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Chapter 1 THE TOURISM MARKETING ENVIRONMENT Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 1-1 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Topics • • • • Influence of marketing on tourism Services marketing models Tourism in Canada Key players in Canada’s tourism industry • Micro and macro-environments 1-2 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Tourism • the activities of persons travelling to and staying in places outside their usual environment for not more than one year for leisure, business, or other purposes not related to the exercise of an activity remunerated from within the place visited 1-3 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Visitor • any person travelling to a place other than that of his or her usual environment for fewer than 12 months and whose main purpose for the trip is other than exercise of an activity remunerated from within the place visited Tourism market • a market that reflects the demands of consumers for a wide range of travel and hospitality products and services 1-4 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Overnight Travel between Canada and Other Countries 1-5 Table 1.1 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 International Tourist Arrivals and Receipts 1-6 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Annual Growth in International Tourist Arrivals 1-7 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Tourism Arrivals to Canada 1-8 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Influence of Marketing on Tourism International Marketing • business activities designed to plan, price, promote, and direct the flow of a organization’s goods and services to consumers in more than one country for profit • Figure 1.4 illustrates the environment of an international marketer 1-9 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 The International Marketing Task 1-10 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Self-Reference Criteria (SRC) • unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions Ethnocentrism • closely related to SRC • notion that one’s own culture knows best how to do things Both limit the international marketer’s ability to understand and adapt to differences prevalent in foreign markets 1-11 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Four Unique Characteristics of Services 1-12 Intangibility Heterogeneity Inseparability Perishability Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment 1-13 Chapter 1 Table 1.4 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Four Unique Characteristics of Services 1-14 Table 1.4 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter Service Marketing Models • Services Marketing Triangle – 3 key players • Expanded Marketing Mix for Services 1-15 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 The Services Marketing Triangle 1-16 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Expanded Mix for Services: The Seven Ps • • • • • • • 1-17 Product Price Place Promotion People Process Physical Evidence Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Key Players in the Tourism Industry 1-18 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Major Components in a Company’s Microenvironment 1-19 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Major Components in a Company’s Macroenvironment 1-20 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Demographic and Economic Forces • Demographics – statistics that describe the observable characteristics of individuals – most notable demographic trend in Canada is the aging population • Economic forces – affect consumer purchasing power and spending patterns 1-21 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Environmental, Natural, and Technological Forces • Environmental and Natural Forces – see Banff Snapshot, pp. 31-2 • Technological forces – most dramatic force that has forces tourist organization to adapt 1-22 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Political, Cultural and Social Forces • Political forces – see Myanmar Case Study at end of chapter • Cultural and social forces – institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours 1-23 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Legal Forces • Legal forces – increased legislation and regulation that affects business, enacted to protect companies and consumers from unfair business practices – smoking restrictions in hotels and restaurants 1-24 Copyright © 2009 by Nelson Education Ltd. The Tourism Marketing Environment Chapter 1 Cultural Trends • increased responsibility for those who drink & those who sell and serve alcoholic beverages • desire to develop individuality in order to be seen and treated as different from others (egonomics) • tendency to act and feel younger than one’s age (down-aging) • urge to change one’s life to a slower but more rewarding pace (cashing out) • refusal to tolerate shoddy products and poor service (the vigilant consumer) • acceptance of the gay and lesbian community • concerns for the environment • increasing desire for smoke-free restaurants and hotels • desire to regularly eat out 1-25 Copyright © 2009 by Nelson Education Ltd.