S.BasavaRaj Ireland - Marketing Tactics

LEARNING OBJECTIVESLEARNING OBJECTIVES

MARKETING STRATEGY: STRATEGIES, POSITIONING, AND MARKETING STRATEGY: STRATEGIES, POSITIONING, AND MARKETING OBJECTIVESMARKETING OBJECTIVES

1.1. Identify the six components in developing a marketing strategy and Identify the six components in developing a marketing strategy and plan.plan.

2.2. Define the terms marketing strategy, positioning, and marketing Define the terms marketing strategy, positioning, and marketing objective.objective.

3.3. Explain the concept of segmented marketing strategies and describe Explain the concept of segmented marketing strategies and describe the alternative strategies by market focus.the alternative strategies by market focus.

4.4. Describe the alternative marketing strategies by product life cycle Describe the alternative marketing strategies by product life cycle (PLC) stage.(PLC) stage.



5.5. Describe the alternative strategies by industry position.Describe the alternative strategies by industry position.

6.6. Explain the concepts of relationship marketing and strategic Explain the concepts of relationship marketing and strategic alliances.alliances.

7.7. Identify the reasons that have made positioning essential in today’s Identify the reasons that have made positioning essential in today’s business climate.business climate.

8.8. List and describe the steps required for effective positioning (the List and describe the steps required for effective positioning (the five Ds).five Ds).



9.9. List and describe the six different approaches to positioning.List and describe the six different approaches to positioning.

10.10. Explain the benefits of having marketing objectives and list the four Explain the benefits of having marketing objectives and list the four requirements for good marketing objectives.requirements for good marketing objectives.

MARKETING STRATEGYMARKETING STRATEGY

The selection of a course of action from among several alternatives that involves specific customer groups, communication methods, distribution channels, and

pricing structures.

It is a combination of target markets andmarketing mixes.

TARGET MARKETTARGET MARKET

A target market is a market segment selected by a

hospitality and travel organization for marketing attention.

Market segmentation involves dividingcustomers into groups (market segments)

with common characteristics.

MARKETING MIXMARKETING MIX

A marketing mix includes those controllable factors that have been chosen to satisfy customer needs.

The eight controllable factors are product, price, place, promotion, packaging, programming, partnership, and people.

These are also know as the 8 Ps.

RELATIONSHIP MARKETING AND STRATEGIC ALLIANCES

Relationship MarketingPlacing an emphasis on building, maintaining, and

enhancing long-term relationships withcustomers, suppliers, travel trade intermediaries,

and perhaps even competitors.

Strategic AlliancesSpecial long-term marketing relationships formed

between two or more hospitality and travel organizations, or between a hospitality and travel organization and one or more other types of

organizations(e.g., KLM and Northwest, STAR alliance).

POSITIONINGPOSITIONING

Positioning is the development of a service and a marketing mix

to occupy a specific place in the mindsof customers within target markets.

MARKETING OBJECTIVEMARKETING OBJECTIVE

A marketing objective is a measurable goal that a hospitality or travel organization attempts to achieve for a target market

within a specific time period,typically one year.

SEGMENTED MARKETING STRATEGIESSEGMENTED MARKETING STRATEGIES

Approaches that recognized the differences among target markets by individualized marketing mixes for each of the target markets selected by a hospitality or travelOrganization also known as a differentiated strategy.

The three alternative segmented strategies are:

1. Single-target-market strategy2. Concentrated marketing strategy3. Full-coverage marketing strategy

UNDIFFERENTIATED MARKETING UNDIFFERENTIATED MARKETING STRATEGYSTRATEGY

A strategy that overlooks segment differences and uses the same marketing mix for all target markets.

ALTERNATIVE STRATEGIES FOR PRODUCT LIFE CYCLE STAGES

Introduction Stage : Introduction Stage :

a.a. Rapid-skimming strategy (high price/high promotion).Rapid-skimming strategy (high price/high promotion).

b.b. Slow-skimming strategy (high price/low promotion).Slow-skimming strategy (high price/low promotion).

c.c. Rapid-penetration strategy (low price/high promotion).Rapid-penetration strategy (low price/high promotion).

d.d. Slow-penetration strategy (low price/low promotion).Slow-penetration strategy (low price/low promotion).


Growth StageGrowth Stage

a.a. Improve service quality and add new service features and Improve service quality and add new service features and elementselements

b.b. Pursue new target marketsPursue new target markets

c.c. Use new channels of distributionUse new channels of distribution

d.d. Lower prices to attract more price-sensitive customersLower prices to attract more price-sensitive customers

e.e. Shift some advertising emphasis away from building Shift some advertising emphasis away from building awareness to creating desire and actionawareness to creating desire and action


Maturity StageMaturity Stage

a.a. Market-modification strategyMarket-modification strategy

b.b. Product-modification strategyProduct-modification strategy

c.c. Marketing-mix modification strategyMarketing-mix modification strategy

Decline StageDecline Stage

a.a. Reduce costs and milk the companyReduce costs and milk the company

b.b. Sell off or get out of the businessSell off or get out of the business

POSITIONINGPOSITIONING

Positioning is the development of a service and a marketing Positioning is the development of a service and a marketing mix to occupy a specific place in the minds of customers mix to occupy a specific place in the minds of customers within target markets.within target markets.

REASONS FOR INCREASED IMPORTANCE OF POSITIONING

1.1. Perceptual processes of customersPerceptual processes of customers

They screen out most informationThey screen out most information

2.2. Greater competitionGreater competition

More organizations competing for share of mindMore organizations competing for share of mind

3.3. Growing volume of commercial messagesGrowing volume of commercial messages

Advertising and promotion clutterAdvertising and promotion clutter

STEPS REQUIRED FOR EFFECTIVE STEPS REQUIRED FOR EFFECTIVE POSITIONING (THE FIVE DS)POSITIONING (THE FIVE DS)

DocumentingDocumenting

DecidingDeciding

DifferentiatingDifferentiating

DesigningDesigning

DeliveringDelivering

THE 5 DS OF POSITIONINGTHE 5 DS OF POSITIONING

DocumentingDocumenting

What benefits are the most What benefits are the most important to your current and important to your current and potential customers?potential customers?

DecidingDeciding

What image do you want your What image do you want your current and potential customers current and potential customers to have of your organization?to have of your organization?

DifferentiationDifferentiation

Which competitors do you want Which competitors do you want to appear different from, and to appear different from, and what are the factors that you will what are the factors that you will use to make your organization use to make your organization

different from them?different from them?

THE 5 DS OF POSITIONINGTHE 5 DS OF POSITIONING

DesigningDesigning

How will you develop and How will you develop and communicate these communicate these differences?differences? DeliveringDelivering

How will you make good on what How will you make good on what you’ve promised, and how do you you’ve promised, and how do you make sure that you have make sure that you have “delivered?”“delivered?”

POSITIONING APPROACHES:POSITIONING APPROACHES:SIX MAJOR ALTERNATIVESSIX MAJOR ALTERNATIVES

Specific product featuresSpecific product features Benefits, problem solution, or needsBenefits, problem solution, or needs Specific usage occasionsSpecific usage occasions User categoryUser category Against another “product”Against another “product” ““Product class” dissociationProduct class” dissociation