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Marketing mix

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Marketing mix

  1. 1. Marketing Mix Case studies NIJIL C V
  2. 2. Developing an effective marketing mix for ‘singles’ • Product: offer product which is attractive to the singles market: escorted tours, activities for singles, single rooms, this differentiates the product from others • Price: no supplements for singles. Special offers. Discounts. This would attract customers from other general providers due to reduced cost • Place: distribution channel direct. Offer locations where there are activities single people will want. This would attract new customers whose needs are met • Promotion: advertise in student magazines and special interest magazines to create awareness of potential customers
  3. 3. Family market • Product: escorted tours, babysitting services, interconnected family rooms ,kids corner, child menu,tuitions • Price: discounted price, special offers, • Place: distribution channel travel agents, offer locations like picnic spots, beaches • Promotion: television advertising, posters and bill boards
  4. 4. Nature lovers /eco-tourist & sports enthusiast • Product – increase the range of boat trips and activities on offer. This would attract more customers interested in nature and sport. Offer serviced accommodation for those not wishing to self-cater. • Place – add a new distribution channel – wholesalers to widen customer base, or add additional locations to offer choice of sailing experiences – transport links etc. • • Price – offer variable pricing to groups/off-peak or offer discounts for early booking. Offer price-bundling for multi-activity package. • Promotion – special offers for advertising in sailing magazines for example.
  5. 5. How a destination develop marketing mix to attract a wide range of tourists • Product • quality and value aspects of the product emphasised to attract tourists • range of activities and sports in each resort to appeal to domestic and overseas visitors • new facilities and hotels to attract families from other parts of the country • Price : pricing policies such as going rate – at same level or lower than competition to attract customers • seen as value for money compared to other locations • discounts or special offers to Australians offered via vouchers • variable pricing could attract visitors as different prices could be set during off peak times or to different customer groups
  6. 6. Continue: • Place mix: offers exotic locations , use wide range of distribution channels • Promotion: use wide range of promotional methods like Television advertising, familiarization visits, event sponsorship, use of celebrity, personal selling
  7. 7. Marketing mix for fly drive package • Product: could be the development of new products such as wider range of accommodation and cars to attract more customers. Option to return rented car to different airport other than the arrival one. Guided tours – free entrance to attractions could be included. • Price: could be the development of prices which are lower than the competition or promotional prices which offer special rates for advance booking. Option to book for two weeks and have third week free. • Place: could be the choice of destinations or range of departure points e.g. more regional airports • Promotion: could be advertising and marketing to highlight the company above competitors. Promotion can raise the brand image of this fly-drive holiday.
  8. 8. Ways to create brand loyalty • discounted ticket , money off attracts loyalty as it is seen as value for money • family ticket - reduction on price of ticket bought separately ,attracts repeat business • product/service – uniqueness , quality of experience • free parking - makes customers feel comfortable • Loyalty card –gets incentives • Membership to executive lounge access—quality image
  9. 9. Marketing functions of tourism providers • Carry out research - primary/surveys to find out customer preferences • Identify target market - focus activities and product on this market • Choose appropriate promotional activities e.g. direct marketing/advertising Attend trade fairs • Raise the profile of the destination / stimulate visitor numbers • Provide Information services such as TIC • Gain competitive advantage over other countries/create brand image of the country
  10. 10. Product /service mix by a hotel for family market • baby pool • several pools for different weather • fun slides for families • new sea creature exhibit provides range of activities aquarium • restaurant and café provides easy choice of food outlet • picnic/barbecue area • adventure playground • family tickets
  11. 11. Product/service mix by Maldives for wide range of customers • water sports, marine life and ecosystems, cruising and island hopping, photography, sunbathing, seafood cookery. • honeymooners and wedding packages; luxury and spa; sun, sea and sand – family holidays; adventure sports; Eco tourists; special interests – photography, seafood
  12. 12. Product /service mix by a tourist attraction • a new café , • a new ride in a theme park • a different exhibition in a gallery or museum • guided tours • interactive displays • a souvenir shop etc. • Improved car parking area
  13. 13. Ways to create brand image • Use of logos, corporate colours, slogans, symbols and uniforms ; organizations such as Banyan Tree use easily recognizable logos so that customers can easily distinguish their resorts amongst competitors. • Product features ; luxury and romantic association ; spa . • Packaging ; use of corporate colours on all communications ; toiletry products in the bathroom use corporate packaging • Price: Pricing policy associated with luxury products ; prestige price ; high quality . • Promotion : use of colour brochures and multimedia - to present idyllic images associated with the brand . • Target market segment ; association with honeymoon and wedding packages
  14. 14. How a hotel implement the following pricing policies to increase occupancy rate • Discount pricing: reduced price offered as sales volume is low. This attracts customers as it is perceived to be value for money. • Variable pricing: different prices charged for age of customer/in different seasons. This attracts customers at off-peak times. • Promotional pricing: discounts offered. These could be linked to travel or attractions to appeal to new customers. • Competitive Pricing: The beach hotels should price their product in line with those in rivals. • Premium/Prestige: Hotels can use the USP of beach views to charge higher prices and attract luxury tourists. • Loss Leader: could attract greater occupancy with prices that do not include a profit margin and charge for other services e.g. spa. • Bundling: Prices can include additional products and services rather than just the room rate. • Psychological: Room prices can be priced at $99 rather than $100 for example.
  15. 15. How “place” affect the popularity of a tourist destination • Easy accessibility: the attraction /destination should have good transportation facility • Distribution channel : should use appropriate distribution channel to tap the potential target market • Character of area/physical location: should be free from pollution, crime and other political issues • Adjacent facilities: café’s , restuarants, recreational activities and car parking area
  16. 16. Product/service mix by “ferry” • seating areas • refreshments • bar • restaurants • duty free shops/souvenir shop • restrooms/toilets • baby changing facilities • currency exchange • viewing deck • information desks/staff availability • TV/video game entertainment/cinema • accommodation or cabins • security • casino .
  17. 17. Compare two different promotional methods • Cost • Target market • Brand image • Upto date • AIDA • Future reference
  18. 18. Compare the suitability of direct mail and tourist information leaflets as forms of promotion for adventure tourism products • direct mail – can be costly if posted; • can be targeted; • gets treated as junk mail so overlooked • tourist information leaflets – colorful, portable, relatively cheap to produce but quickly outdated
  19. 19. Explain three features of cities, which play an important part of the ‘place’ element of the marketing mix. • natural features – rivers etc.; • built attractions – general architecture, castles etc.; • culture – UNESCO sites, theatres, heritage etc.; • domestic transport links – road and rail networks; • numbers of visitors – popularity of destination
  20. 20. Discuss reasons why it is important for the tourism industry/providers to develop a range of diversified tourism products. • for customer satisfaction • for competitive advantage • to maintain and increase sales levels and profitability • to enhance the image of the destination • to enhance the image of the products it offers.
  21. 21. Using the AIDA model, evaluate the effectiveness of the advertisement as a piece of promotional material • Attention – use of bold headlines – font size is too small to grab reader’s attention. • Interest – Photos of wildlife will stimulate interest but would be more effective in colour and less muddled in presentation. • Desire – words like exclusive will provoke desire as will photos but need to be in colour and larger font. Also needs to explain fully the uniqueness of the experience. • Action – contact details provided but the website address is too small to be easily recognised. Also limits target customer to only those with immediate computer access.
  22. 22. Explain the importance of promotion to increase the level of customer interest • Promotion makes customers feel that the product is specifically for them customers feel attracted/satisfied • Advertising newspapers and other media - creates awareness AIDA principle can increase interest • Promotion reinforces brand image customers are pleased by brand image repeat business • Promotional campaign will give specific detailed information - this will satisfy needs of tourists • Promotion may lead to promotional offers/deals will satisfy customers as seen as value for money
  23. 23. Explain the factors that may influence the pricing policies of organization. • Profitability - need to fix a price that covers fixed and variable costs and allows sufficient additional revenue to invest for future survival in the market • Costs – fixed and variable - cost of product- promotion - organization overheads - needs to at least match these costs or the business will fail • Seasonality - may lower price when demand is lower - increase occupancy in off peak times or raise price when demand is high – high season • Customer expectations - price can be set according to customers expected budget -or customer perception of value for money - global economy – recession • Competitors - set at level of or just below competitors - to attract customers • Subsidies/taxes - If there are government subsidies then the price can be lowered taxes, e.g. fuel tax will result in higher prices
  24. 24. Explain briefly how each of the following locational factors might influence a tour operator,, when choosing a holiday destination • Adjacent facilities • close to tourist attractions for excursions • cafes and shops for leisure away from resort • towns for entertainment • Character of area • natural attractiveness, coast • sandy beaches • away from industrial sites • away from a high crime area • Availability of staff • enough skilled workers nearby • staff/customer service are vital to the success of the resort • range of skills needed such as catering, foreign language, etc. • Access and transport links. There needs to be suitable road/rail/air routes available so that tourists can access the visitor attraction • Costs. To make a profit, the cost of establishing the visitor attraction in this location needs to within the budget of the provider
  25. 25. Give two benefits of marketing campaign by tourism providers likely to benefit to the tourism industry • Customer awareness leads to further sales of products -can help sales of other specialist products on offer • Leads to increased sale/volume - in wider tourist economy e.g. cafes, souvenirs (in secondary spending • Improved brand image -customer satisfaction about organization - competitive advantage
  26. 26. Explain two reasons why travel and tourism organizations should review their marketing mix regularly. • maintaining sales , to remain profitable and competitive ; • ensuring the organization portrays a positive image of itself and its products to attract more customers and new customers ; • to guarantee customer satisfaction so that repeat business is likely and new customers might hear about the business via word of mouth • to make sure the right are reaching the right people at the right place at the right price using the right promotion
  27. 27. Discuss the suitability of Global Distribution Systems as a distribution channel for tourism providers in destinations • GDS is enabled by real time technology • Galileo and Worldspan are two examples of this • Centralized systems allow tickets to be produced instantly • Flights. Hotels, car hire booked centrally • Up to date product information and an example of e-commerce • Customers have quick and easy service and therefore may book more readily Tourism providers benefit from an efficient distribution system which links together the information and services they need – saving money
  28. 28. Discuss the reasons why it is important for tourism providers to consider target market segments when producing effective promotional materials. • Target markets segment consideration is important: • Selection of AIDA • Choice of media • Choice and use of logo • So that the media chosen is most suitable. For example if the target market is people interested in walking/outdoors then the media should reflect this. TV is less suitable as it would reach a very wide audience many of whom would not be interested/waste of marketing budget. • Decisions on AIDA should be done with ref to target audience for example materials with bright colors and minimal writing might be used for. In the case of Walking tourism images of the outdoors would be effective.

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