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Marketing Concept
- Market -> assess needs and competition -> determine
- positioning & design strategy
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Applied Research in T&T
- · Consumers: size, satisfaction, motivations,market areas
- · Marketing mix: products/services, pricing/place/distribution, promotion
- ·Competition
- ·Positioning
- ·Marketing Environments
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Formula for effective decision-making
- 80% information
- 20% intuition
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Management Information System (MIS) – custom system to
gather relevant info for decision-making
- · Info critical to the changing market environments
- · Internal: customer records, financial data, operational data
- · External: newsletters, suppliers, customers, associations, magazines
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Marketing Research
- ·Problem solving process
- ·Science & art
- ·Used on a needs basis to solve specific problems
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Maket research essentials: ensure that research info is:
- ·Valid (relevant)
- · Reliable (accurate)
- ·Objective (non biased)
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Research Process Stages
1. Identify and define problem
- 2.Investigate available resources
- a.Primary data – data collected for the 1st time
- b.Secondary data – data that already exists
- 3.Develop research plan
- a.Research objectives
- b.Determine info needed
- c.Research methods: primary, secondary, qualitative, quantitative
- 4.Collect data
- 5. Analyze data
- 6.Present research results
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Primary Data
- Advantages:
- ·Specific & detailed
- Disadvantages
- ·Expensive & takes longer
- Research methods:
- ·Qualitative
- oFocused on obtaining lots of feedback & info
- oFocus groups, in depth interviews, observations
- ·Quantitative
- o Focused on finding info for specific questions
- o Surveys (phone or personal), personal interview,
- mechanical devices
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Examples of Secondary Data ----Internal Sources
- ·Client database
- · Financial records
- ·Inventory reports
- · Promotional records
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Examples of Secondary Data---External Sources
- · Newspapers
- ·Newswires
- · Magazines
- · Associations
- · Trade journals
- -databases
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Sampling Plan
- ·Who?
- ·How many?
- ·Sample size?
- ·How to survey them?
- · Probability or no?
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Sample?
- a segment of the population selected to represent the
- population as a whole
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Questionnaire Design
- · Question order, format, & wording
- ·Collect relevant data – wording
- · Make data comparable – formal & wording must be clear & consistent
- · Minimize bias – working
- · Motivate respondent – order & format (length, title, etc)
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Research Problem Areas
- · Lack of valid info
- · Out dates info
- · Sample is too small
- ·Researcher bias
- ·International issues
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Collect Data
- · Utilize resources
- ·Implement method
- ·Timing issues
- · Data input
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Analyze Data
- ·Qualitative – look for comment themes & trends
- · Quantitative – analyze numbers for conclusions
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Designing Your Marketing Strategy
- What is your plan?
- Who is the target market?
- What are their needs, motivations & purchase criteria?
- Who are competitors & what’s their position?
- Determine your position
- Design your strategy
- Establish objectives
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A Tourism Product
a bundle or package of tangible and intangible components
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A Tourism Product
- 1.Core products – basic need (excitement/atmosphere)
- a.experience
- 2.Tangible product – feature & benefits
- a. Quality of service
- b.Brand
- c.Safety
- d.Range of on-site attractions
- e.Sharing park with other people
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1.Augmented Product – extrinsic elements influence
purchase
- -Opening time
- -Weather
- -Ancillary services (catering & retailing)
- -Car parking
- -Services for visitors with special needs
- -Procedure for handling complaints
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Packaging??
- -the process of combining related offerings into a single
- price
- Advantages:
- · Improve profitability
- · Allow joint marketing opportunities
- · Effective tool to tailor tourism products for specific target markets
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Life Cycle
a way to identify the life-cycle stage of a product or service, review int past and current position, and predict its future
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Distribution channel intermediaries
Tour Company -> travel agent -> consumer
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Pricing & Positioning --3 strategic approaches
- · Premium pricing
- ·Value for money pricing
- · Undercut pricing
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Basic approaches to setting prices
- ·Cost based methods
- ·Demand based methods
- ·Competition oriented pricing
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Pricing strategies for new products
- ·Prestige pricing
- ·Market skimming
- ·Penetration pricing
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Other techniques for priceing and positioning ?
- · Promotional pricing
- ·Product bundling pricing
- ·Price spear and price points
- ·Discriminatory pricing
- ·Volume discounting
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Yield Management
developing strategies to maximize opportunities for the sale of an organization’s perishable products
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Tourism characteristics that affect pricing
- ·Seasonal demand
- ·Tactical price-cutting and price wars
- -Low prices
- · Fixed capacity
- · Customer’s total purchases
- · Increased use of internet
- · Late booking
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Functions of the distribution system
- · Acquiring info
- ·Promotion
- ·Contact
- ·Negotiation
- ·Physical distribution
- · Financing
- · Risk-taking
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Direct distribution channel
a channel where a company delivers its product to the consumer without intermediaries
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Indirect distribution channel
a channel where a company distributes its products via intermediaries
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Intermediaries
- Service providers -> tour operators -> travel agents
- -> tourism specialties -> consumers
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Forms of Channel Conflict
- Horizontal Conflict
- · Conflict between organizations at the same level
- (ex. 2 Tim Horton’s franchises)
- Vertical Conflict
- · Occurs at different levels of the same channel
- (ex. Argument between travel agents & airlines about commission)
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Designing the Distribution System-Factors to Consider
- · Market coverage
- ·Costs
- · Positioning & image
- ·Motivation of intermediaries
- · Characteristics of tourism organizations
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3 distribution strategies
- ·Intensive
- ·Exclusive
- · Selective
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Promotional Objectives
- · Build awareness
- ·Create interest
- ·Provide info
- · Stimulate demand
- -Reinforce the brand
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Budget
- ·Objective & task
- · Affordable
- · % Sales
- -Competitive-parity
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AIDA
- -Attention
- -Interest
- -Desire
- -Action
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Design the promotional message
- · Meaningfu
- · Distinctive
- · Believable
- · Slice of life
- · Fantasy
- · Mood or image
- · Lifestyle
- · Musical
- · Testimonial evidence
- · Technical expertise
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Design the promotional media
- · Cost per thousand (CPM)
- o Cost of message divided by # of ad views
- multiplied by 1000
- · Impression
- o One viewing of an advertising message
- · Reach
- o % of medium’s audience that is exposed to an
- advertiser’s message at least once during a specific time frame
- ·Frequency
- o # of times an audience has the opportunity to be
- exposed in a specific time frame
- o Takes 10-15 exposures to gain retention
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Canadian Code of Advertising Standards
- ·Accuracy & clarity
- · Disguised advertising technique
- · Price claims
- · Bait & switch
- · Guarantees
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Types of sales promotions
- · Sampling
- · Coupons
- · Gift certificates
- ·Premiums
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Joint Promotions
- organizations that have similar target markets combine their
- resources to their mutual advantage
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Stage of product life cycle
- -introduction
- -growth
- -maturity
- -decline
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Communication Process
- sender
- encoding
- message
- decoding
- reciever
Noise/clutter
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Factors affecting pricing decisions
- cost
- compition
- legal and regulatory issues
- buyer perception
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