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Marketing in travel and tourism

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Unit 4 Marketing in travel and tourism HND TTM

Unit 4 of HND Travel and tourism deals with the important field of application of marketing management in travel and tourism. This unit offers mainly 4 learning objectives which include understanding general concepts of marketing and their applicability to the field of travel and tourism. Secondly, role of marketing as a management tool towards travel and tourism, Thirdly, defining marketing mix factors by applying 7Ps to the service sector of travel and tourism. Finally, deciding on the promotional mix for the marketing in travel and tourism sector.

INTRODUCTION

  • Aim

This unit enables learners to understand the concepts, principles and role of marketing and the marketing mix, and gain business skills to use the promotional mix in travel and tourism.

Unit abstract

The aim of this unit is to develop learners’ understanding of the key concepts and principles of marketing as they apply to the travel and tourism sector. The unit aims to equip learners with the knowledge and understanding of the key factors affecting business marketing environments and the role of marketing in different industries within the travel and tourism sector.

The focus of this unit is initially on marketing at a strategic level before moving on to the functional and operational aspects of marketing as the unit progresses. Learners will investigate the implications for marketing in today’s competitive and service-based sector and will have the opportunity to develop practical skills of marketing.

Learning Outcomes and assessment criteria:

On successful completion of this unit a learner will:

LO1 Understand the concepts and principles of marketing in the travel and tourism sector

LO2 Understand the role of marketing as a management tool in travel and tourism

LO3 Understand the role of the marketing mix in the travel and tourism sector

LO4 Be able to use the promotional mix in travel and tourism.

Indicative content:

LO1 Understand the concepts and principles of marketing in the travel and tourism sector

Core concepts: concepts eg marketing concept and orientation, customer needs, wants and demands, products (and services) and markets, value, customer satisfaction and the exchange process, changing emphasis of travel and tourism marketing

Marketing environment: micro environment eg the tourism organisation, suppliers, intermediaries, customers, competitors; macro environment eg demography, economy, society, technology, politics, culture, tourism systems and destinations

Consumer markets: factors eg tourist motivations and determinants, models of consumer behaviour, consumer decision process, types of buyer behaviour, value-chain, customer value and satisfaction

Market segmentation: principles eg segmentation, targeting and positioning, segmentation bases, geographic, psychographic, demographic, behavioural, life-cycle stage, income, gender, geo-demographic, integrated methods, simple multivariate, advance multivariate, multistage, tourist typologies

LO2 Understand the role of marketing as a management tool in travel and tourism

Strategic planning: role eg strategic plans, Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, the concept of the product life cycle (PLC)/tourist area life cycle (TALC), Boston Matrix, strategic and tactical objectives, Ansoff’s matrix, competitive advantage

Marketing research and market information: importance for eg travel and tourism managers, market information systems, defining the market, measuring current demand and tourism trends, the marketing research process, forecasting and demand measurement

Marketing and society: influence on eg society, social responsibility and ethics, regulations and public policy, the impact of marketing on society, consumerism, environmentalism, legal considerations, sustainability

LO3 Understand the role of the marketing mix in the travel and tourism sector

Role: key issues; importance of service sector

Marketing mix: product; price; place

Product: elements eg product features, advantages and benefits, tangible, intangible and service elements, product classification, product mix and portfolio analysis, product life cycle, product development and formulation, individual tourism business product, total tourism product (TTP), product differentiation and branding

Pricing: elements eg role of price in the marketing mix, price setting considerations, cost classification, factors affecting pricing decisions, approaches to pricing, cost-plus pricing, break-even pricing, value-based pricing, pricing strategies

Place: elements eg distribution channels, location and access, principals and intermediaries, channel behaviour and the organisation, vertical marketing, channel objectives and strategy, physical distribution and logistics

Service sector mix elements: elements eg the nature and characteristics of services, internal marketing, interactive marketing, service quality, people, partnerships, programming, packaging

LO4 Be able to use the promotional mix in travel and tourism

Promotional mix: nature and role eg public relations, selling, advertising and sales promotion, direct marketing, internet and online promotion, integrated communications, communication channels, promotional mix decisions, budgetary considerations, monitoring and evaluating promotions

Advertising and public relations: principles eg objectives, methods, reach, frequency, impact, creating copy, costs and budgeting, media planning, public relations activities and tools, limitations, evaluation, role of agencies

Sales promotion and personal selling: skills eg aims and objectives, reasons for growth of sales promotion and merchandising, points of sale, methods of sales promotion used in travel and tourism, importance of travel and tourism brochures, personal selling functions

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