Question: Reflect on what you have learned about the usefulness of the marketing mix to a specific organization.

In China tourism industry, marketing mix theory has been applied extensively in travel agency. Based on my internship experience in CCT (China Comfort Travel), I will interpret the usefulness of marketing mix to CCT and tourism industry.

Place Most travel companies in China provided their tourism products to travel retailers ten years ago; they considered products as goods, similar to manufacturers, just designed tour route ,priced, then sold to retailers. However, nowadays, such as CCT, they realized the traditional distribution of channels have not been suitable for consumers demand. Therefore, they changed channels. They sell their products directly for customers by their own branches, storefronts, online booking or some travel exhibitions. This change reduces the risk, increases sales and improves service quality. Product Smith (1994), the one who firstly argued that tourism products consist of five elements: physical plant, service, hospitality, freedom of choice and involvement. Nowadays, CCT design products based on segmentation of consumers, such as some tour routes provided for elder customers over 60 and some adventure trips for young from 18 to 28. They begin to focus on service, consumers freedom of choice and involvement.

Promotion Kotler and Keller (2007) argued the Marketing Communication Mix theory consists of six major modes of communication which can build brand equity. CCT advertised by radio, newspaper and online, combined by sales promotion. Additional, consumers can use membership card to get discount. Some stronger companies even advertise on TV and do place advertising. Price Arthur (1984) considered that pricing in tourism is a complex matter, particularly where the individual suppliers, airlines, hotel groups and so on determine their prices independently of one another. Most travel companies adopt the cost-plus pricing strategy, which can provide cheapest price, however, lower price commonly is equal to bad service quality. CCT use value-based and competition-based pricing which can ensure customer satisfaction, distinguish from competitors and keep long-term success regardless of exchange rates fluctuation, suppliers costs increase or price competition.

Conclusion Sustainable development of sales of CCT, and growth of Chinese tourism industry is owe to the marketing mix and shifts in marketing concept, which is transferred from product-orientation to market-orientation.

References:

Arthur,Meidan,1984,The Marketing of Tourism, Service Industries Journal; November 1984, vol. 4 ,no 3, pp.166-186.

Kotler, P, Keller, K 2007, A framework for Marketing Management, 3rd Edition, Pearson, New Jersey.

Smith, S. L. J. 1994, The tourism product. Annals of Tourism Research, vol.21, no.3, pp.582-595.