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Cite this Article as: Marko SUBOTIĆ, Marko VULIĆ, Bojan S. RISTIĆ, Nevenka POPOVIĆ – ŠEVIĆ Aleksandar ŠEVIĆ and Milena
ILIĆ P. “ Evaluating The Impact Of 5Cs Model Factors And Marketing Mix Analysis: A Case Study” Proceedings of the 37th International
Business Information Management Association (IBIMA), ISBN: 978-0-9998551-6-4, 1-2 April 2021, Cordoba, Spain
Evaluating The Impact Of 5Cs Model Factors And Marketing Mix Analysis:
A Case Study
Marko SUBOTIĆ
HYCU doo (Comtrade)
Belgrade, Serbia
email: marko.subotic@hycu.com
Marko VULIĆ
Information Technology School – Belgrade, Serbia.
email: marko.vulic@its.edu.rs
Bojan S. RISTIĆ
Information Technology School – Belgrade, Serbia.
email: bojan.ristic@its.edu.rs
Nevenka POPOVIĆ - ŠEVIĆ
Faculty of Contemporary Arts, Belgrade, Serbia
Information Technology School ITS– Belgrade, Serbia
e-mail: nevenka.popovic.sevic@fsu.edu.rs
Aleksandar ŠEVIĆ
Trinity College Dublin, Trinity Business School, Ireland
e-mail: a.sevic@tcd.ie
Milena ILIĆ P.
Faculty of Contemporary Arts, Belgrade, Serbia
Information Technology School ITS– Belgrade, Serbia
email: milena.ilic@fsu.edu.rs
Abstract
Tourism belongs to the branch of the economy (tertiary sector), which includes work with people (service processes), and
brings numerous benefits to the population, economy, and society, participates in a significant share in the gross domestic
product and increases employment. If we analyse the history of tourism, the current situation and anticipate future trends
based on what we have learned, it can be said with certainty that tourism will always be a significant factor in the development
of society and national and regional economies. Tourism will continue to perform its functions, and people around the world
will achieve a constantly larger amount of tourist travel, visits to tourist destinations, and the number of overnight stays,
which is an important indicator of tourist traffic. People from all over the world will embark on tourist trips to get to know
different localities and cultures for the sake of sports, health, vacation, adventure, gourmet events, sustainability, and the
like. In the future, due to the Covid-19 pandemic, a greater focus of tourists on the natural and cultural beauties of national
countries can be expected. From the point of view of the majority of citizens, travel for vacation is an expression that is used
in most cases when one wants to express the need to change the surroundings, which is further converted to an individual or
collective stay outside the place of residence for more than two days according to the tourist definition. There are several
reasons for tourists to travel, from the desire to escape from everyday life and everything that is associated with a normal
lifestyle to experiencing something completely new and unique. Therefore, it is not surprising that countries that are
recognised worldwide as tourism leaders are investing additional funds in developing their tourist offers and capacities to
enrich the already versatile offer even more. It is the same with the efforts of countries that are not tourism leaders but have
the aspiration to enrich their tourist offers. The paper deals with the analysis of the selected marketing strategy and marketing
mix of the tourist destination Country Club Zdravkovac, its observation, and recording.
Keywords
: Brand Recognition, Marketing Strategy, Marketing Mix, Situation Analysis.
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Introduction
The main rationale of this manuscript is the selection of adequate promotion and brand recognition of the Country Club
Zdravkovac (CC Zdravkovac) by taking advantage of the growth of demand for rural tourism, which includes business
planning, market analysis, situation analysis, budget, revenue or costs forecasting, development of a single Web platform,
managing and running a business, creating a new marketing strategy as well as launching marketing campaigns and unique
offers, listening to customer compliments and comments, correcting processes and upgrading and tracking new trends.
The development of rural tourism is a new tourist trend, and it is necessary to take the opportunity and be among the first to
recognise this trend, conquer new niches, and break into the existing market. Since tourist complexes that are more focused
on rural tourism have neither a well-developed infrastructure nor budgets as large tourist complexes, it is necessary to make
the offer interesting and unique (unique ambience in the form of architectural solutions such as Zemunice, closed club where
exclusivity and privacy are guaranteed, with wine tasting, domestic and natural food production, a tour of natural and social
sites, good service environment, processes, and people).
In this study, we aim to analyse the current marketing and brand management strategies to see the advantages and
disadvantages of existing ones, i.e. to enable brand development and promotion in the future by applying knowledge from
the following disciplines: marketing, electronic marketing, and social media marketing.
The purpose of this research is to find adequate ways to realise the formulated goals to enable the survival of the company
on the market, make effective recommendations for its functioning, transition through different phases of business, providing
income, growth, and development.
The main goal of this applied research is to solve the specific problem of inadequate growth and development of the family
business due to the insufficient promotion of the CC Zdravkovac brand. The auxiliary goal is to consider the marketing
strategy by analysing all 7P elements of the marketing mix and proposing certain changes.
In the tourism industry, there is also an important segment of unusual hotels and tourist offers such as hotels - capsules,
wooden hotels, those built on ice, dugouts, and the like. Since the words "natural" or "attractive" and "unique" are key in
this type of tourism, CC Zdravkovac, although initially located in the segment of "rural tourism," offers a unique concept so
that it can attract the segment of consumers or tourists looking for a unique concept of vacation (above all, it is about the
attractiveness of accommodation in dugouts, but also other elements of attractiveness). To further avoid the presentation of
the resort itself, the accommodation facilities and the platform should also contain other information on local sights,
anthropogenic elements of the environment, sustainable development, and the like. Therefore, the emphasis will not be placed
only on accommodation but also on the entire offer, i.e. an integrated tourist product that will help the economic development
of the entire geolocation - Jermenovci and surroundings. The promotion of CC Zdravkovac secures the promotion of rural
tourism in the Republic of Serbia, which also represents the social benefit of research.
From the perspective of professional justification, numerous world media record and report on the mentioned tendencies in
tourism demand, the new paradigm, and numerous professional or economic gatherings. Therefore, it is necessary to
adequately address them, where, among other things, there is space for many innovations in the tourist offer. Innovation can
also exist in the marketing mix element called the product; it can also be part of the marketing mix element called the price,
where sales promotion will be implemented through various types of discount opportunities, vouchers, and loyalty programs.
Innovation can occur in distribution channels by offering modern solutions such as social networks, websites, portals for
tourist booking services. A potential innovation can be a unique web platform, a distribution channel, and a tourist brand.
Marketing Mix In Rural Tourism
Rural Tourism
Rural tourism includes all tourist services and activities in rural areas and comprises activities such as hunting, fishing,
horseback riding, tourism in nature parks and reserves, picking seasonal fruits and vegetables, collecting medicinal herbs,
cultural tourism, and eco-tourism. Rural tourism is the unity of integral and sustainable rural development (Đenadić et al,
2016). Most countries in the European Union have a regulated strategy for the development of rural tourism, which greatly
improves the socio-economic development of rural destinations. The benefits of rural tourism are multiple: the growth of
gross domestic product and exports of the country, increased participation in the rural tourism sector, which leads to the
growth in the number of employees, reduction of rural poverty, additional activities in terms of offering additional
products/services, and growth in the number of tourists choosing their stay in the countryside and nature (Ristić et al, 2019).
The latest tourism development strategy of the Republic of Serbia until 2025 claims that economic factors should not be the
exclusive priority when it comes to the development of domestic tourism. Still, it emphasises the importance of supporting
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the development of rural tourism and other types of tourism in the country, which ultimately leads to regional development
(MTTT, 2016). It is known that rural tourism is a high priority of European and world tourism superpowers, but rural tourism
in our country has its characteristics, and further work on its recognizability is required (Jovčić et al, 2020). It is very
important to focus on quality products and services that our villages can offer to domestic and foreign tourists.
Companies whose primary focus is on rural tourism differ greatly in their missions, size, management, and employment
practices. Like their "urban counterparts", they also procure funds, market their products, create development strategies,
engage in visitor engagement activities, and enhance visitor experiences through service-based training. Along with these
commercial and entrepreneurial pressures and opportunities, knowledge management, and organisational learning are further
complicated by seasonal employment patterns, volunteers, extremely strong external networks, and a variety of actors,
including funding and partner organisations (Oriade, Robinson, 2017).
Rural tourism in Serbia has its ascending trajectory, but its potentials are not sufficiently explored. This is evidenced by a
new trend in the world, where due to increasingly modest budgets, shorter trips, and lack of free time, tourists are increasingly
redirected to planning vacations within the borders of their own country or not far from the border countries. In terms of free
time, there are trends such as a decrease in the number of days, e.g. in the summer from ten working days and weekends (a
total of 14 days) to only five working days and one weekend (about one full week). Also, it is worth mentioning that the
summer period is exactly the time of year where most employees use the largest number of days off, set aside, and spend the
largest part of discretionary income for summer vacations, i.e. for planned vacations. These trends especially affect tourists
with their families, due to the large number of obligations they have, the fast way of life, and the desire for the whole family
to spend a well-deserved vacation together.
Apart from the planned annual vacations, both summer and winter, there are other off-season vacations, i.e. occasions for
travel, such as state or religious holidays, an extended weekend, escape to nature, and a departure from the urban environment
that can also be promoted. Many citizens who do not own holiday homes, pay special attention to quality stay in natural
places outside large urban areas. In that sense, less populated places with untouched nature, diverse flora, fauna, and fresh
air, i.e. good balneological characteristics, have an advantage over other tourist destinations and tourism forms.
In addition to the new tendencies and interests of tourists, this turnaround is evidenced by the efforts of many countries,
including the Republic of Serbia, to promote rural tourism through better branding of countries, tourist destinations, and
facilities, and to support the development of rural tourism on the supply side. Finally, we must not forget an important
environmental factor that marked the year 2020, and which is still active, and that is the general crisis caused by Covid - 19.
Health organisations and governments do not recommend gatherings, movements, and travel beyond national borders. For
that reason, an increasing number of people will try to spend their vacation days and discretionary income in the countries
where they live, which further induces a visit to natural beauties, such as mountains, rivers, lakes, sandstones, and other
natural attractions in the Republic of Serbia.
Marketing mix of tourist destinations
In the late 1970s, marketing experts believed that the marketing mix should be improved. This led to the creation of an
extended marketing mix theory in 1981 by Booms & Bitner, which added three new elements to the basic principle of 4P
(product, price, distribution channels, and promotion). This allowed the extended marketing mix to include product elements
that are services, without the product itself being seen as a mere material thing. Extended 7P includes the following elements
(Kotler, Keller, 2016): Marketing mix, or 7P in the service sector, comprises product, price, place, promotion, people,
processes, and physical evidence.
A product or service is what is offered to the market, on which organisations base their business (Janić, 2018). A product
can be said to be "anything that can be offered to the market to provoke attention, supply or consumption, use, and the same
could satisfy some desire or need. It is a package of physical, service, or symbolic features expected to provide satisfaction
or benefit for the customer (Kotler et al, 2007). Price is the sum of all values that consumers/users of services exchange for
the usefulness of having or using a particular product or service (Kotler, Valdemar, 2007).
The place or distribution channel refers to the claim that the product should be available where the company's target group,
i.e. consumers, most often and most casually buy. It can be a standard store, e-shop, or Internet, i.e. an online store (Kotler,
Keller, 2016).
Promotion is a process by which communication is realised between participants (service providers) on the one hand and
service users on the other. The goal of this communication is reflected in the creation of a positive attitude about the services
of the provider, which should lead to the favouring of the same and repeated purchases on the market. The central goal of
the promotion is related to promoting services or informing the users, regardless of whether they are existing service users,
or potential ones, about what characteristics and advantages the service has (Milisavljević, 2007).
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People - All companies rely on employees who range from the rank and file of the sales staff up to the Director-General.
Having the right people is essential because they are as much a part of the business offer as the products/services that the
company offers.
Process - Delivery service is usually done before customers' eyes, and how the service is provided, again, is part of what the
consumer pays.
Physical environment - Nearly all services include some physical elements, although most of what the consumer pays is
immaterial. For example, a hair salon would provide its client with the best hairstyle, and an insurance company would
provide clients with some form of printed material as proof. Although the ultimate material good is not physically visible
and tangible (in the case of documents that are in some digital format, such as PDFs), they still receive a physical product by
this definition.
Although they have been in use since the 1980s, 7Ps are still widely studied because of their basic logic, which is still sound
in the marketing environment and is reflected in the ability of marketing to adapt marketing mix concepts. The changes
involved in different communication forms, such as social media, should be exploited in places where updating
products/services can bring additional sales because customer expectations are constantly changing (Kotler, Keller, 2017).
Situational Analysis, 5C And Market Situtation
Within the situational analysis, the market analysis will be conducted first of all. It will be defined who the main competitors
are, who the suppliers are, and their strength or influence. Situational analysis will be conducted using the 5C model. Namely,
it is extremely important to examine the market and market conditions before applying the marketing strategy, and for this
purpose, a 5C analysis that studies the following aspects: company, customer, competitors, climate and collaboration, will
be applied (Steenburgh, Avery, 2010).
The company, through SWOT analysis, should first internally and then externally look at all positive and negative sides
before the launch of its products and services. In the customer's prism, the company should effectively see the size of the
market in which it operates, its potential for growth and development, and constantly listen to its customers by following
their needs and desires, purchasing process, motivation processes, and expectations during the purchase act. The analysis of
competitors in a critical way should look at the current and potential competition and, if possible, anticipate their moves in
the market. Climate analysis should show both internal and external analyses of the environment in which the company
operates. The internal analysis assumes employees and internal communication, while external analysis is based on PEST
factors (Political, Economic, Social, and Technological).
The collaboration represents the distribution chain and the relationships that the company nurtures and maintains in the
business process.
Harvard Business School is the backbone of the new marketing 5C strategy, which through the basic areas of marketing
analysis, provides an overview of the company position before deciding on the combinatorics of the elements of the
marketing mix. These elements are customer needs, company skills, competition, collaborators, and context. Interestingly,
the next 7C model subsequently included three more elements: corporation and competitors, organization and stakeholders,
plus consumers plus circumstances ( Jackson & Ahuja, 2016). Key aspects of integrated marketing are (1) a number of
marketing activities are used to communicate and deliver value, and (2) all marketing activities are coordinated to maximize
their combined effects (Kotler & Keller, 2014). More precisely, the planning and implementation of any marketing activity
are done keeping in mind all other activities, which is evident in the example of the Country Club Zdravkovac, which is
based on relationship marketing. It aims to build relationships with key areas of interest - service users, suppliers, distributors,
media, financial organizations, and more.
Nowadays, users of tourist services are aware of the impact they can exert with their behavior, and are thus in a position to
"probably have a positive impression (93%), to have faith in a given product/service (90%) and to be loyal (88%)." ) to those
companies that support social and other environmental conditions in the country” (Cone Communications, 2015, p.8).
There is an extremely wide range of tourist offers for consumers when making decisions about a holiday destination. The
variability of tourist products and services has resulted in a partial change in the behavior of users of these same services,
which goes in the direction of higher expectations. In such circumstances, the market situation for tourism workers and the
destinations in which they serve their clients becomes very complex as it faces an ever-increasing set of needs and
requirements that need to be met. The market for tourism products and services is now increasingly paying attention to
providing new experiences, pleasures and entertainment that will be remembered for a longer period of time (Nyurenberger,
et al., 2019).
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The market situation in the field of rural and ethno/eco-tourism today is an efficient solution of socio-economic problems of
the geographic area in which the tourist destination is located, which is further manifested in the expansion of employment
in the service sector, additional earnings, but also stimulating the development of complete infrastructure (transport, shops,
hotels, restaurants, recreational complexes, etc.), (Nezdoyminov, 2019). This type of tourism has become extremely
important for domestic tourists in recent years for several reasons – better price offers, shorter time spent on the road,
opportunities to gain new knowledge in terms of local history, culture and tradition, but also due to the latest restrictions
caused by Covid 19.
Before pandemics, rural tourism has played a key role in stress relief for residents of major cities. During the pandemic,
when many urban residents are almost 'locked' in cramped living areas, it becomes even more important to relax in the area
that offers the possibility for walks and spending time outdoors (Zhu & Deng, 2020).
Company And Climate
An important segment of any situation analysis is the SWOT analysis used to assess the strengths, weaknesses, opportunities
and threats to the project or business idea. Table 1 shows the SWOT analysis.
Table 1 SWOT analysis
Internally
S - strength
1. Unique resort concept (closed type)
2. Unique architectural solution and
ambience (ecological houses - dugouts)
3. Compact team (ability to respond
quickly to change)
4. Family business
5. Possibility of organising different
types of events (team-building,
weddings, baptisms, birthdays )
W - weaknesses
1. An important interpersonal relationship
between employees
2. Inexperience of employees
3. Limited offer, i.e. activities
4. Limited capacity of the complex
(accommodation units and restaurant for
celebrations)
5. Limited restaurant traffic
Externally
O - opportunities
1. Natural beauties
2. Location (close to major cities and
places with history)
3. Support of local municipality, state,
local companies from the same or
related industry
4. Developed road infrastructure
5. The trend of returning to nature
6. Epidemiological crisis in the world
(Covid-19)
T - threats
1. Limited working season (depending on
natural conditions)
2. Weather disasters (power outages,
Internet interruptions)
3. Less attendance during the working
week versus weekends
4. Non-existent site brand
5. Stronger competition (experience,
budget, offer, etc.)
6. Lack of skilled labour
Table 2 Conclusions of the SWOT analysis
STRENGTHS
VS THREATS
1. Unique resort concept (closed type)
2. Unique architectural solution and
ambience (ecological houses -
dugouts)
3. Possibility of organising different
types of events (team-building,
weddings, baptisms, birthdays)
4. Family business
5. Compact team (ability to respond
quickly to change)
1. Limited working season (depending
on natural conditions)
2. Weather disasters (power outages,
Internet)
3. Less attendance during the working
week as opposed to weekends
4. Unbuilt site brand
5. Stronger competition (experience,
budget, and offer)
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OPPORTUNITI
ES VS
WEAKNESSES
1. Natural beauties
2. Developed road infrastructure
3. The trend of returning to nature
4. Location (close to major cities and
places with history)
5. Support of local municipality, state,
local companies from the same or
related industry
6. Crisis in the world (Covid
-
19)
1. Limited offer, i.e. activities
2. Lack of skilled labour
3. Inexperience of employees
4. Limited capacity of the complex
(accommodation units and restaurant
for celebrations)
5. Interpersonal relationships between
employees
5. Limiting restaurant traffic
In addition to SWOT analysis, which is an indispensable tool within the climate segment, PEST analysis is also used. PEST
analysis, i.e. its political and legal, economic, socio-cultural and technological factors, are presented in Table 3.
Table 3 PEST analysis
Political and legal factors Economic factors
1. Consumer Protection Act
2. Tax policy, trade control
3. Funding and initiatives
4. Lobbying in the domestic market and pressure
groups
1. Interest rates
2. Exchange rates
3. Currency value
4. Employment/unemployment level
5. Economic growth trends
6. Consumer purchasing power and
discretionary income
Socio-cultural factors Technological factors
1. Trend and lifestyle
2. Consumer behaviour, attitudes, and habits
3. Consumer shopping models
4. Living standard and quality of life
5. Attitudes towards domestic/foreign products
and services
Due to the nature of the business, there are no
significant technological factors of influence
As it is a service company, it is necessary to analyse its products and measure its success on the market. The company offers
an integrated product of tourist accommodation with food within accommodation units of different types. The company's
activity code is 5520 - Resorts and similar facilities for short stays. In 2018, CC Zdravkovac offered 22 beds, and during
2019 there were seven more beds, so that a total of 29 beds are on offer. Occupancy was mostly from Friday to Sunday last
year, and on working days far weaker. In contrast, this year, due to the situation with Covid 19, and the closure of borders
for our citizens by Montenegro, Greece and Croatia, occupancy is such that all capacities are filled almost every day. When
evaluating performance, it is necessary to consider how effectively the company Country Club Zdravkovac achieves its set
mission and goals.
According to the Business Registers Agency (APR, 2021), the company that owns the CC Zdravkovac brand is called CC
Zdravkovac DOO (Ltd) Topola. In terms of legal form, the company is registered as a limited liability company. The
company has an active status and is established for an indefinite period. In terms of the activity's code and name, the company
reported as the principal activity: 5520 - Resorts and similar facilities for short stays. Finally, the company has a micro size
based on data from the financial statements.
Since the founding of the company on May 9, 2018, which is the date of the start of business, the company has faced
numerous problems when obtaining fixed assets, and working capital, searching for favourable financial resources, while
also dealing with the unavailability of sources of funds, ignorance of market conditions, and the like. The company finances
its establishment and the purchase of fixed and current assets from the owners' personal funds, i.e. family members and
friends, in the initial phase and then from the accumulated profit.
In terms of the company's achieved financial results, it is necessary to look at the financial reports for 2019, available on the
website of the Business Registers Agency of the Republic of Serbia (APR, 2021). CC Zdravkovac is not in the VAT system.
By reviewing the company's balance sheet on December 31 2019, its fixed assets are worth 2,666,000 dinars. As the company
does not own intangible assets, biological assets, long-term financial investments or long-term receivables, according to its
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activity and selected business model, i.e. lack of investments, these assets include the value of the real estate, facilities and
equipment. By comparing this item in the balance sheet on December 31 2018, when the company's fixed assets were worth
1,389,000 dinars, the growth in the value of this item is from the accumulated profit and personal sources of the owners
being invested in the purchase of new facilities and equipment to enrich the tourist offer, i.e. accommodation capacities of
CC Zdravkovac. Property, facilities and equipment are stated at cost, which will be reduced by the accumulated value in the
following years and at some point by impairment losses. For property, facilities and equipment that were just procured in
2018 and 2019, the initial measurement was performed at cost, which included all expenses that can be directly attributed to
the procured asset. When there are no such expenses, then the initial measurement is made according to the cost price.
Operating profit as the difference between operating income and operating expenses for the period from January 1, 2019,
until December 31 2019, amounted to 160,000 dinars, while for the period from January 1 2018, until December 31 2018,
there was a business loss of 53,000 dinars, but when the financial income is taken into account, the net income for 2019
amounted to 337,000 dinars, or 45,000 dinars for 2018 (as there were financial revenues, but there were no financial expenses,
the business loss was converted in net profit).
When defining the position as an element of the company's analysis, the analysis of the marketing strategy will be conducted,
as well as the analysis of the 7P elements of the marketing mix. In this way, it will be determined what kind of marketing
strategy CC Zdravkovac uses, and 7P elements of the marketing mix as defined by Kotler, will be examined (Kotler, Keller,
2016).
The entrepreneur opted for the micro-enterprise format because he saw numerous advantages such as the speed of decision-
making and implementation of decisions, flexibility, adjusting the offer to customers, and cost control, but realised that this
format has certain disadvantages due to limited opportunities to reduce costs with larger turnover and a slower return on
invested capital.
In terms of consumer profile, the entrepreneur believes that his consumers or service users are mostly families with children,
then the younger population of employed people who like to explore new concepts in the tourist offer, and team building
companies.
In terms of long-term or ten-year plans (for the period from 2021-2031), the entrepreneur aims at sustainable business by
forming his garden for vegetables and fruits, using solar energy for hot water and heating, and rainwater for technical water.
The medium-term plans of entrepreneurs refer to improving the concept of cooperation of resorts with locally recognisable
contents such as family wineries, dairy farms, old crafts, painters, sports facilities, culinary workshops, and issuing club
cards with benefits. Short-term plans relate to the improvement of the team of employees quantitatively and qualitatively,
the adoption of a common vision and awards for excellence, and raising the quality of accommodation and food.
According to the entrepreneurs, the epidemiological situation with the Covid 19 has positively affected the number of visitors,
thanks to the concept of the resort, sufficient space and hygiene, and the communication of trust between guests, employees
and resort owners. The separation of management from the ownership function of the company is not currently planned, but
external consultants will continue to be used, as needed (Ilić, 2017).
Customers
The population of interest or customers are primarily family people, be they in their later years, or married people, with or
without children. If we talk about age, the sphere of interest would include people from 30 to 55 years of age. It is primarily
a group of the population that falls into the so-called "mass affluent "class, i.e. people whose income is above average. It
means people like company directors, entrepreneurs, owners of their own companies, engineers etc. Geographically, the
target group is in urban areas, where the emphasis is primarily on the capital Belgrade due to the largest population and
concentration of people. Then, the next geographical unit is Vojvodina, with the largest city there, Novi Sad.
Competitors
CC Zdravkovac is located in the village of Jarmenovci, near Topola, at the foothill of Rudnik mountain. Due to its
geographical position, it abounds in great natural resources, which are also recognised by other investors, entrepreneurs,
households, etc. However, the market situation, especially in its region, is quite underutilised, which provides an opportunity
for further development and expansion. This is supported by a well-developed road infrastructure, which is of key importance
for both investors and tourists.
There are several competing companies that are not necessarily real competitors, but someone who can help enrich the entire
offer of the Šumadija region. A five-start Hotel Izvor in Aranđelovac is the largest, most luxurious, and most expensive
facility near CC Zdravkovac. Its main advantage is the hotel concept, which includes large accommodation facilities, diverse
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and rich offers (sports fields, aqua park, restaurants), proximity to Bukovička Banja, Bukulja mountain, and is located in the
heart of Aranđelovac.
On the opposite side is the Hotel Neda in the centre of the town of Rudnik. This hotel is more accessibility oriented and
intended for the general public. Due to the not so recent renovation, the hotel remembers better days, and today it is the main
stronghold for school excursions. It recently got a new owner, so the re-development is still awaited.
Halfway between Rudnik and Arandjelovac, in Topola, there is a Hotel Oplenac. According to its offer, it represents the
golden mean between Hotel Izvor and Hotel Neda. The main advantage of the Oplenac hotel is not the internal offer of the
hotel, but its vicinity, and those are the church of St. George in Oplenac, Oplenac Park, the museum and residence of the
royal family of Karađorđević, and the Royal Vineyard.
As for other competitors with accommodation capacities, the mentioned two are the only ones that are located near CC
Zdravkovac and offer something additional, apart from the accommodation itself. Of course, there are always offers of private
houses, the so-called rentals through Booking and Airbnb. However, according to their structure and concept, they do not
endanger the position of CC Zdravkovac. A word worth mentioning goes to the neglected hotel Karađorđe, located just a
few hundred meters from CC Zdravkovac. The hotel has been dilapidated and unusable for a long time and needs a complete
restoration, which someone may be interested in in the future in order to create a competitive facility.
Collaboration
On the supplier side, the landscape in which CC Zdravkovac is located is rich in local businesses and entrepreneurs, where
some are viewed as smaller and others as larger businesses. Aleksandrović Winery is located just behind Topola, 15
kilometres from CC Zdravkovac and is the largest supplier and firm in the area. As the name suggests, their main product is
various wines, obtained by growing and caring for grape crops, which makes this area rich. Some of their most famous wines
are Triumph Chardonnay, Sauvignon, and Rose. It is located on the main road from Topola to Rudnik, and the logistics are
quite developed. In addition to the wines themselves, the Aleksandrović Winery also offers wine tastings, a tour of their
plant, and for food lovers, there is a restaurant where you can enjoy local specialities. Since the winery is large and accepts
only groups of tourists, excursions can only be organised if the number of interested persons is greater than ten.
Near the Aleksandrović Winery, only a few kilometres away, is the Arsenijević Winery. In terms of their production
capacities, they are far smaller than the Aleksandrović winery, but that does not mean that the quality is worse. Some of the
most recognisable wines from the Arsenijević Winery are Chardonnay, Cabernet Sauvignon, and Merlot. While the
Aleksandrović winery offers the impression of a very successful business and almost industrial production, the Arsenijević
winery offers a much cosier and warmer experience, where you get the impression of a real family business. Their location
is convenient, and logistics are greatly facilitated.
Somewhat geographically further away from these two wineries, Gorda Brandy from Gornji Milanovac must be mentioned.
Some of their most famous brandies are plum, quince and apricot.
Finally, a significant domestic producer of dairy products is the agricultural farm Sunce. This is a small family business,
where special attention and love are poured into the production of dairy products. Dairy products include both cow's and
goat's milk products. There is also a tour of their facilities, where the younger population especially likes to meet and socialise
with domestic animals. The household is located in the village of Zagradje.
Company Marketing Strategy
In the field of rural tourism, business organisations apply some of the marketing strategies:
• Market segmentation strategy and
• Product differentiation strategy.
Basic marketing strategies are based on market segmentation, then targeting and positioning, which means that the company
must define the needs and groups of consumers in the market, or focus on market segments that they can better serve than
competitors, and position its offer so that the market sees its image and what makes that company better than the competition
(Popesku, 2018).
CC Zdravkovac targets the target group. In the case of Country Club Zdravkovac, the population of interest is primarily
family people, whether they are in their later years or married, with or without children.
With different campaigns, the resort differentiates its offer. One of these campaigns is "Seductive Summer 2020", aimed at
nostalgics and those who remember the "good-old days", "Fiat 500 – alias Fića in Serbia" and "national class" (Figure 1)
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Figure 1: Promotion of the Seductive Summer 2020 campaign CC Zdravkovac (Facebook CCZ, 2020)
Marketing mix of a Company
Product (service)
CC Zdravkovac is a concept of a resort, where the emphasis is on a limited number of guests, return to nature, analogue life,
as well as strict exclusivity. Unlike most catering facilities that operate on the principle of traffic, where entry or residence
is allowed to guests of the resort and outside travellers who intend to take a break without a stay, CC Zdravkovac provides
services to its guests exclusively. Therefore, its modest accommodation capacity of 29 beds creates the impression of an
idyllic ambience, without excessive traffic of guests, and in the embrace of untouched nature. Due to that fact, CC
Zdravkovac is a concept between a rural household and a luxury complex, and in a way, it forms a separate class for itself.
The main motive is to stay in nature, but at the same time, be surrounded by comfort. Therefore, it is not surprising that in
addition to the accommodation units themselves, CC Zdravkovac also has a restaurant, mini spa, swimming pools, sports
fields, meeting rooms, etc. Of course, the offer is not limited only to the interior of the complex, but also expands with other
natural beauties, facilities and companies in its immediate vicinity, which, depending on the activity, deepens the interests
and range of offers throughout the region. So in the vicinity of CC Zdravkovac, you can find mountain peaks, walking paths,
memorial parks and objects of historical importance, monasteries, wineries, restaurants, eco-rural households, etc. In addition
to all that, CC Zdravkovac puts a special emphasis on the family business, where contact with guests is always in the first
place.
Price As A Marketing Mix Element
Since exclusivity and privacy come at an appropriate price, the price per night with respect to similar accommodation
facilities and concepts is slightly higher. Of course, the prices vary depending on the number of beds in the accommodation
unit, the square footage, whether the accommodation unit has more separate rooms and, perhaps the most interestingly for
clients, the architectural solution and the accommodation unit's interior.
The price of a standard apartment or bed and breakfast for two people is 9,500 dinars, and the price of bed and breakfast for
two people in a family apartment is 13,000 dinars. The rent of the Šturac Log Cabin is 11,700.00 per day. If these prices are
compared with a similar concept, such as the Ethno Complex Vrdnička kula (Vrdnička tower, 2021), the price per night in a
double room is almost the same (8,600 RSD) as the price of renting a standard apartment in CC Zdravkovac. In terms of
renting an apartment, the prices are identical.
Location (distribution channels) as an element of the marketing mix
When discussing location and distribution channels, CC Zdrakovac offers can be found via the Booking.com website, social
networks (Facebook and Instagram pages) and the company's website, which indicates the use of modern distribution
channels or the Internet. The image below shows the page of CC Zdravkovac on Booking.com (Figure 2).
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Figure 2: Page CC Zdravkovac on portal Booking (Web page CCZ, 2020)
Figure 3 shows a screenshot of the CC Zdravkovac website. In addition to the booking site, the official website is an excellent
distribution channel that generates many visitors.
Figure 3: The Website of CC Zdravkovac (Web CCZ, 2020)
In addition to the mentioned global search engine www.booking.com, CC Zdravkovac is also represented on www.trivago.rs
and many foreign tourist online portals. From domestic more respectable search sites, information about this interesting
tourist destination of rural tourism can be found at www.gdezavikend.rs, www.tripadvisor.rs, www.putujsigurno.rs, and
www.selo.co.rs.
Promotion as a Marketing Mix Element
CC Zdravkovac conducts promotions mainly on Google search and social networks such as its Facebook and Instagram
pages. Various promotional campaigns have been created in the last year.
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Figure 4 : Promotion of CC Zdravkovac on Google search engine (Google, 2020)
Figure 4 shows the layout of the CC Zdravkovac promotion on Google, and Figure 5 a screenshot of the club's Facebook
page.
Figure 5: Facebook page CC Zdravkovac (Instagram CCZ, 2020)
Posts on the Facebook page are creative, and the community manager often posts them along with photos of the ambience
and surroundings. The largest number of "likes" that posts received is 91.
Instagram page CC Zdravkovac retrieved on November 20, 2020, has 135 posts and 2,415 followers (Figure 6).
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Figure 6: Instagram page CC Zdravkovac (Instagram CCZ, 2020)
The marketing plan and campaigns themselves are reduced to targeting the target group. In the case of Country Club
Zdravkovac, the population of interest is primarily family people, whether with a long-term family status or at its inception,
with or without children. As examples of some of the existing promotions, some of which are related to traditional events in
the area, and some to the internal offer of CC Zdravkovac, were held:
• Manifestation "Oplenac harvest" is perhaps one of the largest and most visited events in this region. The harvest
itself is characterised by a large market day, where one can buy various supplies, the default tasting of many local
wines, outdoor music that often surprises tourists with celebrities' visit, etc. As part of CC Zdravkovac, this
promotion includes an invitation to visit our ambience and complex, while experiencing something traditional and
characteristic for this geographic area.
• Campaign "Seductive Summer - Yugo Vesse" has a goal to return to nostalgia, that is, the offer of retro packages.
This package includes transportation from/to CC Zdravkovac in old-timers, a personal driver for a different driving
experience, special excursions with a private guide, one night in CC Zdravkovac, which includes four local meals.
• Work from home, i.e. jobs that offer flexibility, are welcome in CC Zdravkovac. Instead of staying indoors, such as
office space, CC Zdravkovac offers a stable internet connection throughout the property, whether outdoors or
indoors. Also, especially at the age of Covid 19, due to monotonous life and a boring home office experience, CC
Zdravkovac is the right solution to these problems (Figure 7).
Figure 7: Instagram campaign Oplenac Harvest Topola (Instagram CCZ, 2020)
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People as an element of the marketing mix
People are very important for the service process and for achieving a complete atmosphere for tourists, so they are carefully
recruited and selected - which is what the company's management does. The Facebook social network is used as a medium
for external recruitment (Figure 8).
Figure 8: Facebook page in the function of recruiting candidates (Facebook CCZ, 2020)
It is important to emphasise that efficient internal communication, which CC Zdravkovac excellently implements, has an
extremely important role in improving the overall work environment and a direct impact on the final business performance
(Park, Tran, 2018). This further means that a skillfully tailored internal communication policy creates added value for
employees within the company and significantly changes the business and external communication with the user of rural
tourist destination services. According to the authors of ATBelasen & ARBelasen (Belasen, Belasen 2018), good
communication with employees directly affects the quality of business decisions, planning in strategic communications with
the end-user and business in general, which CC Zdravkovac continuously implements.
Service Processes As An Element Of The Marketing Mix
Service is just as important as the aesthetics of the environment in which tourists are staying. That is why in CC Zdravkovac,
special attention is paid to each individual. Running Country Club Zdravkovac is a family business, and it is very important
that guests, in addition to pleasant contact with employees, have good contact with the hosts. That is why it is of great
importance that, in addition to the professional staff, CC Zdravkovac offers a complete service that guests will remember
and be happy to return to.
The whole process begins with presenting the nature of the accommodation and the concept in front of the target group of
people. Then, if individuals decide to visit CC Zdravkovac, the first thing they will be greeted with upon arrival is the
ambience. The ambience is reflected through the natural environment and the architectural edifice. An indispensable part of
every day are meals, where the employees of CC Zdravkovac always try to offer home-made and fresh specialities, which
originate from the landscape in which the accommodation is located. To complete the offer, there are other activities within
the complex such as sports, swimming, sunbathing, walking, touring the site, relaxing in the wellness area, completing
business obligations in a classic conference room or outdoors, fun in the fun room, etc.
Physical Evidence As An Element Of The Marketing Mix
Physical appearance plays a very important role in any selection process. Thus, with CC Zdravkovac, the ambience and
architectural solutions were chosen with special care to provide a complete experience. Apart from the untouched nature, at
some 400 meters above sea level, CC Zdravkovac is located on the wind rose and exudes clean air. The result is a tourist
complex with a multitude of ideas, which is certainly unique. The constituent parts of CC Zdravkovac are the following ones:
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• Brvnara Šturac - as the name suggests, this accommodation unit is the most spacious because it is a matter of renting
an entire log cabin. Therefore, it can accommodate the largest number of people, has a living room, dining room,
fully equipped kitchen, two bedrooms, terrace and bathroom with jacuzzi and sauna. What makes this
accommodation unit recognisable is its external appearance and interior, which is almost entirely made of wood.
• Apartments in Zemunice - certainly one of the most recognisable symbols of CC Zdravkovac. Simply put, these
houses are buried in the ground, providing a clean exterior, where there is no indication that the house is located
there. This feature allows Zemunica to merge with nature and its environment fully. Besides, the burial of Zemunica
provides excellent protection from external influences, in terms of thermal insulation, where the internal temperature
is low in summer and far above zero in winter. Also, the interior is uniquely decorated, where the biggest impression
is left by the bathroom built-in glass prisms. These Zemunice are characterised by two different arrangements,
standard (double) and family (four-bed) capacity.
• Jasenica - a house named after the local river in the village of Jarmenovci. Due to its very harmonious dimensions,
it evokes a special charm. The house is far smaller in size than the Šturac log cabin and can comfortably
accommodate up to four people. It has a spacious terrace and the most beautiful view of the surrounding meadows.
• Apartments Zvezda - This is the most basic accommodation facility, architecturally. However, although it may not
at first glance offer the same exterior experience as other accommodation facilities, the interior is very modern. It
implies double capacities.
• Restaurant - the central gathering place for all guests. In this part, guests can enjoy spending time outside or inside,
depending on the weather conditions. The exterior is in the Zemunica style, where only the external awnings, which
provide shade, reveal that something interesting is under the ground. Within this large Zemunica, where, among
other things, there is a restaurant, there are also a spa centre, a small gym, outdoor pools, a children's playground, a
reception, a meeting room and the so-called "fun room ".
Conclusion
In contrast to the previous belief and way of life, and due to Covid 19, tourists' focus has changed, which means getting to
know and exploring the country in which one lives. It is often unconsciously forgotten what beauties, heritage, historical
treasures and other goods the country of origin brings. Thanks to the fact that they are somehow put in the background and
that most of the world's famous attractions have long been seen, if not digitised, there are new development opportunities
and a focus on rural tourism, eco-tourism and similar types of tourism. The aspiration of consumers for their private space
and silence, striving to have as many positive experiences in a certain time, escaping from the fast way of life, crowds and
city tensions, moving away from conventional accommodation capacities and resorts, fit into this new trend for a return to a
natural or unique concept.
The paper deals with the marketing mix strategy of a tourist brand in rural tourism, CC Zdravkovac from Serbia and its
situational analysis to give recommendations for the future situation based on what was observed.
Given the authenticity of the CC Zdravkovac brand, it is to be expected that shortly such a modern concept of a rural tourist
destination will further enrich its offer, e.g. organic production of fruits and vegetables that potential tourists will have the
opportunity to taste, which can be a great starting point for participation in the preparation of vegetables preserved in vinegar
by tourists, but also creating a base for a wider range of recreational activities such as active hiking, riding school, and other
types of adrenaline sports. It is necessary to continue improving the ambient architecture of the complex in which CC
Zdravkovac operates, preserving local specifics and offering original products of the region.
In the post-Covid-19 period, the tourism sector in Serbia, where CCZ is at the forefront with its facilities, must focus on
either rural tourism or eco-tourism, primarily to avoid mass tourism for understandable health hazards. This further
consistently means that tourist destinations and centers like CCZ should plan and conduct a complex marketing campaign in
order to provide every possible support to tourists who during 2020 and probably in 2021 were forced to spend their holidays
mostly in their country. Using the latest statistics, it is estimated that over 90% of the world's population is temporarily unable
to travel abroad, which includes limited flights, ie. staying at home and a complete ban on movement (Gössling, et al., 2021).
Given the pronounced ban on the arrival of foreign guests or the reduced number of arrivals due to the Covid-19 situation,
domestic tourism has become especially important.
Therefore, the existence of a quality marketing appeal for a break in nature/countryside with the support of the already
mentioned infrastructure, which guarantees a fast and uninterrupted arrival from almost all directions in the territory of the
Republic of Serbia, is essential. The quality of tourist services and the creation of an adequate destination image constitute a
potential opportunity for a competitive advantage that CCZ can strategically use in the upcoming period. The suggestion is
also that responsible government bodies in the tourism sector and private tourism agents should work together to create a
platform that would support the strengthening of rural tourism destinations.
Based on the conducted research as well as on the available results of previous studies related to the development of rural
tourism in the Republic of Serbia, the conclusion is that this branch of tourism is extremely important for sustainable growth
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and development of the entire economy and beyond. If rural tourism is more deeply integrated into the country's sustainable
development activities, it would have positive effects on the country's economy in terms of increased production of
agricultural products, increased arrivals of domestic and foreign tourists, but also reduce poverty and all types of sociological
and other isolations of rural areas. The positive consequences are reflected in the stay of young people in the countryside,
self-employment in rural areas, and in addition to socio-economic effects, the concept of sustainable development could be
the backbone of the integration of agriculture and tourism.
The richness of natural habitats, traditional crafts, authentic life in the countryside, and unique gastronomy are just some of
the values and potential strengths that abound in rural tourism in the Republic of Serbia. Through further revitalisation and
preservation of all-natural, anthropological and human resources that are important for the further development of rural
tourism, there must be stimulating activities of relevant government bodies, which would support the increasing involvement
of the local rural population in rural tourism development. In this context, any institutional, economic and marketing support
would be more than welcome in developing the CC Zdravkovac brand to preserve traditional valuesfor the region and beyond.
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