HBM 235 1nd Edition Exam 2 Study Guide Lectures 10 18 Lecture 10 February 19 Chapter 7 Tourism Marketing brings all of the parts of tourism together Marketing needs the Right product Right person Right place time Right price to be successful in sales If you don t make the product then market it Marketing begins the pre product and continues after the product Tourism Marketing is unique because production and consumption happen simultaneously Tourism is an intangible experience because it cannot be stored and Heterogeneity varies not the same Planning for demand fluctuations include resources infrastructure facilities cannot change as fast as demand Mixture of services facilities attractions etc include lots of interdependence because destinations rely on tourism hospitality providers individual businesses All have variation in performance standards one bad apple employee spoils the whole bunch Quality assurance interdependence and huge service component in tourism hospitality people component can t standardize service delivery can t guarantee quality or can you NZ case study pg 179 Highly elastic pg 179 Demand Elasticity how change in X influences demand Price income trends tastes etc Price elasticity of demand most common Low demand elasticity necessities no substitutes sugar gas water bottles High demand elasticity change in price big change in demand tourism electronics Lecture 11 February 21 Chapter 7 Continued Marketing Product Orientation product is the emphasis Attributes attractions facilities etc Market Orientation needs wants of visitors the emphasis Much more successful Societal market orientation focus on needs wants of visitors but in balance with long term community interest Marketing Segmentation Grouping people common characteristics by person product place time price Communicating appealing messages about product Market Segmentation Method Forward Segmentation Predetermine who you want Long term considerations Remember Psychographics Near ventures to be targeted Backward Segmentation Look at who is coming Purpose of visit surveys Strengthstaking identity be proactive Weakness reactive identity Criteria for Segmentation Demographic Socioeconomic age gender race social class etc Geographic country region market area etc Behavioral volume frequency of use usage status brand loyalty experience preferences etc Psychographic lifestyle attitudes interests opinions and values Considerations for market segmentation include Income potential Competition for segment Cost to attract segment Ability to service segment Positioning is your product in the minds of consume Do you have a position What is it Establish change or reinforce Lecture 12 February 24 The different levels of positioning Positioning on specific product features Mother Nature s best kept secret Belize Positioning on benefits solutions needs Wales For proper holidays Positioning for specific usage occasions The center of the universe of romance Tahiti Position for user category Vegas mean business Las Vegas Positioning against another product Truly Asia Malaysia Market Orientation vs Product Orientation Service Orientation vs Market Orientation SWOT Analysis Strengths Weaknesses Opportunities and Threats Internal Analysis of SWOT AnalysisStrengths characteristics of the destination that give it advantage over others Unique intrinsic resources Weather Infrastructure planning Geographical proximity People friendly entrepreneurial spirit Weaknesses characteristics of the destination that place it at a disadvantage Remoteness No Resources Limited variety of attractions External Analysis of SWOTOpportunities arise when destination can take advantage of conditions in its external environment to become more successful These include Global financial health Elimination of travel restrictions in target country Technological innovations Climate Change Threats arise when conditions in the external environment endanger success These include Global finance Climate change and Political turmoil Chapter 15 The Geography of Travel Key Trends of the UNWTO In 2011 international tourist arrivals grew by 4 6 to reach 983 million worldwide up from 940 million to 2010 Reached one billion in 2012 World s top exports Fuel Chemicals Food Tourism International tourism receipts estimated at US 1 030 billion worldwide up from US 928 billion 3 9 Emerging economy destinations growing faster than advanced economy destinations 1 Tourist country is France 2 US 3 China 4 Spain 5 Italy 6 Turkey People from Germany spend the most money Fastest Growing Saudi Arabia UN Millennium Development Goals End hunger and poverty Universal education Gender equality Child health Maternal health Combat HIV AIDS Environmental sustainability Global partnership Tourist Geography distribution of international tourist activity Uneven Distribution of Tourism Distribution of tourism resources Tourism friendly activities Changing seasons weather Political issues situations Economic changes in country of origin Exchange rates Increase decreases in prices of tourist services Special events Awareness Transportation Accessibility Distance decay travel demand between two points decreases as time cost increases 80 of int l travel occurs within 1000km of sources Try to attract nearby markets Lecture 13 February 26 Tourists willingness to travel greater distances is associated with High income Use of intermediaries Interest in discovering the new Variety seeking curiosity Tourists less willingness to travel greater distances associated with Children Search for relaxation Demand and Origin Factors Terminology Suppressed demand of people at the origin who do not travel Potential demand If constraints removed they may be inclined to travel something wrong on demand side Ex Vacation time discretionary income government policy Deferred demand Demand put off due to scarcity of supply Ex Lack of package tours family friendly activities budget travel options Something wrong on supply side The goal is to concert these into effective demand getting people to travel How do you address suppressed demand Short vacation time low discretionary income and restrictive government policy Positioning and induced image How do you address deferred demand Lack of package tours lack of family friendly activities lack of budget travel options Action steps positioning induced image Travel Propensity Way to measure potential demand of market that travel Travel Frequency Average of trips taken Travel