University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Marketing strategy in the tourism industry
The word “strategy” occurred from the Greek strategos, “art of the general”. The military origin of this term shouldn’t be surprising. strategos allowed Alexander of Macedon to win the world. Value of the strategic behavior allowing firm to survive in competitive fight in long-term prospect, sharply increased in the last decades. All companies in the conditions of the rigid competition, quickly changing situation have to not only concentrate attention on internal state of affairs in the company, but also develop strategy of a long-term survival which would allow them to be in time behind the changes happening in their environment. Strategy represents the detailed comprehensive comprehensive plan, intended to provide implementation of mission of the organization and achievement it is more whole. Formation of strategy is one of management functions which represents process of a choice of the purposes of the organization and ways of their achievement.
Marketing strategy is a strategy of the enterprises focused on market values. Marketing strategy has two main reference points – the market and a product. The subject of a term paper is actual since for many enterprises marketing strategy is the major strategy as it provides validity of a market orientation of the enterprise. The purpose of a term paper consists in a choice of such marketing strategy for the studied organization as a result of which the company will achieve the objects, and will be in time behind the changes happening in its environment. Practice of business showed that there is no strategy, uniform for all companies, as well as there is no uniform universal strategic management.
Each firm is unique in own way, and process of elaboration of strategy for each firm is unique as it depends on a firm position in the market, dynamics of its development, its potential, behavior of competitors, characteristics of goods made by it or services rendered by it, state of the economy, the cultural environment and still many other. Certainly, always it is necessary to remember that strategic management — it first of all a product of creativity of the top management, but at the same time it is possible to tell and about a certain theory of the strategic management which knowledge allows to exercise control of the organization more effectively.
1. Kinds of marketing strategy and process of their choice.
1.1 . Definition of strategy and their version.
Company strategy, as a rule, consists of the thought-over purposeful actions and reaction to unforeseen succession of events. The firm defines the long-term actions in relation to the markets, the commodity range, pricing, merchandising and goods advance on the market, develops marketing strategy according to various conditions of demand, forms the global directions of the development. Firms have a big degree of a freedom of choice of strategy.
They can diversify the activity in connected or not the connected grew by means of creation of joint ventures, strategic alliances, acquisition of other companies or opening of new activities. Some companies follow strategy of leadership in expenses, others focus attention on various combinations of numerous properties of goods more attractive to clients, and the third choose discussion of special inquiries of a narrow circle of buyers. Further the main marketing strategy which are more often used for organization development will be given.
Marketing strategy — process of planning and realization of various marketing actions, which are subordinated to achievement put before the company (firm, the organization, business structure) is more whole. All variety of strategy which commercial and non-profit organizations show in real life, are various modifications of several basic strategy. Each of these strategy is effective in the certain situation determined by factors of internal environment therefore it is important to consider the reasons of a choice of a certain option. The organization is faced by four main strategic alternatives:
1 . Limited growth. The majority of the organizations adheres to this alternative, for it establishment of the objectives from achieved, inflation-adjusted is characteristic. It is the easiest, convenient and least risky way of action. Apply in the mature stable industries having stable profit in the past. At strategy of limited growth of the purpose of development are established “from reached” and are corrected at situation change. If the management, is generally satisfied with position of firm, it is obvious that in the long term it will adhere to the same strategy as it is the most simple and least risky way of actions.
2 . Growth. This strategy is most often applied in dynamically developing branches with quickly changing technology. The strategic alternative of growth is carried out by annual substantial increase of level of short-term and long-term goals over level of indicators of previous year. This strategy is the chosen alternative second most often. It is applied in dynamically developing branches with quickly changing technologies. Growth can be internal or external. Internal growth can happen by expansion of the range of goods. External growth can be in allied industries in the form of the vertical or horizontal growth by a way of acquisition of other firm, their association or merge.
3 . Reduction – strategy of a last resort. Options of realization of strategic alternative of reduction: elimination, cutting off superfluous, reduction, reorientation. This strategy gets out the organization most less often. For it establishment of the objectives below the level achieved in the past is characteristic. To strategy of reduction resort when indicators of activity of the organization get a steady tendency to deterioration, and no measures can change this situation. 4 . Combination – strategy of a combination of all alternatives which the major companies which are actively operating in several branches adhere. This strategy represents a combination of the considered alternatives – the limited growth, growth and reduction. The large organizations which actively function in several branches adhere to this strategy, as a rule. For example, the firm can sell or liquidate one of the productions and in exchange get one or several others.
Marketing strategy (F. Kotler). According to F. Kotler, the firm in competitive fight can play one of 4 roles. The marketing strategy is defined by position of the company in the market, whether is she the leader, the applicant, the follower or occupies a certain niche:
1 . The leader (a share in the market about 40%) feels surely. The leader of the market possesses the greatest share of the market of a certain product. To strengthen a dominant position, the leader needs to seek for market expansion as a whole, attracting new consumers, finding new ways of consumption and use of production. For protection of the share of the market the leader uses strategy of position, flank and mobile defense, preemptive strikes and reflection of the attack, the compelled reduction. The majority of leaders of the market seek to deprive of competitors of the possibility of transition to approach.
2 . The applicant for leadership (a share in the market about 30%). Such company aggressively attacks the leader and other competitors. Within special strategy the applicant can use the following options of attacks: “frontal attack” – is conducted in many directions (to new goods and the prices, advertising and sale), this attack demands considerable resources. “environment” – attempt to attack all or the considerable market territory of the market. “round” – transition to production of essentially new goods, development of the new markets. “attack of a gorilla” – small gusty attacks not absolutely correct methods.
3 . The follower – (a share of 20%) the company which to seek to keep the share of the market and to bypass all banks. However even followers have to adhere to the strategy directed on maintenance and increases in a share of the market. The follower can play roles of an imitator or the double 4 . Dug round in a market niche – (a share of 10%) serves a small segment of the market to which there is no business to major companies. Traditionally this role I played small business, today strategy of niches use also the large companies. Key to niches – specialization. The companies focusing in niches, choose one or several areas of specialization: on end users, down, depending on the sizes of clients, on special clients, by the geographical principle, on a product, on individual service of buyers, on a certain ratio of quality/price, on service, on distribution channels. Some niches are more preferable than one.
Main competitive strategy (M. Porter). Malt liquor allocates five main competitive strategy:
1 . Strategy of leadership in the expenses, providing decrease in full costs of production of goods or services.
2 . The strategy of broad differentiation directed on giving to goods of peculiar features, distinguishing them from goods of rival firms that promotes attraction of a large number of buyers
3 . The strategy of optimum expenses which is giving the chance to buyers to receive for the money a great value at the expense of a combination of low expenses and broad differentiation of production. The task consists in providing optimum expenses and the prices concerning producers of production with similar lines and quality.
4 . The focused strategy, or the strategy of a market niche based on low expenses, is focused on a narrow segment of buyers where the firm advances the competitors at the expense of lower costs of production
5 . The focused strategy, or the strategy of a market niche based on differentiation of production, sets the purpose providing representatives of the chosen segment with goods or the services most fully answering to their tastes and requirements. The analysis of a competitive situation and definition of position of the organization in it assume determination of complexity and dynamism of the competitive environment. Universal methods of such analysis are the model of five forces of M. Porter and the analysis of expenses of competitors. The model of five forces assumes carrying out the structural analysis on the basis of determination of intensity of the competition and research of threat of penetration on the market of potential competitors, the authorities of buyers, the authorities of suppliers, threats from goods or service substitutes.
The analysis of expenses of competitors is consolidated to clarification of the strategic factors operating expenses, actually the analysis of expenses and modeling of expenses of competitors. For obtaining competitive advantage the firm can use three the general competitive to strategy: 1. leadership in expenses (a task — to achieve leadership in expenses in the concrete sphere at the expense of a set of measures for control of them), 2. individualization (achievement of difference of a product or organization service from products or services of competitors in this sphere is supposed), 3. focusing (a task — concentration on concrete group, a segment of the market or the geographical region).
Types of strategy of behavior of firms according to A.A. Thompson and A.DZh. Striklendu. They allocate the following strategy: offensive, defensive and strategy of vertical integration.
1. Offensive strategy for preservation of competitive advantage. Competitive advantage is usually reached due to use of creative offensive strategy it isn’t so simple to them to resist to competitors.
Six main types of offensive strategy are allocated:
the actions directed on resisting to strengths of the competitor or to surpass them; the actions directed on, use of weaknesses of the competitor; at the same time approach on several fronts;
capture of unoccupied spaces;
2 . Defensive strategy for protection of competitive advantage aim to hold the market position, to reduce risk to be attacked, to transfer attack of the competitor with smaller losses, to put pressure on throwing down a challenge to reorient them on fight against other competitors.
3 . Strategy of vertical integration. The essence of this strategy is that firms can expand the activities for the direction to suppliers (back) or in the direction to the consumer (forward). The firm building the new enterprise for production of entrance components which were bought earlier from suppliers, undoubtedly, remains in the same branch, as earlier. Similarly, if the producer chooses integration “forward”, opening a network of the retail shops to sell production to directly end user, he remains in business on production of this production, even on condition of expansion of its field of activity in a branch chain of values. Strategy of vertical integration can pursue the aim of full integration in grew or partial integration (creating positions at the most important stages of a branch chain of values). The company can carry out vertical integration, beginning own actions in other links of a branch chain or getting the firms which are already working in this sphere that they were closer to the company.
1.2 Specifics of marketing in tourism.
Tourism according to the main characteristics has no fundamental differences from other forms of economic activity. Therefore all essential provisions of modern marketing can be fully applied and in tourism. At the same time in tourism there are the specifics distinguishing it not only from trade in goods, but also from other forms of trade in services. Here trade, both services, and goods (by estimates of experts, the share of services in tourism makes 75%, goods – 25%), and also special nature of consumption of tourist services and goods in a place of their production, moreover, in a certain situation takes place. In the traditional production having concrete result of work (goods in a material and material form), the concept of marketing has more concrete contents. In tourism the result of activity is reduced to a tourist product. In fact, the tourist product is the any service which is satisfying these or those needs of tourists and subject to payment of the hardware of their party. Tourist services treat hotel, transport, excursion, translation, household, municipal, intermediary, etc.
The main tourist product is complex service, i.e. the standard set of services sold to tourists in one “package”, abroad they are called often package-tour. Tourist marketing – concept difficult and capacious in view of what it yet didn’t receive the accurate and final wording. There is a set of definitions, including: – methods and the receptions directed on identification and satisfaction of needs of people, caused with motives of rest – informative aspect, rest, entertainment, treatment, etc., – and the organization of tourist bureaus or the associations, capable it is rational to satisfy these requirements; – the state and private activity of the tourist enterprises which is carried out on the international, national and regional plans for the purpose of satisfaction of requirements of certain groups of tourists; – the system of a trade production activity aiming at satisfaction of individual needs of each consumer on the basis of identification and studying of a consumer demand for receiving the maximum profit; – the market focused management, directed is achievement of the objectives enterprises more whole than the enterprise by more effective, than at competitors, satisfaction of needs of tourists; marketing can be used as at the level of separate travel company, and separately tourist concerns, holdings, including at the international level.
The world tourist organization allocates three main functions of marketing in tourism: 1) establishment of contacts with clients sets as the purpose to convince them that the offered vacation spot and services of service existing there, sights and expected benefits completely correspond to that clients wish to receive; 2) development assumes design of innovations which will be able to provide new opportunities for the sale, in turn similar innovations have to correspond to requirements and preferences of potential clients; 3) control provides the analysis of results of activity on advance of services in the market and check of, as far as these results reflect really full and successful use available in the sphere of tourism of opportunities. The tourist product has to be good acquisition. In this regard marketing represents the consecutive actions of the tourist enterprises directed on achievement of such purpose. Therefore and reasonable the following definition of marketing is rather logical. Marketing in tourism is a system of continuous coordination of offered services with services which are in demand in the market and which the tourist enterprise is capable to offer with profit for itself and is more effective, than it is done by competitors. In relation to tourism allocate some components of a complex of marketing: – personnel, its qualification and training;
– process of providing service;
Tourist business is unique in the sense that the personnel of the enterprises is a part of a tourist product. Hospitality, goodwill – the main condition for all comers, and not just specialists in direct service of consumers. Marketing has to be an integral part of philosophy of all organization, and functions of marketing to be carried out by all employees. Key factor of competitiveness of the tourist enterprise are a measure (action) for mobilization of creative activity of collective. Important factor of high-quality service of the client is the environment – appearance of the building, office registration, furniture, the equipment, office equipment, etc. the atmosphere of the offer of a product (the physical environment) is perceived by means of sense organs (sight, hearing, sense of smell, touch) and has impact on consumer behavior in four ways:
1) can serve as a data carrier for potential consumers;
2) can serve as means of drawing attention of clients;
3) can be the carrier of a certain effect (colors, sounds and properties of surfaces of subjects surrounding the client influence his consciousness and induce to purchase);
4) can create a certain mood. [19, page 58]
Ensuring management efficiency with marketing requires development of its auxiliary systems:
The system of marketing information provides, systematization, an assessment and use of the data characterizing a condition of environment and the internal environment of the tourist enterprise. Without objective, actual, rather full marketing information adoption of operational and strategic decisions is impossible. The system of the organization of marketing is directed on creation of the relevant organizational structure of the tourist enterprise providing realization of marketing actions. For continuous tracking performance of marketing strategy and programs the system of marketing control is created. In practice the technology of implementation of the concept of marketing is very elastic. It can change both the structure, and a place of separate stages depending on features of the enterprise, degree of familiarity of the market, goals, tasks and market conditions. However all these elements are closely interconnected. It is impossible any of them to exclude from system, without having broken its integrity.
2. Marketing strategy in the tourism and hospitality industry.
2.1 Strategic marketing at the tourist enterprises.
1. Corporate marketing strategy in tourism. Hierarchy of marketing strategic decisions. The most important purposes of any company are: receiving profit, ensuring continuous growth of a turn and occupation of the best competitive position in the market. In marketing is the growth of sales, increase in a share of the market, increase of loyalty of consumers. Exactly at the top level company management the foundation of the correct marketing policy as each concrete marketing decision has to be considered as specification of strategic decisions of the company directed on achievement of the all-corporate purposes are laid: definition of development of the main strategic zones of managing. choice of the directions of further growth formation of competitive advantages.
These and other marketing decisions made by the top management of the company, define development of concrete products and the markets, all system of marketing actions, their expense and efficiency at the subsequent stages. Strategic marketing decisions represent a way of action on achievement of the marketing purposes which, in turn, follow from the purposes all-corporate. Distinguish the marketing decisions made by the enterprise at three levels:
Corporate marketing decisions define interaction strategy with the market and coordination of capacity of the enterprise with its requirements. Marketing decisions at corporate level define ways as it is better to use enterprise resources for satisfaction of needs of the market. It is possible to allocate three groups of strategic marketing decisions at corporate level. Portfolio strategy — allow to resolve rather effectively issues of management of various fields of activity of the enterprise from the point of view of their place and a role in satisfaction of needs of the market and implementation of capital investments in each of spheres. Growth strategy — give the chance to answer questions: in what direction to develop to the enterprise better to conform to market requirements? whether enough own resources for this purpose or is required to go for external acquisitions of the activity? Competitive strategy — define how it is possible to provide to the enterprise competitive advantages in the market from the point of view of bigger involvement of potential consumers and what policy to choose in relation to competitors.
2 . Marketing strategy on tourist industry development.
Marketing practice considers “portfolio” in the form of set, as a rule, not economic divisions dependent from each other, strategic units of one company. “The portfolio analysis” allows to present in a matrix look results of research of activities of the enterprise for the purpose of determination of their subsequent growth and increase in profitability of strategic units which were its part. Thus increase in production is defined by development of demand and sales that leads to decrease in expenses of resources on a unit of production. “Portfolio strategy” — ways of distribution of limited resources between economic divisions of the enterprise with use of criteria of appeal of market segments and potential opportunities of each economic unit. Enterprise resource management on the basis of a choice of the economic directions of market activity is carried out with use of a matrix of BKG and a matrix Mac-Kinzi.
3 . The marketing strategy focused on growth of the tourist company. Enterprise growth — manifestation of types of its business activity which can be based on three opportunities of growth: organic growth, intensive development at the expense of own resources acquisition of other enterprises or the integrated development; diversification — leaving in other fields of activity.
Strategy of growth represent business management models by a choice of types of its business activity taking into account internal and external opportunities. Control of growth is exercised with the help:
matrixes of external acquisitions;
new matrix of BKG.
This matrix represents the tool for classification of production and the markets depending on degree of uncertainty of prospects of sale of production or opportunities of penetration of this production on this market. It is known that gorazno it is more difficult to sell absolutely new production, than production known, also to sell the existing range of goods to categories of the consumers close to what already got them, it is easier, than to master the new markets.
Each strategic quadrant defines the directions of marketing efforts of the enterprise:
1 . Penetration strategy on the market:
stimulation of purchases by traditional buyers (product replacement, use frequency); increase in a share of the market;
involvement of buyers from competitors;
involvement of new consumers;
search of new opportunities of using.
2 . Strategy of development of the market:
exit to new consumer segments;
entry into the new territorial markets;
exit to new marketing networks.
3 . Strategy of development of a product:
modification by the range
4 . The marketing strategy focused on ensuring competitive advantages of travel agency. Competitiveness of goods and firm.
The competition — rivalry of the enterprises in the market, directed on a gain attention of potential consumers. The competitive analysis represents the analysis of a competitive situation and an assessment of degree of competitive advantages, both the enterprise, and his rivals in the market. Competitive advantage – those characteristics of market activity of the enterprise which create a certain superiority over competitors. Competitive strategy at corporate level pursue the aim to provide competitive advantage of the enterprise in the market concerning rival firms. For management of competitive position of the enterprise are used: general competitive matrix;
model of competitive forces;
matrix of competitive advantages;
model of reaction of competitors.
General competitive matrix.
According to Porter’s general competitive matrix competitive advantage of the enterprise in the market can be provided with three main ways. Grocery leadership is based on policy of differentiation of goods (value for buyers is created). The main attention is paid to improvement of goods, giving of bigger consumer usefulness to them, development of branded production, design, service and guarantee maintenance, formation of attractive image. The combination of high usefulness and the high price forms “the market force” goods. It protects the enterprise from competitors, provides stability of position in the market. Price leadership is provided on the basis of possibility of the enterprise to reduce costs of production (value for the producer is created). The special attention is paid to stability of the investments, the standardized goods, strict management of expenses, control of expenses. Decrease in expenses is based on use of “an experience curve”. Leadership in a niche is connected with focusing of grocery or price advantage on a narrow segment of the market, without covering all market. Such leadership is most often used by small business enterprises.
Dangers of this strategy are connected with the next moments: essential strengthening of distinctions in expenses can reduce considerably advantages of service narrow the target groups; gap reduction in differentiated production for narrow target group and a common market is possible; competitors can find unoccupied niches even in a narrow target segment.
2.2 Process of a choice of strategy.
Process of a choice of strategy includes the following main steps: explanation of the current strategy;
carrying out analysis of a portfolio of businesses;
choice of strategy of firm and assessment of the chosen strategy.
Explanation of the current strategy is very important because it is impossible to make decisions on a future occasion, without having a clear idea concerning in what state there is an organization and what strategy it realizes. Various schemes of explanation of the current strategy can be used. One of possible approaches is offered by Thompson and Strikland. They consider that exists on five external and internal factors which need to be estimated to deal with realized strategy.
scope of activity of firm and degree of a variety of made production, diversification of firm; general character and nature of recent acquisitions of firm and sales of part of the property by it; structure and orientation of activity of firm for the last period; opportunities on which the firm was focused recently;
relation to external threats.
criteria of distribution of resources and the developed structure of capital investments on made production; the relation to financial risk both from the management, and according to real practice and carried-out financial policy; level and degree of concentration of efforts in the field of research and development; strategy of certain functional spheres (marketing, production, shots, finance, scientific researches and development).
The analysis of a portfolio of businesses represents one of the most important instruments of strategic management. It gives an evident idea that separate parts of business are very interconnected and that a portfolio as whole significantly differs from the simple sum of its parts and the condition of its separate parts is much more important for firm, than. By means of the analysis of a portfolio of businesses such major factors of business, as risk, receipt of money, updating and dying off can be balanced. It is possible to tell with full confidence that the analysis of a portfolio of businesses is a basis of strategic planning.
At the same time it is necessary to remember that the analysis of a portfolio of businesses is only one of instruments of strategic management, and it in any way doesn’t replace strategic planning as a component of strategic management, certainly, strategic management as a whole. After the management will consider available strategic alternatives, it then addresses to concrete strategy. The simplified technique of definition of position of firm and its goods in relation to opportunities grew was developed by the Boston consultative group. In the analysis of a portfolio comparison of a share of firm or its goods in the market with growth rates of all economic activity is carried out.
Each of these quadrants in the BCG model is given figurative names:
Stars. The new business areas occupying rather big share of roughly growing market operations on which make high profit concern to them, as a rule. It is possible to call these business areas leaders of the branches. They bring in to the organizations very high income. However the main problem is connected with definition of the correct balance between the income and investments into this area in the future to guarantee recoverability of the last.
Milk cows. These are business areas which in the past received rather big share of the market. However over time growth of the relevant branch was considerably slowed down. As usual, “milk cows” are “stars” in the past which provide now to the organization sufficient profit to hold the competitive positions in the market. The stream of monetary cash in these positions is well balanced as investments into such business area require the most necessary minimum. Such business area can bring in very big incomes of the organization. Difficult children.
These business areas compete in growing branches, but occupy rather small share of the market. This combination of circumstances results in need of increase in investments for the purpose of protection of the share of the market and guaranteeing a survival on it. High growth rates of the market demand considerable monetary cash to correspond to this growth. However these business areas with great difficulty generate the organization income because of the small share in the market. These areas most often are pure consumers of monetary cash, instead of its generators, and remain them until their market share will change.
Dogs. These are business areas with rather small share in the market in slowly developing branches. The stream of monetary cash in these areas of business usually very insignificant, and is more often even the negative. Any step of the organization in the direction to receive a big share of the market unambiguously immediately it is counterattacked by competitors dominating in this branch. Only skill of the manager can help the organization to hold such positions of business area.
The positions taken by separate areas of business in strategic space, defined by the BCG model, dictate a choice of quite certain directions of actions:
For Stars: To try to keep or increase a share of the business in the market.
For Difficult children: Or to go on increase in a share of business in the market, or to be content with that is reached, or to reduce this business.
For Milk cows: To try to keep or increase a share of the business in the market.
For Dogs: To be content with the of provisions, either to reduce it, or to liquidate this type of business in the organization.
The choice of strategy of firm is carried out by the management on the basis of the analysis of the key factors characterizing a condition of firm, taking into account results of the analysis of a portfolio of businesses, and also character and essence of realized strategy. The major key factors which have to be considered first of all at a strategy choice, the following is. The condition of branch and firm position in branch often can play a crucial role at a choice of strategy of growth of firm. Leading, strong firms have to seek for the maximum use of the opportunities generated by their leading situation, and for strengthening of this situation. Leading firms depending on a condition of branch have to choose various strategy of growth.
So, for example, if the branch goes to decline, it is necessary to stake on diversification strategy if the branch roughly develops, the choice has to fall on strategy of the concentrated growth or strategy of the integrated growth. Weak firms have to behave in a different way. They have to choose those strategy which can lead to increase in their force. If such strategy aren’t present, they have to leave this branch. The purposes of firm give uniqueness and originality to a strategy choice in relation to each concrete firm. For to what the firm aspires is reflected. If, for example, the purposes don’t assume the intensive growth of firm, can’t be chosen believe the corresponding strategy of growth, even in spite of the fact that for this purpose there are all prerequisites both in the market and in branch, and in the potential of firm.
3. Marketing strategy on an example “Eurasia Tour”.
3.1 Summary of the enterprise.
The Eurasia Tour travel company was founded on February 29, 1996. The firm cooperates with the leading Russian tourist organizations in various regions of Russia and the neighboring countries. In 1998 the firm for the first time acted in quality round of the operator in the summer program “To Spain Directly from Omsk”. Same year the firm is awarded by the diploma International the exhibition center “InterSib” for professional work. In 1999 own tourist programs for the Omsk region, gained recognition of Omsk, nonresident and foreign tourists – adventure automobile round on the North of the Omsk region “Taiga rally” and an alloy on kayaks under the name “Secrets of the Taiga River” were for the first time offered.” Eurasia Tour” is an official travel agent of a traditional Siberian international marathon which in August, 2001 passed already for the twelfth time.
In 2002 “Eurasia Tour” was included in the interstate agreement between Russia and China, having acquired the right for opening of visas to citizens of the Russian Federation. Today the staff of firm makes 15 people. Contacts with all leading hotels of the city, and also the largest boarding house of the Omsk region are come into. At office of firm sale of air tickets in all directions on flights of the Russian and foreign airlines is organized. Employees “Eurasia Tour” determine a target segment by the following characteristics: Age – 40-45let
Income level – average and above an average
Education – usually the highest, but doesn’t play a role
Relationship status – usually a family from two-four people Work, profession – most often – business owners
Vital style – the vigorous, active person occupied with trade or administrative activity, working often on days off and holidays, watches the image, feels a lack of time on rest and the family, susceptible to the novelties, skeptical about advertising. Motive of travel – desire to have a rest with a family,
– desire to have a rest abroad, – desire to receive treatment abroad – desire to visit the exotic country (entertainments + novelty)
3.2 Marketing strategy on an example “Eurasia Tour”
The firm exists 14 years, and even crisis of 1998 didn’t become a hindrance for its development and functioning. In advertising appeals it is specified that “Eurasia Tour” is the member of various tourist associations that as inspires trust to firm. As here goes formations of image of a product, namely cruise across Irtysh which has no analogs in the Omsk region. Tourists can receive not only information on rounds which offer practically all tour agencies of the city (rest in Spain through “Natali-turs”, treatment in the Czech Republic through “Travelland”, excursion Europe tours and so on), but also information on rounds which “Eurasia Tour” (“the Okunevsky Ark” will organize, “Taiga Rally”, “Secrets of the Taiga River”, “Linevo’s Lake”, “Omsk excursion” and so on), being that tour-operetor.
It should be noted that “Eurasia Tour” issues the booklets connected with their own projects, for bigger involvement of tourists to these services. All booklets are printed in printing house on good, qualitative paper that shows respect for clients. In addition all booklets are colorfully issued. The booklet “Taiga Rally” is executed in green color which associates with trees, with a taiga. Booklets “Linevo’s Lake” and “Secrets of the Taiga River” contain various shades of blue color which associates with water, the lake, the small river. “The Okunevsky Ark” is executed in brown, yellow and white tones which give to the booklet some mystery. In these advertising leaflets the visual effect is provided at the expense of photos of these projects. Photos recreate the atmosphere of these rounds. They give to the potential client the main idea that expects it. For example, fishing, a crossing through the river, a river rafting, monastery visit and so on.
In booklets “Secret of the Taiga River”, “Linevo’s Lake”, “Omsk excursion”, “Taiga Rally” is given objective information on offered services with allocation of specifics and potential opportunities which clients wait. For example, you will be able to make horse walk, to fish on the lake … Automobile round … River rafting … In the Achairsky Monastery to visit the Sacred source and so on. In the booklet “Okunevsky Ark” the fantasy situation is created. For example, … to visit the most mysterious region of Western Siberia … Visit of the power center of the earth … Practically all advertising leaflets contain information in two languages: Russian, for the Russian-speaking population, and English, for foreign tourists. Besides advertising leaflets, the world Internet system the tourist firm “Eurasia Tour” places the advertising on television and in printing editions. The television has ample opportunities to make purposeful influences and to cause desirable response of spectator audience.
The television provides broad coverage. So for promotion of the festive program “on March 8 in sanatorium “Mercury” advertising on television, for the weekend, during display of interesting programs and feature films on the local channel when the maximum number of potential clients were at the TVs was given. 3% of estimated profit therefore the program was advertized on television and in the “Mozhet Byt” newspaper which has the special section devoted to tourism “Wind of Wanderings” were allocated for advertising of this project. The advertising appeal which was placed in the newspaper, was simple, short, drawing attention of readers. Owing to the efficiency, repeatability, broad coverage of the market of a press is one of the most effective remedies of distribution of advertising therefore “Eurasia Tour” most often uses press services for advertising of the services. Important factor in advertising is firm styles of the organization.
The corporate style is a set color, graphic, verbal, the typographical of the design constant elements providing visual and semantic unity of goods (services), all information proceeding from firm, its internal and external registration. The tourist firm “Eurasia Tour” developed an own corporate style which allows the consumer quickly and unmistakably to find a firm product, allows firm to bring with smaller expenses to the market the new products and which increases advertising efficiency. Elements of a corporate style are: Trademark;
Firm font inscription (logo);
Firm slogan (slogan);
“Eurasia tour” logo which possesses advertising functions and quality assurance function is given below.
This logo is put on firm forms, envelopes, prospectuses, booklets, folders, exhibition stands and as are used at outdoor advertising and TV commercial. The Eurasia round logo has a certain coloring: or red with white, or red with blue, or red with the black. Color depends on on what color surface will be the logo is put. Color does a logo more attractive, better memorable. Near a logo it isn’t seldom possible to meet and the firm slogan “Eurasia – tour”: OPEN UP THE WORLD WITH US!”
The firm slogan is always written in the Russian and English languages that gives the chance to use services of firm not only to Russian-speaking tourists, but also tourists from different corners of the world. So, from the aforesaid it is visible that the tourist firm “Eurasia tour” actively advances the services by means of different types of marketing strategy. However we considered only separate types of advertising. But, it should be noted that “Eurasia tour” uses also other types of advertising, such as: audiovisual advertising, handbills, outdoor advertising, post advertising and so on.
So, marketing strategy provide not only effective satisfaction of requirements of the market, but also success of the enterprise in competitive fight. Having arisen in the production sphere, marketing rather long time didn’t find the corresponding application in the tourism sphere. However increase of the competition, commercialization of tourist activity resulted in need of the fastest introduction of basic elements of marketing in practice of work of the tourist enterprise. At the same time tourism has the certain features connected with nature of rendered services, forms of sales and so on. Really to use marketing as the reliable instrument of achievement of success in the market, specialists of the tourist enterprises need to seize its methodology and ability to apply it depending on a concrete situation.