Unit 5

Travel and tourism

• Today, tourism is the fastest growing industry in the world and is constantly growing
as more and more destinations seek to attract tourists and more companies and
organizations become involved in highly skilled business of destination planning,
transportation, accommodation and catering for the tourists.
• Travel and tourism needs to be marketed more vigorously than other products as it
is an industry in which the customer has immense variety of choice and also varied
motivations for travel.
• As long as the inherent sense of curiosity and adventure dwells in the hearts of
human beings, the desire to travel, in order to see new sights and experience new
things and to live under different environments, will always grow.
• Its complexity lies in the tourism promotion in its various forms directed at large
number of people in various lands of different socio-economic structures, having
different needs, expectations and behaviour patterns.
• Marketing in tourism is concerned with the needs of identifiable
consumer groups. Marketing involves much more, including
product/service development, place (location and distribution), and
pricing. It requires information about people, especially those interested
in what you have to offer (your "market"), such as what they like, where
they buy and how much they spend. Its role is to match the right product
or service with the right market or audience. Modern marketing is
heavily based on the "marketing concept" which holds that businesses
and organizations should:
• (1) design their products/services to meet customer needs and wants;
• (2) focus on those people most likely to buy their product rather than the
entire mass market; and
• (3) develop marketing efforts that fit into their overall business
objectives.
tourism marketing mix
• 1. Product
• The experiences you offer and what’s included. Take note of everything that
would go into the product description, such as duration, itinerary, special
features, and other important details.
• 2. Place
• Where people can book your experiences. Traditionally, that would be your
ticket office or travel agents, but there are now countless ways people can
book — OTAs, email, chatbots, Facebook, your website. Figure out the number
one place you want to direct prospects.
• 3. Price
• The price guests will pay based on the perceived value. Factor in what your
competitors charge, how much it costs you to provide the experience, your
revenue target, and where the market is heading.
• 4. Promotion
• How you’re going to get the word out. Look at what has worked well in the past, where you
already have some traction, new social media opportunities, and the best content format for
your target audience.
• 5. People
• The people who facilitate the experience. What are the standout qualities your staff has that
align with your brand? What skills do your guides have that make the experience memorable,
entertaining, and informative?
• 6. Planning
• The measures you take to keep guests in the loop. How do you ensure they show up prepared?
How do you tell them about your flexible cancellation policy? Are there any tactics you use to
prevent refunds? What if you have to make unwanted changes?
• 7. Processes
• The processes you have in place to guarantee guests get the experience they expect. Everything
should run smoothly from the get-go. Consider ways to shorten check-in, stay on schedule, and
make them feel valued.
• 8. Proof
• The physical evidence that proves your guests had the best time. This could be in the form of
professional photos or merchandise. But it can also be online reviews you encourage them to
write on popular platforms.
 Banking and insurance
• Bank marketing does not only include service selling of the bank but also is the
function which gets personality and image for bank on its customers’ mind.
• The reasons for marketing scope to have importance in banking and for banks to
interest in marketing subject can be arranged as:
• Change in demographic structure: Differentiation of population in the number and
composition affect quality and attribute of customer whom benefits from banking
services.
• Intense competition in financial service sector: The competition became intense
due to the growing international banking perceptiveness and recently being non
limiting for new enterprises in the sector.
• Bank’s wish for increasing profit: Banks have to increase their profits to create new
markets, to protect and develop their market shares and to survive on the basis of
intense competition and demographic chance levels.
 The Marketing Mix In Banking Sector
• SERVICE : Banking services are also intangible. Banking services are about the
money in different types and attributes like lending, depositing and transferring
procedures. These intangible services are shaped in contracts. The structure of
banking services affects the success of institution in long term. Besides the basic
attributes like speed, security and ease in banking services, the rights like
consultancy for services to be compounded are also preferred.
• PRICE : The prices in banking have names like interest, commission and
expenses. Price is the sole element of marketing variables that create earnings,
while others cause expenditure. While marketing mix elements other than price
affect sales volume, price affect both profit and sales volume directly. Banks
should be very careful in determining their prices and price policies. Because
mistakes in pricing cause customers’ shift toward the rivals offering likewise
services. Traditionally, banks use three methods called “cost-plus”, “transaction
volume base” and “challenging leader” in pricing of their services.
• DISTRIBUTION : Most banks’ services are complex in attribute and when this
feature joins the intangibility characteristics, offerings take also mental
intangibility in addition to physical intangibility. On the other hand, value of
service and benefits taken from it mostly depend on knowledge, capability and
participation of customers besides features of offerings. This is resulted from
the fact that production and consumption have non separable characteristics
in those services. those features of banking services makes personal
interaction between customer and bank obligatory and the direct distribution
is the sole alternative. Due to this reason, like preceding applications in recent
years, branch offices use traditional method in distribution of banking services.
• PERSONAL SELLING : Due to the characteristics of banking services, personal
selling is the way that most banks prefer in expanding selling and use of them.
Personal selling occurs in two ways. First occurs in a way that customer and
banker perform interaction face to face at branch office. In this case, whole
personnel, bank employees, chief and office manager, takes part in selling.
Second occurs in a way that customer representatives go to customers’ place.
Customer representatives are specialist in banks’ services to be offered and
they shape the relationship between bank and customer.
• PROMOTION : One of the most important element of marketing mix of services is promotion
which is consist of personal selling, advertising, public relations, and selling promotional tools.
• ADVERTISING : Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising campaigns
and use media.
• 1. Conceive customers to examine all kinds of services that banks offer
• 2. Increase use of services
• 3. Create well fit image about banks and services
• 4. Change customers’ attitudes
• 5. Introduce services of banks
• 6. Support personal selling
• 7. Emphasize well service Advertising media and channels that banks prefer are newspaper,
magazine, radio, direct posting and outdoor ads and TV commercials.
• PUBLIC RELATIONS : Public relations in banking should provide;
• 1. Establishing most effective communication system
• 2. Creating sympathy about relationship between bank and customer
• 3. Giving broadest information about activities of bank.
Insurance sector
• Insurance companies are in a unique position when it comes to
marketing. They have no tangible products to sell, but must instead
rely on strong relationships with loyal customers and word of mouth
to help them compete. Still, despite the challenges, the marketing
strategies for insurance companies are really no different than for any
other company, and require a strong focus on the basics of effective
marketing.
 Marketing strategies for insurance companies
• Know the Market : First and foremost, insurance companies must know their
market. This means having a strong understanding of their target audience, their
competition and the most effective ways to connect with that audience,
according to Lin Grensing- Pophal, author of "Marketing With the End in Mind."
Competition is fierce, but service organizations like insurance agencies that
thoroughly understand the needs and concerns of their target audience can
effectively motivate that audience to connect with them.
• Establish a Plan : Successful marketers don’t just go out and "do things." Based
on their knowledge of the market, and their overall goals and objectives,
successful marketers identify and prioritize the communication strategies most
likely to generatethe results they need. This generally involves a combination of
activities that include both traditional and new media, direct and indirect sales.
• Measure Effectiveness : It is important for insurance companies to
measure the effectiveness of their marketing efforts based on the goals
they have established. This may be as simple as comparing the number of
clients before and after a campaign. It may also involve using online
analytics to monitor website visits after launching a promotion.
• Gather Feedback : For insurance marketers, word of mouth is key. In
addition to measuring the effectiveness of marketing efforts based on
quantitative data, insurance marketers can seek input from their existing
and new clients about their communication efforts. What worked well?
What was unclear? How might they communicate more clearly in the
future? In addition, clients can be excellent advocates and part of the
marketing process. Successful insurance marketers will take advantage of
the opportunity to leverage their clients as word-of-mouth marketing
advocates.
Health care
• The healthcare practitioners had initiated providing more convenient
customer services and have moved far beyond providing the core
healthcare services of mere prevention of or cure from a disease by
developing better marketing mix offerings.
• The smart hospitals follow a patient friendly approach to provide
service alike hotels and have changed traditional belief of hospitals
where people would like to stay away so far as possible.
• Healthcare marketing is a process of strategic outreach and
communications built to bring in new healthcare consumers, shepherd
them through their healthcare journey, and keep them engaged with the
healthcare system, service, or product.
Marketing of Healthcare Services:

• 1. Use consistent healthcare branding

• 2. Evaluate the online patient experience
• 3. Build a responsive healthcare website
• 4. Test site speeds
• 5. Optimize organic search engine results for prospective healthcare
consumers
• 6. Use PPC (pay-per-click),and display ads for healthcare marketing
• 7. Leverage social media (the right way)
• 8. Ask for reviews from healthcare consumers
7 Ps of Healthcare Marketing

• Product consists of a bundle of tangible and intangible elements: core service, supplementary goods and services,
facilitating services and supporting services In the following, there are presented some of the elements of the
healthcare services:
• Core service – medical procedure that solves patients’ problems;
• Supplementary services – e.g., consultation, hospitality;
• Facilitating services – e.g., information provision, payment methods, billing;
• Supporting services – e.g., education on important health topics.
• In order to achieve the patient’s expectations, the healthcare services providers should take into consideration their
needs and to make an analysis of the products and services in order to identify gaps or missed opportunities.
• Price is one of the most challenging components of the marketing mix. When they set prices and rates, the healthcare
services providers should take into consideration at least the following two aspects:
• 1. There are prices of healthcare services that are subject to public regulation;
• 2. The balance between the profitability of the hospital/clinic and to ensure that services are affordable.
• Promotion involves the process of establishing communication between the hospitals/clinics, patients, and other
companies. The healthcare services providers should use online tools such as website, social media profiles and
engaging storytelling.
7 Ps of Healthcare Marketing

• Place: refers to providing easy and convenient access to product and services. In order to facilitate
access to the healthcare services, providers should consider fast appointments, enhance
communication with patients and optimize the streamline patient onboarding.
• Process should be designed for the customer’s convenience and judging from his point of view, thus
focusing it on his specific. Thereby, it is considered that customers are part of the production of the
service. In healthcare services, the caregiving and support processes used to provide care have the
peculiarity that, beyond the performance of the medical staff, the patient’s contribution is essential.
• Physical evidence provides tangible cues of the quality of experience that a company is offering. For
a healthcare services provider, the website holds valuable physical evidence, such as: testimonials
and information about doctors and diseases. Moreover, the physical evidence could be in form of
staff uniform, mobile application, and interior design of the hospital.
• People involves that the services should be done in an organized and efficient manner, and the
delivering of the services should be done with a nice and friendly manner. Healthcare industry is a
knowledge-based industry, so people play key role in hospitals which include doctors, nursing staff,
paramedical staff, supporting staff & front office executives
Entertainment marketing
• Entertainment services include all those services that help a person
feel entertained and relaxed. The various forms of entertainment
include music, movies, sports, animation, television shows, and the
more modern forms such as go-karting, bowling alleys, theme parks
and family entertainment centers.
Marketing of Entertainment Services:
• Sell the Experience
• Know Where Your Audience Is & How to Reach Them
• Video Marketing Should Be a Key Priority
• Always Promote Transparency & Ethical Practices
• Know What You Can & Can’t Promote
• Think Outside the Box
• Keep Your Followers Engaged
 Marketing Mix of Entertainment Services
1.Product: This could be a movie, TV show, music album, or any entertainment content. The
focus is on how it can organically reach consumers.
2.Price: Pricing strategies for various media platforms, event tickets, or merchandising related
to entertainment content.
3.Place: Distribution channels, like streaming services, television, cinemas, or online
platforms.
4.Promotion: This includes all promotional activities such as brand integration, product
placements, advertising campaigns, and public relations efforts.
5.People: Targeting the right audience and understanding the demographic that aligns with
the entertainment content.
6.Process: The logistics of delivering entertainment content to consumers, including the
production and distribution process.
7.Physical evidence: This refers to tangible experiences or merchandise that enhance the
connection between the entertainment content and the consumer.
Education
• Education services can be described as a high consumer and people based
service.
• However, innovative methods like using multi-media kits while providing the
service are making interaction between and instructor and student less
significant.
• As the education service is intangible, inseparable and perishable, certain
implications exist for marketing. And service quality is not consistent for all
customers, or even a single customer at all times.
• marketers’ are required to ensure that these features of the education service
are better utilized to meet the varying needs of customers. The marketing mix
can be better utilized to overcome the problems associated with the service
specific features of education.
Marketing of Education Services:
• By offering education with enhanced features like updated syllabus and
industry interaction, they can improve the quality of the product.
• With franchising and better infrastructure facilities experienced instructors,
marketers can meet customer expectations.
• With the right mix of all the Ps, tailor-made customer focused courses can be
offered.
• Technology like computers, LCD projectors and multimedia, has helped service
providers offer better service to more customers. It has enabled instructors to
deliver the service in less time in an effective manner to even a large group in
high contact regular education. It has enabled them to concentrate more on
knowledge management rather than than on preparation of teaching notes.
Marketing Mix of Education Services
• The 7Ps for the educational services are explained below: Product Product: in
the educational sector is related to school facilities such as workshops and
training labs, libraries, element in this sector is similar to the physical
evidence.
• Price: Price is the amount of money that the buyer pays to the service
provider. But the tuition that parents pay for their children’s education is the
corresponding price in the educational sector. So price involved tuition issues.
• Place This factor is related to whether the school is available and will be
comfortable to travel there or not. Prospective parents may choose a school,
and it is a simple reason which school is located near their home. The
reduction of parents traveling time to school will lead to positive.
• Promotion Promotion may be a key element in the school marketing mix.
Indeed, most marketing efforts that are performed at schools are classified
as a promotion. The purpose of promotion is communication with the
target markets. The same concept today plays a significant role in creating
a competitive advantage for for organizations against competitors. The
plan will not succeed without effective promotional plans. Most schools in
the world use promotional activities such as public relations.
• Advertising Place advertisements in outlets that are frequented by the
target audience. Suppose marketer’s services are aimed at high- school
seniors. For example, put extra resources into online advertisements, since
that is where this audience prefers to seek information. If marketers are
targeting low-income adults and families, consider posting ads in local
print newspapers or job classifieds. Take full advantage of the website’s
search engine optimization and established social-media following to
spread the word about new programs at a relatively low cost.
• Public Relation (PR) It is creating of favorable school mentality among different
groups of the target market, without having to pay for it. PR encompasses a
wide range of activities, such as media relations, interviews. The role of PR is,
enhance the marketing efforts in the schools.
• An important goal of it is shaping a way to introduce and create public
awareness about the achievements of the school. One of the most common
types of non-media public relations is PTA (Parent-Teacher Association).
• Publicity A special place occupies the printed publicity like brochures, letters,
Christmas cards. There are also objects like pens, pencils, bags, keyrings,
badges, garments which have printed the name and emblem of the educational
institution.
• Expo It is common among private schools. These exhibitions are part of the
perception managing of parents. Expos prevent the spread of rumors about
schools and will be accustomed parents with the characteristics of the school
and its achievements. Also will expand communication between the schools
and parent.
• Brochure Among elements in advertising, brochures are used in schools
more than others. Brochures often are the first contact between the
parents and the schools. It can make it possible to create and develop a
favourable image of the school in parent’s minds.
• Direct Marketing: Faculties, schools, and other educational are always
(speaking for themselves) sending out a message to the public on their
existence regardless of whether they formally have a communication
program or not. Also, the institution must determine and get a
comprehensive insight into the information needs of the internal
environment (faculty, staff, existing students, and others ithin the internal
environment, etc.
• People This factor can be related to all staff, employees, and members, including
the principal or deputy as well as teachers. In fact, people include all members of
the school that can serve students (consumers) and parents (customers). It is
emphasized in a study that the people factor is vital for the successful delivery of
the service is very important. It is related to the ability, skills, experience, and
knowledge of teachers. According to his opinion, the most important aspect that
affects parental satisfaction is teaching features that lead to learning.
• Process These are all the administrative and bureaucratic functions of the
university, which are registration, course evaluation, examinations, result
dissemination, and graduation. The learning process and social activities as
processes that occur in universities.
• Physical Evidence The intensity of the intangibility of educational services will be
reduced by physical evidence. University facilities and buildings can be considered
physical evidence. The first image in the university student’s mind will be shaped
by this factor—video projectors and facilities necessary to present lectures as
physical evidence.
Self-service technologies
• Self-service technologies (SSTs) enable customers to create a service
without any direct involvement of a service employee. SSTs include
ATMs, online banking, train ticketing apps, self-service scanning at
supermarket checkouts, and a variety of other online and app-based
services.
Benefits of SSTs
1.Greater convenience: SST machines are conveniently located and accessible 24 hours a
day, seven days a week. A website is as close as your computer or smartphone, making
it far more accessible with timing flexibility and time saving.
2.Improved accuracy: As consumers get more involved in what they are ordering, the
overall accuracy of service improves.
3.Personalized experience Firms can use AI tools powered by data analytics to log every
event on the screen, generate and report customer insights, and improve SST
performance to provide not only personalised experiences but also consistently improve
service quality.
4.Reduce wait time Use of SSTs significantly reduces wait times because they process
every order without delay and are directly controlled by the customers.
5.Information sharing It allows customers the freedom to access information more quickly
than by finding and consulting with a customer service agent.
 Drawbacks
1. Equipment failures: Machines can fail at any time, preventing transactions from
being completed. For example, at the time of need, cash cannot be withdrawn
from an ATM due to a problem with the ATM or a shortage of cash. This distress
can overshadow the benefits of SSTs.
2. High initial costs: Installing self-service systems and committing to ongoing
maintenance costs may be costly, especially if they are used in a limited number
of locations.
3. Lack of human interaction: When minor issues arise, such as price discrepancies,
items failing to scan, or splitting payments between cash and debit cards, the
lack of in-person assistance becomes especially problematic. Furthermore, some
people may regard service encounters as social experiences and prefer to
interact with people. This is especially true in services where social robots
replace human interactions, such as child care or elderly care.
Challenges of SSTs
1.Technical issues: SSTs can be prone to technical issues, such as software bugs or
hardware malfunctions. This can result in delays or service interruptions, which
can be frustrating for customers.
2.Learning curve: SSTs can be difficult to use for customers who are unfamiliar
with the technology or who have limited digital literacy. This can result in errors
or delays, which can also be frustrating.
3.Security concerns: SSTs can be vulnerable to hacking or other security breaches,
which can compromise customer data and erode trust in the service provider.
4.Reduced personal interaction: SSTs can reduce or eliminate personal interaction
between customers and service providers. This can result in a less personalized
service experience and a reduced sense of trust and loyalty.
Impact of SSTs
1.Business benefits: SSTs can help businesses reduce costs, increase efficiency,
and improve service delivery. This can result in increased profitability and a
competitive advantage.
2.Consumer benefits: SSTs can provide customers with greater convenience, faster
service delivery, and more customization options. This can result in increased
customer satisfaction and loyalty.
3.Job displacement: SSTs can lead to job displacement for service providers who
are replaced by automation. This can have negative impacts on workers and their
families, as well as on the broader economy.
4.Digital divide: SSTs can exacerbate existing inequalities in digital literacy and
access to technology. This can result in some customers being left behind or
excluded from certain services.
Customer relationship management (CRM)
• Customer relationship management (CRM) enables service providers
to provide a unified customer interface that allows for customization
and personalization. CRM systems collect customer data from various
channels such as the company’s website, social networks, live chat,
direct mail, and other communication channels and provide personal
information, purchase history, purchasing preferences, and concerns
to customers throughout the customer lifecycle in order to provide
better and faster customer service.
Benefits of CRM
• Access to a customer’s previous purchases and interaction history can
assist service personnel in providing better services as well as
developing better marketing strategies.
• Repetitive customer support tasks can be automated.
• Analysis of customer data can help service firms identify trends and
insights about their customers through reporting and visualisation
features.
 THE CHANGING SERVICES SCENARIO
• Personalization: In order to encourage relationship building, a new service marketer is creating
marketing strategies that place an emphasis on human interaction during service delivery.
However, as technology spreads, the human element is given less importance. Internet
transactions like online banking and check-in are being encouraged by marketers because they
cut down on human interaction and promote process standardisation.
• Customer Expectations: Consumer behaviour research is being used more frequently by
marketers, who can now quantify customer expectations and work to provide offerings that
match consumers’ perceived value. Additionally, marketers are successfully analysing consumer
purchasing behaviour and creating targeted advertisements based on the behavioural study due
to the increased use of consumer databases via tools like credit cards, loyalty cards, and others.
• Credibility: By putting more emphasis on Emotional Selling Propositions than Unique Selling
Propositions, marketers are concentrating their efforts on presenting themselves as businesses
that successfully deliver on their promise. Companies employ both above- and below-the-line
marketing strategies, and it has been observed that modern consumers favour public relations
and branding above paid advertising.
• Simplification: To give customers quick and easy access to service
providers and information, new cyber channels are now being used as
information mediators. Most marketers are developing dynamic,
appealing marketing tools like websites that make it simple, pleasant, and
convenient for customers to use services.
• Internationalization: Multinational service brands are increasingly
dominating the service market. This is mostly because big businesses can
invest in developing technology to keep up with escalating client
demands. They can employ sophisticated CRM systems to help with
customer promotion and marketing of the brands. For instance, internet
travel agencies like AirBnB have hosts in many different nations, which
has allowed them to build up a comprehensive database of customers
and their preferences. It employs the CRM software to advertise tailored
services to specific customers depending on their preferences after using
this data and technology like artificial intelligence.
• Bundling It is a practise of combining additional service with a basic offering.
Additionally, it aids in reducing the impact of intangibility’s fundamental quality on
the promotion of consumer services. For instance, the majority of hotels today offer
a package deal that includes complimentary breakfast and room reservations. The
accommodation service in this instance serves as the primary or fundamental
offering and is provided via the reservation of a room. The hotels offer
complimentary breakfast as a way to add a physical component to this service,
combining the intangible service of lodging with the tangible component of
breakfast.
• Rationing In order to address the challenges of a high rate of return on investment,
marketers are making major efforts to optimise production per unit of service. The
function of marketing has shifted to become more analytical in nature.
• Virtual Experience Marketers often use technological tools like virtual reality to
deliver services or just as a replacement for services. In order to encourage client
interaction and foster trust in the service provider, marketers are also creating
forums and fan groups. For instance, the firm Zoom, which offers online video
conference services, launched the functionality of break-out rooms in 2020. This
feature was added to provide the students and participants a chance to interact in
smaller groups while a live online session was still in progress.
• Market Spaces: A growing number of service consumers for enterprises
have already been drawn to the innovative cyber market. Currently, it is
the method of distribution that works best for service providers. Hotels,
broadband services, and the airline industry are just a few examples.
• Multi-Dimensional Competition: The marketers are making an effort to
present themselves as providers of non-traditional services. To position
their service as a custom package for their target market, marketers are
using niche and focused marketing methods.