JOHN B. LACSON FOUNDATION MARITIME UNIVERSITY MOLO, INC.

COLLEGE OF BUSINESS

LEARNING MODULE
THM – Tourism & Hospitality Marketing

Name : ____________________________ Year & Section: _____________________

Contact Number: ____________________ Email Address: _____________________
Instructor: ____________________________________________________________
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

COURSE TITLE: THM – TOURISM & HOSPITALITY MARKETING

COURSE OUTLINE:
MIDTERM
UNIT 3: TOURISM PROMOTIONS
Topic 1. Role of Promotions in Tourism Marketing
Topic 2. Uses, Advantages & Disadvantages of Advertising ,
Direct Marketing and Personal Selling
Topic 3. Public Relations and the Major PR activities
Topic 4. Sales Promotion
UNIT 2: THE MARKETING PLAN
Topic 1: Introduction
Topic 2: Parts of the Marketing Plan
Topic 3: Creating a Marketing Plan

COURSE INTENDED LEARNING OUTCOMES

At the end of the course, the students shall be able to:

1. identify the characteristics that affect the marketing of a hospitality or travel product;
2. define and describe the marketing strategies that are useful in hospitality and travel industries;
3. discuss how marketing managers go about developing profitable customer relationship; apply
the process involved in implementing a marketing program;
4. acquire the skills in promoting/ marketing the different tourism products;
5. learn and apply the marketing techniques and strategies in developing a marketing plan;
6. recognize the importance of customer-delivered value and customer satisfaction;
7. realize the significance of marketing in the business organization as well as in the industry; and
8. have an interest in formulating marketing strategies

COURSE DESCRIPTION:
This course will equip students with the necessary skills to develop actual
marketing campaigns for a business within the tourism and hospitality industry. Emphasis is
on the analysis of the market, its competition and its product; preparation of a financial
budget and the development of a short-term and long-range strategies to achieve desired
profit through effective advertising, sales and effective public relations plan.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

Objectives/Learning Outcomes
1. Explain the role of promotions in tourism
marketing;
2. Identify the uses, advantages, and
disadvantages of advertising, direct marketing
and personal selling; and
3. Describe public relations and the major PR
activities; and
4. Define sales promotions and factors that led
to its growth.

TOPIC 1: Role of Promotions in Tourism

Marketing
What is
Promotion? Defined as the coordination of all seller-initiated efforts to set
up channels of information and persuasion to sell goods and
services or promote an idea (Belch &Belch 2008)
All marketing communications techniques seek to inform,
create awareness, attempt to persuade, and reinforce buying
behavior of customers (Shoemaker et al. 2007)

ADVERTISING
Defined as any paid form of non personal In Hospitality industry, advertising is viewed as a way to
communication about an organization, create and maintain awareness of the company,
product, service, or idea by an identified property, or destination (Shoemaker et al. 2007).
sponsor (Belch & Belch 2008) A careful assessment of one’s resources and objectives
It is mass communications that is paid for needs to be done before deciding on using advertising
(Shoemaker et al. 2007) tool for promotions.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 1: Role of Promotions in Tourism Marketing
Objectives of ADVERTISING
An advertising objective is a specific communication task to be accomplished with a specific target
audience during a specific period of time (Kotler et al. 2010). Advertising can be classified based on its
objectives:
Informative advertising is used when introducing a new
product or to build up primary demand for the product.
Companies employ aggressive tools to ensure that a new
product creates excitement and demand within its target
market.

Persuasive advertising is used when competition is stiff. Companies rely

on persuasive advertising to be able to keep its market share

Reminder advertising is very important for products that have reached

the maturity stage. Products attempt to maintain market position even if
they are already top of mind.

DIRECT MARKETING

An interactive system of marketing that uses one Offers are sent to a customer database of people
or more advertising media to affect a measurable who are most able, willing, and ready to buy the
response product (Kotler et al. 2010)

History of Direct Marketing

 This approach began in the 1800s as a way of bringing products from the manufacturer to its end user –
the consumer.
 DM eliminates retailers and middleman such that it goes directly to consumers through mail catalogues
and product information
 Payments are made through postal money orders
 Manufacturer delivers the product to the customer

At present, DM has evolved into various forms and

means with the presence of faster means of
communication, technology & transportation.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 1: Role of Promotions in Tourism Marketing
PERSONAL SELLING
Sales Representative Personal Selling can be defined as the person-to-
person communication between a salesperson and a
Company’s prospective customer in which the needs are met in
link to exchange of money or resources.
customers

Sales Representative
- are an integral part of the success of the tourism and hospitality industry. Kotler et al (2010) outline
the primary tasks sales professionals perform for their companies as follows:

1) PROSPECTING. Sales professional is tasked to look into potential

customers or “prospects”. A good and active database should be
maintained as well as networking skills to ensure that there is a
steady flow of new customers coming into the business.
2) TARGETING. Sales professional need to determine how to prioritize
limited time and resources to tap customers from their list of
prospects.
3) COMMUNICATING. Sales personnel need to find ways and means to
keep in touch with clients. This can be done through giving
information about new products and services or generating new
business from clients.
4) SELLING. Sales personnel are trained to do product presentations,
negotiations, overcoming objections, and closing the sale. This is the core
of what the salesperson does for the company.
5) SERVICING. Salesperson should not remain as order takers. Instead, they
should shift to becoming customer consultants-helping clients solve
problems and rendering technical/expert assistance.
6) INFORMATION GATHERING. Sales representatives assist the company in
gathering intelligence information such as what competition is doing or
what the company’s needs are. They also suggest innovations based on
market demands.
7) ALLOCATING. When there are product shortage or overbookings, sales
people assist in deciding which clients to prioritize based on past and
future business engagements.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling
According to Shoemaker et al. (2007), the ideal hospitality advertisement should accomplish 5 things:
1) Tangibilize the service elements so the reader can mentally grasp
what the offer is;
2) Promise a benefit that can be delivered and/or provide solutions to
the problem;
3) Differentiate the property from that of the competition;
4) Have positive effects on employees who must execute the promises;
and
5) Capitalize on word of mouth

TYPES OF ADVERTISING EXECUTION

For advertising to achieve its objectives of differentiation, tangibilizing the product, and having
positive effects on employees and customers, Kotler et al. (2010) present different execution styles, as
follows:
1) Slice of Life – shows how people use the products in a normal
setting
2) Lifestyle – shows how product fits within one’s way of life
3) Fantasy – creates a ‘wonder’ world around the product or its
use
4) Mood or image – builds positive images or moods around the
product such as beauty, fun, and serenity

5) Musical - uses simply but catchy music effectively through

product jingles and songs
6) Personality – creates a character that represents the product,
such as Jollibee, the friendly bee
7) Technical expertise - reveals the company’s expertise with the
product or service
8) Scientific evidence – presents research or scientific evidence that
the brand is better than competing brands.
9) Testimonial Evidence – features a highly credible person suc as a
celebrity endorsing the product
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling
ADVANTAGES OF DIRECT MARKETING
Direct Marketing is an ideal promotional tool for product and services that want to capture a niche
market. Here are some advantages of direct marketing:

1) Precision Marketing – having a good database can help pinpoint prospects based on their lifestyle,
demographics, purchasing pattern, etc. The direct mail campaign can be very precise in specifying its
target market.
2) Personalized Messages – a person’s name is the sweetest word in the world. Prospective customers
will definitely read through material when their name is on it. Addressing specific customers
personally will capture their attend than generic and random messages.
3) Privacy – the company’s offer is not visible to competitors since it is personalized. The competition
will not be able to monitor what the offer is. Hence, they will not be able to match it.
4) Faster Sales – Direct Marketing can yield to faster sales since it is targeted to actual users of the
product.
5) Variety of Packaging Options – a variety of packaging options are available for direct mail campaigns
limited only by the marketer’s creativity and budget.
6) Less Competition – a letter or package that is opened by the prospect will have less competition from
other media content compared to billboards, TV commercials and the like. The receiver will take
more time would take more time reading through your content because it is personalized and
unique.
7) Immediate Result – a response form or action is normally solicited from the prospective customer,
hence, results can be immediate.
8) Measurability – the company knows the number of direct mailers issued; hence, it will be easy to
determine response rates.

ELEMENTS OF A DIRECT MARKETING CAMPAIGN

There are 3 important elements that should be taken into consideration when planning a direct
marketing campaign: these are the (1) the list, (2) the message, and (3) the offer.
1) THE LIST. Contains all the names and contact information of your target
market. It should be accurate, updated, and narrowed down based on the
characteristic of the market who you think would mostly likely be interested in
your product offering,
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling
ELEMENTS OF A DIRECT MARKETING CAMPAIGN
There are 3 important elements that should be taken into consideration when planning a direct
marketing campaign: these are the (1) the list, (2) the message, and (3) the offer.
2) THE MESSAGE. Important to customized and personalized. Marketers
estimate that prospective customers have very limited attention spans and
it will only take a few seconds for them to make a judgment on whether to
continue reading your message or for them to proceed to doing other
things. It takes a lot of skill to make the message simple and interesting so
as to make it easy for the prospect to learn more about the product and the
offer.
3) THE OFFER. Should be interesting and worthy for the prospective customer
to consider making a purchase. It should move the prospective client into
action. Making the offer more appealing.

Measures of Success
One of the advantages of direct marketing as a promotional tool is its measurability. A properly
executed direct marketing campaign can be measured in several ways, namely:
1) The number of inquiries generated
2) The ratio of conversions or purchases realized from inquiries generated; and
3) Its communication impact

SELECTING SALES STRATEGIES

1) Prevent erosions of key accounts. Key accounts are your clients that sustain your company. These
accounts should be managed well, given the proper attention and further cultivated for more
frequent consumption and upselling. Sales person should be trained how these accounts can be
kept and prevented from switching to competitors.
2) Grow key accounts. Growing key accounts means adding more companies into this key segment of
the market. Cultivate secondary or marginal accounts with high potential to become key accounts.
3) Grow selected marginal accounts. Marginal accounts can provide the company with the much
needed extra sales and revenue when demand from the key accounts is low. Choose marginal
accounts that can be cultivated to provide additional consumption.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling
SELECTING SALES STRATEGIES
4) Eliminate marginal accounts. Some marginal accounts an provide the company with the much
needed extra sales and revenue when demand from the key accounts is low. Choose marginal
accounts that can be cultivated to provide additional consumption.
5) Retain selected marginal accounts with lower-cost sales support. Maintains marginal accounts that
take less time and resources to service. That way, these accounts can produce marginal sales
without much effort and budget provided.
6) Obtain new business from selected prospects. Business development should always be prioritized,
new business from existing accounts as well as promising prospects can be beneficial to the growth
of the company.

Steps of the Sales Process

1) Prospecting and Qualifying Prospects
 Begins with identifying prospective customers using a variety
of sources Cold Call means the salesperson does
 Prospects start out as leads; people who have been referred not have any prior business dealings with
the company and does not know anyone
by your current client
from the company.
 These leads are then qualified whether investing time &
Sales Blitz is carried out by a group of
resources will be profitable sales people who conduct a large
 Cold calling and sales blitzes are effective ways of prospecting number of company visits over a short
and qualifying prospects period of time to target a specific
 Cold calls are done by doing sales calls or visit to different business category, geographical area
business categories in the hope of generating business or organizational type.
 Cold calling is an essential part of the sales process

2) Pre-approach
 Stage wherein the salesperson seeks to understand the
business opportunities that the prospects can provide
the company
 Stage where the salesperson makes himself familiar with
the business of the company and what the company
needs are in order to ensure that there is a fit between
what the company needs and what the salesperson is
selling
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling

Steps of the Sales Process

3) Approach
 when the salesperson starts to communicate with the
prospect
 professional and strong social skills are very important in
establishing rapport especially for the initial meeting
 Salesperson should observe proper etiquette, protocols,
and cultural sensitivity all throughout the engagement

4) Presentation and Demonstration

 Knowing the prospects needs and how to address his
problems, and having been given valuable official time to
listen to the product offer, now is the time to an
impressive product presentation
 Product presentation should be customized to the
prospects and should include features, benefits, and
advantages in availing products and services
 Product offered should match the needs of the clients
more than what their competitors offer

5) Negotiation and Overcoming Objections

 Negotiation is the process of resolving differences
between what the buyer wants and what the seller wants
to give in exchange for what the buyer can pay for
 Objections come in different form, it may be because of
the price or the rate of the product or service or simply a
lack of interest in the product (Abbey 2008).
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 2: Uses, Advantages & Disadvantages of Advertising,
Direct Marketing and Personal Selling
Steps of the Sales Process

6) Closing the Sale

 Officially closing the sale is done through signed contract
 Closing the sale is asking the client directly or discretely any of the
following questions:
a) May I draft the contract and send it for review?
b) Shall I call your office tomorrow and get details of the booking?
c) Can I take your reservation now so you can avail for an extra
discount?

5) Follow-up/Maintenance
 Once the sale has been made and the service has been
delivered, the salesperson keeps the relationship going by
doing a follow-up such as a phone call or personal visit to
ensure that product and service quality was provided
 Customer satisfaction usually results in repeat business and
positive word of mouth

ASSESSMENT :
Answer guide questions:
1) What is the importance of promoting tourism products and services?
2) What are the advantages and disadvantages of using the following promotional
tools for (choose only 1) a hotel? a restaurant? an airline? a destination?
2.a. advertising
2.b. direct marketing
2.c. personal selling
Activity: Find an advertising video of tourism-related products and evaluate the
advertisement’s strength and weaknesses.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 3: Public Relations and the Major PR activities
What is
PUBLIC RELATIONS (PR) PR?
 The process of creating a positive image and customer
preference through third party endorsement.
 This can be done using various activities all aimed to generate a
positive image through what others say about one’s
establishment.
 The PR banks on the idea that if a credible person – not related to business says something
good about your product or service, then consumer may be more certain that it is really good
 Communicating to the company’s public includes both internal and external audience.
 The internal audience includes employees – who should maintain a positive outlook for the
company that they have worked for and investors. They should be the primary believers of
the benefit of the company’s products and must show excitement toward it as well as the
company they represent.
 The external market includes guests, potential guests, media, local community, and the
government. Maintaining good PR with this audience will definitely help improve the brand’s
image and future business dealings.

Major Public Relations Activities

1) Press/Media Relations. Mass media channels help generate
publicity and awareness for huge audiences. If managed well,
news about the product or service can be made available to the
mass market with very minimal expense. Since it is a third party
endorsement, business establishment do not have control of
what comes out in the form of press release and media
coverage.
2) Product Publicity. This involves efforts to introduce or publicize
new products, special events, new developments within the
business through product endorsements or mentions in various
channels.
3) Lobbying. PR also includes building good relations with the
public sector namely, local government units where your
business operates and legislators who may pass bills that will
have an impact – whether positive or negative – on one’s
business.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 3: Public Relations and the Major PR activities
Major Public Relations Activities
4) Corporate Communication. This covers internal and external
communications that promote understanding of the organization
using tools such as newsletters, bulletins, and email blasts. It
addresses various audiences such as employees, stockholders, and
clients. Newsletter for the internal market may include information
such as new products, employee awards, and new compensation
benefits. Newsletters for the external market will be definitely
prepared to include new promotional deals, product features, and
upcoming events.
5) Counselling. Employees involved in PR play the role of adviser with
regard to public issues that may have an effect on the company’s
position and image. In times of crisis, the PR manager serves as the
official spokesperson of the company.

Contributions of Public Relations to Marketing

The contributions of public relations cannot be downplayed. They can help marketing in the following
ways:

1) assist in the launch of new product;

2) assist in repositioning a mature product;
3) build up interest in a product category;
4) influence specific target groups; and
5) defend products that have encountered problems.

Public Relations Process

In planning a PR Strategy, the following steps are recommended.
1) Understanding the firm’s mission, culture, and target market. A thorough understanding of the
firm’s mission and culture will help one come up with an effective PR plan. This can be achieved
through research.
2) Setting of objectives. Marketing objectives need to be established prior to the creation of a PR
plan. These objectives can either be to build awareness for the new product, build credibility for
the brand, stimulate the sales force, and channel intermediaries or lower promotion cost.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 3: Public Relations and the Major PR activities
Public Relations Process
In planning a PR Strategy, the following steps are recommended.
3) Defining the target market. Identify a specific target market and get to know the behavior of this
specific segment of the target market. Understand how this market communicates and what major
factors can influence its purchase behavior.
4) Designing the PR message. Create a strategy by which your PR campaign will be designed and hat
communication channels would be effective to achieve your objectives an attract your target market.
5) Implementing PR plan. This means putting the plan into action. Constant monitoring and review will
assist you in properly implementing the PR plan.
6) Evaluating PR results. Evaluating the results of PR campaign can come in the form of:
a) exposure of the brand;
b) awareness, comprehension/attitude change within the target market; or
c) sales and profit contribution

Public Relations Tools and Audiences

Public Relations can be used to address various audiences such as employees, guests, community groups,
other stakeholders, and special audiences. A variety of public relation tools can be effective in addressing
specific audiences.
PR TOOLS for REGULAR AUDIENCES
REGULAR AUDIENCES

AUDIENCE TOOLS

Employees • Regularly produced printed or online newsletter

• Emails
• Webcasts
• Bulletin boards

Guests • Printed in-room collateral

• Personal letters from the General Manager
• Newsletters
• In-room TV programming
Community Groups • Participation in local civic areas and charitable endeavors
• Sponsorship of educational and recreational activities for community members
• Employee contributions to local charity fund drives

Media/Press • Press conference and events

• Media visits
• Press Releases
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 3: Public Relations and the Major PR activities
PR TOOLS for SPECIAL AUDIENCE
SPECIAL AUDIENCES

AUDIENCE TOOLS

Travel Writers • Detailed press releases

• Creative email pitches to encourage writers to visit and write about the
property
• Good selection of digital photos

Convention & Visitors • Sponsorship of trade fairs

Bureau • Detailed sales kit

Trade Shows • Personal meeting between PR manager and media representative

• Media coverage during the trade show

Public Relations Opportunities

PR opportunities can be created based on a strategic plan of action. Based on the company’s
resources and objectives, the PR messages and activities may be built around any of the following:

1) The Owner/Operator. If the owner or the operator has potential

“star” appeal, or has already built a positive reputation, building
PR messages around him may be the best option. Celebrities
who come up with their own business become instant celebrity
endorsers. Owners tend to be more visible in public and are the
best spokesperson of their own products.
2) The Location. One’s location can be also used to position a
product positively. A well-received business location can help
bring awareness to one’s product or service. A unique location
can become a pull factor to ensure that potential customers will
take notice of your brand. A good location can also increase
positive feelings about your brand. A good product-location fir
ensures good mileage for your product.
3) The Product/Service. The Product or service itself can be an
opportunity to create good public relations. It can be used as the
trademark of a business. A good product creates positive word of
mouth and that in itself is the beginning of good public relations.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 4: Sales Promotion
SALES PROMOTION
What is
Sales A direct inducement that offers an extra value or incentive for the
Promotion? product to the sales force, distributors, or ultimate consumer, with the
primary objective of creating an immediate sale (Belch & Belch 2007).
It is consist of short-term incentives to encourage the purchase or sale
of a product or service (Kotler et al. 2010)

Sales Promotional Tools

1) Samples are offers of a trial amount of a product. Some

samples are free, others charge a small amount to
offset its cost while inducing product trial. Sampling
can also be made to influential decision makers such as
company executives and sales people in the belief that
trial will improve product knowledge, which will
eventually lead to a sale.
2) Coupons are certificates that offer buyers savings when
they purchase specific products. It is used to stimulate
sales of a mature product as well as promote trial of a
new product. This tool should be used carefully to
avoid a price or coupon war which detracts consumers
from the intrinsic value of the product or service.
3) Packages involve putting together a set of
complementing products to come up with one bundle
at a special price. If the products are sold separately,
the total cost will be sold separately, the total cost will
be more expensive. This helps increase revenue and
selling products that may otherwise be unsold.
4) Premiums are goods offered either for free or at a low
cost to provide incentive for consumers to buy a
product. Some establishments create novelty items
that can be brought home as a symbol of the product
bought, such as a mug that goes free with coffee.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 4: Sales Promotion
Sales Promotional Tools
5) Patronage Rewards – bonuses in the form of cash or items of
value that can be redeemed for regular purchases made. These
kind of programs create more frequency of purchase, positive
word of mouth, and possibly larger purchases.
6) Point of Purchase Promotion – includes displays and promotions
that take place at the point of sale. Some hotels display
brochures of their other branches at the lobby or front desk .
Some souvenir items are positioned near the cashier for easy,
random, and impulse purchases.
7) Contests and games – give consumers a chance to win
something such as a trip or cash upon purchase of products and
services. Raffle entries are given to consumers based on total
amount of consumption which are then raffled off for a prize.

Sales Promotion Process

The sales promotion program is part of the bigger promotional plan (which in turn is part of the
bigger marketing plan). The following is the sales promotion process.

1) Deciding whether a sales promotion is necessary.

2) Setting of objectives for the sales process.
3) Selecting which promotional tools to use.
4) Developing the sales promotion program, considering the following:
a) Size of the program based on the type of incentive. The size of the program is determined by
the type of incentive to be offered and the magnitude by which the program will be
implemented.
b) Target market of the program. Determining the target market of the promotion covers the
decision to offer the program to anyone or to a select market that has remained untapped for
the business.
c) Distribution method to be used. The marketer then decides on what distribution method to
use, ill the coupons or flyers be made, handed out to passers by or should an advertisement be
used?
d) Duration of the program. Deciding on how long the program will run is a crucial element of
sales promotion. Its primary objective is to include immediate sales; hence, if the period is too
short, prospects may not have enough time to decide to purchase. If the period is too long, the
deal may lose some of its ‘immediate’ effect.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 4: Sales Promotion
Sales Promotion Process
5) Implementing the program. A careful implementation and monitoring of the plan will determine the success
or failure of the plan. Make sure that everyone in the team is ready to implement and maximize the added
promotional push.
6) Evaluating the program. Since the sales promotion runs for a specific period of time, evaluating its impact
based on added volume of sales would be easy. The use of coupons, cards, and other notices of the sales
promotion can help determine response rate.

Preparing the Promotional Plan

Below are the recommended steps marketers need to take in coming up with a concrete, efficient, and well
planned promotional campaign.

STEP 1: Decide on what Promotional Tools to Use

Comparison of Promotional Tools’ Characteristics, Uses, Strengths and Weaknesses
TOOL CHARACTERISTICS USES STRENGTHS WEEKNESSES
o Public o Promotes to large o Efficient way to o Requires a large budget
o Pervasive heterogeneous market reach numerous o Requires creativity for
o Dramatic o Helps build up long- term geographically ads to stand out
Advertising o Impersonal image dispersed markets o Lacks feedback
o Low cost per
exposure

o Targeting efficiency o Niche markets o Superior targeting o Higher cost per person
Direct o Message customization o High end markets o Effects are than any other tool
Marketing o Interactive quality o Available database measurable
o Response measurement o Builds relationship

o Communication o Induce immediate sales o Facilitates quicker o Effects are short-term

Sales
o Provides incentives o Boost declining sales response o Doesn’t build lasting
Promotion o Invitation to engage place preference

o Third-part endorsement o Builds good relations o Highly credible o Uncontrollable

o Indirect promotion o Builds good public image o Creates memorable
Public
o Dramatic o Manages unfavorable impact
Relations o Not directly paid for but stories, humors & events o Greater impact at
is not cost-free less cost

o Interactive relationship o Build up preference and o Facilitates o High cost of maintaining

Personal
between buyer and conviction toward product relationship a workforce
Selling seller o Cultivates relationships building

o Personal yet public o Cultivates relationship o Wide reach o Selective audience

o Pervasive o Informative o Easy access o Passive medium
Internet
o Ubiquitous o Interactive feedback
Marketing o 24/7 o Global nature
o Multimedia
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

Preparing the Promotional Plan
STEP 2: Decide on which Media Channels to Use
Comparison of Media Channels’ Uses, Strengths and Limitations
MEDIUM USES STRENGTHS LIMITATIONS
TELEVISION o Advertising o Appeals to the senses o Absolute high cost
o Public Relations o High Attention o High clutter
o High Reach o Fleeting exposure
o Less audience selectivity

RADIO o Advertising o Mass use o Lower attention that television

o Public Relations o High geographic and demographic selectivity
o Low cost

INTERNET o Advertising o High Selectivity o Digital Divide

o Direct Marketing o Targeted Marketing o High volume of information
o Sales Promotion o Interactive o Clutter Security
o Public Relations o Relatively low cost o Credibility of information
o Personal Selling o Trustworthiness

TELEPHONE o Direct Marketing o Many Users o Lower attention

o Personal Selling o Personal communication o No visual cues

NEWSPAPER o Advertising o Flexible o Short life span

o Public Relations o Timely o Poor reproduction quality
o Sales Promotion o Local Market coverage o Limited audience

MAGAZINES o Advertising o High geographical and demographic selectivity o Wasted circulation

o Public relations o High Prestige and credibility o Long advertisement lead time
o High quality and reproduction

NEWSLETTER o Public Relations o High audience selectivity o Distributions concerns

o Sales Promotion o Full message control

BROCHURES o Sales Promotion o Flexibility o Quality of brochure balanced

o Direct Marketing o Full control with cost of printing
o Can dramatize message o Distribution concerns
o portable

DIRECT MAIL o Direct Marketing o Very High Selectivity measurable o High person cost
o Personal Selling o Offer not visible to competitors o “junk mail” image

BILLBOARDS o Advertising o High repeat exposure o No audience selectivity

o Sales Promotion o Low cost o clutter
o Customization based on location

TRANSIT ADS o Advertising o High repeat exposure o No audience selectivity

o Sales Promotion o Low cost

EVENTS o Advertising o High audience selectivity o High cost person cost

o Personal Selling o customization
o Sales Promotion
o Direct Marketing
o Public Relations
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 3: TOURISM PROMOTIONS

TOPIC 4: Sales Promotion
Preparing the Promotional Plan
STEP 3: Timing the Media Release
Audience size and interests vary at different periods of the year. Budgets are increased when
projecting an increase in interest. Kotler et al (2002) discussed that timing decisions should take 3
factors into consideration: (1) audience turnover, (2) behavior frequency and (3) forgetting rate.

Audience Turnover is the rate at which the target audience changes between two periods. If
the turnover is great, continues advertising is recommended.
Behavior Frequency is the number of times during the year that the target market makes the
decision to purchase.
The forgetting rate is the rate at which a message is forgotten or behavior change become non-
evident. The higher the forgetting rate the more the advertising should be applied.

STEP 4: Evaluate the Media Result

Measuring the results of media messages is a difficult task especially since there are many
variables that have to be taken into consideration. Evaluation research and tracking of
media messages are important for media planning. This will help identify strengths and
weaknesses of the communication plan and adjust how implementation can further gain
positive results.

There is a variety of ways to test whether communication campaigns are effective. This
includes recall, recognition, and sales effect. Media research firms have scientific ways of
testing whether campaigns are effective or not.

ASSESSMENT :
Answer Guide Question: How can Public Relations be used to promote tourism
destinations, products and services?
Activity: Check out a hotel (Deluxe) or airline website and look into its PR
activities and sales promotion. Decide which one are good ideas and which one
are not. Submit an individual reaction paper.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

Objectives/Learning Outcomes
1. Define what is marketing plan and its
importance;
2. Identify the parts of a marketing plan;
and
3. Create a simple marketing plan for any
hospitality and tourism establishment

TOPIC 1: Introduction
What is A
Marketing A marketing plan is a working document developed by
Plan? hospitality and tourism establishments that seriously want to
grow their business in the forthcoming year.
A written marketing plan will help consolidate ideas and
suggestions to improve the business.

A marketing plan should:

1. Serve as a road map for all marketing activities of the firm;
2. Align the marketing activities with the corporate strategic plan;
3. Encourage marketing managers to review and objectively think through all steps in the marketing
process; and
4. Assist the budgeting process to match resources with marketing objectives.

Shoemaker et al. (2007) states that there are 3 key

elements to a successful marketing plan:

1. It is workable
2. It is realistic and flexible
3. It has measurable and achievable goals
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 1: Introduction
The marketing plan has to be simple and easy to execute. It should not
be a bunch of uncoordinated and disconnected activities. The goal is
productivity and not just activity. Since the plan is subject to review to
adapt to changes in the marketplace, especially to respond to what
competition is doing, the plan has to be stable and yet flexible. Finally,
it has to be achievable. A lot of companies end up frustrated mainly
because of its grand plans.

TOPIC 2: Parts of the Marketing Plan

THE EXECUTIVE SUMMARY
The marketing plan starts with an executive summary. It is similar to an abstract of a research paper.
The goal of the executive summary is to give a brief and logical presentation of the contents of the
marketing plan. It is written with the top executives in mind. The executive summary provides
adequate information that presents the objective, strategies, and budget of the company.

INTRODUCTION
1) Current Situation of the Company
The marketing plan begins with an introduction of the
current situation of the company. It discusses the
existing product line, current distribution system, and
promotional strategies implemented to reach its actual
sales target.
2) Environmental Factors
The external environment have an impact on the
marketing success of the business. External factors can
cause the decline or increase of one’s business. These
factors may include tourism promotions done by the
local/regional/national tourism office, development of
airline routes and infrastructure, new tourist
attractions in the area, new convention centers being
built etc.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 2: Parts of the Marketing Plan
INTRODUCTION
3) Competition Analysis
Competition plays a big role in the success of a
business. How a tourism establishment responds to
new players in the market and new strategies of
existing markets will actually make an impact on the
firms profitability. The marketing team must have a
thorough knowledge of its competitors and their
activities.
4) Marketing Trends
Knowledge of Marketing trends will help marketers
plan out product development and promotional
strategies. How has the traveler motivation changed in
recent years? What is the impact of Covid19 pandemic
in the society? How do people adapt with the ‘new
normal’ in the tourism industry?

5) Market Potential
Business development strategies are created based on
the market potential of certain products and services.
Creating new demand for an existing product may be
tough but creating new demand through the
introduction of a new product may be an excellent way
to gain profit.
6) Market Research Findings
Some established hotel chains and restaurants employ
market research firms to evaluate the external market
and identify business opportunities. Smaller firms who
may not have resources to do this can actually look
into market research findings available online or
industry trends published in research journals to have
an idea of the external environment, competitive
analysis, marketing trends and market information
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 2: Parts of the Marketing Plan
BACKGROUND OF THE PLAN
This section reveals the background of why the marketing plan should be created.

1) The Property Need Analysis

Instead of just simply identifying problems encountered, this
section looks into gaps with the company’s profit areas. A property
needs analysis is an analysis of major profit areas of the
establishment to see where the revenue can be maximized. Instead
of looking at where to cut on costs, a property needs analysis will
reveal areas of neglect which could actually generate profit if given
attention.
2) Strengths, Weaknesses, Opportunities, Threats (SWOT)
The usual SWOT analysis needs to be employed when doing a
marketing plan. The marketing team should be able verbalize its
strengths and weaknesses (internal and be controlled) as well as its
opportunities and threats (external, whose effects can be either
maximized or minimized)
3) Market Positioning Statement
In line with its corporate mission and goals, marketing plan should
have a position statement of how it wants to differentiate itself
and its positioning in the market place. Everyone in the
organization should know how the company would want to
position itself.

OBJECTIVES
Objectives are GOALS that companies want to achieve for a
certain period of time. they provide a clear direction for the
strategies, tactics and activities that will be done. By writing them
down, the company is committing to put all its resources together
to achieve them.

Objectives need to have the following qualities:

 Quantitative – expressed in monetary terms, unit of
measurement , time specific and profit margin specific
 SMART – Specific, Measurable, Attainable, Realistic and
Time-bound
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 2: Parts of the Marketing Plan
TARGET MARKET
This section shall discuss the primary, secondary, and marginal
accounts of the business. A brief description of the demographics
and psychographics of the market segments identified shall be
placed in this portion.

 Primary Market – Key Result Areas

 Secondary/ Marginal accounts
 New Accounts

MARKETING STRATEGY
An overarching creative strategy can help put together the marketing strategies. Tourism product
and services, based on positioning, image and branding can create a marketing slogan that would
summarize what the product or service is about.

1) Product Strategy. A discussion on new product is launched,

innovations, upgrading of products and services are included in
this section. This may also include new packaging ideas, product
bundles, and new product features or enhancements.
2) Pricing Strategy. A review of pricing objectives, pricing strategies,
and possible discounting schemes are covered in this section.
3) Promotional Mix. A presentation of promotional tools to be used
to achieve the strategies are the main content of this section.
Marketers may propose a variety of advertising options, sales
promotional tools, public relations activities, direct mail campaign,
personal selling techniques, and the like to meet the marketing
objectives. A media plan on when and what media channels will
be used are also included. It is not necessary to use all
promotional tools. Use only that will help meet both objectives of
the plan and company budget.
4) Distribution Strategy. This section should include the key
intermediaries that will be helpful in achieving the marketing
objectives. It should carefully assess the current distribution
system and make recommendations on how best to maximize the
product’s reach using different distribution channels
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 2: Parts of the Marketing Plan
TIME TABLE
This section should include specific activities, their expected time of roll-out, duration, and person in
charge. In the form of Gantt chart which could be as simple as this:

Person-in- JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Activity
charge

BUDGET
The marketing budget is numerical representation of the marketing
commitment. Some companies do not think of marketing as an
investment, but rather an expense.

Companies with this mind set normally allocate very minimal resources to
marketing. The budget is a control mechanism that ensures that the
marketing efforts yield the target revenue within a specific period of time.
(Lumsdon 1997)
Items incorporated in the budget should include projected annual income (broken down on a monthly
basis to address seasonality) and the resources needed to implement the marketing plan. These
resources shall include all expense items for each marketing activity, manpower requirements, capital
expenditures and other monetary support.

CONCLUSION
This is a short reiteration of the salient points of the marketing plan
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

UNIT 4: THE MARKETING PLAN

TOPIC 3: Creating a Marketing Plan
OUTLINE OF A MARKETING PLAN
EXECUTIVE SUMMARY
I. Introduction
II. Background of the Plan
III. Objectives
IV. Target Market
V. Marketing Strategies
1. Product
2. Price
3. Promotion
4. Distribution
VI. Time Table
VII. Budget
VIII. Conclusion

POINTS TO PONDER:
What is the purpose of a Marketing Plan?

ASSESSMENT :
Group students with 5-6 members. Choose from the different tourism & hospitality
sector and identify a specific establishment. Students are given 2-3 weeks to
prepare a marketing plan for the said establishment.
 THM – TOURISM & HOSPITALITY MARKETING
By:
Amabelle T. Agregado
Ma. Mae G. Villanueva

REFERENCES

3G E-Learning FZ LLC (2014). Hospitality and Tourism Marketing, UAE: 3G

E-Learning FZ LLC
3G E-Learning LLC (2018). Tourism Marketing: Theory Practice and
Techniques, USA: 3G E-Learning LLC.
Badilla, Maricel C. (2015). Tourism Marketing, Philippines: Rex Bookstore
Reid, R. D. & Bojanic D.C. (2010). Hospitality Marketing Management,
USA: John Wiley & Sons, Inc.

Cruz, R. (2009). Principles of Travel and Tourism: Introduction to Tourism Theory, Philippines: Tourism
Research Philippines
Goeldner, C. (2009). Tourism Principles, Practices, Philosophies, New Jersey: John Wiley & Sons
Velasco, E.O., Javier D.A., & Perez, E.S. (2017). Hospitality and Tourism Marketing with IMC, Philippines:
Unlitmited Books Library Services and Publishing Inc.