a) Purposes of Market Research
Market research is conducted to understand customer needs, preferences, and behavior. In tourism, it helps identify target segments, evaluate satisfaction levels, and track emerging trends. The main purposes include decision-making support, strategy formulation, identifying market opportunities, and reducing business risk. It aids in designing effective promotional campaigns and improving products and services to meet customer expectations.
b) Factors which affect the preparation of forecasting
Forecasting in tourism involves predicting future demand, arrivals, and revenue. Several factors influence forecasting accuracy, including historical data trends, economic conditions, political stability, climate and weather patterns, marketing efforts, and global events like pandemics. Additionally, seasonal variations, technological changes, and customer behavior trends also impact forecasting outcomes.
c) Differentiate between Social Marketing and Socially Responsible Marketing
Social marketing aims to influence behaviors for societal benefit, such as campaigns for environmental conservation or health awareness. It focuses on public welfare rather than profits. In contrast, socially responsible marketing refers to businesses integrating ethical and socially conscious practices in their strategies, like using eco-friendly packaging or fair-trade sourcing. While both involve social good, their motives and applications differ.
d) Levels of Distribution Channels
Distribution channels in tourism refer to the pathways through which travel products reach consumers. There are three main levels:
- Direct: The producer (e.g., hotel or airline) sells directly to the customer.
- One-level: Includes one intermediary, such as a travel agent.
- Two-level or Multi-level: Involves multiple intermediaries like tour operators and online travel agencies. Each level adds value but may also affect pricing and control.