1. Integrated Marketing Communications for Tourism Objective: Introducing and defining marketing communications for tourism and hospitality.

2. 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.

3. 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.

4. The Marketing Process Marketing process is the process of ; Marketing process is the process of ; 1. analyzing marketing opportunities 2. selecting target markets 3. developing the marketing mix 4. managing the marketing effort (marketing mix).

5. Target consumers stand in the center of this process. The company; Target consumers stand in the center of this process. The company; identifies the total market identifies the total market divides it into smaller segments divides it into smaller segments selects the most promising segments selects the most promising segments focuses on serving and satisfying these segments by designing marketing mix factors under the control of the company - product, price, place, and promotion focuses on serving and satisfying these segments by designing marketing mix factors under the control of the company - product, price, place, and promotion analyzes, plans, implements, and controls to put the marketing mix into action which are required to adapt to the marketing environment analyzes, plans, implements, and controls to put the marketing mix into action which are required to adapt to the marketing environment

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

7. Market Segmentation : Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior (e.g. sex, age, income level…) who might require separate products or marketing mixes is called market segmentation. Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior (e.g. sex, age, income level…) who might require separate products or marketing mixes is called market segmentation. After segmenting the market, the company must determine which segments offer the best opportunity for achieving company objectives (making profit). After segmenting the market, the company must determine which segments offer the best opportunity for achieving company objectives (making profit).

8. Market Targeting : Evaluating each market segment’s attractiveness and then selecting one or more segments to enter is called market targeting. Evaluating each market segment’s attractiveness and then selecting one or more segments to enter is called market targeting. A company should target segments in which it can generate the greatest customer value and keep it in the long-run. A company should target segments in which it can generate the greatest customer value and keep it in the long-run. There are three alternatives in market targeting. A company may decide to serve  only one segment (because of its limited resources),  several related segments or  all market segments. There are three alternatives in market targeting. A company may decide to serve  only one segment (because of its limited resources),  several related segments or  all market segments.

9. Market Positioning : After a company has decided which market segments to enter, it must decide what positions it wants to occupy in those segments. A product’s position is the place that the product occupies in consumer’s minds relative to competitors. After a company has decided which market segments to enter, it must decide what positions it wants to occupy in those segments. A product’s position is the place that the product occupies in consumer’s minds relative to competitors. If a product is seen exactly the same as other products on the market, consumers have no reason to buy it. That is way, companies differentiate their products through positioning to offer more value to the consumers. E.g. Mercedes “engineered like no other car in the world” If a product is seen exactly the same as other products on the market, consumers have no reason to buy it. That is way, companies differentiate their products through positioning to offer more value to the consumers. E.g. Mercedes “engineered like no other car in the world”

10. Developing The Marketing Mix Once the company has decided on its overall marketing strategy, it should plan its activities by using the controllable marketing tools, in other words, the marketing mix. Once the company has decided on its overall marketing strategy, it should plan its activities by using the controllable marketing tools, in other words, the marketing mix. Marketing mix is the controllable marketing tools (known as the 4Ps) - product, price, place, and promotion - that the company use to achieve its objectives. Marketing mix is the controllable marketing tools (known as the 4Ps) - product, price, place, and promotion - that the company use to achieve its objectives.

11. Product; means the “goods-and-service” combination the company offers to the target market. Product; means the “goods-and-service” combination the company offers to the target market. Price; is the amount of money that consumers have to pay to obtain the product. Price; is the amount of money that consumers have to pay to obtain the product. Place; includes company activities with the intermediaries that make the product available to target consumers. The intermediaries keep an inventory of the products, shows them to potential buyers, negotiate prices, close sales and give service after sales. Place; includes company activities with the intermediaries that make the product available to target consumers. The intermediaries keep an inventory of the products, shows them to potential buyers, negotiate prices, close sales and give service after sales. Promotion; means activities that communicate the product and persuade target customers to buy it. Promotion; means activities that communicate the product and persuade target customers to buy it.

12. Developing Effective Communications It is not enough to develop a good product, price it attractively and make it available to target customers. Companies also must communicate with their customers to market their products. It is not enough to develop a good product, price it attractively and make it available to target customers. Companies also must communicate with their customers to market their products. A company’s total marketing communication program is called the promotion mix which consists of (1) advertising, (2) personal selling, (3) sales promotion, (4) public relations and (5) direct marketing. A company’s total marketing communication program is called the promotion mix which consists of (1) advertising, (2) personal selling, (3) sales promotion, (4) public relations and (5) direct marketing.

13. Promotional techniques are used; to make prospective customers aware of products in order to sharpen the attractiveness and stimulate demand, to make prospective customers aware of products in order to sharpen the attractiveness and stimulate demand, they provide information to help customers decide they provide information to help customers decide generally provide incentives to purchase. generally provide incentives to purchase.

14. Integrated Marketing Communications Companies need to carefully integrate and coordinate the promotion mix to deliver a clear, consistent, and compelling messages about their organizations and products. Companies need to carefully integrate and coordinate the promotion mix to deliver a clear, consistent, and compelling messages about their organizations and products. The marketing communications environment is changing. Mass markets have fragmented, as a result mass marketing is not a solution anymore. The marketing communications environment is changing. Mass markets have fragmented, as a result mass marketing is not a solution anymore.

15. Conflicting messages sent from different sources can confuse consumers regarding the company and brand image, therefore should be avoided. Conflicting messages sent from different sources can confuse consumers regarding the company and brand image, therefore should be avoided. The Web alone is not enough to build brands. Although, the Web can enhance relationships between the company and the consumers, it has limited potential to create brand awareness. The Web alone is not enough to build brands. Although, the Web can enhance relationships between the company and the consumers, it has limited potential to create brand awareness. It is better to blend the traditional methods with the new ways of communications. It is better to blend the traditional methods with the new ways of communications.

16. Nature of Each Promotional Tool Advertising; any paid form of nonpersonal presentation by an identified sponsor. Advertising; any paid form of nonpersonal presentation by an identified sponsor. Personal selling; personal presentation by a firm’s sales force. Personal selling; personal presentation by a firm’s sales force. Sales Promotion; short-term incentives to encourage sales. Sales Promotion; short-term incentives to encourage sales. Public Relations; building good relationships with various publics by obtaining favorable publicity. Public Relations; building good relationships with various publics by obtaining favorable publicity. Direct marketing; direct communications with individuals to obtain an immediate response. Direct marketing; direct communications with individuals to obtain an immediate response.

17. Advertising Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor. Major media types are; Major media types are; newspapers newspapers television television direct mail direct mail radio radio magazines magazines outdoor outdoor

18. Advantages low cost per contact low cost per contact ability to reach customers where and when salespersons cannot ability to reach customers where and when salespersons cannot great scope of creative versatility and dramatization of messages great scope of creative versatility and dramatization of messages ability to create images that salespersons cannot - “institutional advertising” is a form of advertising done to create a favourable image of an organization. ability to create images that salespersons cannot - “institutional advertising” is a form of advertising done to create a favourable image of an organization. nonthreatening nature of nonpersonal presentation nonthreatening nature of nonpersonal presentation potential to repeat message several times potential to repeat message several times

19. prestige and impressiveness of mass-media advertising prestige and impressiveness of mass-media advertisingDisadvantages inability to “close” sales inability to “close” sales advertising “clutter” advertising “clutter” customer’s ability to ignore advertising messages customer’s ability to ignore advertising messages difficulty getting immediate response or action difficulty getting immediate response or action difficulty measuring advertising effectiveness difficulty measuring advertising effectiveness relatively high “waste” factor relatively high “waste” factor

20. Profiles of Major Media Types Newspapers: reach many people but have limited opportunity to reach market segments, have short life time, do not have reproduction quality. Newspapers: reach many people but have limited opportunity to reach market segments, have short life time, do not have reproduction quality. Magazines: have many advantages over newspapers like having high-quality reproduction, color availability, prestige, audience selectivity, and long life. However, cost more, prepared in a long time, and reduce an advertiser’s ability to repeat ads. Magazines: have many advantages over newspapers like having high-quality reproduction, color availability, prestige, audience selectivity, and long life. However, cost more, prepared in a long time, and reduce an advertiser’s ability to repeat ads.

21. Radio: can reach an entire area, specific target markets by matching the radio station and time with the property’s target market. However, if not repeated, they have shot life span. Radio: can reach an entire area, specific target markets by matching the radio station and time with the property’s target market. However, if not repeated, they have shot life span. Television: television’s main advantage over radio is that it combines sight with sound. TV commercials can show friendly company staff. Gets high attention, and remembered as a result. Commercials can run many times daily and reach many people, and can reach specific audiences by selecting the correct TV shows. However, they are very expensive. Television: television’s main advantage over radio is that it combines sight with sound. TV commercials can show friendly company staff. Gets high attention, and remembered as a result. Commercials can run many times daily and reach many people, and can reach specific audiences by selecting the correct TV shows. However, they are very expensive.

22. Outdoor Advertising: billboards along highways or in and around large cities are used to remind and attract potential guests about the product. They must be bold, dynamic and graphic so that passersby can get the message at a glance. They have large circulation, broad reach and low cost but have limited message length. Outdoor Advertising: billboards along highways or in and around large cities are used to remind and attract potential guests about the product. They must be bold, dynamic and graphic so that passersby can get the message at a glance. They have large circulation, broad reach and low cost but have limited message length. Direct Mail: involves the mailing of the advertising message in brochures, coupons or other formats. It is especially used by clubs, and banks for credit card holders and members. It allows audience selectivity, can be personalized, and easily measured but have high cost of developing and mailing. Direct Mail: involves the mailing of the advertising message in brochures, coupons or other formats. It is especially used by clubs, and banks for credit card holders and members. It allows audience selectivity, can be personalized, and easily measured but have high cost of developing and mailing.

23. Sales Promotion Sales promotions are short-term incentives to to make an immediate purchase or sales of a product or service. Sales promotions are short-term incentives to to make an immediate purchase or sales of a product or service. Advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now. Advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.

24. Advantages generating immediate purchase in a large extent generating immediate purchase in a large extent ability to provide quick feedback ability to provide quick feedback ability to add excitement to a service or product ability to add excitement to a service or product flexible timing flexible timing efficiency efficiencyDisadvantages short-term benefits short-term benefits ineffective in building long-term loyalty for company or “brand” ineffective in building long-term loyalty for company or “brand” inability to be used on its own in the long term without other promotional mix elements inability to be used on its own in the long term without other promotional mix elements often misused for just short-term benefits often misused for just short-term benefits

25. Profiles of Major Sales Promotions Consumer-Promotion Tools Consumer-Promotion Tools Couponing: attract potential guests with a special offer such as a free night’s lodging after a special number of credits. They can be given out personally, included in direct mail advertising or printed in newspapers and magazines. They can increase off-season business with other sales promotions such as bonus offers or discounting. Couponing: attract potential guests with a special offer such as a free night’s lodging after a special number of credits. They can be given out personally, included in direct mail advertising or printed in newspapers and magazines. They can increase off-season business with other sales promotions such as bonus offers or discounting. Product Sampling: introduces new products to the guests, some are free, most effective to Product Sampling: introduces new products to the guests, some are free, most effective to

26. introduce a product but most expensive as well, determines whether guests like a new product and encourages them to order the item. Contests: give consumers a chance to win something such as cash, trips, goods by luck or through extra effort, can increase sales, should be cost effective - increased sales should offset the cost of contest promotions and prizes. E.g. Coca- Cola New Year’s prize (a BMW) will be one of the customers who sent the correct amount of Coca-Cola lid. Contests: give consumers a chance to win something such as cash, trips, goods by luck or through extra effort, can increase sales, should be cost effective - increased sales should offset the cost of contest promotions and prizes. E.g. Coca- Cola New Year’s prize (a BMW) will be one of the customers who sent the correct amount of Coca-Cola lid. Packages: offer consumers savings off the regula price of a product, have discount price to attract new guests and increase sales. E.g. a Packages: offer consumers savings off the regula price of a product, have discount price to attract new guests and increase sales. E.g. a

27. holiday package including lodging, transportation, and food and beverage with areasonable price. Premiums: they are given to guests who pay the regular prices for certain products or services. E.g. an upgraded room might be provided or free movie tickets for the restaurant guests. Pizza Hut’s free drinks when a large pizza is ordered. Or when a customer buys one shampoo, he gets the third one free. Premiums: they are given to guests who pay the regular prices for certain products or services. E.g. an upgraded room might be provided or free movie tickets for the restaurant guests. Pizza Hut’s free drinks when a large pizza is ordered. Or when a customer buys one shampoo, he gets the third one free. Gifts or Gift Certificates: free gifts or cash offers, are used by chains or exclusive properties to increase sales. E.g. key chains, T-Shirts… Gifts or Gift Certificates: free gifts or cash offers, are used by chains or exclusive properties to increase sales. E.g. key chains, T-Shirts…

28. Discounting: straight reduction from the list price of a product during a stated period of time, are used to attract more guests and increase total sales. E.g. one dinner on the menu might be reduced to 50%. Benetton reduces its prices by 20% during the low season. Bonus Offers: the consumer buys a product or service at the regular price and then receives a bonus, generally directed to the regular users, E.g. guest buys three dinners at a regular price and the fourth one becomes free. Or when the customer uses his credit card, each time he gets credits, and when he reaches a certain credit Bonus Offers: the consumer buys a product or service at the regular price and then receives a bonus, generally directed to the regular users, E.g. guest buys three dinners at a regular price and the fourth one becomes free. Or when the customer uses his credit card, each time he gets credits, and when he reaches a certain credit

29. point, he is entitled to get free gifts such as toasters, hair dryers... Trade-Promotion Tools Trade-Promotion Tools Discounting: straight reduction from the list price on purchases during a stated period of time, encourages dealers to buy in quantity or to carry a new item; dealers can use the discount for immediate profit, for advertising, or for price reductions to their customers. Discounting: straight reduction from the list price on purchases during a stated period of time, encourages dealers to buy in quantity or to carry a new item; dealers can use the discount for immediate profit, for advertising, or for price reductions to their customers. Allowance: promotional money paid by manufacturers to retailers who agree to help promote the manufacturer’s products in some way. E.g. an advertising allowance compensates retailers for advertising the Allowance: promotional money paid by manufacturers to retailers who agree to help promote the manufacturer’s products in some way. E.g. an advertising allowance compensates retailers for advertising the

30. product. A display allowance compensates them for using special displays. Free goods or push money: cash or gifts to dealers or their sales force to “push” the manufacturer’s goods. Free goods or push money: cash or gifts to dealers or their sales force to “push” the manufacturer’s goods. Specialty advertising items: they carry the company’s name, such as pens, pencils, calendars, paperweights, memo pads, ashtrays... Specialty advertising items: they carry the company’s name, such as pens, pencils, calendars, paperweights, memo pads, ashtrays...

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

32. Advantages low cost low cost effective because they are not seen as commercial messages effective because they are not seen as commercial messages credibility credibility prestige and impressiveness of mass-media coverage prestige and impressiveness of mass-media coverage added excitement and dramatization added excitement and dramatization maintenance of “public” presence maintenance of “public” presenceDisadvantage difficult to arrange consistently difficult to arrange consistently lack of control lack of control

33. Major Public Relations Tools News: PR people find or create favourable news about the company and its products or people. Sometimes news stories occur naturally, and sometimes the PR person suggests events or activities (e.g. X conference, Miss World…) that would create news. News: PR people find or create favourable news about the company and its products or people. Sometimes news stories occur naturally, and sometimes the PR person suggests events or activities (e.g. X conference, Miss World…) that would create news. Speeches: company executives answer the questions from the media or give talks at trade associations or sales meetings. Speeches: company executives answer the questions from the media or give talks at trade associations or sales meetings.

34. Special events: ranging from news conferences, receptions, press tours (fam trips), grand openings… to reach and interest target publics. Special events: ranging from news conferences, receptions, press tours (fam trips), grand openings… to reach and interest target publics. Written materials: include press release, annual reports, brochures, articles, company newsletters, magazines… to reach and influence the target markets. Written materials: include press release, annual reports, brochures, articles, company newsletters, magazines… to reach and influence the target markets. Audiovisual materials: such as films, video- and audiocassettes… Audiovisual materials: such as films, video- and audiocassettes… Corporate-identity materials: help to create a corporate identity that the public immediately recognizes such as logos, stationery, brochures, signs, business forms, business cards, buildings, Corporate-identity materials: help to create a corporate identity that the public immediately recognizes such as logos, stationery, brochures, signs, business forms, business cards, buildings,

35. uniforms, company cars and trucks become marketing tools when they are attractive, distinctive, and memorable. Public-service activities: companies can also improve their goodwill by contributing money and time to public-service activities. E.g. giving donations to street children. Public-service activities: companies can also improve their goodwill by contributing money and time to public-service activities. E.g. giving donations to street children.

36. Personal Selling Personal selling involves oral conversations. These are held, either by telephone or face-to-face, between salespersons and prospective customers. Personal selling involves oral conversations. These are held, either by telephone or face-to-face, between salespersons and prospective customers. The people who do the selling go by many names: salespeople, sales representatives, account executives, sales consultants, sales engineers, agents, district managers, and marketing representatives. The people who do the selling go by many names: salespeople, sales representatives, account executives, sales consultants, sales engineers, agents, district managers, and marketing representatives. The major roles of the sales force are (1) representing the company to customers, (2) representing customers to the company, (3) producing customer satisfaction and company profits. The major roles of the sales force are (1) representing the company to customers, (2) representing customers to the company, (3) producing customer satisfaction and company profits.

37. Advantages ability to close sales ability to close sales ability to hold the customer’s attention ability to hold the customer’s attention immediate feedback and two-way communications immediate feedback and two-way communications presentations tailored to individual needs presentations tailored to individual needs ability to target customers precisely ability to target customers precisely ability to cultivate relationships ability to cultivate relationships ability to get immediate action ability to get immediate actionDisadvantages high cost per contact high cost per contact inability to reach some customers as effectively inability to reach some customers as effectively

38. The Changing Face of Marketing Communications Two major factors are changing the face of today’s marketing communications. First, as mass markets have fragmented, companies are shifting away from mass marketing. Now, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. First, as mass markets have fragmented, companies are shifting away from mass marketing. Now, they are developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets. Second, the improvements in computer and information technology helps marketers to reach smaller customer segments more effectively. Second, the improvements in computer and information technology helps marketers to reach smaller customer segments more effectively.

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

40. direct-mail and catalog marketing; involves mailing of letters, ads, samples, foldouts… sent to potential customers on mailing lists. The mailing lists are developed from customer lists or obtained from mailing-list houses. Catalog marketing involves selling through catalogs that are mailed to a select list customers or made available in stores. direct-mail and catalog marketing; involves mailing of letters, ads, samples, foldouts… sent to potential customers on mailing lists. The mailing lists are developed from customer lists or obtained from mailing-list houses. Catalog marketing involves selling through catalogs that are mailed to a select list customers or made available in stores. telemarketing; using the telephone to sell directly to consumers. Outbound telephone marketing is used directly to consumers and businesses. Inbound too-free 800 numbers are used to receive orders from television and radio ads, direct mail, or catalogs. telemarketing; using the telephone to sell directly to consumers. Outbound telephone marketing is used directly to consumers and businesses. Inbound too-free 800 numbers are used to receive orders from television and radio ads, direct mail, or catalogs.

41. television marketing; takes two major forms. The first is direct-response advertising where marketers air television spots, often 60 to 120 seconds long, that persuasively describe a product and give customers a toll-free number for ordering. Home shopping channels is another form of television direct marketing which are television programs or entire channels dedicated to selling gods and services. online computer shopping: is conducted through interactive online computer systems which link consumers with sellers electronically. Consumers use a home computer to hook into the system through cable or telephone lines. online computer shopping: is conducted through interactive online computer systems which link consumers with sellers electronically. Consumers use a home computer to hook into the system through cable or telephone lines.

42. Marketing Communications Characteristics in Tourism and Hospitality Nature and Characteristics of Services Intangibility Intangibility Inseparability Inseparability Heterogeneity Heterogeneity Perishability Perishability

43. Service Intangibility means that unlike physical products, services cannot be seen, tasted, felt, heard or smelled before they are bought. means that unlike physical products, services cannot be seen, tasted, felt, heard or smelled before they are bought. Buyers look for “signals” or “tangible evidences” like the place, people, price, equipment and information about the service in order to reduce uncertainty caused by intangibility before they pay the price. E.g. the cleanliness of the restaurant, employee uniforms of the hotel. Buyers look for “signals” or “tangible evidences” like the place, people, price, equipment and information about the service in order to reduce uncertainty caused by intangibility before they pay the price. E.g. the cleanliness of the restaurant, employee uniforms of the hotel.

45. Because of intanbigle nature of services, as far as their communication strategies are concerned, organizations have the following three key aims; Brand identity Brand identity Positioning of the brand Positioning of the brand Creating demand Creating demand

46. In addition, hospitality firms must; communicate the intangible benefits of the service, communicate the intangible benefits of the service, be specific about the distinct features and characteristics of the services and provide concrete details, be specific about the distinct features and characteristics of the services and provide concrete details, provide key information about the evidence that creates “trust”, provide key information about the evidence that creates “trust”, take consumers through the exact steps of the experience. take consumers through the exact steps of the experience.

47. Service Inseparability means that services cannot be separated from their both (1) providers and (2) other customers. means that services cannot be separated from their both (1) providers and (2) other customers. If a service employee provides the service, then the employee is part of the service. E.g. the food in the restaurant may be outstanding, but if the service person is rude, customers will downrate the overall service of the restaurant. If a service employee provides the service, then the employee is part of the service. E.g. the food in the restaurant may be outstanding, but if the service person is rude, customers will downrate the overall service of the restaurant. the other customers affect the service outcome as well. E.g. a couple may choose a restaurant but if a group of loud customers is seated next to them, the couple will be disappointed. the other customers affect the service outcome as well. E.g. a couple may choose a restaurant but if a group of loud customers is seated next to them, the couple will be disappointed.

48. Therefore, in marketing communications, organizations must; emphasize the people and quality of service. emphasize the people and quality of service.

49. Heterogeneity means that the quality of services depends on who provides them, plus, when, where, and how they are provided. E.g. within a given hotel chain, one reception desk agent may be cheerful and efficient one day but would be unpleasant and slow the other day. means that the quality of services depends on who provides them, plus, when, where, and how they are provided. E.g. within a given hotel chain, one reception desk agent may be cheerful and efficient one day but would be unpleasant and slow the other day. Service providers’ service quality depends on his energy and his frame of mind at the time of each customer encounter. Service providers’ service quality depends on his energy and his frame of mind at the time of each customer encounter. Fluctuating demand makes it difficult to deliver consistent services during periods of peak demand. Fluctuating demand makes it difficult to deliver consistent services during periods of peak demand. Heterogeneity or lack of consistency is the major cause of customer disappointment in the industry. Heterogeneity or lack of consistency is the major cause of customer disappointment in the industry.

50. Due to heterogeneity, companies must pay attention to the following in creating their marketing messages; highlighted role of people highlighted role of people experiential and emotional nature of messages experiential and emotional nature of messages timing and process issues timing and process issues quality of service delivery and products quality of service delivery and products tangible features and benefits tangible features and benefits pricing strategies, promotions and discounting pricing strategies, promotions and discounting standards and guarantees standards and guarantees

51. Service Perishability means that services cannot be stored for later sale or use. E.g. if a 100 room hotel can sell only 40 rooms today, selling the remaining 60 is gone forever. means that services cannot be stored for later sale or use. E.g. if a 100 room hotel can sell only 40 rooms today, selling the remaining 60 is gone forever. If service providers are to maximize revenue, they must manage capacity and demand. E.g. hotels charge lower rates in the off-season to attract more guests; restaurants hire part-time employees to serve during peak periods; tour operators and airline companies have last-minute sales. If service providers are to maximize revenue, they must manage capacity and demand. E.g. hotels charge lower rates in the off-season to attract more guests; restaurants hire part-time employees to serve during peak periods; tour operators and airline companies have last-minute sales. Service perishability is a serious problem when demand fluctuates. Service perishability is a serious problem when demand fluctuates.

53. This factor puts a special emphasis on price- setting in marketing. “Yield management” This factor puts a special emphasis on price- setting in marketing. “Yield management” Regarding marketing communications, companies must; Regarding marketing communications, companies must; Consider using sales promotions and discounting. Consider using sales promotions and discounting.

54. Useful Links and Sources McCabe, S. (2009). Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases. Butterworth-Heinemann: Oxford. McCabe, S. (2009). Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases. Butterworth-Heinemann: Oxford. Kotler, P.; Bowen, J. and Makens, J. Marketing for Hospitality and Tourism (5th ed.). Prentice Hall New Jersey. (2011) Kotler, P.; Bowen, J. and Makens, J. Marketing for Hospitality and Tourism (5th ed.). Prentice Hall New Jersey. (2011) Kotler, P. and Armstrong, G. Principles of Marketing. (14th ed.) Prentice Hall Int. Inc., New Jersey. (2011) Kotler, P. and Armstrong, G. Principles of Marketing. (14th ed.) Prentice Hall Int. Inc., New Jersey. (2011) Middleton, V.T.C. (2004) Marketing in Travel and Tourism (3rd ed). Elsevier. Oxford. Middleton, V.T.C. (2004) Marketing in Travel and Tourism (3rd ed). Elsevier. Oxford. http://www.tourism.bilkent.edu.tr/~eda http://www.tourism.bilkent.edu.tr/~eda