Tourism Marketing 7 P\'s | Sukhdeep Kaur Sran .edu
While carrying out research every aspect and tool of marketing mix was keep in point to generate the better results for ...
ALCIDE DE GASPERI UNIVERSITY OF EUROREGIONAL ECONOMY JÓZEFÓW, POLAND
Profile: Management Specialty: Hotel and Tourism Management
SUKHDEEP KAUR Index No.: 4152
ROLE AND EFFECTIVENESS OF MARKETING SERVICES IN TOURISM (Case study of India) BACHELOR'S THESIS
Under scientific supervision of: Dr. hab ANNA ANTCZAK-BARZAN, Assoc. Prof.
Jozefow 2014 1
As in today, tourism is growing at its fastest pace and every country wants to become a number one destination in the world and for that they are using different techniques. Main purpose of this study is to describe the effectiveness of marketing services in tourism of India. First chapter describes the definition of tourism and its emerging types followed by marketing definition and detailed explanation regarding 7 P's of marketing. In second chapter the role of government and PR has been discussed as to provide the detailed information regarding the topic and to understand their relationship with marketing as all are interdependent on each other. We cannot imagine marketing without PR or vice versa. It has been followed by describing the meaning of international marketing. Characteristic of marketing services has been explained as in tourism these are different from normal products. Finally, the relationship between marketing and society has been discussed to provide detailed information regarding its both positive and negative impacts on the society followed by challenges faced by modern marketing managers. First two chapters in third chapter describe the brief summary from first and second chapters. In third chapter research results has been discussed regarding the effectiveness of marketing techniques in wooing the international customers. Finally, appendix and references has been attached with the study to provide information regarding the literature which has been used while performing this study.
TABLE OF CONTENTS Introduction…………………………………………………………………………………………….5 Chapter 1-Tourism definition and 7 P's of marketing 1.1 Tourism definition…………………………………………………………………………………..7 1.2 Early development of tourism in India……………………………………………………………...9 1.3 Marketing definition and 7 P's of marketing in tourism……………………………………………11 1.3.1 Tourism product…………………………………………………………………………...12 1.3.2 Tourism price………………………………………………………………………………13 1.3.3 Touristic place……………………………………………………………………………...14 1.3.4 Tourism promotion………………………………………………………………………....15 1.3.5 Tourism people………………………………………………………………………….….16 1.3.6 Tourism process…………………………………………………………………………….17 1.3.7 Tourism physical evidence…………………………………………………………………18 Chapter 2- Role of government and modern day marketing 2.1 Government initiatives……………………………………………………………………………...19 2.2 Role of PR…………………………………………………………………………………………..22 2.3 International marketing………………….………………………………………………………….24 2.4 Consumer behavior…………………………………...…………………………………………….25 2.5 Marketing of services……………………………………………………………………………….26 2.6 Marketing and society and challenges before marketing managers………………….……………..27 Chapter 3- Effectiveness of marketing services in tourism 3.1 Early tourism development and marketing mix…………………………………………………….29 3.2 Government role and influence of marketing……..…………………….………………………….31 3.3 Methodology……………...……………………….………………………………………………..34 Conclusions…………………………………………………………………………………………….39 References……………………………………………………………………………………………...40 Appendix……………………………………………………………………………………………….41
Introduction As we all knows that today tourism is becoming the one of the most important activity in the life's of people as people are traveling from one places to another for the fulfillment of their desires and wants. This thesis was written in accordance to provide information and knowledge regarding marketing services in tourism which one can use to promote one's destination or its products in a short period of time. Detailed research regarding marketing services in Indian tourism market is presented and after research was carried out for Indian market to know the effectiveness of marketing techniques in wooing the consumers from other countries. Main purpose of this thesis is to provide detailed information of marketing services and tools. In the first chapter information regarding tourism definition and its types were presented to understand the meaning of tourism before proceeding to marketing services. Early developments in the history of India was presented so that one could easily know about the products and history of the destination. In chapter 1.3 detailed study regarding the marketing its definition and its services and tools were presented in a easy and in a relevant manner for the readers. Marketing in itself is the broad concept which is playing important role in the activities of every organization and companies regarding whether its running on a smaller or in a bigger level. In tourism its role is increasing with the increasing number of countries promoting their destinations to gain profits for its economy or for its local communities. Today tourism is generating large sum of profit's for any country as while traveling to other countries tourists often spends large sum of money for its attractions, local handicrafts, restaurants, hotels and many more thus not only generating profits for the country but also creating employment opportunities for its local people. Today every country is developing infrastructure and using their tactics to increase its market share in the world to promote its destinations and its products. In sub chapters the the role and effectiveness of marketing services 7 P’s were described in a detailed manner to know its importance in tourism sector. First sub chapter describes the role of place in tourism destinations and what facilities and services it must provide to its consumers to attract their attention. In second sub chapter information regarding tourism price has been provided to know more about tourism prices. In third sub chapter information regarding products in tourism has been discussed to know about the products in tourism. In fourth and fifth sub chapter the role of promotional methods and people were discussed to increase the sales in tourism and effective ways to gain their attention and to provide with them exciting and superb experiences while they travel to destinations. In sixth and seventh sub chapters role of physical evidence and process in tourism has been discussed regarding the easy process and the local environment to be provided to people so they can 5
make use of their services in a easy and in a effective manner. In a second chapter role of the government, PR, international marketing and its relations with society and challenges before modern day marketing managers are discussed to know about the impacts of tourism marketing activities on the society and its positive and negative points. In first chapter the detailed role of government initiatives of Indian government has been discussed to provide the information regarding governmental plans and activities in promoting India on a domestic and international level. In second chapter the role of public relations and its methods in wooing the consumers has been explained in a detailed manner. The tactics in wooing the businesses and journalists has been explained in this chapter. In third chapter role of international marketing and its procedure has been discussed so to provide better understanding of marketing in tourism and its differences from that of marketing. In fourth chapter the marketing of services has been discussed providing the information regarding characteristics of services. In fifth chapter the relationship between marketing and society has been discussed in appropriate manner to highlight its both positive and negative impacts. Today marketing is becoming quite more and more difficult and complex task and to get success marketing managers needs to possess some skills to get his/her company on the top list. So in this chapter the major forces and challenges which they are facing has been discussed . In third chapter research has been carried out to know the effectiveness of marketing techniques in the Indian market and to know whether Indian market is successful in delivering its tourism products in a efficient and in a effective way. While carrying out research every aspect and tool of marketing mix was keep in point to generate the better results for the study. Different age groups and different countries were targeted while generating the overall results of marketing in tourism. Consumers views has been asked regarding their plus and minus points regarding Indian services . Overall the main purpose of the study is to know the effectiveness and role of marketing in tourism and to know its relationship with its surrounding environment and with its consumers in the way in which both things interact with each other. Research results and findings has been discussed in the short form providing the information regarding overall objectives in a clear and in a efficient manner for the easy understanding of the readers. Due to increasing marketing activities one must have to know about the marketing services and tactics to better understand the markets as its becoming integral part in every tourism activity
1. Tourism Definition and 7 P's of marketing 1.1 Tourism Definition Tourism plays an important role and gains an significant role in everybody's life. Without tourism life would be dull and boring. In today's world when life has become more and more depressing and busy its only tourism which gives us relief from every day’s routine life work. There are numerous definitions given by numerous researchers. According to Mathieson and wall (1982) and by World Tourism Organization. Mathieson and wall (1982) defines tourism as : “The temporary movement of people to destinations outside their normal place of work and residence, the activities taken during their stay in those destinations and the facilities created to cater to the needs”1 “The
people who travel to and stay in places outside their usual environments for not more than one
consecutive year for leisure and business and other purposes not related to the exercise of the activity remunerated from within the place visited”(UNTO)2 As tourism is the vast phenomenon, there is no single definition till today explaining the meaning of tourism. Its of two types i.e domestic tourism and international tourism. Domestic tourism is the type of tourism in which people travel to other places within the country while on the other hand international tourism is the tourism in which people are traveling to other countries other than their residing countries, further it can be classified into two types inbound and outbound tourism. Inbound tourism is the type of tourism in which people are traveling to one country from other countries and outbound tourism is the type of tourism in which people travel from their origin of country to other countries. The phenomenon of tourism began from old centuries when wealthy people in the society were traveling for leisure purpose. In the old centuries people mainly were traveling for the purpose of relaxation from their usual life’s after people start traveling according to their type of interests. The term mass tourism comes with the development of advanced technologies which are capable of taking large number of people from one place to another in a single time. In modern world niche tourism is the fastest growing type of tourism. Niche tourism is the tourism in which people are visiting or going to another places according to their interests and to full fill their desires. Some of examples of niche tourism are - agri tourism, culinary tourism, wild tourism, wellness & spa tourism, slum tourism, religious tourism, eco tourism, Extreme tourism, culture and heritage tourism, nature tourism, rural tourism, sex tourism and many more. Sustainable tourism is the type of tourism in which 1. http://www.prm.nau.edu/prm300/what-is-tourism-lesson.htm . (accessed: 10-01-2014) 2. www.tugberkugurlu.com/archive/definintion-of-tourism-unwto-definition-of-tourism-what-is-tourism . (accessed:10-012014)
there is low impact on local environment and local communities and culture and heritage of destinations are not affected by the tourists and it is an attempt to benefit and to create more employment opportunities for the local communities. Eco tourism is the tourism in which tourists travel to the undisturbed natural areas and brings the economic benefits for the local community. Pro-poor tourism is the type of tourism which is mainly developed so that local community mainly poor people should get benefit from tourism ex. slum tourism is the type of tourism which comes under pro-poor tourism. Tourists mainly visit the poor areas of the country and buy the local handicrafts and other products which brings the income to the poor people and in this type of tourism poor people are directly benefited from tourists. Doom tourism is the type of tourism in which people visit endangered landscapes which are on their last point of vanishing. Dark Tourism is the type of tourism in which people visit haunted and death places. In other words its the tourism in which people travel to places where in the past happens deaths and tragedies ex. visit to Auschwitz museum in Poland is this type of tourism. Educational tourism is the type of tourism where giving education is the main motive behind the visits ex. School trips, seminar vacations, skill enhancement vacations etc come under this type of tourism. Experiential tourism is the type of tourism in which people visit the places and feel the real experience of the place by involving in the local activities and traditions example voluntary tourism is the type of experiential tourism. Creative tourism is the type of tourism in which people participate in online experiences and learning courses in the destinations like arts, crafts and cooking courses to develop their creative potentials. Medical tourism is the form of tourism in which people are traveling from their own countries to other countries for medical treatments example people from Africa are traveling to India for the treatment of cancer as they find they can do their treatment better and even at reasonable prices as compared to other countries. Sports tourism is the tourism related with only sports activities example when people are traveling to watch live cricket, football etc and to perform other sports related activities. Apart from these vast number of trends are emerging forming different types of tourism. These day's tourism has became the major necessity in everyone's life. Tourism plays important role in developing better lifestyles of the particular country by creating employment opportunities for them. It changes the lifestyles of people by generating source of income to them through tourist spending and is very helpful in generating balance of payments for any county as it helps in developing the infrastructure in the country. It has direct affect on the economic activities of any country. It is the main source for creating employment opportunities for local communities.3 3. Jayapalan . N “ The introduction to tourism” published in 2001. (pp 24-48)
1.2 Early development of tourism in India Tourism plays an important role in Indian economy. Tourism start to flourish in India from Indus Valley Civilization-the first civilization of the India. They were traveling for trade to Mesopotamian region (present day Iraq, Syria, some parts of Iran and Turkey ) through carts and boats. They crafted tools which were made from bronze, copper and iron. They crafted arrows and they were the first cultures to develop precise measurement and weighing equipments. After Indus Valley Civilization, Aryans plays important role in Indian culture by writing vedic manuscripts .They traveled to many parts of India and developed vast pilgrimage infrastructure across the country i.e. sarais and dharamsalas. After Aryans there comes the the one of the most powerful and large empire in the history of India one and only Mauryan Empire. Mauryan’s play important role in the Indian economy and tourism. They developed the modern infrastructure by constructing the well paved roads to connect all parts of the India for means of transportation and traveling. Buddhist stupas and structures were built during this time in all over the India and buddhist pilgrimages were coming to India to enlighten their souls by traveling to buddhist places. In today you will see the Ashoka's pillars in all over India build by Ashoka that time and in today these are the main tourist hubs in India. During the rule of Mauryan’s, they were the first rulers who enforce the political stability and economic well being in their rules and was the only empire in the history of India having India as a one state. After the decline of Mauryan's, Kushan empire rule the Indian subcontinent. They introduced beautiful decorated coins and during their rule buddhism was at its peak. Tourism that time was spreading because of Kushan's strong political unity in Pakistan, China, India and Afghanistan. Large number of Chinese pilgrimages were coming to country to experience religious and visiting Buddha 's birthplace. After many rulers come and the most important who embrace its mark on the history of India was the Gupta Empire. Gupta Kingdom was the golden age or classical period in the history of the India. This was the time of creativity, fabulous literature and the classical period of the arts. During this time there were significant developments in the science and mathematics. During their rule hinduism flourished to its peaks. They were following the hindu rituals and traditions. It was the time when India's most important scripts were finished i.e Mahabharata and Ramayana and were spread to almost all parts of the India. Gupta's construct several hindu temples and shrines during their time.4 The best known essay during the time of Gupta's was the 'Kamasutra'. Kamasutra is the teachings which provides the art of 'love & marriage' according to the hindu rules. Great architecture and paintings during the kingdom of Gupta's were seen in Patna and also on the Ajanta and Ellora 4. Keay John “India” published in 2001 (pp 20- 102)
caves. After Gupta's there comes the rule of Pallavas and Cholas. They plays important role in tourism of India as they construct large number of temples across whole of the India. On their paintings they use rich colours. In their paintings and scriptures one can see the use of vegetable colours like red, yellow, green and black. Kailashnatha temple near ellora in southern India was the rich example of the culture of Pallavs. They have their contribution to the dravidian architecture. Manimekali ,the greatest tamil epic was established and they were having good trade relations with China this time. The bronze image of the Nataraja, the divine Lord Shiva dance depicting dance and destruction was introduced during the time of Chola's. Languages like tamil, telugu and kannada got emerged from the sanskrit language. They were not only ruling the parts of India but also expand their empire over the seas and ruled the parts of Maldives and Sri Lanka. The Ellora and Ajanta caves and Khujraho temples were build during their age and Char dham of the hindu pilgrimage spots i.e Badrinath, Rameshwaram, Dawarka and Puri become well known hindu pilgrimage centers during the period of Pallavas and Chola's. After the decline of pallavas and chola's there comes the rule of Delhi Sultane. The delhi sultane plays significant role in the early development of tourism
in India. They build several
architectural monuments during their period like Qutab Minar, Arhai Din ka Jhompra in Ajmer, tomb of Nasir -ud-din Mohammed, Tomb of the Sham -ud-din by Iltutmus, Qutab Mosque, Siri fort in Delhi by Ala-ud-din -Khilji, Alai Darwaja -an Islamic artitecture in Indian style, Jamma Masjid, Tomb of Ala -ud-din-Khilji, Ukha Masjid at Bharatpur state in Rajasthan and many more. After the Delhi Sultane, there was the Rise of Mughal empire founded by Babur. Mughal empires create and built vast number of mughal sites in India which were of immense importance in shaping the history of India. Major architecture sites which were build during the time of the mughal's were the – Purana Qila, Sher Shah's Tomb, Humayun's Tomb, Agra Fort, Fathepur Sikri, Jodha Bai's Palace, Panch Mahal, Buland Darwaja, Akbar's Tomb, Itmad-ul-Daulas's Tomb, Jama Masjid, Red Fort, Taj Mahal (one of the seven wonders of the world), and the construction of the sikh temples start to begin during this period. After the Mughal empire collapsed the East India Company and the British rule come into the force. Main buildings and architecture which were built by britishers in the India are Victoria Memorial, Parliament House, Rashtrapati Bhavan, Grand Home, India Gate ,Fort St. George, War Memorial Hall, Mumbai Railway Station, Mumbai High Court, General Post Office, Howrah Station and Calcutta Medical College. It was the history of India which today shapes the land of India into a beautiful spiritual and rich cultural country in the world
1.3 Marketing definition and 7 P’s of marketing in tourism The question which comes into our minds now is what is tourism marketing? It is defined as “Tourism marketing refers to the organized, combined efforts of the national tourist bodies and/or the businesses in the tourism sector of an international, national or local area to achieve growth in tourism by maximizing the satisfaction of tourists. In doing so, the tourist bodies and businesses expect to receive profits.”5 Marketing has numerous advantages as it focuses on the needs of customers, it begins before the production and continue after the sales, it brings profits through customer's satisfaction and in marketing first preference are customers rather products. One of the famous model of marketing is AIDA model -which explains that first and most important thing in marketing is to get and catch the attention, when you get attention of the people in your particular product and destination next step is to create interest regarding the product/ destination next step is to create desire/ want for that product/ destination in their minds and when people have desire for that destination/product they will try their best to buy that product. Marketing is important in understanding where we are now, where would we like to go, what steps should be taken to reach there, how do we make sure that we will reach that place and how do we get know that we already reached/ achieved that place. Marketing in tourism is the mixture of various and several services and products. Marketing segmentation is important in marketing as there are several segments in tourism which have distinctive needs and preferences. They should be divided on the basis of demographic, sociographic, geographic features, purpose of trip and according to their behavioral aspect factors. In demographic section we can classify people according to their geographical locations, regions, urban and rural basis. In sociographic& demographic section they are divided on the basis of age , group, sex, income, family size, occupation and ethnic group. On the basis of purpose of trip they can be divided into the recreation trips, business trips, religious trips, culinary trips and etc. On the basis of their behavioral aspects they can be divided according to their benefits, usage, loyalty and occasion. Marketing segment is helpful in better allocation of resources. In tourism there are 7 P’s of Marketing which are very helpful in getting attention and helpful in performing actions in the minds of people. These are explained below 1. Product 2. Place 3. Price 4. Promotion. Apart from that we can add packaging, people, partnerships and programming. Main characteristics of tourism services are that these are intangible, heterogeneity, temporary ownership, perishable and inseparable.6 5. www.ehow.com/about_6683884_definition-tourism-marketing.html . (accessed 28-02-2014) 6. Sontakki C.N. Marketing management Published in 2010 (pp- 82-98)
1.3.1 Product Tourism product in marketing is referred to as any product or service related to tourism like transportation, accommodation, restaurants, attractions, shops, landscapes and etc. Sometimes in tourism, products are free of cost as compared to other fields as natural beauty of one's country , friendliness of local peoples and participation in the local festivals are free of cost for tourists. 4 A's plays an important role in explaining the product -1. attractions 2. accommodation 3. amenity 4. accessibility. Attractions are the most important tool in tourism as these are only attractions by which tourists travel to particular destinations. Destination places must have their own historic monuments, museums, gardens, landscapes, carnivals, cultural events, national parks and forests and all activities which are carried out by tourists in those particular destinations which differentiate the destination from other destinations. Accessibility is another important factor in tourism as if tourist places/ product is not easily accessible people generally are not interested in traveling to those places. This requires good transportation system and availability of restaurants and other facilities near to tourist attractions. Amenities are another significant factor describing the easy availability of services on the tourist places like public toilets, restaurants and cafes, retail shops, telecoms and other necessary facilities and the last and important one is accommodation. Accommodation also plays an important role in making the image of the destination as tourists want relaxation after their trips so they must be provided with good and standard quality hotels, hostels, apartments and B &B. Apart from that increasing trend of camping and backpacking is forcing tourism destinations to create and to provide facilities on those sites. And the emerging 5th A of product is awareness- It describes the awareness regarding the particular product or destination which should be created in the minds of people. One must know what he/she is selling and receiver must know what they are receiving. Tourism products must be of standard value as it creates the image of destinations on the minds of customers and it is highly related to word of mouth marketing. Positioning the product into the market is one of the most important and difficult task in tourism as one requires lot of knowledge and specialization in this field. Product positioning is the way in which product is presented in market to target different audience. It is of two types objective positioning and subjective positioning. Objective positioning is the type in which product is presented to target market according to their needs and preferences while on the other hand in subjective positioning the originality of that destination/product is not altered according to preferences of customers. Overall success of marketing plan is directly related with the product /destination
1.3.2 Price In tourism price is defined as the combination of monetary and non monetary prices. Monetary prices are the prices for entrance to destinations, donations for local and environment causes and etc while on the other hand non monetary costs are costs other than money example how much time it was taken to reach that destination, risks during the journey, future benefits etc. Main objectives of price setting are survival, target return on investments, increase market share, price and profit stabilization, profit maximization and maintaining the image of the organization. While setting the prices it should be kept in mind that product pricing is highly influenced by internal and external factors. Internal factors influencing price are organizational costs, marketing mix, product differentiation, product costs, product life cycle and functional positioning. External factors influencing price are product demand, competition, economic conditions and the buyer behavior. The procedure for implementing the price model in tourism marketing consists of following steps- (a) Planning- In tourism marketing first question in the minds of business man's come in mind is how much money to be charged for that particular product in tourism. Planning in tourism requires the estimation of own costs, its benefits to tourists, what profits it will bring to you (b) After planning next step is research for setting price this is very important to know the market size, demand and supply, income, lifestyles, family size and obviously latest trends. Apart from that before setting prices knowing your competitor’s prices and services which they are offering is of immense importance. (c) Once you finished your research and setting the prices next step is to implement them. (d) After implementing there comes the price control. You have to monitor and control the prices of products according to the trends. (e) last step is evaluation finally you have to evaluate the profits and loss and to do modifications in the pricing strategy if necessary. Normally systematic approach to pricing has 8 steps as discussed below- 1. you have to identify who are your potential customers 2. estimation of demand and supply 3. observation of competitor's prices 4. alternative basic prices 5. calculation of net prices for manufacturers 6. calculation of expected profit 7. estimation of total costs and 8. deep analysis of the each major segment. In tourism there are two pricing strategies profit and non profit oriented. Non profit oriented strategy is further divided into two types status oriented and status quo oriented. In status oriented normally prices are kept very low to get the attention of vast people and to attract tourists to particular destinations in large numbers while in status quo oriented prices are kept by companies which are very stable and when there are changes in the wants and needs of customers. 13
1.3.3 Place Place is the important marketing mix element as before traveling to other destinations tourists perceive the image of the destinations in their minds. The main variables of place are transportation, merchandising and channels of distribution. Transportation is important in particular destinations so that tourists can easily travel from one part of attraction to another. There should be proper, economical, rapid and dependable mode of transportation for them. Rails, roads, motor trucks, inland water ways, railway express and airways should be developed according to easily mobility from one tourist place to another. Easily allocation of shopping malls, restaurants and cafes should be located near to tourism attractions to fulfill the needs of tourists. It should be kept in mind that when people travels from one place to another they have certain perceptions about that places in their minds. They should be provided with high standard of hotels, hostels and apartments to be located near to the tourist attractions for the convenience of the visitors. Place must have its own distinctiveness and uniqueness as compared to other destinations, which attracts the tourists to that place and tourism board has to maintain that image with the help of local people. Cleanliness is another important factor which affects the tourism. People always prefer to travel to neat and clean places to maintain their hygiene while on travel. It lies in the hands of the government and other public and private sectors to build the image of any particular destination and before doing that they have to consider all pull factors of the destination and their potential in attracting tourism. There are lot of places in this world which are lying undisturbed by the humans because of no marketing efforts regarding those places. Active education and awareness regarding the particular place/ destination is crucial for visitors to travel to that place. Creation of day and night markets near to tourist places not only drive tourists in large numbers to that particular place but its also important in creating employment opportunities for local communities. Good infrastructure, high speed trains and better connectivity through rails, buses and airway must be developed in tourist regions. People are traveling to particular destinations only when those places meet their interests and its the duty of government, tourism board and local peoples to create and to provide those facilities so that travelers not only remember the experience but also finds a chance to travel to same destinations next time. Destination places must possess trade intermediates like travel agents and tour guides to access tourists in their journeys and to provide them information and other materials like maps, booklets during their journeys so they can aware of their destinations . Volunteer services must be included in the places just to assist the tourists if they have any problems. 14
1.3.4 Promotion Promotion is the main element of marketing mix. Communication mix for promotion are advertising, sales promotion, public relations and personnel selling. Definition of advertising as given by American Marketing Association is : “Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor”7 As tourism is the vast phenomenon normally advertisement in tourism is created by national government of countries and by tourism boards. Advertising is of four types-1. indoor advertising media, outdoor advertising media, direct advertising media and display advertising media. Before choosing the form of media one must be aware of the following questions in their mind that who are the target market, what are their demands, how to catch their attention and in which form they will be impressed. In indoor advertising media is the media which conveys the messages to the houses of the target market. Main forms of this advertising are newspaper's, magazines, TV radio and films. Outdoor advertising media catches the attentions of audiences when they are outside their houses. In this type there comes posters, printed displays, sky-writing and electric signs. Direct advertising covers all forms of printed advertisements examples are post cards, catalogs, sales letters, stores publications etc. Display advertising is the form of advertising which are presented before the audiences examples are exhibitions and fairs. Sales promotion is the another form in promotion it is the type which coordinates and supplement the personal selling and advertising so to increase the sales. It can be done by creating the identity, through partnerships, travel agents and by online networking. In order to increase the sales one must have to create the brand for that destination. It should be of such type so that it can describe what the particular destination is offering in just few words. Partnership are also helpful in increasing the sales as companies have enough funds to promote the destinations on the bigger levels. Travel agents are the gateways to the particular destinations as they are selling vast number of packages to customers at reasonable prices. Posting about your product and doing publicity online also helps in improving the sales. Personal selling in tourism is the presentation of information regarding tangible and intangible products. Mainly travel agents, tour guides, workers behind the counter, resort representatives etc plays important role in personal selling as they are directly contacting and provides tourists information regarding their needs and facilities. PR in tourism targets the national, regional and state wise media to promote a destination. Today promotion has become the most integral part in tourism as one cannot imagine the marketing without promotion. 7. http://kalyan-city.blogspot.com/2010/07/5-ms-of-advertising-advertising.html . (accessed 12-02-2014)
1.3.5 People People in tourism refers to all people and workers whom tourists interact during their visit to particular destinations. When tourists travel any destination the first thing upon arriving there is their interaction with local people. Behavior of local people has directly influence on the minds of tourists. The way they were treated and served during their journey's plays important role in shaping the particular destination's image. For this destinations, require particular skills, manners and
behavior in handling the tourists- that’s why lots of restaurants and hotels are employing those people who are skilled, groomed and clean. Tourists generally share their experiences about their visits and their services and how they were being treated by local people during their journeys. Suppose tourists went to restaurant and if waiter/waitress behave with them rudely or if nobody cares about them often tourists don't visit those places and this is the negative point for destinations. Tourists while traveling to other countries must remember that in each country people have their own different type traditions and cultures so they must respect those traditions rather making fun of local people activities. In tourism all local people or whether they are retail shop owners, hotel representatives, restaurant managers, workers, tour guides etc all have important role in tourism. Tourism helps people in exchanging their ideas and knowledge. People have different roles in tourism they can be employees, management, culture and customer service people. In tourism people represents the culture of the country by creating specific touch on the minds of tourists. The way they speak and handle the customers are the driven forces of tourism. They must have to possess relevant knowledge and training regarding the product and the services which they are selling to their customers. Tour operators must have to use their top standard quality and knowledge in their services to increase the repeat visit to particular destination. Tourism is the major employment sector which has the capacity to employ large number of people whether in hotels, restaurants, airports, retail shops etc and active steps should be taken by government of destination countries to increase the number of jobs for their people in this sector so as to lower the unemployment rate and to provide better services and facilities to its customers. Popularity of any destination lies in the hands of local government marketing efforts, its attractions and its amazing people’s. Many services and products in tourism are supported by Customer services. Its only in the hands of employees how to save the reputation of any firm by the way they handle complaints. Normally people likes to buy any product from the people they like so role of people in tourism is important and vital. For better knowing any country's culture its better to know its people first as they are the gateways to their culture and traditions. 16
1.3.6 Process In tourism, businesses offer services. Process in tourism means to implement such strategies to make the life of any business easier so that people can get what they want in easy manner. For example - if person want to purchase holiday vacation to any destination. First people will search online websites offering holidays to particular destinations. After from those websites they will choose only one website offering best and easy services. After they will look for offerings and tour packages to their choice of destinations. After choosing tour packages they book that tour and air tickets and get ready for tour. This is the example of process in tourism marketing. Generally talking process is the action applied by the companies to deliver and to provide information regarding their products in a relevant and easy manner. Another example is of travel operators they offer wide services and tour packages according to needs of clients. Tour operators help them in finding destinations according to their choices and helps them in everything from their pick up from airports to accommodation at destinations. In tourism process is the mean of conveying messages, services and information to customers in a easy manner so that customers can easily access those particular products. Every organization in tourism have different processes. From hotels to restaurants, from tour operators to retail shops every company and business has their own different types of processes which creates impressions on the minds of people by the way they deliver their products. Main key elements in process are planning, system & procedures, documentation, quality control& feedback & reviews. Planning is important as it describes how you will deliver the product into the market. Systems and procedures are the backbones of any company on which success of any company depends.
Documentation is helpful in fueling the company by providing necessary
information to your clients. Quality control in the process means that the product which you are delivering should be of consist and and high quality. Feedback & reviews are helpful in knowing the current situation of your company and its services. Process has inputs, throughout and outputs. It includes direct and indirect processes. Direct activities adds the values to customer's as they experience the service. Indirect activities supports the services before and after the process has been delivered. In making any process product can be tailored according to the needs of customers experiencing similar interests. Process are important in marketing mix as these are the ways by which companies deliver their products and customers receive those products in a efficient and in easy manner. Processes takes into account all marketing mix In short words we can describe process as something experienced by your customers at different points of time.
1.3.7 Physical evidence In tourism as tourism products are intangible as before purchasing any service, people can't touch, feel and see those destinations. They perceive the image of services and products in their minds before traveling to any destinations before travelling. They perceive regarding their accommodations, hotels, restaurants, appearance of vehicles and its people. Before purchasing any services normally people are not sure about whether they will like particular destination or not. Physical evidence is the environment or facilities and services which they experience upon reaching the destinations. Physical evidence is the environment in which normally sales takes place and where product is consumed by customers. Physical evidence is related to another important factors like physical environment around the product/service, Ambiance, Spatial layout and corporate branding. Physical environment is the environment surrounded where services are consumed by people. For example if someone goes to restaurant apart from having meals physical environment also plays important role in repeat visits. Example, there are 2 restaurants, in one restaurant there is no music just tables and chairs and meals should be served to them. On the other hand in 2nd restaurant on same street meals are served to clients with optional music and entertainment for them and interior of the restaurant is surrounded with appropriate and attractive lights, paintings and decorations. Although prices of 2nd restaurant will be little higher than 1st restaurant customers will prefer going to 2nd restaurant because of its physical environment. Ambiance is the another factor in physical evidence. It describes the use of colors, fragrances, music and level of noises at the consumption area. Spatial layouts defines the way in which the furniture is set up in the particular places. Arrangement in churches is different as compared to that of restaurants. Similarly in hotels there is different arrangement for furniture set up. Last one is corporate branding- it means that image for any identity and organization must be supported by signs and symbols so that customers can easily understand what exactly the place is offering. Physical evidence includes the tangible products like beds, wifi connections, meals, buildings, interior of any service, packaging, brouchers, uniform of the employees etc. Well dresses and nice employees make first impression on the minds of tourists traveling to other destinations. Sometimes people are confused before visiting any places whether that place will be according to their interests and their needs. To fulfill these needs various companies are providing pictures and information regarding the destination places and in these cases websites act as a physical evidences for customers. In short words we can say that physical evidence is the environment which matches with the perceptions of customer regarding that product/destination. 18
Chapter 2 Role of government and modern day marketing 2.1 Government initiatives Government also took initial steps to promote tourism in India from the beginning. India is the very vast county unique in its own culture and heritage which provides eye caching lavish beauty for its visitors. Development of the tourism in India starts in 1945 under the government of the John Sergeant (educational adviser at that time). In 1956 second five year plan was established the main aim of this plan was to increase the national income so as to improve the living conditions of the people. Main focus of this was to bring the industrial revolution in the country by focusing and developing key industries. Sixth plan influenced on the social integration and economic development. In 1982 national policy was announced. National committee on tourism plan for the sustainable grown in tourism was held in 1988. In 1992 national action plan was prepared to formulate the policies. In 1996 the national strategy for the promotion of tourism was drafted. In 1997 the national tourism policy recognizes the roles of the central and state governments and the undertakings of the public and private sector for the promotion of tourism in their prospective states and in whole of India. There was the involvement of the local panchayats, local bodies, non-government organizations and local youth in the creation of awareness and promoting tourism in India. The government was only formatting the strategies based on the small level unless the Incredible India come into progress on 2002. The initiatives of this marketing campaign was to attract and promote the India internationally. Promotion and marketing was done on the large scale. This was launched by Mr. Amitabh Kant who was the chief secretary of ministry of tourism of India that time. This marketing campaign was one of the successful campaign ever launched by ministry of India. After its launch there was the 16% increase in the tourists traffic that year. Today tourism industry is generating about more than INR 6.4 trillion that is 6.6%of GDP (Gross Domestic Product) in 2012. It is on the 12th rank from 184 countries on the contribution of travel and tourism GDP. It is providing 39.5 million jobs i.e 7.7% of total employment is from tourism sector. It is estimated that the annual growth rate of tourism will be approximately 7.9% from 2013-2023. India is on 3rd rank in the fastest tourism developing countries. India has a large medical tourism sector which is going to comprise 95 USD billion dollars by 2015 representing the 30% annual growth from medical sector. Its the 38th country in the world in terms of travel and tourism competitive report. India has a good air transport (ranked 39th in the world) and good infrastructure (ranked 42nd in the world). Active steps by ministry of tourism to inspire and promote the new forms of the tourism like rural, cruise, medical and ecotourism.
Government is facilitating tourism by developing infrastructure, building rural and medical tourism, by better online research and by building MICE facilities for promoting India as a top business center. Apart from this government is taking initial steps in making the cleanliness and hygiene as a high priority. Government is developing tourism as a critical tool for employment in the reduction of poverty by emphasis on pro-poor programs. To reduce the demand -supply gap the aspects of skill development are developed to meet the managerial and skill service in the tourism field. Two scheme plans by government to improve the skill development is through IHM (Institute of Hotel Management/Food Crafts Institute) and National Council of Hotel Management and Catering Technology. Government is promoting the skill development in tourism by providing the capital based assistance to various universities and colleges. Under this program Rs 25 lakhs has been offered to Kendriya Vidyalaya schools to offer tourism on the +2 level for civil work and for lab equipments, Rs 200 lakhs has been offered to universities, colleges and schools offering tourism and hospitality and other related courses, Rs 1200 lakh is offered to IHM and FCI for the upgradation of the infrastructure to meet the demands of the tourism Industry. Domestic tourism is increasing in India due to the high incomes and the changed lifestyle specially of the young people towards the diverse activities like adventure, rural tourism, extreme tourism, wildlife and so on. India provides the total number of 28 world heritage sites and 25 bio geographical zones and large number of coastline beaches to provide all kinds of tourism activities. Government is realizing the importance of tourism in India and gives 5 year tax holiday for the 2, 3 and 4 star hotels and resorts located near the UNESCO world heritage sites except Delhi and Mumbai. Even government launched the program of extension of visa on arrival scheme. Under this scheme the tourists from Germany, France, Sweden, Poland and Norway to other European and Scandinavian countries can increase the extension of their visa after arriving to India. Government is trying to establish India as a filming destination by promoting bollywood cinema as the sub-brand of Incredible India. Apart from the steps taken by the government to promote the tourism India is itself a brand one can experience India's rich heritage and culture to stunning and marvelous architecture, from astonishing and vast pilgrimage destinations to abundant and pristine beaches, from wellness and spa resorts to its open nature and wildlife safari’s, from its ancient yoga and meditation attractiveness to many other forms of tourism. Ministry of tourism launched the domestic campaign for providing knowledge and awareness among the people under the brand of “Athithidevo Bhava”(means guests are
god and should be treated like God) for which Amir Khan (bollywood Superstar )is the brand ambassador and also in parallel campaign “Clean India” was launched. Ministry of tourism promotes the sustainable development of tourism by developing individual ownerships and by involving public and private stakeholders. India has the great potential for spiritual tourism as India is the country of people from different religions i.e sikh, hindu, muslims, buddhist, jain and christians living together. Government and various trade unions are promoting spiritual tourism by creating workshops on yoga’s and ayurvedic programs. By allocating 10% of the budget to the north east region the ministry of tourism of India is developing the infrastructure for adventure activities such as aero sports, high attitude trekking and other forms of tourism . Apart from that the development of conventional center in every state and UT's of India for promoting MICE. ITDC( Indian Tourism Development co-operation) developed in 1966 established for the development and promotion of tourism in India. The main objectives of ITDC is to construct and merge the existing and new tourism markets. Beach recreation, lodges and restaurants are also on the list of ITDC apart from that they are working for the development of tourism transportation, entertainment, shopping and conventional center, production of services for disable people and the publication of the tourism materials. They are rendering the consultancy managed services whole across the country FAM tours and road shows are increasing to create awareness and promotion of India tourism domestically and internationally. India tourism policy is based on the Seven principles of S's which are as follow : (1) Swagat (Welcome), (2) Soochna (Information), (3) Suvidha (Facilities), (4)Suraksha (Security), (5) Sahyog (Co-operation), (6)Samrachana (Infrastructure), (7)Safai (Cleanliness). Hunar Se Rozgar is the program mainly devoted with main emphasis on pro-poor program(related to create tourism promotion in the poor areas Slum tourism is the example of this program). This is created to provide the employment skills for the young group of age 18-20. Every state of India is different by its own traditions, architecture and culture making India the rich cultural country. Indian government knows the importance of tourism in developing the economy and for this they are doing promotions on the bigger level with the help of partnerships with other businesses and tour operators. Several road shows have been organized by government of India to increase and to maintain good relations with the tour and travel companies to increase the India's share of market in tourism. Today due to the marketing and promotional campaigns, today India is successful in making its image on international level.8
8. http://www.dnb.co.in/Travel_Tourism/Chapter_4_Policies.asp . (accessed 20-03-2014)
2.2 Role of PR Public relation is the promotional mix tool on marketing mix tools. Public relations and marketing are dependent on each other as one cannot work without another. Public relations stimulate the people's interest and desires for that destination or product for the purchase of particular entity . Public relations main aim is to provide relevant and cost effective knowledge regarding particular product/destination to its customers. Definition of PR is as given below “Public relations is the discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behavior. It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its public.”9 As before traveling to any destinations customers are not sure whether they are going to like their destinations. Public relations helps in ensuring safety of its visitors and makes their journeys comfortable, well treated and entertained. PR helps in creating buzz on the destinations. PR plays important role in every organizations as its the important tool in creating positive image of the destination in the minds of people. It helps in building trust with customers. Public relations can be of two types proactive or pro reactive. Proactive public relations boosts the organization in providing information and creating desire in the minds of people's examples are- travel industry publications, press conferences, travel writings etc while on the other hand procreative public relations comes after responses to the negative feedback’s and damaged control example media evaluations and editorials to journalists. PR creates the context by providing positive image of the destination or product when people hears the positive reviews from other people's and from media normally they like to purchase those products and holidays. Public relations are important tools in creating the brand and image of the destinations. It helps in maintaining mutual relations with organizations and public to improve the channels of communications. These days internet, broadcast messages and satellite feeds are another techniques used in PR to distribute information on the major level in a efficient and a cost-effective way. Many organizations are dependent on public relation agencies as these provides them timely and important information which helps them in saving and handling their potential customers. Public relation agencies always maintain good relations with reporters for large coverages. In tourism every regional, national and local bodies are spending large sum of money in public relations as it plays a leading role in promoting tourism. It has the direct and comprehensive function in marketing the destination areas. 9. http://www.cipr.co.uk/content/careers-cpd/careers-pr/what-pr . (accessed 01-04-2014)
PR is very broad application as without public relations marketing is nothing. Some public relation agencies works for some of established and stable companies /organizations while on the other hand smaller PR agencies works for some regional areas. PR applies tactics, information, knowledge and techniques to boost the travel to particular destinations or by creating buzz for certain places. PR crates the information regarding tourist destinations, publish tourist publications for benefits of tourists, creates brouchers, good relations with media for wide coverages at national and international levels, creates feedback information for any improvement at particular destinations or to know their satisfaction level and encourages travel writers to write attractive writings for places to create positive impacts on the minds of people. PR can be better defined in following functions: 1.Media relations and publicity 2. Community and domestic relations 3. Internal public relations 4. International PR and custom relations and 5. Relations with local governments. First talking about publicity and media relations this can be achieved through by creating regular press conferences and by arranging study tours for media representatives for wide coverages in newspapers, television, internet, radio and etc. Secondly, community and domestic relations are mainly to create hospitable and warm environment for tourists by creating awareness and knowledge among local communities so they should be aware of cleanliness and should treat tourists in a friendly manner. Thirdly, internal public relations are important in creating communication within the organizations. For example, normally central office is the main office controlling and delivering and providing communication to other representational offices. It is necessary so that all offices can communicate with each other at all levels. Fourthly, international PR and custom relations are another important functions of PR as it improves the image of the destination at the international level. This can be done by continuously arranging and appearing on tour fairs, by presenting hd presentations for wooing the international market and by designed publishing brouchers and newsletters. This can be more effective by creating study trips for travel agents. The main motive behind these trips is to create and provide information regarding particular product/ destination to travel agents so that they must know what exactly they are selling and how will sell that product/destination. Fifthly, regarding relations with government is of immense importance as in all countries government is controlling all tourism activities as tourism is significance part of the economy of country. So maintaining better relations with them are very useful in promotions and in need of funds.
2.3 International marketing International marketing is quite similar with marketing the only difference between marketing and international marketing is that where marketing is done at national level, international marketing is the broad concept which is done at international level. Doole and Lowe (2001) defines international marketing as : "At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe."10 In tourism main role of international marketing is to increase the market share and to create the positive image of destinations in the minds of people and also to increase the flow of balance of payments which are important for developing countries. Before going to international markets one must should have to be well established and stable in their own countries and should know all the tactics and knowledge to woo the people in international level. Major steps in international marketing are marketing research, marketing planning, advertising and sales promotion and sales management. Markets go international due to various reasons like increasing foreign competition, rise of new markets, threat of trade deficit, opportunities through foreign aid program etc. In tourism international marketing is necessary to increase the flow of balance of payments, as in tourism while traveling to other countries tourists spends lots of money for visiting attractions, for accommodation, restaurants, buying local products etc which is helpful in creating employment opportunities for local peoples. Due to increasing competition between countries international marketing is becoming quite difficult. International marketing is affected by two factors cultural variables and economical variables. Talking about cultural variables these represents the local culture and heritage of the people’s. Before targeting markets its important to know about the size of markets, population growth rate, income, lifestyles, national per capital, level of inflation, government roles in foreign investments and the interests and needs of the target market. It can be better achieved by maintaining and increasing good relations with tour operators and suppliers, PR in media program, by creating effective advertising according to the needs and preferences of target markets. This requires continuously presenting your self at trade fairs and providing your services and facilities in a cheap and in a effective way. Good PR and government relations are very helpful in international marketing. 10. Doole, I. and Lowe, R. (2001), International Marketing Strategy - Analysis, Development and Implementation, Thomson Learning, 3rd Ed
2.4 Customer behavior Any company's progress is directly depend upon its customers as its only customers who are willing to pay for the facilities and services provided to them by companies. As consumer's behavior is dynamic in nature means its changing continuously with time companies need to monitor their behavior continuously. According to Kotler and Keller in 2011 define consumer behavior as: “The process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services”11 As in marketing efforts, consumers are the main focuses to generate profits from them companies must create attention, interest and desires for that particular product/destinations so that consumers can perform their action by purchasing those products. Business men must know about the factors which are affecting buying behavior of consumers. Consumer's buyer process consists of 5 steps as below- 1. Need recognization- Company must know what are the needs and wants of their customers and to satisfy those needs is the important task of companies. They must know what exactly their customers want. 2. Information search- Once customers feel desire for something like product / destination they seek further information regarding those products from their friends, relatives, advertising, salesmen, dealers, consumer organizations and packages and most important one through internet. 3. Evaluation and intention – after getting information regarding products and destinations they perceive the image of particular destinations/products in their minds 4. Fourth is purchase decision- last stage is purchase state when they actually buy that product and it is dependent on evaluation and intention as its only intention which makes them to buy product. 5. Lastly, Post-purchase reaction- After using product its only satisfaction level of customers which direct the post purchase sales. If they have positive feelings or they are satisfied with the product they will make repeat purchases. Customers behavior is directly dependent and affected by any changes in following variables like personal incomes and family incomes. If level of income of people is of low standards it directly affects the purchasing capacities of consumers. The big the family size the big are the needs and wants of all family. Apart from that psychological factors like motivations, perceptions, attitude and personality directs the buying behavior of consumers. Apart from that it is also directly affected by the culture. As each culture has its own beliefs, norms, traditions, values which are very important in branding & packaging, advertising , product development and in market segmentation. Before understand the consumer behavior its important to understand buying process of consumers. 11. Kotler, P. and Keller, K. (2011) “Marketing Management”(14th edition)
2.5 Marketing of services Prof. Philip Kotler and Paul N. Bloom in their book defines the service in marketing as: “Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to the physical product” 12 Generally speaking product is the overall package of processes and goods and services are the sub categories of product. Characteristics of services are different that from overall products as these are intangible, heterogeneous, inseparable, perishable, susceptible to changing demand and are subjected to special pricing tactics. Tourism and travel-related services includes services provided by hotels and restaurants (including catering), travel agencies and tour operator services, tourist guide services and other related services. Five characteristics of tourism services are 1. Intangibility: Tourism is an intangible non-material product since there is no transfer of ownership of goods and one cannot touch, smell and feel for example scenery, climate, heritage and the friendliness of the host population . 2. Heterogeneity: Heterogeneity also refers to the degree of variability that services can never be similar for example service in restaurant is never same every time. We can better explain it by saying that there will always be subtle differences and things are never the same twice. 3. Temporary Ownership: Service customers usually only have access to or use a facility where a service is performed and its always temporary as they can own the service for certain period of time but nor forever example guests cannot take the hotel rooms with them after they leave the destination places. 4. Perishability: services cannot be saved or stored once they are consumed. For example- the transportation service that an airline ticket entitles a customer to cannot be stored, saved, returned or resold after the flight. It is a perishable entity .5. Inseparability: most travel products are produced and consumed at the same place and at the same time for example meal at the restaurant in inseparable from its product. In tourism products are sold first and then they are simultaneously produced and consumed. Services can be classified on the basis of customer and industrial services. All entertainment and catering services, hotels and motels, personal care services, medical services, household services, Automobile services, transportation services, communication services, insurance services and financial services comes under the consumer services. On the other hand industrial services consists of transportation,
communication, manpower selection and training and middlemen services.
12. Kotler P and Bloom P ( Marketing of professional services , 1984)
2.6 Marketing and society and challenges before modern marketing managers Today question comes in mind whether society is for marketing or marketing is for society. Marketing activities have both positive and negative impacts on the society. As organizations main role is to increase wealth, and profit maximization and to create organizational image. This can be better achieved through participating in social causes and voluntary works for the welfare of the society. This not only ensures the success but also ensure the survival of the organization. Today marketing has become one of the integral part of the society and it has four basic social functions. 1. Survival 2. Profitability 3. Consumer service 4. Social responsibility. 1. Survival- survival is main objective of a business in changing environments and in competitions. By taking responsibility towards the welfare of the society one can changes the marks of success and competition with other firms. 2. Profitabilityevery firm's main motive is to earn profit, normally society likes if you earn those profits by honest means not by exploiting them. 3. Consumer service- consumer's are the main part in any organization thus customer care and customer sanctification organizations are important factors in deriving success and profits in any organizations. 4. Social responsibility- by behaving good in society any organization can increase their profitability as marketing and society are dependent on each others. Marketing managers must know how to maintain balance between economic and social activities. However marketing has some negative impacts on the economy as marketing increase the prices for the products and customers have to pay high prices for particular products which sometimes are beyond their limits. Main reasons behind these increase in prices are high cost of distributions, excessive margins in the marketing and high advertising and promotional costs. Next one are deceptive practices- it means that sometimes to increase the sales and profits companies creates false images of products in the minds of people. In this case consumers are loosing great value of their money's. High pressure selling is another way of manipulating consumers as in this process consumers are forced to buy unwanted and un- needed products. This is mainly done through personal selling as they possess such skills to convert desires of consumers into immediate demand. Another problem which society is facing is the sale of unsafe products. Advertising's main motive is to drive and create interest of consumer's to particular product and sometimes under this category some company's are manipulating consumers by selling low quality and unsafe products. Another negative point is poor services to disadvantaged consumers. Sometimes middle class and poor people are forced to buy cheap quality products from small retail shops which charge them high money and after the collapse of product no service is provided to such consumers. These factors highly affect the society. Sometimes marketing activities put too much or highly emphasis on materialism forgetting social and cultural values. 27
Too much emphasis on private goods forgetting about public goods are another problems encountered by society in modern days. In appropriate advertising and marketing activities not only fuel the cultural pollution but also damage the cultural values. With the help of corrupt political powers often marketers sell dangerous products like tobacco, oct, fertilizers against the interests of public. Due to changing marketing techniques there are lots of challenges before the modern marketing managers. These challenges may come due to change in technology, sociological forces, social responsibilities and ethical values, business relations, ecology, government and managerial experiences. Another specific challenges which are faced by modern day marketing managers are destabilization of existing players in the markets as normally these type of companies due to their strong political relations and powers are doing all kind of things without any barriers. Next one is pre- dominance by MN C’s as more and more MN C’s are entering into markets everywhere making the marketing quite competitive and hard. Another challenge is the shift from supply to demand. As mostly companies these days are making and designing products according to the needs of consumers rather selling products which they want to sell and are expertise in. This is creating shortages in the supply side. Due to the competition between companies to go global is another factor which is a challenge in itself as for this one requires international quality standard, low prices and adequate supply. Managers must have to understand the change before applying any operations. Before entering any new markets its better to know the back ground history of that place and product. Marketing management requires high level of perception, social responsibility, organizational development, management information system and effective employee and managerial skills. Marketing manager must possess qualities within himself for the overall development and success of any organization. In today’s marketing manager the qualities needed are that he /she must be of anticipation nature, understanding , risk taking, loyal, competence, courageous and tactful . He/she must be of good imagination skills with sound judgment and effective communicative skills. Self discipline is another important key of managers. He must be of dynamic nature as in business dynamism is the important feature in business world. In achieving goals of company/organization he/she must be of energetic mind to achieve success. He/ she will be able to face unwanted or unexpected turns in the business and know how to cope with such failures by using his tactics, information and knowledge. He must be a leader than a boss and he/she must know how to lead the people in the organization to achieve company goals.13
13. http://www.pragmaticmarketing.com/resources/ten-marketing-challenges-that-can-make-or-break-your-business . (accessed 3-04-2014)
Chapter 3- Effectiveness of marketing services in tourism 3.1 Early tourism development and marketing mix As described in first chapter in today's world tourism has become one of the most important activity. In short words we can describe tourism as the activity when people travel to other places other than their residing environments for the purpose of relaxation or to get break from there normal environment. In ancient times people were only traveling for relaxation purposes. With the development of advanced technologies and due to globalization tourism takes various forms other than relaxation . People these days are traveling to fulfill their various needs like they are traveling for leisure, business, culinary, studies, adventure, pilgrimage and many more. Defining a tourism is quite task as we cannot define tourism due to its broader concept. Many types of tourism types are emerged like sustainable tourism, eco tourism, dark tourism, dhoom tourism, culinary tourism, health and spa tourism, agri tourism, rural tourism, religious tourism and many more. Tourism in India start begin to flourish from the centuries backward with the beginning of its first civilization known as Indus Valley civilization and Aryans civilization. During these civilizations although there was not construction of any monuments yet they play important role in tourism of India by trading with other countries. Construction of tourism structures and monuments started with the coming of one of the biggest empire in the history of India “The Mauryan Empire”. Several monuments were constructed in their period. After Mauryan's, Kushan's, Gupta, Pallavas and cholas, Delhi sultane, Mughal and Britishers plays important role in developing tourism by constructing amazing monuments, temples and other structures and by trading with other countries. After getting independence from Britishers government of India plays important role in promoting tourism in India . Various marketing techniques were used by the government of India and ministry of tourism board of India. Marketing is the business of selling and promoting any products or services including public relations and advertising. In today marketing is playing an important role in promoting and creating the brand image for products or destinations. It has became the most important sector in every organizations. Marketing services can be better explained by 7 P's of marketing which are product, place, price, promotion, people, process and physical evidence. Marketers before presenting any product or destination first must know about the features and its benefit to its customers. Apart from that they should also keep in mind information regarding needs and wants of their consumers and must be different then from their competitors and must be of high quality. Place in marketing is the place where tourism products and services are offered to its consumers. 29
In tourism, tourist destination places must be well equipped with infrastructure, hotels, restaurants and other public amenities. Easy and convenient modes of transportation on tourist places are also plus points for any destinations. Price is the another important P of marketing mix as its only the money which adds the value to the experience. Tourist places must be provided with appropriate pricing for its products, attractions other facilities. As before purchasing holidays, consumers are spending money for that thing which they can not see, feel, hear and touch before buying. So its the responsibility of marketers to adjust prices in such a way so that these can deliver values to its consumers.
Promotional activities in marketing are those activities which are used for creating
awareness and providing information regarding that product/ destination to its target market. Main elements of promotional mix are advertising, personal selling, PR and sales promotion. Advertising is the any paid form of media choose by marketers to deliver information regarding to its customers. TV, radio, cinema, billboards, newspapers, magazines, internet are the various modes which are used in advertising. Personal selling is the type of promotion in which products are directly sold by people before the consumers. In tourism it is different. Personal selling in tourism is the form in which products are presented before the consumers. These are people who directly interact with the consumers. Examples are front line staff in hotels, waiters, retail shop owners, tour guides etc. Sales promotion is the way in which marketers try to woo large sum of people for a short time period by creating attractive offers, discounts and rebates. PR is the another important factor in promoting the product/destination by creating good relationships with other private and public sectors by arranging trade fairs and fam tours for journalists so to promote the destination. Main aim of Public relations is to woo the journalists so that they can show the coverages on the wide and big channels. People also plays important role in marketing by showing their hospitable and warm natures to tourists. First thing tourists interact when they visit any country are is local people. Its said that if you want to know about any culture or country first know about its local people.. Process in tourism is defined as the method in which all processes are carried out in tourism. Examples are the development of websites to provide knowledge to consumers, before buying tickets all the steps taken by consumers are tourist processes. Physical evidence in tourism is the environment created by marketers on the places of consumption example the use of colors at tourist attractions, hotels, restaurants etc. The way in which furniture is set up in different places all comprise to physical evidence of any place. Apart from that the use of decorations, paintings and local arts and crafts, architecture all plays important role in defining the physical evidence.
3.2 Government role and influence of marketing In second chapter the government initiatives, role of government and marketing of services and challenges of marketing to the society were described in a detailed manner. On seeing the interests of consumers in traveling to India, government of India is taking active participation in promoting tourism in India. first tourism plan for promoting India was launched in 1945 under the leadership of John Sergeant. second five year was implemented in 1956. In 1997 plan there was the active participation of central and state governments in promoting India. Apart from that local panchayats also take active participation in implementing 5 year plan. All these plans although were mainly developed for promoting India but these plans were unable to promote India on the international level. In 2002 Incredible India campaign was launched by Amitabh kant which was first ever successful campaign launched by ministry of tourism in attracting tourists from all over the world. Within the one year after the launch of this campaign these was 16 % increase in tourist arrivals in the consecutive year. This has happen due to the effectiveness of Incredible India campaign as different market segments were targeted at same time. Today tourism is generating 6.6% of GDP with 7.7% of employment rate. Government is taking active steps for improving the infrastructure and skills needing for developing tourism. For this government is developing good transportation both land and air, creating high quality infrastructure to meet according to the needs of consumers. For the development of skills in tourism field government is investing lakhs of money on schools and universities to make tourism subject as a priority. Personality development and training on high level are being provided to Employees by government through government institutes. Today India ranks 39th position in countries having good transportation system and 42nd for good infrastructure. Government creates awareness programs for local communities under the name “Athithidevo Bhava” to provide information regarding importance of tourism for which bollywood star Amir Khan is the brand ambassador. To improve lifestyles and to remove poverty government of India and ministry of tourism is emphasis on pre -poor programs to create employment opportunities for local poor peoples. Government is also employing adults between age of 18-20 years under the scheme called Hunar se Rojgar program. Government is taking active steps for making India as atop destination by regularly creating trade fairs, road shows, meetings to increase India's market share in international market. By maintaining good and active relations with other public and private sectors tourism board is very successful in promoting India at a vast level. India 's tourism is based on 7 principles that are welcome, information, facilities, security, co-operation, infrastructure and cleanliness. 31
For tourists government and ministry of tourism take active steps in controlling all tourism activities all over the country. Government has launched a scheme for european citizens so that they can extend their visa upon arriving India for its key european Markets. Apart from that public relations are another important tool in marketing. Efficient relations with media, community, government are necessary in PR in promoting any product/ destinations. By arranging trade fairs and fam tours for tour operators and journalists, any product/destination gets wide acceptance in the society. PR are the backbone of marketing as without PR marketing is nothing. International marketing in tourism is the part of Marketing. Every country is promoting their products in an international level to increase its market share in the world and to get more profits. International marketing is same as that of marketing only in the fact that one needs a lot of information before doing marketing at international level. Every country has its own values, norms and traditions and one must know the particular market's cultural and economic variables before performing marketing at destinations other than where one is residing. Marketers must take into account the population size, family income, population density, interests and needs of local population, government, taxation, culture, traditions and so on. This requires planned marketing study of target market, evaluation, implementing policies and regular control and monitoring the activities of the company/organizations. It depends whether markets go international on the beginning or they should have to establish first in their own countries. Indian domestic tourism is very strong as compared to international arrivals as its contribution to economy is quite large. Since 2002 active steps were taken by local, central and state governments in promoting domestic tourism. After getting successful in domestic tourism government and ministry of India launched the campaign for international market. India has unique culture and heritage which differentiate her from rest of the world and tourism board of India use their potential and tactics in wooing their international tourists. This has been possible only due to the cooperation of local, state and central governments and also due to the hospitality of local peoples. As we all know that main motive of companies/organizations is to generate profits after getting successful in their own markets people tend to sell their products to international markets to gain market shares and to build the image and brand of their company/organizations/destinations. Due to increase in global competition between all countries today in tourism industry every country want to attract tourists to their countries so to generate profits and employment opportunity for its local people. When tourists travel from one country to another countries they have their direct impact on that countries balance of payments which are very useful for any country as these are the sources for developing infrastructure and lifestyles of the local people. 32
Good relationships with other countries due to political stability between countries is generating good results in promoting any product/destinations without any fears. Every country today is in race to become a number one destination and for that they are taking active steps for wooing the tourists which affects the society both in a positive and negative ways. Considering the positive impacts if we see that due to marketing efficiencies today world has become a one country and we can buy any product from every where in the world. This not only saves the time but also helpful in choosing product from different companies and varieties. Today people can book tickets to any destinations within few minutes. Marketing helps them to choose their products from different types of available sources thus making life of people easy and convenient. Due to marketing today people are more aware about different cultures and traditions within each countries. Marketing makes the delivery of products and services within fractions of the time. On the contrary marketing has adverse effects on the society. Some marketers for their own selfish motives sell those products which are of very poor quality and which are harmful for local communities. Due to their strong relations with government often they try to manipulate the consumers for their selfish motives. In tourism sometimes marketing has a adverse affects on the local communities. Considering the example of Goa , in India due to high marketing regarding this place large number of tourists are traveling to this place which has negative impacts on the economy as these are disturbing the local cultural lifestyles of local communities. Government of India is trying to build more hotels to meet with the demands of increasing tourists in Goa but local community is against this idea. When tourists travels to other places in a large number their impacts are harmful both for environment and for local communities. Marketers must keep in mind that in tourism services are intangible, heterogeneous, temporary ownership and are phersiable. The marketing managers job is becoming more and more complicate everyday due to large number of companies offering same products and services. Today marketing managers must possess qualities like hardworking, leadership, good behavior, anticipation, risk-taking, loyalty, competence,
sound judgment, dynamism,
communicative skills and self discipline. In tourism marketing plays important role in promoting local destinations and without marketing we can not imagine how markets will look like as one cannot promote his/her products/ destinations without using marketing techniques. Marketing techniques are for creating successful businesses.
3.3 Methodology In above, both chapters clearly defines the importance of marketing in promoting any destination/product. The main objective of this research is to know the effectiveness of those marketing techniques in Indian tourism markets and how successful is ministry of tourism in providing services and facilities to its tourists. For this research was carried out on 30 people who were being to India in last one or two years with age group between 24-40 years who were having quite good interest in India. Research was carried out by finding them from one of travel agency operating in Poland to India. Emails of respondents were collected from that and they were called for meetings for detailed information.
Respondents were provided with information regarding the main motives of the study.
Questioner was prepared according to the objectives of the topic to know about the effectiveness of marketing techniques. Research was carried out on 3 persons from Germany, 20 persons from Poland and 7 from South Africa who traveled to India during last one or 2 years. Detailed questions were asked from them by personal meetings in Poland. In first question their nationality and age were asked to get know about detailed results from them. Next two questions were asked to them regarding from where they know about India or what are the plus points which they find in Indian tourism which motivate them to travel to India. More than 70 % respondents replied that they heard about India from TV, internet and from their friend who were being to India. As compared to publications, newspapers and other modes of sources of information regarding India respondents choose TV, internet and their friends as the main motive behind their visits. Other 30 % respondents responds that they were hearing regarding India from their surrounding environments and after doing research about India they actually planned to travel to India. Question regarding India's plus point which makes their minds almost 60% of respondents gives same answer that India's rich culture and lifestyle were the main motives behind their visits to know more about India. 10% respondents responds that the amazing temples and the religious sites were the main motives behind their visits. 10% of respondents visited India to see its amazing landscape and natural and cultural beauty of India. 10% visited India as they were very much attracted to the local arts and crafts and traditions of India and the rest 10% visit India due to their taste for Indian food and local traditions. Respondents responds that India is a very beautiful county where they can find rich culture and heritage which differentiate India from other countries. Next question which was asked from them was regarding the efficiency of process which they encountered for purchasing tickets and making reservations in hotels before traveling to India. Almost 50 % of respondents replied that it was very convenient and effective and they purchase tickets and make reservations all by online. 34
During this process they were very friendly handled by Indian travel companies. They just went to Indian websites offering tour packages which they choose as per according to their interests. Information on these websites was detailed and as per according to their interests saving their time to roam here and their to get detailed information regarding tourism destinations. 20% of respondents responds that they were not satisfied with the process as they have to wait for long time to hear replies from travel companies regarding their requests and they say that they were not handled efficiently by Indian tour operators and it takes too much time and result of the process was long. 30 % of respondents responded that they just went to local tour operators offering tours to India and for them process was easy as they just need to tell the tour operators their needs and wants regarding that destinations and they say that they were satisfied with their process although they were charged with little high sum of money. Next question which was asked to them was to know whether they were satisfied with the tourism products and attractions which were offered to them. Among all respondents 60% of respondents replied that they were highly satisfied with the tourism products and attractions which they were being offered during their journey and they describe this as a ever lasting experience totally different as compared to other countries. They replied that India's tourism products like hotels/restaurants and attractions are delivering their own essence of experience which they could experience only in India. 20% of respondents said that although the tourism offerings which they were expecting and which they were being offered during their trip did not match. However, they were satisfied with whatever was offered to them. Respondents replied that although they were not offered with tourism products according to their needs but still for them this trip was very enjoyable and they were fully satisfied with the tourism products which India was offering. Rest 20% describe that they were not satisfied with the products offered to them during their journey as it was of very low quality compared to other countries. Respondents respond that restaurants were overly crowded and they have to wait for long time for their services. Respondents said that attractions were quite good but they did not like their experience may be it was not what they were expecting. Next question which was asked to respondents was about public amenities. Nearly 70% of respondents replied that public amenities were easily accessible to them at tourist destinations. Local markets, telecoms companies, cafe's, restaurants and local handicraft markets all were easily accessible to them. Rest 30% respondents replies that although restaurants, hotels, markets and cafe's were easily accessible to them they find it great difficulty in using Public toilets. As some of tourist attractions were without the availability of public toilets.
They also responded that the tourist places which were having public toilets were not that clean and they have to wait in lines to use the toilets. Although they said that apart from this they were satisfied with other public amenities. Next question which was asked to them was regarding their value for money. Respondents were asked that did their experience deliver value to their money. Almost 80 % of respondents were satisfied and they respond that the money which they spend for purchasing holidays to India deliver the value for their products as they find Indian products quite cheap as compared to their own countries. They responded that they get more to see what they were actually expecting and they describe India as a perfect destination to spend money whether on attractions or on local handicrafts which are unique in its own beauty. Rest 20% respondents responds that they were not satisfied with the money which they spend on buying holidays to India as Indian products can deliver much more value if presented in a efficient and good manner. Although they were happy with their experience but still they were not satisfied as they respond that they spend high money as compared to tourism products. Next question which was asked to them was regarding physical evidence means the environment which was provided to them during their stays. Almost 90% respondents say that they were highly satisfied with the environment of hotels and restaurants during their trips. Respondents answered that hotels and other places provides them real Indian experience which they were expecting. Almost 10% of respondents were not satisfied with the environment which was provided to them as they find infrastructure of very poor quality. Respondents replied that inside some restaurants there was no facility of AC's during their trip in India and they find it difficult to eat food in that environment and they replied that India still need developments in this sector. Respondents replied that they don’t feel comfortable in that environment. Next question which was asked was regarding the hospitality of local people. Almost 95 % respondents replied that they really love the people from India as they find them very kind and helpful during their visit. From airport to hotels and from tour guides to local people tourists find people from India very warm and hospitable. Respondents replied that during their visits they even make good friends with whom they are in touch till today. They find that local people are full of love and affection towards tourists making the trips of tourists more memorable and exciting. However they mentioned that tourists places were overly crowded with local and international people making them to wait to enter inside tourist places. However they find local people full of charm, passionate and positive energy. Rest 5 % respondents find Indian people annoying during their visits as they were not able to understand them because of language and poor communication skills.
Next question which was put to them was that were they satisfied with the marketing and advertising techniques used by ministry of tourism and government of India in promoting India at international level. Almost 80% respondents replied that marketing and advertising techniques are adequate and are meeting the modern day demand of tourists and they replied that its possible due to Incredible India campaign which is targeting all segments of age groups with its unique offers for almost every group from children to old people. Respondents replied that marketing and advertising techniques used by government and India and ministry of tourism are highly professional and targeting people from all over the world. Respondents replied that India has offers for almost all people whether they are middle class or rich as per according to their needs and demands. 20% of respondents were satisfied with marketing and advertising techniques however not much as they replied that ministry of tourism can do much more that this and they replied that before doing marketing techniques, first they should consider the negative points and after doing improvements on the negative points, they responds that they can do much more better. Regarding repeat visits 70% respondents replied that would like to travel next time as for them India is beautiful country and they would like to know more about India by traveling to different parts of India and they replied that next time they will travel with their friends or family members. Respondents also responds that they would like to encourage people and their friends to travel to India for unique experiences. 20% respondents replied that they will think about this as they are having less time and due to increasing fares they find it difficult to travel to India next time however they replied that they would like to travel to India for next time but they were not sure regarding their repeat visits. Rest 10% replied that they would not like to travel India for next time. Respondents replies that they don’t find India that attracting that for next time they will better spend money on something else much better. Respondents who replied that they don’t like any repeat visit to India were usually disappointed with the weather conditions as they find it very hot and for them it was something unusual which they were not expecting. Secondly, they were disappointed with the offers provided to them as they were not in accordance with their needs and wants. Thirdly, they describe India as a crowded country and they find it difficulty in experiencing some of the better services and facilities. Question regarding whether marketing and advertising is depicting and providing true image of India. Almost 100% respondents replied that marketing and advertising procedures are describing real India and by seeing such ads one can easily perceive India's image in their minds. All respondents replied that they feel India exactly in a same way as they view India in ads, newspapers and billboards.
Respondents gives very interesting views when they were asked about what things they would like to change or which they feel must be changed so as to provide better services to its customers. 40% of respondents replied specially girls that although they did not encountered any problem while traveling to India however they feel little insure regarding their security as they were feared traveling alone on some places in India and they feel that government and ministry of tourism should take active steps in removing the fears regarding rapes and manipulation of women traveling to India. For this they want that there must be presence of security officers on the tourist places or they have to take active steps for the security of women traveling to India. Rest 40 % respondents replied that there should be availability of public toilets near to all tourist places for the convenience of the tourists and they also add that they were charged with high money in restaurants, hotels and other tourist attractions. They want that ministry of tourism should monitor regularly the prices charged from international visitors. Respondents replied that in some retail shops they find it very difficult to communicate with people due to their poor communication skills and government should takes active steps in providing good facilities for tourists at such places. Respondents also replied that cleanliness is the another problem which they faced during their journeys as they come across with rubbish lying on the sides or near to some tourist attractions which is the negative point for such country like India and want that government should provide cleanliness near the tourist attractions. Respondents also find excessive traffic and animals on roads which they want to be changed so for their easily mobility from one tourist places to another. Respondents replied although services and facilities which they received was of very high quality they find some hotels and restaurants lacking the traditional values. Respondents want that instead of dressing in a western uniforms it will be nice if they were wearing their traditional dresses and they find some restaurants and hotels lacking the traditional culture and values. Respondents also replied that upon their arrivals to India some officers were not that polite and helpful in handling international customers. Respondents want that polite and helpful candidates must be placed on such vacancies as they find it very difficulty in clearing the immigration procedure. Apart from that respondents replied that its very hard for them to but tickets to travel from one place to another due to overly crowded ticket booths. They want that this is the important point which ministry of tourism takes into account. 20% respondents replied that they don’t want to change anything about India as for them it is perfect in its own tradition and cultural values and they were fully satisfied with their trips. From above answers it was clear that India too has its pros and cons which need to be improved so as to deliver quality service and facilities.
Conclusion The research findings and results shows us the effectiveness of marketing services used in tourism by ministry of tourism and government of India in promoting India. After getting results we come across with various conclusions regarding the effectiveness level. Firstly, it was clearly shown from the results that although India has make his place in international marketing with its unique products and services still India needs lots of improvement in providing the better services and facilities to its consumers. Talking about the modes of marketing and advertising social media and TV plays important role in wooing the consumers to travel to India and ministry of tourism needs to promote and invest in these modes of information sources to create more awareness among the people regarding the attractions which India is offering. Regarding the main motives behind their visit to India mostly people choose India due to its rich culture and heritage other than other modes of tourism providing the information about the major attracting factor of India. Regarding the process there is need of improvement on the part of tour operators as mostly people find it very difficult to get effective services due to delayed replies from Indian tour operators. Ministry of tourism needs to take active steps regarding the monitoring of services provided by tour operators to its clients. Regarding tourism products these needs lots of improvements to meet with the needs and want of consumers and tourism products needs to be updated with regards to infrastructure and transportation systems. Public toilets need to be constructed near tourist places and which are existing still needs lots of improvements. Cleanliness at or near tourist attractions is the another important factor which needs to be improved by creating information regarding cleanliness and the use of bins at public places. From the above study it is concluded that tourists find people of India very warm and hospitable making this as a pull factor for tourism. Although marketing and advertising techniques are successful in creating and making the image and brand of India on the international and domestic level. India needs lots of developments and improvements considering the regular flow of tourism. Although Indian products are unique in its offerings still India needs strategies to be implemented on tourist attractions for better facilities and services. Marketing tools plays important role in promoting tourism on a international level as it is clearly shown from the results. Plus point in marketing and advertising tools of India was that these are promoting and presenting the real image of India . Its based on true ideologies and intentions yet India needs to improve the services and facilities in making the marketing of services and facilities in a better and in a relevant manner.
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Appendix Questionnaire 1. Please tell us your age and nationality 2. From which mode of information you get know about India. ex. TV, radio, newspaper etc . 3. Which were the main forces in Indian tourism which attracts you to India? 4. Is the whole process from making reservations to finding accommodation was easy and reliable? 5. Were they were satisfied with the tourism products of India ? 6. Did they find it difficult to access public amenities? Were they ere easy and reliable? 7. Did tourism of India deliver value for your price? 8. Did you satisfied with the environment provided to you during your trip? 9. Did you find people of India hospitable and warm? 10. Did you satisfied with the marketing and advertising techniques used by government and ministry of tourism of India? 11.Did marketing and advertising techniques are presenting real image of tourism in India? 12. What were their views about repeat visits to India? 13. What changes they would like to see in Indian tourism market?