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Globalisation and its affect on consumer behaviour
Environmental influences on marketing
Impacts of marketing
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Recommended: Globalisation and its affect on consumer behaviour
The globalisation of consumer desires, the development of an open global economy and the relentless expansion of the internet, have all contributed to connecting nations’ economies (Doole and Lowe, 2008). Consequently, worldwide, managers are increasingly recognising the importance for their businesses to advance through developing their skills, knowledge and ability to effectively compete against international markets (Doole and Lowe, 2008). According to Cateora and Ghauri (1999), internationalisation is the expansion of a business that leads the spread of an organisations products and services to customers in more than one nation, in order to gain profit. International marketing is suggested to go beyond merely establishing business across national boundaries, as it requires the application, orientation and adaptation to international marketing environments (Keegan, 2002). These external marketing environments come in the form of political, economic, social, technological, legal and environmental. This essay intends to discuss and critique, in regards to international marketing, the changes that the international cruise industry is experiencing. The essay will also address how marketers are strategically responding to the changes in the external environments and what new opportunities …show more content…
This could negatively impact the industry’s economy because it may have to increase the cost of cruises to cover the increased fuel prices (Kamery, 2004). In 2014, due to surplus of domestic oil in Texas and North Dakota, the price of fuel dropped which was a great economic benefit for the cruise industry (Stieghorst, 2014). With the decrease in fuel expenditures, Norwegian Cruise Line invested the saved expenses into product improvements and tactical marketing initiatives. This saw extra customer service training programmes for their employees and new culinary programmes (Stieghorst,
Cruise lines companies compete with other vacation alternatives, such as land-based resort hotels and sightseeing destinations for consumers’ leisure time. Demand for such activities is influenced by political and general economic conditions. Companies within the vacation market are dependent on consumer discretionary spending. The year 2012 was overall a very difficult for the cruise industry. Carnival International is still recovering from the effects of sinking of Costa Concordia off Italy in January 2012. On other hand, Royal Caribbean’s biggest challenge in 2012 was due to one-time impairment charges of nearly $385 million related to Spanish line Pullma...
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
Sociocultural factors embody the various culture aspects in which a business functions. It is of great significance that a firm has the ability to appeal to the culture that they are working within as it reflects their customer knowledge, determining their performance (David & Fahey 2000, pg. 113). One central issue in regards to sociocultural factors playing an important role in a business’ marketing mix is firm’s ability to adapt marketing strategies in regards to demographics. The universal aging population is a clear indicator of marketing strategies for airlines companies to evolve so that it caters to the needs of the population as a whole. In addition, with Qantas operating as a global company and multiculturalism as a universal force, it is crucial to cultivate innovative marketing plans to accommodate the diverse preferences and needs of other cultures (Teo 1994). As cultures differ in their forms of attitudes and behaviours, consumers coming from these diverse cultures, backgrounds and countries are susceptible to dissimilar intensities of service anticipations (Donthu & Yoo 1998).
Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
A second strategy that has been rejected is one concerned with the consumer awareness of SGC. Currently, SGC is only advertising to travel agencies. Coupled with segmentation, SGC’s current advertising strategy has hurt SGC in the sense that consumer awareness is considerably low. Only a small portion of the population even knows that Sea Goddess exists. SGC is only targeting those who travel frequently. They may want to target the portion of the population that wants to travel, but is unsure of where to go or what to do. In order for SGC to reach the consumer, new efforts must be made in the advertising plan. Mere travel agency recommendations are not going to be enough to keep SGC alive in the marketplace. Other vehicles are going to be necessary to spread SGC’s message about the luxuries and benefits of this extraordinary cruise. At the present time, only a small number of all travel agencies have the sufficient knowledge that it takes to make an informative sell to the consumer. It may be profitable for SGC to employ some hi...
a. Environmental Analysis: The international war on terror, with its attendant rising cost of oil has created havoc in a number of ways (Lufthansa Annual Report, 2004). Rising costs have resulted from the increase in fuel prices. Customer check-in wait times and flight time delays have resulted from new regulations designed to ensure passenger and plane safety, including more rigorous bag searches, more extensive passenger screening, and the like. This has resulted in customers paying higher prices and a less enjoyable flight experience.
For the introduction, brief information regarding my purchase and the travel and tourism industry is presented. It was then followed by the explanation of the 2 chosen theories from two different chapters.
· There is a big dependency on fuel. The frequent rise of gasoline and crude oil prices are affecting the entire tourism and travel industry.
Exploiting international opportunities to push their products and brands – building on strong domestic performance to capture parts of the overseas leisure market.
In 2013-14 Tauranga had 83 voyage calls, 25 vessels entering with 83 port days in total. They also had 100 unique passengers and 149,000 passenger port days. Tauranga has established itself as a go-to destination for cruise passengers, with its natural beauty and friendly locals it is not hard to see why. Over the years, Tauranga’s cruise tourism has changed from the 2013-14 statistics, the amount of voyage calls this year has gone down but the amount of unique passengers has gone up to 160,100.
Expansion across seas can be very advantageous and lucrative for many companies; however, there are many risks associated with doing business overseas, and companies that intend to expand internationally should be careful and strategic when doing so. Not only do companies run the risk of experiencing a product fail due to differences in cultures, they also face severe political and economic risks as well.
According to Cruise Market Watch (n.d.) the revenue generated by cruise tourism is estimated at US$36.2 billion with about 20.9 million passengers carried for 2013. This shows that the cruise industry is undoubtedly a profitable industry with a pool of like-minded tourists, where cruise companies are the one-stop shop offering a comprehensive package for a vacation.
a company can familiarize itself with cultural nuances which may impact the design, packaging or advertising of the product. Moreover, traveling abroad allows one to locate and cultivate new customers, as well as improve relationships and communication with current foreign representatives and associates
Majority of the research, specifically to the field of marketing, has been related to the components if promoting a place and selling the city (Levy & Matos 2002, 241; Law, 2002, 5). With a brief background made to the role played by distribution channels in the marketing mix of tourism and travel, little or no research on distribution issues have been conducted. New tourism environment is facing a rapidly changing environment and needs a continuous research. In the travel and tourism industries, distribution is particularly important because these industries deal in services which are intangible, very perishable and because these industries operate globally. A more comprehensive approach to the tourism industry is needed; one that focuses on the perspective of all channel members, not only the suppliers and intermediaries. With the evolution of technology, the relationship between the c...