INDIVIDUAL ASSIGNMENT DECLARATION
I, Clifford Vuyo Motsweni DECLARE THAT THIS ASSIGNMENT IS AN ORIGINAL WORK AND ANY OTHER SIMILAR WORK HAS BEEN APPROPRIATELY REFERENCED IN THIS ASSIGNMENT.
Individual Case Study Assignment
Dr M Cullen
09 April 2013
INITIALS AND SURNAME: CV Motsweni
Table of Contents
1. Question 1 - Marketing Research literature review 2. Question 2 (a) – Critical discussion of chosen Market 3. Question 2 (b) – Alternative markets 4. Question 3 – Potential market research for this case study
1. Question 1 - Marketing Research Literature Review Siegel (2011:1) states that the world’s biggest and best brands, like Apple, McDonald’s and Nike, did not just create outstanding products and assumed the world would find a way to the products. They marketed their products in an effective way that created consumer demand and they continue doing so to remain the best. A destination, like any other product, in order to ‘sell’ and be a success needs to be marketed effectively to create consumer demand.
In order to be able to do effective marketing, relevant detail research is required to enable the understanding of the destination and the consumer. Jennings (2010:7) highlights the importance of tourism market research and states some of the benefits as the following: Provides information for the planning and management at the local to international level, Provides information on the social, environmental and economic impacts, Offers insights into the motivations, needs, expectations and level of satisfaction of the consumer, Highlight developmental needs of local businesses, Generates views of the past, present and future, Offers information and data that could be used for business promotions, Allows comparisons to be made, Enables operators and governing bodies to evaluate the destination.
Seaton and Bennett (1996:28) state that marketing is orientated towards the consumer. This is a fair statement since the consumer is the target for a product or business and its sustainability. Research and marketing efforts should then be centralised around the traveller in order to understand the needs and expectations and ultimately package a suitable destination that would be of interest and demand to the traveller. The demand for travelling is driven by a lot of reasons. Some of the reasons documented by Bhatia (2006:23) and Merith (http://ezinearticles.com) include 1
relaxation, education, business, honeymoon, health, etc.
Figure 1 below
shows a schematic representation of the classification of travellers. The reason for travel determines the type of destination. For example a person travelling to a city for medical reasons has different needs and expectations from a one day city excursionist. The destination marketer must understand the traveller’s perspective is in this regard. The destination package should suit the traveller’s motives. Figure1: World Tourism Organisation Classification of Travellers
Source: World Tourism Organisation (in Bhatia (2006:59)
Dwyer, Forsyth & Dwyer (2010:38) cites the following variables as part of the demand drivers for a product:
Product price in comparison to price of related or substitute products
A destination marketer must highlight the product’s advantages over the competition or substitute products. If a substitute destination is cheaper, a traveller might opt for that option to save and channel the savings to another project. The price factor can also be used to manage the demand. 2
Seaton et al (1996:145) mentions that price can be set low to maximise access or high to minimise access for exclusivity. The intended positioning of the destination will determine the price. Consumer’s...
References: 1. Bhatia, A.K., 2006. The Business of Tourism: Concepts and Strategies. New Delhi: Sterling Publishers. 2. Court, D. and Narasimhan, L. 2010.Capturing the World’s emerging middle-class. Retail Practice. Available from: http://www.mckinseyquarterly.com/Capturing_the_worlds_emerging_mi ddle_class_2639 [Accessed on 8 April 2013] 3. Dwyer, L., Forsyth, P. and Dwyer, W. 2012. Tourism Economics and Policy. Canada: Channel View Publications. 4. Fornell, C., Rust, R.T. and Dekimpe, M.G. 2010. The effects of Customer Satisfaction on Customer Spending growth. Journal of Marketing Research, 47(1), 28-35. 5. Jennings, G., 2012. Tourism Research. Second Edition. Australia: John Wiley & Sons Australia. 6. Martin, J.J., Marketing Research of the consumer market in South Africa. Bureau of Market Research. South Africa. Available at: http://www.unisa.ac.za/contents/faculties/ems/docs/4_4%20Martins.pdf [Accessed on 03 March 2013] 7. Merith, S., 2009. Ten Reasons Why people Travel. Available from: http://ezinearticles.com/?expert=Shirley_Merith [Accessed on 02 April 2013] 8. Moriarty, S., Mitchell, N. and Wells, W. 2012. Advertising and IMC: Principles and Practices. Ninth Edition. England: Pearson Education Limited. 9. Seaton, A.V. and Bennett, M.M., 1996. Marketing Tourism Products: Concepts, Issues, Cases. UK: International Thomson Business Press. 10. Siegel, B., 2011. The Power of Destination Marketing. USA. Available from: http://torc.linkbc.ca/torc/downs1/The-Power-of-DestinationMarketing.pdf [Accessed on 02 April 2013] 11. Seaton, A.V. and Bennett, M.M., 1996. Marketing Tourism Products: Concepts, Issues, Cases. UK: International Thomson Business Press. 12. Tourism Australia 2013. Available from: http://www.australia.com/explore.aspx [Accesses 07 April 2013] 13. Yeoman, I., Li Yu, T. And Wouters, M. 2012. 2050-Tomorow’s Tourism. Canada: UTP 14. Yim, C., Tse, D. and Chan, K. 2008. Strengthening Customer Loyalty Through Intimacy and Passion: Roles of customer-firm affection and customer-staff relationships in services. Journal of marketing Research, 45(6), 741-756.
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