HBM 235 1nd EditionExam # 2 Study Guide Lectures: 10-18Lecture 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: MarketingProduct 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 productMarket 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; Strengths- taking 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 segmentPositioning 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”- BelizePositioning on benefits, solutions, needs-Wales: “For proper holidays”Positioning for specific usage occasions-“The center of the universe of romance”: TahitiPosition for user category-“Vegas mean business”- Las VegasPositioning against another product-“Truly Asia”- MalaysiaMarket Orientation vs. Product Orientation  Service Orientation vs. Market OrientationSWOT Analysis: Strengths, Weaknesses- Opportunities and ThreatsInternal Analysis of SWOT Analysis- Strengths: 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 attractionsExternal Analysis of SWOT-Opportunities 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 ChangeThreats arise when conditions in the external environment endanger success. These include: Global finance, Climate change, and Political turmoil Chapter 15 The Geography of TravelKey Trends of the UNWTOIn 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, TourismInternational 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. TurkeyPeople 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 activityUneven 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; TransportationAccessibility: 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: TerminologySuppressed demand: # of people at the origin who do not travelPotential 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