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FEATURES AND CHALLENGES OF SERVICE MARKETING AND MARKETING MIX

 Tourism and hospitality sector incorporates both goods and services. Goods are easier to measure, test and evaluate, while services provided better challenge. Service products are commonly distinguished from goods by four characteristics. 

These factors are the challenges for making the hospitality marketing in a given area –

 Intangibility – Service products cannot be tasted, felt, seen, heard, or smelt. We all know that before passengers can board the plane, they just have an airline ticket and a promise of safe delivery to their destination. To reduce uncertainty caused by service intangibility, consumers look for tangible evidence that will provide information and confidence about their service. 

 Inseparability – The service cannot be created and delivered without the customer’s presence. To simplify, the service at the restaurant, the smile at the hotel reception or the turndown service in the room ca only be done with the customer’s presence. It is like being in the factory where the product is being created. 

 Heterogeneity – Service delivery quality depends on who provides the service. The same person can deliver differing levels of service, with a marked difference as the shift starts or ends. Lack of consistency is a major factor in customer satisfaction. 

 Perishability – Service cannot be stored. Empty airline seats, hotel rooms, restaurant covers – all these cannot be sold the next day. If service has to maximize revenue, they must manage capacity and demand since they cannot carry forward unsold inventory.

 In addition to the above-mentioned factors, some more challenges to hospitality marketing are: 

 Changing Demographic Trends: In terms of demographics, the world population is forecasted to reach 8.9 billion people by 2050 with the most populous nations being India, China, Pakistan, Indonesia and Nigeria. Although this population growth will be driven by Asia and Africa, over next 20 years the key markets for outbound travel will remain Europe, Asia and the America. One of the most significant implications of demographic change in this century is the ageing of the world’s population. The world’s median age is projected to rise from 26 years in 2000 to 44 years by 2100. According to WYSE (World Youth Student & Education Travel Confederation), young travelers are the travel industry’s fastest growing sector representing over 20% of all international visitors. WYSE say that these adventurous young travelers stay longer, spend more, seek out alternative destinations and enjoy a wider mix of travel experiences compared to average tourists. 

 Changing family structures will also have an effect on tourism products and cost structure. Over next 15 years, there will be more flexible travel formats and cost structures to suit different family compositions. Family travel (adults & children) is expected to grow at a faster rate than all forms of leisure travel. 

 Technology: 

Technology is also affecting the way travel is purchased. As internet grows internationally, so will its use by the tourism industry. By 2017, 38% of travel revenue sold in US will be online. This factor will increase the online spending gradually and as the consumers’ discretionary income grows.

 Sustainable Development and Ecotourism: It has been observed that there is shift towards responsible consumption by having a greater awareness of issues like – Sustainable Development, Ecotourism and Ethical Consumption. It is expected that ethical initiatives will enter the mainstream and take on a different dimension as consumers demand more responsible behaviour from tour operators, hotels and airlines. In coming years, world needs to develop and adopt new low emission and low carbon energy resources. Consumers of the future will demand more time convenient flights, the ability to Check-in and have a boarding pass before getting to the airport, better connections and online visas. 

 MARKETING MIX 

 Marketing Mix is a particular combination of the product, its price, the methods to promote it and the ways to make the product available to the customer (place).

 All these elements have to reinforce each other to enhance the experience of the customer. Managers must manage the 4P’s in a way that they satisfy customer needs better than the competition. Decisions regarding marketing mix form a major aspect of implementation of the marketing concept. 

 When marketing their products firms need to create a successful mix of: 

 The right product Sold at 

the right price

 In the right place 

Using the most suitable promotion

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