Integrated Integrated Marketing Marketing

Communications Communications for Tourismfor Tourism

ObjectiveObjective: : Introducing and defining Introducing and defining marketing communications for tourism marketing communications for tourism

and hospitality.and hospitality.

What is Marketing?

Marketing is the management of creating and exchanging products and value in order to satisfy the needs and wants of the target markets.

The goal of marketing is to satisfy customers at a profit.

Marketing Management Marketing management is the analysis,

planning, implementation, and control of programs to create exchanges with target buyers to achieve organizational objectives. In a way, marketing management is demand - customer management.

A company’s demand comes from two groups: new customers and repeat customers. Marketing management deals with finding ways (1) to attract new customers and create transactions with them and also (2) to retain current customers and build lasting customer relationships.

The Marketing ProcessThe Marketing Process

Marketing process is the Marketing process is the process of ;process of ;

1.1. analyzing marketing analyzing marketing opportunitiesopportunities

2.2. selecting target marketsselecting target markets

3.3. developing the marketing mixdeveloping the marketing mix

4.4. managing the marketing effort managing the marketing effort (marketing mix).(marketing mix).

Target consumers stand in the center Target consumers stand in the center of this process. The company;of this process. The company; identifies the total market identifies the total market divides it into smaller segmentsdivides it into smaller segments selects the most promising segmentsselects the most promising segments focuses on serving and satisfying these focuses on serving and satisfying these

segments by designing marketing mix segments by designing marketing mix factors under the control of the company factors under the control of the company - product, price, place, and promotion- product, price, place, and promotion

analyzes, plans, implements, and analyzes, plans, implements, and controls to put the marketing mix into controls to put the marketing mix into action which are required to adapt to the action which are required to adapt to the marketing environmentmarketing environment

Target ConsumersTarget Consumers In order to be successful, the companies In order to be successful, the companies

must understand the needs and wants of must understand the needs and wants of the consumers to satisfy them. But it is the consumers to satisfy them. But it is impossible to satisfy all consumers in a impossible to satisfy all consumers in a given market. Because, there are too given market. Because, there are too many different types of consumers with many different types of consumers with too many different types of needs. That is too many different types of needs. That is why, companies must; (1) divide up the why, companies must; (1) divide up the total market, (2) choose the best total market, (2) choose the best segments, and (3) design strategies to segments, and (3) design strategies to attract and keep these segments better attract and keep these segments better than the competitors. This process than the competitors. This process involves three steps: involves three steps: market segmentation, market segmentation, market targetingmarket targeting, and , and market positioningmarket positioning. .

Market SegmentationMarket Segmentation::

Dividing a market into distinct groups of Dividing a market into distinct groups of buyers with different needs, buyers with different needs, characteristics, or behavior (e.g. sex, age, characteristics, or behavior (e.g. sex, age, income level…) who might require income level…) who might require separate products or marketing mixes is separate products or marketing mixes is called called market segmentationmarket segmentation..

After segmenting the market, the After segmenting the market, the company must determine which segments company must determine which segments offer the best opportunity for achieving offer the best opportunity for achieving company objectives (making profit).company objectives (making profit).

Market TargetingMarket Targeting::

Evaluating each market segment’s Evaluating each market segment’s attractiveness and then selecting one or more attractiveness and then selecting one or more segments to enter is called segments to enter is called market targetingmarket targeting. .

A company should target segments in which it A company should target segments in which it can generate the greatest customer value and can generate the greatest customer value and keep it in the long-run.keep it in the long-run.

There are three alternatives in market There are three alternatives in market targeting. A company may decide to serve targeting. A company may decide to serve only one segment (because of its limited only one segment (because of its limited resources), resources), several related segments or several related segments or all market segments.all market segments.

Market PositioningMarket Positioning:: After a company has decided which market After a company has decided which market

segments to enter, it must decide what positions segments to enter, it must decide what positions it wants to occupy in those segments. A product’s it wants to occupy in those segments. A product’s positionposition is the place that the product occupies in is the place that the product occupies in consumer’s minds relative to competitors. consumer’s minds relative to competitors.

If a product is seen exactly the same as other If a product is seen exactly the same as other products on the market, consumers have no products on the market, consumers have no reason to buy it. That is way, companies reason to buy it. That is way, companies differentiate their products through positioning to differentiate their products through positioning to offer more value to the consumers. E.g. Mercedes offer more value to the consumers. E.g. Mercedes “engineered like no other car in the world”“engineered like no other car in the world”

Developing The Developing The Marketing MixMarketing Mix

Once the company has decided on its Once the company has decided on its overall marketing strategy, it should overall marketing strategy, it should plan its activities by using the plan its activities by using the controllable marketing tools, in other controllable marketing tools, in other words, the marketing mix.words, the marketing mix.

Marketing mixMarketing mix is the controllable is the controllable marketing tools (known as the 4Ps) - marketing tools (known as the 4Ps) - product, price, place, and promotion - product, price, place, and promotion - that the company use to achieve its that the company use to achieve its objectives.objectives.

ProductProduct; means the “goods-and-service” ; means the “goods-and-service” combination the company offers to the target combination the company offers to the target market.market.

PricePrice; is the amount of money that consumers ; is the amount of money that consumers have to pay to obtain the product. have to pay to obtain the product.

PlacePlace; includes company activities with the ; includes company activities with the intermediaries that make the product available intermediaries that make the product available to target consumers. The intermediaries keep to target consumers. The intermediaries keep an inventory of the products, shows them to an inventory of the products, shows them to potential buyers, negotiate prices, close sales potential buyers, negotiate prices, close sales and give service after sales. and give service after sales.

PromotionPromotion; means activities that communicate ; means activities that communicate the product and persuade target customers to the product and persuade target customers to buy it.buy it.

Developing Effective Developing Effective CommunicationCommunicationss

It is not enough to develop a good product, It is not enough to develop a good product, price it attractively and make it available to price it attractively and make it available to target customers. Companies also must target customers. Companies also must communicate with their customers to market communicate with their customers to market their products.their products.

A company’s total marketing communication A company’s total marketing communication program is called the program is called the promotion mixpromotion mix which which consists of (1) advertising, (2) personal consists of (1) advertising, (2) personal selling, (3) sales promotion, (4) public selling, (3) sales promotion, (4) public relationsrelations and (5) direct marketing. and (5) direct marketing.

Promotional techniques are usedPromotional techniques are used;; to make prospective customers to make prospective customers

aware of products in order to aware of products in order to sharpen the attractiveness and sharpen the attractiveness and stimulate demandstimulate demand,,

they provide information to help they provide information to help customers decidecustomers decide

generally provide incentives to generally provide incentives to purchase. purchase.

Integrated Marketing Integrated Marketing CommunicationsCommunications

Companies need to carefully integrate Companies need to carefully integrate and coordinate the promotion mix to and coordinate the promotion mix to deliver a clear, consistent, and deliver a clear, consistent, and compelling messages about their compelling messages about their organizations and products. organizations and products.

The marketing communications The marketing communications environment is changing. Mass markets environment is changing. Mass markets have fragmented, as a result mass have fragmented, as a result mass marketing is not a solution anymore. marketing is not a solution anymore.

Conflicting messages sent from different Conflicting messages sent from different sources can confuse consumers sources can confuse consumers regarding the company and brand image, regarding the company and brand image, therefore should be avoided.therefore should be avoided.

The Web alone is not enough to build The Web alone is not enough to build brands. Although, the Web can enhance brands. Although, the Web can enhance relationships between the company and relationships between the company and the consumers, it has limited potential to the consumers, it has limited potential to create brand awareness.create brand awareness.

It is better to blend the traditional It is better to blend the traditional methods with the new ways of methods with the new ways of communications. communications.

Nature of Each Nature of Each Promotional ToolPromotional Tool

AdvertisingAdvertising; any paid form of nonpersonal ; any paid form of nonpersonal presentation by an identified sponsor.presentation by an identified sponsor.

Personal sellingPersonal selling; personal presentation by a ; personal presentation by a firm’s sales force.firm’s sales force.

Sales PromotionSales Promotion; short-term incentives to ; short-term incentives to encourage sales.encourage sales.

Public RelationsPublic Relations; building good relationships ; building good relationships with various publics by obtaining favorable with various publics by obtaining favorable publicity.publicity.

Direct marketingDirect marketing; direct communications with ; direct communications with individuals to obtain an immediate response. individuals to obtain an immediate response.

AdvertisingAdvertising

Advertising is any paid form of nonpersonal Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods presentation and promotion of ideas, goods or services by an identified sponsor.or services by an identified sponsor.

Major media types are;Major media types are; newspapersnewspapers televisiontelevision direct maildirect mail radioradio magazinesmagazines outdooroutdoor

AdvantagesAdvantages low cost per contactlow cost per contact ability to reach customers where and ability to reach customers where and

when salespersons cannotwhen salespersons cannot great scope of creative versatility and great scope of creative versatility and

dramatization of messagesdramatization of messages ability to create images that salespersons ability to create images that salespersons

cannot - “institutional advertising” is a cannot - “institutional advertising” is a form of advertising done to create a form of advertising done to create a favourable image of an organization.favourable image of an organization.

nonthreatening nature of nonpersonal nonthreatening nature of nonpersonal presentationpresentation

potential to repeat message several timespotential to repeat message several times

prestige and impressiveness of mass-prestige and impressiveness of mass-media advertisingmedia advertising

DisadvantagesDisadvantages inability to “close” salesinability to “close” sales advertising “clutter” advertising “clutter” customer’s ability to ignore advertising customer’s ability to ignore advertising

messagesmessages difficulty getting immediate response difficulty getting immediate response

or actionor action difficulty measuring advertising difficulty measuring advertising

effectivenesseffectiveness relatively high “waste” factorrelatively high “waste” factor

Profiles of Major Media Profiles of Major Media TypesTypes

NewspapersNewspapers: reach many people but have : reach many people but have limited opportunity to reach market limited opportunity to reach market segments , have short life time, do not segments , have short life time, do not have reproduction quality.have reproduction quality.

MagazinesMagazines: have many advantages over : have many advantages over newspapers like having high-qualitynewspapers like having high-quality reproduction, color availability, prestige, reproduction, color availability, prestige, audience selectivity, and long life. audience selectivity, and long life. However, cost more, prepared in a long However, cost more, prepared in a long time, and reduce an advertiser’s ability to time, and reduce an advertiser’s ability to repeat ads.repeat ads.

RadioRadio: can reach an entire area, specific : can reach an entire area, specific target markets by matching the radio target markets by matching the radio station and time with the property’s station and time with the property’s target market. However, if not repeated, target market. However, if not repeated, they have shot life span.they have shot life span.

TelevisionTelevision: television’s main advantage : television’s main advantage over radio is that it combines sight with over radio is that it combines sight with sound. TV commercials can show friendly sound. TV commercials can show friendly company staff. Gets high attention, and company staff. Gets high attention, and remembered as a result. Commercials remembered as a result. Commercials can run many times daily and reach many can run many times daily and reach many people, and can reach specific audiences people, and can reach specific audiences by selecting the correct TV shows. by selecting the correct TV shows. However, they are very expensive. However, they are very expensive.

Outdoor AdvertisingOutdoor Advertising: billboards along : billboards along highways or in and around large cities are highways or in and around large cities are used to remind and attract potential guests used to remind and attract potential guests about the product. They must be bold, about the product. They must be bold, dynamic and graphic so that passersby can dynamic and graphic so that passersby can get the message at a glance. They have get the message at a glance. They have large circulation, broad reach and low cost large circulation, broad reach and low cost but have limited message length.but have limited message length.

Direct MailDirect Mail: involves the mailing of the : involves the mailing of the advertising message in brochures, coupons advertising message in brochures, coupons or other formats. It is especially used by or other formats. It is especially used by clubs, and banks for credit card holders clubs, and banks for credit card holders and members. It allows audience and members. It allows audience selectivity, can be personalized, and easily selectivity, can be personalized, and easily measured but have high cost of developing measured but have high cost of developing and mailing.and mailing.

Sales PromotionSales Promotion

Sales promotions are short-term Sales promotions are short-term incentives to to make an immediate incentives to to make an immediate purchase or sales of a product or purchase or sales of a product or service.service.

Advertising offers reasons to buy a Advertising offers reasons to buy a product or service, sales promotion product or service, sales promotion offers reasons to buy offers reasons to buy nownow..

AdvantagesAdvantages generating immediate purchase in a large generating immediate purchase in a large

extentextent ability to provide quick feedbackability to provide quick feedback ability to add excitement to a service or productability to add excitement to a service or product flexible timingflexible timing efficiencyefficiency

DisadvantagesDisadvantages short-term benefitsshort-term benefits ineffective in building long-term loyalty for ineffective in building long-term loyalty for

company or “brand”company or “brand” inability to be used on its own in the long term inability to be used on its own in the long term

without other promotional mix elementswithout other promotional mix elements often misused for just short-term benefitsoften misused for just short-term benefits

Profiles of Major Sales Profiles of Major Sales PromotionsPromotions

Consumer-Promotion ToolsConsumer-Promotion Tools CouponingCouponing: attract potential guests with a : attract potential guests with a

special offer such as a free night’s lodging special offer such as a free night’s lodging after a special number of credits. They can after a special number of credits. They can be given out personally, included in direct be given out personally, included in direct mail advertising or printed in newspapers mail advertising or printed in newspapers and magazines. They can increase off-season and magazines. They can increase off-season business with other sales promotions such as business with other sales promotions such as bonus offers or discounting.bonus offers or discounting.

Product SamplingProduct Sampling: introduces new products : introduces new products to the guests, some are free, most effective toto the guests, some are free, most effective to

introduce a product but most expensive as introduce a product but most expensive as well, determines whether guests like a new well, determines whether guests like a new product and encourages them to order the product and encourages them to order the item.item.

ContestsContests: give consumers a chance to win : give consumers a chance to win something such as cash, trips, goods by luck something such as cash, trips, goods by luck or through extra effort, can increase sales, or through extra effort, can increase sales, should be cost effective - increased sales should be cost effective - increased sales should offset the cost of contest promotions should offset the cost of contest promotions and prizes. E.g. Coca-Cola New Year’s prize (a and prizes. E.g. Coca-Cola New Year’s prize (a BMW) will be one of the customers who sent BMW) will be one of the customers who sent the correct amount of Coca-Cola lid.the correct amount of Coca-Cola lid.

PackagesPackages: offer consumers savings off the : offer consumers savings off the regula price of a product, have discount price regula price of a product, have discount price to attract new guests and increase sales. E.g. to attract new guests and increase sales. E.g. aa

holiday package including lodging, holiday package including lodging, transportation, and food and beverage transportation, and food and beverage with awith a reasonable price. reasonable price.

PremiumsPremiums: they are given to guests who : they are given to guests who pay the regular prices for certain pay the regular prices for certain products or services. E.g. an upgraded products or services. E.g. an upgraded room might be provided or free movie room might be provided or free movie tickets for the restaurant guests. Pizza tickets for the restaurant guests. Pizza Hut’s free drinks when a large pizza is Hut’s free drinks when a large pizza is ordered. Or when a customer buys one ordered. Or when a customer buys one shampoo, he gets the third one free.shampoo, he gets the third one free.

Gifts or Gift CertificatesGifts or Gift Certificates: free gifts or : free gifts or cash offers, are used by chains or cash offers, are used by chains or exclusive properties to increase sales. exclusive properties to increase sales. E.g. key chains, T-Shirts…E.g. key chains, T-Shirts…

DiscountingDiscounting: straight reduction from the : straight reduction from the list price of a product during a stated list price of a product during a stated period of time, are used to attract more period of time, are used to attract more guests and increase total sales. E.g. one guests and increase total sales. E.g. one dinner on the menu might be reduced to dinner on the menu might be reduced to 50%. Benetton reduces its prices by 20% 50%. Benetton reduces its prices by 20% during the low season. during the low season.

Bonus OffersBonus Offers: the consumer buys a product : the consumer buys a product or service at the regular price and then or service at the regular price and then receives a bonus, generally directed to the receives a bonus, generally directed to the regular users, E.g. guest buys three dinners regular users, E.g. guest buys three dinners at a regular price and the fourth one at a regular price and the fourth one becomes free. Or when the customer uses becomes free. Or when the customer uses his credit card, each time he gets credits, his credit card, each time he gets credits, and when he reaches a certain creditand when he reaches a certain credit

point, he is entitled to get free gifts such as point, he is entitled to get free gifts such as toasters, hair dryers... toasters, hair dryers...

Trade-Promotion ToolsTrade-Promotion Tools DiscountingDiscounting: straight reduction from the list : straight reduction from the list

price on purchases during a stated period price on purchases during a stated period of time, encourages dealers to buy in of time, encourages dealers to buy in quantity or to carry a new item; dealers can quantity or to carry a new item; dealers can use the discount for immediate profit, for use the discount for immediate profit, for advertising, or for price reductions to their advertising, or for price reductions to their customers.customers.

AllowanceAllowance: promotional money paid by : promotional money paid by manufacturers to retailers who agree to manufacturers to retailers who agree to help promote the manufacturer’s products help promote the manufacturer’s products in some way. E.g. an advertising allowance in some way. E.g. an advertising allowance compensates retailers for advertising thecompensates retailers for advertising the

product. A display allowance product. A display allowance compensates them for using special compensates them for using special displays.displays.

Free goods or push moneyFree goods or push money: cash or : cash or gifts to dealers or their sales force to gifts to dealers or their sales force to “push” the manufacturer’s goods. “push” the manufacturer’s goods.

Specialty advertising itemsSpecialty advertising items: they : they carry the company’s name, such as carry the company’s name, such as pens, pencils, calendars, pens, pencils, calendars, paperweights, memo pads, ashtrays...paperweights, memo pads, ashtrays...

Public RelationsPublic Relations

Building good relations with the Building good relations with the company’s various public’s by company’s various public’s by obtaining favourable publicity, obtaining favourable publicity, building up a good “corporate building up a good “corporate image” and handling or heading off image” and handling or heading off unfavourable rumors, stories and unfavourable rumors, stories and events.events.

AdvantagesAdvantages low costlow cost effective because they are not seen as effective because they are not seen as

commercial messagescommercial messages credibility credibility prestige and impressiveness of mass-prestige and impressiveness of mass-

media coveragemedia coverage added excitement and dramatizationadded excitement and dramatization maintenance of “public” presencemaintenance of “public” presence

DisadvantageDisadvantage difficult to arrange consistentlydifficult to arrange consistently lack of controllack of control

Major Public Relations Major Public Relations ToolsTools

NewsNews: PR people find or create : PR people find or create favourable news about the company and favourable news about the company and its products or people. Sometimes news its products or people. Sometimes news stories occur naturally, and sometimes stories occur naturally, and sometimes the PR person suggests events or the PR person suggests events or activities (e.g. X conference, Miss activities (e.g. X conference, Miss World…) that would create news. World…) that would create news.

SpeechesSpeeches: company executives answer : company executives answer the questions from the media or give the questions from the media or give talks at trade associations or sales talks at trade associations or sales meetings.meetings.

Special eventsSpecial events: ranging from news : ranging from news conferences, receptions, press tours (fam conferences, receptions, press tours (fam trips), grand openings… to reach and trips), grand openings… to reach and interest target publics. interest target publics.

Written materialsWritten materials: : include press release, include press release, annual reports, brochures, articles, annual reports, brochures, articles, company newsletters, magazines… to reach company newsletters, magazines… to reach and influence the target markets.and influence the target markets.

Audiovisual materialsAudiovisual materials: such as films, video- : such as films, video- and audiocassettes…and audiocassettes…

Corporate-identity materialsCorporate-identity materials: help to create : help to create a corporate identity that the public a corporate identity that the public immediately recognizes such as logos, immediately recognizes such as logos, stationery, brochures, signs, business stationery, brochures, signs, business forms, business cards, buildings, forms, business cards, buildings,

uniforms, company cars and trucks uniforms, company cars and trucks become marketing tools when they become marketing tools when they are attractive, distinctive, and are attractive, distinctive, and memorable.memorable.

Public-service activitiesPublic-service activities: companies : companies can also improve their goodwill by can also improve their goodwill by contributing money and time to contributing money and time to public-service activities. E.g. giving public-service activities. E.g. giving donations to street children.donations to street children.

Personal SellPersonal Sellinging Personal selling involves oral conversations. Personal selling involves oral conversations.

These are held, either by telephone or face-to-These are held, either by telephone or face-to-face, between salespersons and prospective face, between salespersons and prospective customers.customers.

The people who do the selling go by many The people who do the selling go by many names: salespeople, sales representatives, names: salespeople, sales representatives, account executives, sales consultants, sales account executives, sales consultants, sales engineers, agents, district managers, and engineers, agents, district managers, and marketing representatives.marketing representatives.

The major roles of the sales force are (1) The major roles of the sales force are (1) representing the company to customers, (2) representing the company to customers, (2) representing customers to the company, (3) representing customers to the company, (3) producing customer satisfaction and company producing customer satisfaction and company profits. profits.

AdvantagesAdvantages ability to close salesability to close sales ability to hold the customer’s attentionability to hold the customer’s attention immediate feedback and two-way immediate feedback and two-way

communicationscommunications presentations tailored to individual needspresentations tailored to individual needs ability to target customers preciselyability to target customers precisely ability to cultivate relationshipsability to cultivate relationships ability to get immediate actionability to get immediate action

DisadvantagesDisadvantages high cost per contacthigh cost per contact inability to reach some customers as inability to reach some customers as

effectivelyeffectively

The Changing Face of The Changing Face of Marketing Marketing

CommunicationsCommunicationsTwo major factors are changing the face of Two major factors are changing the face of today’s marketing communications. today’s marketing communications.

First, as mass markets have fragmented, First, as mass markets have fragmented, companies are shifting away from mass companies are shifting away from mass marketing. Now, they are developing focused marketing. Now, they are developing focused marketing programs designed to build closer marketing programs designed to build closer relationships with customers in more narrowly relationships with customers in more narrowly defined micromarkets.defined micromarkets.

Second, the improvements in computer and Second, the improvements in computer and information technology helps marketers to information technology helps marketers to reach smaller customer segments more reach smaller customer segments more effectively.effectively.

Direct MarketingDirect Marketing

Direct marketing is the new way of marketing Direct marketing is the new way of marketing communications. Here, the company markets communications. Here, the company markets through various advertising media that through various advertising media that interact directly with consumers, generally interact directly with consumers, generally encouraging the consumer to make a direct encouraging the consumer to make a direct response. In other words, direct marketing response. In other words, direct marketing consists of direct communications with consists of direct communications with carefully targeted consumers to obtain an carefully targeted consumers to obtain an immediate response.immediate response.

There are four major forms of direct There are four major forms of direct marketing are; marketing are;

direct-mail and catalog marketingdirect-mail and catalog marketing; involves mailing ; involves mailing of letters, ads, samples, foldouts… sent to potential of letters, ads, samples, foldouts… sent to potential customers on mailing lists. The mailing lists are customers on mailing lists. The mailing lists are developed from customer lists or obtained from developed from customer lists or obtained from mailing-list houses. Catalog marketing involves mailing-list houses. Catalog marketing involves selling through catalogs that are mailed to a select selling through catalogs that are mailed to a select list customers or made available in stores.list customers or made available in stores.

telemarketingtelemarketing; using the telephone to sell directly to ; using the telephone to sell directly to consumers. Outbound telephone marketing is used consumers. Outbound telephone marketing is used directly to consumers and businesses. Inbound too-directly to consumers and businesses. Inbound too-free 800 numbers are used to receive orders from free 800 numbers are used to receive orders from television and radio ads, direct mail, or catalogs.television and radio ads, direct mail, or catalogs.

television marketingtelevision marketing; takes two major forms. The first ; takes two major forms. The first is direct-response advertising where marketers air is direct-response advertising where marketers air television spots, often 60 to 120 seconds long, that television spots, often 60 to 120 seconds long, that persuasively describe a product and give customers apersuasively describe a product and give customers a toll-free number for ordering. Home shopping toll-free number for ordering. Home shopping channels is another form of television direct channels is another form of television direct marketing which are television programs or entire marketing which are television programs or entire channels dedicated to selling gods and services.channels dedicated to selling gods and services.

online computer shoppingonline computer shopping: is conducted through : is conducted through interactive online computer systems which link interactive online computer systems which link consumers with sellers electronically. Consumers use consumers with sellers electronically. Consumers use a home computer to hook into the system through a home computer to hook into the system through cable or telephone lines.cable or telephone lines.

Marketing Communications Marketing Communications Characteristics in Tourism and Characteristics in Tourism and

HospitalityHospitalityNature and Nature and

Characteristics of Characteristics of

ServicesServices

IntangibilityIntangibility InseparabilityInseparability HeterogeneityHeterogeneity PerishabilityPerishability

Service IntangibilityService Intangibility

means that unlike physical products, means that unlike physical products, services cannot be seen, tasted, felt, heard services cannot be seen, tasted, felt, heard or smelled before they are bought.or smelled before they are bought.

Buyers look for “signals” or “tangible Buyers look for “signals” or “tangible evidences” like the place, people, price, evidences” like the place, people, price, equipment and information about the equipment and information about the service in order to reduce uncertainty service in order to reduce uncertainty caused by intangibility before they pay the caused by intangibility before they pay the price. E.g. the cleanliness of the restaurant, price. E.g. the cleanliness of the restaurant, employee uniforms of the hotelemployee uniforms of the hotel..

Because of intanbigle nature of Because of intanbigle nature of services, as far asservices, as far as

their communication strategies are their communication strategies are concerned, concerned,

organizations have the following three organizations have the following three key aims;key aims;

Brand identityBrand identity Positioning of the brandPositioning of the brand Creating demandCreating demand

In addition, hospitality firms must;In addition, hospitality firms must; communicate the intangible benefits communicate the intangible benefits

of the service,of the service, be specific about the distinct features be specific about the distinct features

and characteristics of the services and characteristics of the services and provide concrete details,and provide concrete details,

provide key information about the provide key information about the evidence that creates “trust”,evidence that creates “trust”,

take consumers through the exact take consumers through the exact steps of the experience. steps of the experience.

Service InseparabilityService Inseparability means that services cannot be separated from means that services cannot be separated from

their both (1) providers and (2) other their both (1) providers and (2) other customers.customers.

If a service employee provides the service, then If a service employee provides the service, then the employee is part of the service. E.g. the the employee is part of the service. E.g. the food in the restaurant may be outstanding, but food in the restaurant may be outstanding, but if the service person is rude, customers will if the service person is rude, customers will downdownraterate the overall service of the restaurant. the overall service of the restaurant.

the other customers affect the service outcome the other customers affect the service outcome as well. E.g. a couple may choose a restaurant as well. E.g. a couple may choose a restaurant but if a group of loud customers is seated next but if a group of loud customers is seated next to them, the couple will be disappointed.to them, the couple will be disappointed.

Therefore, in marketing Therefore, in marketing communications, communications,

organizations must;organizations must; emphasize the people and quality of emphasize the people and quality of

service. service.

HeterogeneityHeterogeneity means that the quality of services depends on means that the quality of services depends on

who provides them, plus, when, where, and how who provides them, plus, when, where, and how they are provided. E.g. within a given hotel they are provided. E.g. within a given hotel chain, one reception desk agent may be cheerful chain, one reception desk agent may be cheerful and efficient one day but would be unpleasant and efficient one day but would be unpleasant and slow the other day. and slow the other day.

Service providers’ service quality depends on Service providers’ service quality depends on his energy and his frame of mind at the time of his energy and his frame of mind at the time of each customer encounter.each customer encounter.

Fluctuating demand makes it difficult to deliver Fluctuating demand makes it difficult to deliver consistent services during periods of peak consistent services during periods of peak demand. demand.

HeterogeneityHeterogeneity or lack of consistency is the or lack of consistency is the major cause of customer disappointment in the major cause of customer disappointment in the industry.industry.

Due to heterogeneity, companies must payDue to heterogeneity, companies must payattention to the following in creating their attention to the following in creating their marketing messages;marketing messages; highlighted role of peoplehighlighted role of people experiential and emotional nature of experiential and emotional nature of

messagesmessages timing and process issuestiming and process issues quality of service delivery and productsquality of service delivery and products tangible features and benefitstangible features and benefits pricing strategies, promotions and pricing strategies, promotions and

discountingdiscounting standards and guaranteesstandards and guarantees

Service PerishabilityService Perishability means that services cannot be stored for later means that services cannot be stored for later

sale or use. E.g. if a 100 room hotel can sell sale or use. E.g. if a 100 room hotel can sell only 40 rooms today, selling the remaining 60 only 40 rooms today, selling the remaining 60 is gone forever.is gone forever.

If service providers are to maximize revenue, If service providers are to maximize revenue, they must they must manage capacity and demandmanage capacity and demand. E.g. . E.g. hotels charge lower rates in the off-season to hotels charge lower rates in the off-season to attract more guests; restaurants hire part-time attract more guests; restaurants hire part-time employees to serve during peak periods; tour employees to serve during peak periods; tour operators and airline companies have last-operators and airline companies have last-minute sales.minute sales.

Service perishability is a serious problem when Service perishability is a serious problem when demand fluctuates.demand fluctuates.

This factor puts a special emphasis This factor puts a special emphasis on price-setting in marketing. “Yield on price-setting in marketing. “Yield management” management”

Regarding marketing Regarding marketing communications, companies must; communications, companies must; Consider using sales promotions and Consider using sales promotions and

discounting.discounting.

Useful Links and Useful Links and SourcesSources

McCabe, S. (2009). McCabe, S. (2009). Marketing Marketing Communications in Tourism and Hospitality: Communications in Tourism and Hospitality: Concepts, Strategies and CasesConcepts, Strategies and Cases. Butterworth-. Butterworth-Heinemann: Oxford. Heinemann: Oxford.

Kotler, P.; Bowen, J. and Makens, J. Kotler, P.; Bowen, J. and Makens, J. Marketing for Hospitality and TourismMarketing for Hospitality and Tourism (5th (5th ed.). Prentice Hall New Jersey. (2011)ed.). Prentice Hall New Jersey. (2011)

Kotler, P. and Armstrong, G. Kotler, P. and Armstrong, G. Principles of Principles of MarketingMarketing. (14th ed.) Prentice Hall Int. Inc., . (14th ed.) Prentice Hall Int. Inc., New Jersey. (2011)New Jersey. (2011)

Middleton, V.T.C. (2004) Marketing in Travel Middleton, V.T.C. (2004) Marketing in Travel and Tourism (3rd ed). Elsevier. Oxford.and Tourism (3rd ed). Elsevier. Oxford.

http://www.tourism.bilkent.edu.tr/~edahttp://www.tourism.bilkent.edu.tr/~eda