Tourism Marketing Introduction In today’s world marketing is what drives sales and profits. Even more important than maintaining the quality of a product or service is to make sure that its perception in the mind of the consumer has a high share of mind and heart for the product and the product or service is made according to the needs of the customer. (Brian, 2005) Porters 5 forces According to Michael Porter, any firm in an industry is affected by the following 5 elements: Rivalry: Rivalry refers to the direct competition that any firm in an industry faces.
While we talk about the tourism industry, we see that it is a service based industry which is gaining popularity all over the world and involves high profits. For a service industry like tourism it is most important to ensure that the target audience gets attracted to the firm’s services and products and that the firm can prove itself to be better, more competitive and superior to its competitors. Buyer Power: The more the buyers, the lesser their power. This means that, the higher the demand for tourism, the more power lies with the firm providing these services.
A higher demand in this case can be created by effective tourism marketing, using media such as cartoon channels to attract children, specialist magazines and newspapers to attract professionals or billboards in localities where the maximum target audience in terms of class and affordability can be found. Supplier Power: The more the suppliers, the lesser their power. The more barriers that are created in an industry allow the suppliers of tourism services to be concentrated into a small number.
They can then exercise their powers over the buyers. The amount of tourism marketing will depend on the demand and supply factor that will determine supplier power. The greater the demand for a service, the greater the supplier power and the lesser the need for tourism marketing. Threat of new market entrants: In the context of the tourism industry, there are some barriers to entry for new firms. The most important one is the investment of capital for tourism marketing and other purposes such as initial set up. Threat of substitute products: Substitute products are those that are indirect competition to a specific firm.
In the tourism industry substitutes can be categorized as for instance local tourism packages versus foreign tourism packages, adventure tourism versus friends/family tourism packages, and educational tourism versus tourism for fun. In all cases, it is vital to attract the appropriate audience and develop a tourism market strategy that is well suited to attract that particular segment. It is important to select the right medium to reach the potential consumers and give them value for the money that they would spend.
Porter’s 5 forces are a tool to analyze the effects of internal and external factors that affect a firm in an industry, and in this case the quality and quantity of tourism marketing and promotion can be judged by evaluating the above stated 5 factors. (Panda, 2006; Brian, 2005) Bibliography Brian, A. 2005. Tourism Marketing: A Collaborative Approach. Great Britain: Cromwell Press Panda, T. 2006. Tourism Marketing: India: ICFAI University Press