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Product Decisions − It is about deciding about addition or removal of a product feature in an offering, deciding about development of new product, manipulating product features. Promotion Decisions − It includes informing the target market about various products they would find interesting. Marketing department joins hands with publicity agencies such as radio, television, and website management agency to promote the product package. Price Decisions − It involves decisions about the selling cost of product as well as discount rates. Product Distribution − It pertains to which intermediary to employ and where to place the promotional material. The Operations Department combines two or more tourism components (among attractions, transportation, intermediaries, destination, accommodation, and activities) to create a package and sell it to the consumer. It organizes and conducts a tour within or out of the country and ensures that it turns out successful. It prioritizes customer preferences and supplier offerings to determine the best tour arrangements.
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Although business customers are affected by the same cultural, social, personal, and psychological factors that influence consumer customers, the business arena imposes other factors that can be even more influential. First, there is the economic environment, which is characterized by such factors as primary demand, economic forecast, political and regulatory developments, and the type of competition in the market. In a highly competitive market such as airline travel, firms may be concerned about price and therefore make purchases with a focus on saving money. In markets where there is more differentiation among competitors-e.g., in the hotel industry-many firms may make purchases with a focus on quality rather than on price. Second, there are organizational factors, which include the objectives, policies, procedures, structures, and systems that characterize any particular company. Some companies are structured in such a way that purchases must pass through a complex system of checks and balances, while other companies allow purchasing managers to make more individual decisions.
