prepared to help you gain fundamentals and basic knowledge
about Tourism and Hospitality Marketing. This will be the source of Information for you
to acquire knowledge and skill in this particular trade independently and at your own
pace, with minimum supervision of help from your instructor.
Talk to your online facilitator and agree on how you will both organize the
Training of this unit. Read each through the module carefully. It is divided into
sections, which cover all the skills and knowledge you need to successfully
complete this module.
Work through all the information and complete the activities in each section.
Read Modules and complete self-check. Suggested references are included to
supplement the materials provided in this module.
Most probably your facilitator will be your supervisor or manager. Your online
facilitator will support and correct you.
Your online facilitator will tell you about the important things you need consider
when you are completing activities and it is important that you listen and take
notes.
You will be given plenty of opportunity to ask questions and practice on the job.
Make sure you practice new skills during regular work shifts. This way you will
improve both your speed and memory and also your confidence.
Talk to more experienced workmates and ask for their guidance.
Kindly the self-check questions at the LMS (EDMODO) to test your own progress.
When you are ready, ask your online facilitator to watch you online via Zoom or
Google Meet to perform the activities outlined in this module.
Ask your online facilitator work through the activities: ask for written feedback
on your progress. Your online facilitator keeps feedback/pre-assessment reports
for this reason. When you have successfully completed each element, ask the
facilitator to mark on the reports that you are ready for assessment.
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 2
Jennifer J. Miranda CRT
When you have completed this module, and feel confident that you have
sufficient practice, your online facilitator will arrange an appointment with
registered assessor’s to assess you. The results of your assessment will be
recorded in your competency Achievement Record.
MODULE CONTENT
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 3
Jennifer J. Miranda CRT
MODULE TITLE: Tourism Marketing
MODULE DESCRIPTOR: This module covers the unique characteristics of
the tourism industry unlike consumer products which can be availed off the
shelf, tourism products have unique characteristics that make their
marketing and promotions quite challenging.
NUMBER OF HOURS: 6 hours (2 weeks)
LEARNING OUTCOMES:
At the end of the module, you MUST be able to:
1. Define tourism marketing and its functions.
2. Differentiate tourism product from consumer products.
3. Explain marketing as a management process.
4. Discuss the evolution of marketing and the integrated marketing approach.
Contents:
1. Introduction
2. Unique Characteristics of the Tourism Industry
3. Tourism Marketing Defined
4. Marketing as Management Process
5. Core Marketing Functions
6. The Marketing Mix
7. Integrated Marketing Communications Approach
Conditions:
The students must be provided with the following:
1. Hard copy or soft copy of the course syllabus
2. MS Word
3. Pen
4. Paper
Assessment Method:
1. Submission of Research paper.
2. Written examination.
3. Quizzes using Google forms.
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 4
Jennifer J. Miranda CRT
MODULE 1
Tourism Marketing
Learning Objective: After reading this MODULE, you should be able to:
1. Define tourism marketing and its functions.
2. Differentiate tourism product from consumer products.
3. Explain marketing as a management process.
4. Discuss the evolution of marketing and the integrated marketing approach.
Introduction
Marketing has become a buzzword in the world of business when the
competition to gain market share began among businesses. Marketing has evolved from
simple trade to a production orientation, and to a sales orientation. When businesses
realized that production was increasing, they began competing for recognition within
the market. The customer has become king, and building relationships with them has
been at the heart of any successful business enterprise. With the rise of relationship
marketing and social media marketing, the rules of the game have changed.
Tourism is one of the leading industries of the future. Next to information
technology and telecommunications, tourism contributes largely in terms of job
generation and strengthening of economies. Much attention has been given to how
tourism can continually grow. Just like any other business, marketing plays an integral
role in its continuing growth.
Tourism has become one of the world's largest and fastest growing industries.
Many new destinations are emerging apart from traditional favorites-Europe and North
America. These new destinations are hopeful of the economic gains that tourism can
bring, which include increase in trade, infrastructure, and job generation. In figures,
tourism contributes 9% to an economy's Gross Domestic Product (GDP), provides 1 out
of 11 direct jobs and exports amounting to $1.3 trillion. Despite the few setbacks,
tourism has displayed uninterrupted growth from 25 million international tourists in
1950, to 1.035 billion in 2013. It has been estimated that there are 5-6 billion domestic
tourists who travel within their country of residence. It is projected that there will be a
total of 1.8 billion visitors traveling internationally by 2030 (UNWTO 2013). The success
of any business in the travel and hospitality industry is highly dependent on its
marketing efforts.
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Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 5
Jennifer J. Miranda CRT
In the Philippines, tourism has slowed down in the last quarter of 2013 largely in
part due to the recent calamities that ravaged the country. However, it is slowly getting
back on track, and is forecasted to increase in the coming years. In 2012, Philippine
tourism has directly contributed 2% to the country GDP 2155 billion. This has locally
created a lot of jobs as well 762,000 direct jobs of soul employment and 22 million
indirect jobs (7.7% of total employment). Visitors exports contributed 5.8% to total
exports and generated P183.8 billion It is forecasted to grow by 6.4 in 2013 and 87%
from 2013-2023, By 2016, the Philippines aims to have 10 million foreign tourists,
create 7 million direct jobs and 12% of the GDP Tourism potential is looking good as
can be seen by the investments in the industry which amounted to P642 billion,
contributing 31% total investment (WTTC 3013).
Marketing for tourism covers several levels, from the tourism destination as the
product itself, down to the specific tourism products and services that a motorist should
avail to complete the tourist experience. These products include transportation
(airline, cruise ship, bus, etc) accommodation (hotels, and, apartelles, bed and
breakfast food and beverage (restaurants, catering, bars), attractions amusement
parks, museums, zoos, marine sanctuaries, enc), amenities, and souvenir shops, among
others.
What is actually selling the Tourism is not a single product. It is a combination of
products and services which results in a holistic experience for the traveler.
UNIQUE CHARACTERISTICS OF THE TOURISM
INDUSTRY
Unlike consumer products which can be availed off the shelf, tourism products
have unique characteristics that make their marketing and promotions quite
challenging. The tourism product is intangible, inseparable, variable, perishable,
seasonal, and substitutable. Additionally tourism is a high involvement product.
Tourism products cannot be touched, smelled, tasted, felt nor heard prior to
purchase. They cannot be subjected to prior scrutiny One cannot examine not test them
before purchase unlike consumer products which can be sampled.
A destination that promises fresh air from its beaches or a scenic view of the
mountains cannot send a sample. Consumers rely on photographs of the place,
comments or reviews from those who have visited the place or availed of the services,
and promises from the company itself.
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Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 6
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This photograph of Boracay's shoreline was taken on board a banca. The beauty
of this scene can only be appreciated when one is actually in the destination. Looking at
the photograph will never equate to the experience of having one's hair blown by the
wind, feeling the sun's penetrating heat while basking on it, and hearing the roar of the
motorboat. This is why the word of mouth is a highly effective means of promoting
tourist destinations.
Inseparable
The tourism product cannot be separated from the consumer. When tourists
avail of products and services, they have to personally go to where the products are
Since what is being sold is the experience, the product and the consumer cannot be in
two different places they have to be in the same place.
A tourist who avails of airline tickets need to be physically present inside the
airplane to avail of the product. Products cannot be delivered to where the consumer is.
Most of the time it is the consumer who goes to where the product is to avail of the
product
Activities within the destination can only be enjoyed when one is a part of it.
Spectator’s have a different experience compared to actual participants in the tourist
activity
Variable
The tourism experience is likely to be different depending on when the product is
availed, who one is with, and how the service providers deliver the service at the time
of consumption. One may have gone to the same restaurant several times and have a
different dining experience each time. While the first time at the restaurant may have
been quiet, the second time, one finds it to be noisy. Simply because there may have
been few customers the first time and a rowdy group of teenagers the second time.
Hence, the variability of the tourism product.
This is the primary reason why standardization of operations is crucial in the
tourism industry Chain and franchise establishments make it a point to standardize the
way they provide products and services to address the variability component of the
industry.
Perishable
The tourism product is one of the most highly perishable of products.
Perishability, as used in this context, refers to not being able to forward inventory to
the next day. It does not refer to food being spoiled and thrown away. Products
become perishable when it can no longer be consumed today even when no one
consumed it the day before. Unlike consumer products such as a pen, if the pen was
not sold today, it can still be stored in a warehouse to be available for sale the next
day,
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Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 7
Jennifer J. Miranda CRT
Airline and restaurant seats, hotel rooms, and function rooms are perishable
products. A seat or a room that is not sold today cannot be sold some other day. For
instance, a hotel with 100 rooms that was half full yesterday will only again have 100
rooms today. The 50 rooms that were unoccupied the day before cannot be sold the
following day, the hotel fails to earn from the unsold rooms. A hotel will always have
the same number of rooms for sale at any given day
Revenue management addresses the perishability factor of the tourism product.
With the proper tools for forecasting price and occupancy, yield can be maximized.
Seasonal
Seasonality does not only refer to seasons of the year or the weather conditions.
It also refers to behavioral patterns of the travel market. The seasonality of the tourism
product hinders it from maximizing its profits all year round. Hence, intensified
marketing during the Jean season will help increase demand for the product. This is
also the reason most tourism products, such as airlines and resorts, have different rates
throughout the year. Such differences in rates help manage capacity and yield to
maximize profitability
Substitutable
Competition in the tourism industry is intensifying With new destinations
emerging and competing in the global marketplace, one destination can easily be
substituted for another destination. When a new restaurant opens, the old favorites are
relegated to second choice. It is quite a challenge to establish loyalty among clients
since there is a wide range of product offerings to choose from. With the many choices
available, the tourism product is highly sub suitable. However, identifying one's
competitive advantage and a unique selling proposition may help make a tourism
product less substitutable
Marketing necessarily plays an important role in the purchase of tourism
products Be Cause of the aforementioned characteristics of the tourism product, a
marketing strategy needs to be developed to make the product competitive in a haghly
commercialized market place.
Tourism as a High Involvement Product
Decision making in the purchase of tourism products is considered to be of high
involvement. Tourism products of high involvement mean that there is a greater
degree of thought or study involved prior to the purchase. Expensive, complex, and
unrepeatable are characteristics of high involvement products
Purchase of expensive products is likely to go through a long and detailed
process of canvassing and comparing of brands, suppliers, and product features. If the
product commands a high price worth more than one's monthly salary, one would
surely make detailed comparisons before finalizing any purchase. Travel products, home
appliances, and real estate properties fall under this attribute
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 8
Jennifer J. Miranda CRT
Consumers may find complex products difficult to purchase. The difficulty may
arise from the need to understand the features or details of the product. Travel
packages can be considered as complex mainly due to the variety of products and
services available, and the jargons (technical words) used in explaining some of these
products. The same holds true for highly technical products such as electronic gadgets
and computers
The unrepeatable nature of travel makes it a "once-in-a-lifetime" purchase.
With the novelty-seeking seeking behavior of most tourists and the high cost of travel,
travel purchases may not be repeated or may be infrequent. Hence, more careful
scrutiny is exercised prior to purchase. Aside from travel products, special events such
as weddings and debuts fall under this characteristic.
Unlike low involvement products which are inexpensive, simple, and familiar,
more detailed scrutiny of alternatives, longer time for deliberation, and high
expectations for satisfaction happen when consumers avail of tourism products and
services that are of high involvement.
Marketing plays a vital role in the purchase of high involvement products. It
leads consumers to think about the product and its features as well as to assure them
of its quality. It helps clarify doubts and lessen risks involved in the purchase of the
products. Since tourism products and services are high involvement products,
customers also demand a high level of satisfaction.
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 9
Jennifer J. Miranda CRT
TOURISM MARKETING DEFINED
In the past, marketing was associated with only advertising and selling However,
these two activities are now part of a more complex set of strategic activities that
comprise marketing. There has been a misconception that marketing is a task that is
performed solely by ac- count managers and marketing officers. A highly successful
establishment makes marketing a concern not only of guest contact positions but of
each and every employee of the establishment. Customer satisfaction is at the center of
marketing. It is easy to persuade a customer to make the initial purchase, but making
the customer return for more is dependent on his satisfaction from his initial
experience. Hence, marketing becomes not just the concern of the marketing officer
but a concern of everyone in the company to ensure that the customer's needs are met,
he leaves the establishment happy, satisfied, and willing to come back, better yet, that
he will be willing to tell others how extremely satisfied he is with the quality of the
product or service the establishment provided.
Philip Kotler (2002) defines marketing as a social process by which individuals
and groups obtain what they need and want through creating and exchanging products
and value with others. When a product is a need (necessity), it is easy to sell the
product since customers do not have any choice but to buy it. Marketing a want,
however, is the challenging part. A want is something one can live without. Unlike a
need, which is a necessity, a want is a luxury wherein its purchase can be denied,
deferred, or delayed. Tourism products fall into the want category, therefore, making it
more challenging to convince consumers to make a purchase especially during an
economic downturn or recession.
Kotler, Bowens, and Makens (2010) define marketing as the art and science of
finding, retaining, and growing profitable customers. This definition paves the way for
concepts such as customer-centered marketing and relationship marketing which have
become emerging trends in the study of marketing Finding, retaining, and growing
profitable customers need strategic planning to ensure customer satisfaction and
building of customer loyalty. Repeat visits and referrals are the ultimate goals of
ensuring that customers become extremely satisfied with one's products and services.
Gone are the days when establishments are happy with a one-time sale. Nowadays,
establishments need to establish loyal customers who will speak highly of their product
or service. Research shows that it is more expensive to create new customers than it is
to retain old ones. Finally, growing the business with regular customers will contribute
greatly to one's bottom line. Building strong relationships with one's regular customers
can be done through consistently superior customer service.
The American Marketing Association (2013) approved a new definition:
marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large. Amidst all these definitions of marketing, notice how this term's
definition has evolved over time, from merely meeting a customer's need or want to
customer retention. With the tourism product's unique qualities of being substitutable
and of high involvement, the market ing of tourism products is becoming extremely
challenging There is a need to see marketing as a management process to achieve
maximum results.
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 10
Jennifer J. Miranda CRT
MARKETING AS A MANAGEMENT PROCESS
Since the provision and consumption of the tourism products and services usually
occur simultaneously, the marketing orientation should involve the entire organization.
The market ing management process involves the following key processes (Lumsdon
1997):
1. Marketing Information System. With the advent of technology, the provision
for a marketing information system enables the organization to compile an
updated set of information about its customers, competitors, and the
organization's capability and effectiveness.
2. Marketing Planning. This involves an analysis of the marketing environment in
relation to the potentials of one's business. It also involves the setting up of
objectives and an evaluation of the milestones that the company has
reached. The creation of marketing strategies will help increase the
business by obtaining the best fit between the company's resources and its
target market position.
3. Planning Tactical Campaigns. This step ensures that practical and realistic
tactical campaigns are conducted in support of the comprehensive
marketing strategy.
4. Marketing Operations. This process involves the challenging part of
implementing the planned strategic and tactical campaigns by
coordinating with all stakeholders, fine tuning the marketing mix as they unfold,
and ensuring that activities are, conducted as planned.
5. Monitoring and Control. This involves the ongoing process of evaluating sales
data and financial performance versus marketing activities conducted. It also
includes the handling of customer feedback and complaints (if any) and
coordination with what the staff has to say about the marketing campaigns.
Finally, it includes being aware of what the competitors are doing.
CORE MARKETING FUNCTIONS
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 11
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Marketing's key functions include marketing information management, financing
pricing, promotion, product/service management, distribution, and selling, briefly
discussed as follows:
1. Marketing Information Management - entails gathering information
about customers to better serve their needs and improve decision making.
2. Financing- involves planning to ensure that resources are available to
maintain and improve the business.
3. Pricing - ensures that the value and cost of goods and services offered to
customers will be at the level that customers are willing to pay.
4. Promotion-prepares the various promotional strategies that will enable
the products to be introduced and sold to the customers.
5. Product/Service Management - involves designing, developing,
maintaining improving, and acquiring products and services to meet the
needs of the customers Distribution -- involves bringing the products and
services to the customers in the best way possible.
6. Selling - is the ultimate measure of marketing success. Strategies on
following up the sale, closing the sale, and making a repeat sale are
crucial tasks of marketing
THE MARKETING MIX
Kotler (2010) says that marketing facilitates the exchange process and the
development of relationships by carefully examining the needs and wants of consumers,
developing a product or service that satisfies these needs, offering it at a certain
price, making it available through a particular place or channel of distribution, and
developing a program of promotion to create awareness and interest.
The product or service is what the company is offering to satisfy a consumer's
want or need. The price is the value that the seller puts on the product or service. This
includes the cost of the product and the profit the seller wishes to make. The price is
also the amount a customer has to pay in exchange of the product or service. The
place is the means by which the product or service reaches the consumer. Promotion
is the strategic plan by which customers are informed about the product or service and
its value. Promotions also encourage customers to purchase the product or service. A
well-planned and executed marketing mix will enable marketers to move their products
or services successfully to the consumers.
Being informed of the seven core functions of marketing and the marketing mix
will help in understanding the role of marketing in a tourism organization. Just as the
definition of tourism marketing has evolved through the years, its strategies, tools, and
implementation have also differed through time. The development of new technology,
among others, has made marketing a dynamic task leading to the birth of the
integrated marketing communications approach.
Date Developed:
Document No. 001-2020
Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 12
Jennifer J. Miranda CRT
INTEGRATED MARKETING COMMUNICATIONS
APPROACH
Promoting and selling products have become heavily reliant on traditional
advertising techniques which have become more expensive but less effective. The
Integrated Marketing Communications (IMC) approach was born out of a need to
enhance the demands of bust nesses to promote their products. What is IMC then it is
the process of using all forms of promotion to achieve maximum communications
impact while maintaining a consistent image for the products or services.
Let us walk through the factors that contribute to the growth of IMC in order to
have an appreciation of the shift from traditional marketing methods to the growing
paradigm of relationship marketing.
Factors that Contributed to the Growth of IMC
With the growth of technology, consumers have become less responsive to
traditional advertising. The remote control allows viewers to change channels while
commercials are going on. TV and radio has become more fragmented people have
shifted to using the computer and the Internet more often than traditional mass media
channel. The Internet has also allowed businesses to communicate in more creative
ways to its target customers Interaction is enhanced with the use of smart phones and
wifi networks, where information is now available literally at our fingertips.
There is a great challenge for advertising agencies and marketing departments
to maximize resources and budget for better efficiency and effectively. As such,
businesses have shifted compensation of advertising agencies from fixed compensation
to incentive-based compensation. This poses a challenge for advertising agencies
to come up with an integrated approach in mixing the different promotional tools to
yield maximum results because the more effective their marketing strategy is, the
higher they will get paid. Hence, the shift to incentive-based compensation is a win win
strategy for both the business owner and the advertising agency.
The rise of big retailers such as SM Malls, Puregold, Robinson's Malls, etc. has
also altered the way marketing and promotions are implemented. Instead of the usual
marketing strategy for the direct consumers, the consolidation of the retail
industry has affected the way people have consumed products. Big retailers can
actually dictate the brands that will make it to their shelves. Thus, manufacturers are at
the mercy of these big retailers. Retailers can dictate the discount scheme and
merchandising support they would need from manufacturers. Otherwise, their products
will not make it to the shelves of the grocery store.
The growth and development of database marketing has also enhanced the
use of the IMC approach. With enhanced computer programs adopted by many tourist
establishments such as hotels, airlines, and restaurants, database management is
facilitated. These databases would be most helpful in carrying out direct marketing
campaigns such as telemarketing and loyalty programs. The behavior and needs of
consumers are tracked and customers are served more efficiently through the
management of a sound and updated database.
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Tourism And Hospitality February 7, 2021
Marketing Module 1: Date Revised: Issued by:
Tourism Marketing Developed by: Page 13
Jennifer J. Miranda CRT
Due to the advent of technological advancements, the IMC approach has become
a popular option in maximizing resources and optimizing results.
Date Developed:
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Marketing Module 1: Date Revised: Issued by:
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