(2) TOURISM & HOSPITALITY MARKETING (LESSON 2)

Market

It refers to a set of actual and potential buyers of a product who have a common need of want that can be satisfied through an exchange.

Market

To marketing professionals, a ____ does not refer to a place but a group of people bound by common need or want.

Market Segmentation

Market Targeting

Marketing Positioning

What are the 3 Steps to target marketing?

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes.

Market Segment

a subgroup of the total consumer market that shares similar characteristics and needs relevant to the purchase of a product, service, or experience.

Market Segmentation

A marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.

Market Segment

People who are grouped together for marketing purposes.

1. Identifiable

2. Cohesive

3. Measurable

4. Accessible

5. Substantial

6. Actionable

What are the 6 Characteristics of a Market Segment?

Geographic

nations, states, regions, countries, cities, neighborhoods, barangays, towns. (oldest and simplest)

Demographic

age, life cycle, gender, income, occupation, education, religion, race. (basis most used)

Psychographic

social class, lifestyle, personality

Behavioral

special occasions, benefits, sought usage, rate user status, loyalty status, buyer readiness

Technographic

technology savy – travel websites, lifestyle travel portals

Geographic

Demographic

Psychographic

Behavioral

Technographic

What are the 5 Variables for Segmentation?

Market Targeting

Evaluating each segment’s attractiveness and selecting one or more of these market segments in which to operate one’s business.

Target Market

A group of people that have been identified as the most likely potential customers for a product because of their shared characteristics such as age, income, and lifestyle.

Segment Size

sales volume, growth rate, high-profit margin.

Attractiveness

potential impact of the segment on the company.

Company objectives and availability of resources

main reason for its decision-making and the available resources.

Segment Size

Attractiveness

Company objectives and availability of resources

Kotlers suggest three factors to consider in evaluating which segments should be targeted. What are the 3 factors?

1. Company’s Resources

2. Degree of Product Homogeneity

3. Market Homogeneity

4. Competitor’s Strategy

Kotler et al. suggest that the 4 following factors be considered when choosing a market coverage strategy are?

1. Undifferentiated Marketing (Mass)

2. Differentiated Marketing (Segmented)

3. Concentrated Marketing (Niche)

What are the 3 Market Coverage Strategies?

466 store in 62 markets

How many stores that IKEA have in 62 markets?

Market Positioning

The arrangement for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers. In positioning a product, a company first needs to identify possible competitive advantages upon which to build the position.

Product Pricing

Product Quality

Benefit Based

Product-Featured

Competitor

Application

What are the 6 types of market positioning?

Market Positioning

Specific product attributes such as price and special features can be used to position a product.

Market Positioning

The product can also be positioned based on its benefits and the needs the product fills.

Market Positioning

Positioning the product based on certain classes or segments of user can also be done.

Market Positioning

A company can decide to position itself against an existing competitor and present its edge over said competitor.

New and Emerging Market

Mature markets have not yet reached saturation while emerging markets continue to develop. The challenge, however, is to capture the fancy of the emerging markets.

Generational Travel Markets

Regardless of age, the generational markets generally travel to spend time with family and friends, to get away from everyday life, to relax, and to rejuvenate.

Consumer Market

Those who buy goods for their personal use or purpose.

Fast Moving Consumer Goods

high volume, low unit value, fast repurchase.

Consumer Durables

low volume but high unit value.

▪ White Good

▪ Brown Good

Soft Goods

Similar to consumer durables but wear out quickly, have shorter replacement cycle.

Services

transaction which no physical goods are transferred from the seller to the buyer.

Business Markets

These institutions or people buy industrial goods for the purpose of using in business operations.

Business Markets

Also known as business to-business marketing or B2B marketing.

Global Markets

Have historically been tried in international trade.

Global Markets

Used mainly by multinational companies.

Global Markets

Overseas expansion through licensing, franchises, and joint ventures.

Non-Profit & Government Markets

Does not earn profit for its owner.

Non-Profit & Government Markets

Organizations that exists to attain some goals apart from the usual goals of profit, market share, and return of investment.

Consumer Market

Business Market

Global Market

Non-Profit and Government Market

What are the 4 Types of Market?