The Untouchables

Ahmed Ali (116)

01

Rupa Banik (120)

02

Mahbubur
Rahman(118)
04 Nahrin Akhter (008)

03

05 Most. Habiba (032)

Nusrat Shaheed
(016)
Farhana
Yeasmin
07
(042)

06

The Untouchables

Chapter: 09
Travel and Tourism
Products Marketing

The Untouchables

Introduction:

The ways in which products are put together

(product formulation) are the most important
responses marketing managers make to what
they know of their customers needs and wants.
The design of products determines what prices
can be charged, what forms of promotion are
needed, and hat distribution channels are used.
According to Middleton:1983a, p 2, customerrelated product designs are the basis of
marketing strategy and tactics as well as four Ps
in marketing mix, product formulation etc.

Travel and Tourism

Products-from Two
Standpoints
Tourism destination comprises a mix of several

different components. Including,

Travel
Accommodation
Attractions and
Other facilities such as catering and
entertainment.
Sometimes all the components are purchased from
a commercial supplier.
Sometimes customers supply most of the
components themselves.

The Overall Tourism

Product
The tourist product is to be considered as an
amalgam of three main components.
These are,
Attractions
Facilities at the destination
Accessibility of the destination

The Product of Individual

Producers
It has to be recognized that airlines, hotels,

attractions, car rental and other producer

organizations in the industry, generally take a
much narrower view of the products they sell.
Many large hotel groups and transport
operators employ product managers in their
marketing teams and handle product
formulation and development entirely in terms
of the operation they control.

Continued.
The hotel product is a bundle, which may be itemized

as:
Initial experience and reactions in selecting from a
brochure.
Experience of the booking process.
First impressions on entering the hotel.
Standard of room and any end suite facilities.
Experience of customer-staff interactions.
Provisions of meals and any ancillary services.
Checking out process on leaving.
Follow up, such s direct mailing, received subsequently.

A Benefits View of
Products
It is important to keep in mind the customer view

of what businesses of all types offer for sale.

According to Levitt:1969, People do not buy
products, they buy the expectations of benefits.
Researching targeted customers perceptions of
product benefits and utilities, and designing or
adapting products to match their expectations, lie
at the heart of marketing theory.

Components of the overall

Tourism Product
There are five main components in the overall
product, which are mentioned separately
below:
Destination Attractions and environment
Destination facilities and services
Accessibility of the destination
Images of the destination
Price to the consumer.

1. Destination Attractions and

Environment
These are elements within the destination

that largely determine consumers choice and

influence prospective buyers motivations.
They include:
Natural attractions
Built attractions
Cultural attractions
Social attractions

2. Destination Facilities and

Services
These are elements within the destination, which
make it possible for visitor to stay and in other ways
enjoy and participate in the attractions. They
include:
Accommodation units
Restaurants, bars, and cafes
Transport at the destination
Sports/activity
Other facilities
Retail outlets
Other services.

3. Accessibility of the
Destination
These are the elements that affect the cost,
speed, and the convenience with which a
traveler may reach a destination. They
include:
Infrastructure
Equipment
Operational factors
government regulations

4. Images and Perceptions of

the Destination
Destination images are not necessarily
grounded in experience or facts, but they
are powerful motivators in travel and
tourism. Images and the expectations of
travel experiences are closely linked in
prospective customers minds.

5. Price to the
Customer
Any visit to a destination carries a price,
which is the sum of what it costs for travel,
accommodation, and participation in a
selected range of services at the available
attractions. Because most destinations
offer a range of products, and appeal to a
range of segments, price in the travel and
tourism.

Specific products-the
producers view
The overall view of tourism product is highly
relevant to the marketing decisions taken by
individual producers.
Marketing managers need to think about the
product on three levels. these three levels
are:
The core product.
The tangible product.
Augmented product.

Specific products-the producers

view(continued..)
The core product, which is the essential service or
benefits designed to satisfy the identified needs of
target customer segments.

The tangible product, which comprises all the forms

of added value producers may build into their tangible
product offer to make them more attractive to their
intended customers.

Augment product, include both tangible and

intangible product. It comprises the difference between
the contractual essentials of the tangible product and
the totality of all the benefits and services experienced
in relation to the product by the customer.

Competitive product
formulation
Protective marketing managers are

continuously looking for innovation, to stay

ahead of the competition. And it is known that
being first with product development is a
strong advantage for any company
Protective marketing managers basically
focused on the product augmentation because
One augmented element cannot be easily
copied.

Product positioning
The modern approach to product positioning

is based on the well-tested hypothesis that

products, companies and tourist destinations
have images or perceptions with which they
are identified in the minds existing and
potential customers.
Appropriate positions are also segmentrelated.
Product formulation has two sides; one is
supply side and another is demand side.

Role of Packaging in The

Overall Tourism Product
The overall tourism product was introduced as a
package and defined in terms of five main
components. They are:
Destination attractions,
Destination facilities and services,
Accessibility of the destination,
Images and perceptions, and
Price to the customer.

Defining Inclusive Tour and

Product Packages
The broad view of packages includes two
distinctive types of operator. They are:
The first type always includes transport in

their package. These are the traditional tour

operators.

The

second

type

always

includes

accommodation in their package and may or

may not include transport.

The Development of Independent

Tour Operating Businesses
By identifying four reasons we can
explain
the
development
of
independent
tour
operating
businesses. They are:
Overcoming the inherent inefficiencies in

the markets for leisure travel and tourism,

especially for international travel,
Facilitating and simplifying the process of
choice and booking for customers,

The Development of
Independent Tour
Operating Businesses
The development of independent tour

operating businesses,
Delivering price advantages that

customers are usually unable to achieve

for themselves.

Constructing an Inclusive
Tour Program
A program is normally expressed in brochures

containing a range of product choice.

A tour operator offers ITs by air has a choice of
using ITX on scheduled airlines.
Largest international tour operators have their
own subsidiary airlines to secure the lowest
possible seats available.
Putting a large programme such as this
together depends on translating estimates of
market demand into production capacity.
In this program the hardest decision is volume
of products will be offered.

Continued.......
Planning starts at least 18 months before the

first customer travel.

This process indentifies capacity objectives for
the staff who negotiate for beds and seats.
Next, drafts the all important price and
departure panels of brochures stating the
price according departure date and number of
nights.
When the program is on sale, the available
capacity is put into a computerized
reservation system.
Each product should be carefully controlled to
deliver consistent quality.

The Nature of The Marketing

Task For Tour Operator
The discussion of the marketing task is

divided intoi. Tactical considerations:

Tactics are required to survive in a fiercely
competitive market place.
ii. Strategic considerations:
Strategic dimensions are very important to
reach maturities.

Strategic Marketing
Five elements are noted in this sectioni. Interpreting the strength and directions of
change in the external environment.
ii. Strategic decisions on volume and pricing.
iii. Choices of product/customer portfolio.
iv. Positioning and image.
v. Choices and maintenance of distribution
systems.

The External Environment:

External influences are essentially powerful in

implications for tour operators, reflecting both the

non-essential character of most leisure products &
the international nature o much of the business.

Strategic Decisions on Volume and

Pricing:
Visitor attractions and transport operators, annual

decisions on capacity and average price levels are

essentially tactical decisions.

Product/market Portfolios:

Positioning and Image:

Positioningis amarketing strategythat

aims to make abrandoccupy a distinct

position, relative to competing brands, in
the mind of the customer.
Brand imageis the current view of the
customers about a brand.
Has become a major marketing strategy
One of the major strategy for price

competition

Distribution:
Distribution systems design and ensure the proper
access for visitors to the destinations. A large
amount has to spend on distribution including.

Variable cost such as commission

Fixed cost like sales forces.
For all operators there is a strategic process to be
made between marketing to customers or achieving
sales through travel retailer. Apart from the basic
choice, many nuances are also strategic matters.

Tactical

Marketing:

Tactical marketing is such an important part of a company's strategic

marketing process that management consulting companies are often
hired to assist companies in preparing tactical plans.

For tour operators, the choices for tactical promotion are:

Increase advertising weight
Sales promotions aimed at customers
Sales promotions aimed at retailers and
Price cutting to stimulate sales for targeted weeks.

Finally it is interesting to consider that a tour operator's brochure

demonstrates all an operator knows about the aspirations and needs of his
targeted customers.