This unit states that you are assigned as management trainee at visit London for promoting tourism destination in London thus formulate a market strategy considering following points.
- Discuss concepts, different principles of marketing in travel sector by considering case of Thomas Cook.
- Explain role of marketing function as a management technique for Thomas Cook.
- Assess significance of marketing mix in Tourism sector.
- Apply promotional mix for companies of tourism industry.
In growth and development of economy of every country, travel and tourism sector plays crucial role. Government has the responsibility to preserve all the landmarks of nation and it is the ethical duty of firms to contribute in it (Travel & Tourism Marketing, 2016). In the present report, chosen organisation is Thomas Cook which is a renowned company that deals in travel and tourism sector. The assignment covers principles and concepts of marketing in travel and tourism industry as well as its role as management tool. Apart from this, role of marketing mix and utilization of promotional mix in travel and tourism sector is also defined in this project.
1.1 Core concepts of marketing in travel and tourism
Marketing can be mainly stated as the concept which mainly signifies the company which can determine the needs and wants of the customers and thus utilise the demands for fulfilling the needs. Customer who is satisfied helps company to have high amount of revenue. As per the core concept of marketing, group has to be determined by management to which services are provided and thus the research is being conducted. Tourism sector is one of the largest profit sector which has generated high amount of revenue. Efforts are being contributed by Govt. in bringing positive modifications within the heritage sites. There are some of the private companies which has also given contribution within the efforts. Thomas Cook can be stated as largest travelling company within England. As per the marketing concept, there are mainly five kind of major concepts which are described below:
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Social marketing concept
There are services which has been given out by company as per the above mentioned factors by which business can mainly be expanded across the globe and thus formulate the strategy as per them. This will mainly improve the product quality (Buhalis and Foerste, 2015). Effective network can be created by the help of using social marketing concept and thus it can help in attaining high level of cooperation. Besides this, technique can be utilised by large number of visitors for boosting up the profit ratios of travel industry. Those 5 concepts can mainly be applied within the sector of travel and tourism sector.
1.2 Impact of marketing environment on individual travel and tourism business
There are mainly two kind of forms within environment and that is macro and micro. Micro is majorly related to the internal activities which are taking place within company and those can make an impact upon the company negatively (Cox and Wray, 2011). According to the business situation of tourism sector, analysation of micro environment has to be done which in turn can mainly support the quality services which are being given. Management needs to work upon the factors as there are companies which are also dealing in tourism sector as this is the major profit earning company.
- Suppliers: As per the porters five forces analysation which in turn can give supplies to the high bargaining power and thus can lead to the charge more. At Morocco and Egypt, these are mainly the one of the most famous tourist destination across the globe. There are certain prices and strategies which are set as per the suppliers which in turn can make impact upon the base of customers.
- Customers: Thomas cook had to mainly take care about the every kind of customer group and thus as per that schemes are being made as per them. Along with that, preferences has to determined and thus choices has to be made as per the services and products which are mainly being offered by them.
Macro environment has the potential of making impact upon business in negative manner and thus it is highly essential for making the strategies effective. Market segmentation has to be divided so that every group can be taken care of. Plan can be executed in perfection level by measuring out and determining groups, their behaviour and many more (Evans, Stonehouse and Campbell, 2012).
Also, Govt. of London are not stable in nature and thus this can lead to create feeling of dissatisfaction among visitors.
1.3 Factors affecting consumer motivation and demand
Customers are the mots essential factor for every business. This can be stated as the duty of company which in turn can mainly take care about them and thus give satisfactory services. Motivation will be given to a user for certain product along with responses which are highly related to the product which is better in nature. This in turn can mainly have improvement within the needs and thus can seek out for the motivation which in turn can attract for certain activity. London are the famous destination of UK and thus Thomas Cook has the need of adopt techniques which in turn can mainly support the business expansion within factors (Hall, Timothy and Duval, 2012). Following are the factors which mainly include the time of consumer motivation which are being described below:
- Price: This can be stated as the essential factor which in turn can mainly attract the market segment. If the price of the product by the Thomas Cook which is proper and thus it can give range for motivating the groups to buy.
- Preferences: Apart from this, there is the personal experience about the certain thing, behaviour of consumer will be changed by the opinion of others. If the people did not get the positive feedback regarding they services of company and thus it can lead to decline in profitability.
Along with these, socio-political stability or the economical stability will put an impact upon the consumer behaviour and thus get motivated by it. There are packages prices which are high in nature to Morocco and Egypt.
1.4 Principles of marketing segmentation and its uses in marketing planning
Planning can be stated as an effective measure which in turn can enable company for enhancing operations. This in turn can mainly lead to improve the chances for making the project much more successful. It is highly essential for management to classify segments as per needs. If the tasks so mainly being done which can lead to improve the chances of survival. There are some of the essential decisions which are being taken which can mainly divide the all kind of customers as per nature, needs and characteristics (Hussein, Ennew and Kortam, 2012). For this kind of purpose, Thomas Cook will have to divide within three market segments which are mainly: Clustered market, homogeneous market and diffused market.
In these kind of market share, user of the companies are mainly divided as per the nature. Thomas Cook will mainly has to determine and formulate the packages as per scenario. Basic description is being described below:
- Clustered market: In this kind, customers are generally posses some kind of characteristics, needs and wants. Along with this, they mainly demand for the same kind of product.
- Diffused market: This kind of market can mainly be understood by the name of DIFFUSED in which people are much more different form one another.
- Homogeneous market: Customers has the resemblance In this kind of market and they are much more different from the services, needs and wants.
Therefore, knowledge has to take the management regrading the market for the market segmentation and thus it can be prepared as