BSC TTM_SEM-3_Tourism Marketing_U-2

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B.Sc TTM 2 All right are reserved with CU-IDOL Tourism Marketing Course Code: BTT 112 Semester: 3rd SLM Unit: 2 Unit: 2 www.cuidol.in Unit 1( BTT 112)

Tourism Marketing 33 OBJECTIVES INTRODUCTION To make students aware of the basic concepts of In this unit we are going to learn about the marketing environment. marketing environment. To develop an understanding of different Under this you will learn and understand strategies of marketing environment and its different strategies of marketing environment relevance for Managers. In this unit you will learn the implications of To make students understand the STP techniques STP techniques in today’s scenario. of marketing www.cuidol.in Unit 1( BTTT 112) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL

TOPICS TO BE COVERED 4 > Marketing Environment Communication > Core Concepts of Marketing Environment > Techniques of Marketing Environment > STP Analysis www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Marketing Environment 5 • The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. • Xerox companies constantly watch and adapt to the changing environment. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

6 Marketing Environment 6 A company’s market environment consists of all the factors and forces outside marketing that effects ability to develop & maintain successful transactions with its target customers. -Kotler & Armstrong Marketing environment includes forces that directly or indirectly influence on organization’s capability to market its products successfully. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Marketing Environment 7 Factors which affect Marketing Environment:- https://www.google.com/search?biw=1366&bih=608&tbm=isch&sa=1&ei=jTn7XYC • Social Forces GDprbz7sPkNeLiA0&q=sales+promotion+images&oq=sales+promotion+images&g • Sociological Factors s_l=img.1.0.0l2j0i7 • Psychological Factors • Anthropological Factors • Economic Factors • Consumer • Competition • Price • Political Forces • Ethical Forces • Physical Forces • Technological Forces www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Marketing Environment 8 • Macro Environment • Demographic Factors • Economic Factors • Competition • Social and Cultural Forces • Political and Legal Forces • Technology • Micro Environment • The Company • Suppliers • Marketing Intermediaries https://theintactone.com/2018/02/04/topic-6-understanding-marketing-environment/ www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

9 9 • Edit Master text styles • Second level • Third level • Fourth level • Fifth level www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

10 10 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Environmental Scanning 11 Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. Goal behind Environmental Scanning • Technological Environment • Political Environment • Economic Environment • Cultural Environment • Demographic Environment https://www.marketing91.com/environmental-scanning/ www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Methods used for Environmental Scanning 12 • ETOP • SAP • SWOT • GAP Analysis https://theintactone.com/2018/02/04/topic-6-understanding-marketing-environme nt www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Environmental Threat and Opportunity Profile 13 (ETOP) It is description of the structure of external factors. These factors may be neutral, in favourable, unfavourable impact on operations of an organization in the environment . Steps in preparing ETOP • 1. Identify major environmental sector- social, economical, political, technological, ecological, natural, legal etc. • 2. Sub - divide the sectors in to subsectors • 3. Identify major issues in the subsectors • 4. Assess the possible impact – favourable, unfavourable or neutral www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Environmental Threat and Opportunity Profile 14 (ETOP) www.cuidol.in https://bbamantra.com/etop-environmental-threat-and-opportunity-profile/ All right are reserved with CU-IDOL Unit 1( BTT 112)

Strategic advantage profile (SAP) 15 • A Profile of strategic advantages (SAP) is a summary statement, which provides an overview of the advantages and disadvantages in key areas likely to affect future operations of the firm. It is a tool for making a systematic evaluation of the strategic advantage factors, which are significant for the company in its environment. The preparation of such a profile presupposes detailed analysis and diagnosis of the factors in each of the functional areas (Marketing, Production, Finance and Accounting, Personnel and Human Resources, R& D). • Since the Strategic Advantage Profile is a summary statement of corporate capabilities, in summarizing the functional competencies a comparative view needs to be taken in the light of external conditions and the time horizon of pro-jections. For example, while comparing the level of inventory holding, one may find it to be relatively higher than that of competing firms; as such it should be regarded as a weakness. But if the market demand shows an increasing trend, apparent weakness should be considered strength. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

16 https://vdocuments.mx/strategic-advantage-profile-sap.html www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

SWOT 17 SWOT is an acronym for the internal Strengths and Weaknesses of a business and environmental Opportunities and Threats facing that business. SWOT analysis is a systematic identification of these factors and the strategy that reflects the best match between them. It is based on the logic that an effective strategy maximizes a business’s strengths and opportunities but at the same time minimizes its weaknesses and threats. This simple assumption, if accurately applied, has powerful implications for successfully choosing and designing an effective strategy. • How is it useful? Understanding the key strengths and weaknesses of the firm further aids in narrowing the choice of alternatives and selecting a strategy. Distinct competence and critical weakness are identified in relation to key determinants of success for different market segments; this provides a useful framework for making the best strategic choice. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

18 https://www.marketing91.com/environmental-scanning www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

STRENGTH 19 • Strengths are the strong points of a company. Through which they can actually beat the competition. www.cuidol.in Unit 1( BTT 112) 1A9ll right are reserved with CU-IDOL

WEAKNESS 20 • Weaknesses are the weak points of a company. A company feels insecure and unable to survive in the environment due to these factors. www.cuidol.in Unit 1( BTT 112) 2A0ll right are reserved with CU-IDOL

OPPORTUNITIES 21 • Opportunities are those factors through which company can grow and develop. Opportunities may be the weaknesses of our competitors www.cuidol.in Unit 1( BTT 112) 2A1ll right are reserved with CU-IDOL

THREATS 22 • Threats are the contingencies that may be faced by a company. • Such as if we have accepted a change or launched a new product into market but that new product have low sales and huge cost etc. www.cuidol.in Unit 1( BTT 112) 2A2ll right are reserved with CU-IDOL

GAP Analysis 23 It is a useful method to describe the process involved in deciding what course of action should be taken to remove any potential profit or sales gap or risk gap. • 1. Profit Gap: Gap between profit for the past few years and profit projection based on freehand projection, linear regression coefficient or exponential smoothing. 2. Sales Gap: Gap between planned & actual sales. 3. Product gap: Difference between what a firm offers in terms of product items and what the industry provides in terms of product line. 4. Risk gap: Gap between anticipated risk with strategic decision and the actual happening. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

24 www.cuidol.in https://www.clearpointstrategy.com/gap-analysis-template/ All right are reserved with CU-IDOL Unit 1( BTT 112)

The Marketing Environment and 25 Competitor Analysis •SWOT analysis •PEST analysis •Five forces analysis www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

26 PORTER’s Five Force Model ❑Learning Objectives ✔Introduction and Meaning ✔Porter’s Five Force Model www.cuidol.in Unit 1( BTT 112) 2A6ll right are reserved with CU-IDOL

INTRODUCTION 27 www.cuidol.in Unit 1( BTT 112) 2A7ll right are reserved with CU-IDOL

Five forces analysis 28 Potential entrants Threat of entrants Suppliers COMPETITIVE Buyers Bargaining RIVALRY power Bargaining power Threat of substitutes Substitutes Source: Adapted from M. E. Porter, Competitive Strategy, Free Press, 1980, p. 4. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

RIVALS/ EXISTING COMPETITORS 29 • Number of competitors • Diversity of competitors: • Industry growth • Quality differences • Brand loyalty www.cuidol.in Unit 1( BTT 112) 2A9ll right are reserved with CU-IDOL

THREAT OF NEW ENTRANT 30 • Economies of scale • Brand loyalty • Government policies • Capital requirements • Access to distributional channels www.cuidol.in Unit 1( BTT 112) 3A0ll right are reserved with CU-IDOL

THREAT OF SUBSTITUTE 31 • Number of substitute available • Buyers propensity to shift • Perceived level of differentiation www.cuidol.in Unit 1( BTT 112) 3A1ll right are reserved with CU-IDOL

BARGAINING POWER OF SUPPLIER 32 • Number and size of suppliers • Uniqueness of product • Substitute of manufacturer www.cuidol.in Unit 1( BTT 112) 3A2ll right are reserved with CU-IDOL

BARGAINING POWER OF BUYER 33 • Number of customers • Size of quantity purchased • Price difference with competitors • Buyers ability to substitute www.cuidol.in Unit 1( BTT 112) 3A3ll right are reserved with CU-IDOL

SUMMARY 34 THREAT OF SUBSTITUTE THREAT OF BARGAINING NEW POWER OF SUPPLIER ENTRANT RIVALS/ FIVE BARGAINING EXISTING FORCE POWER OF COMPETITORS MODEL BUYER www.cuidol.in Unit 1( BTT 112) 3A4ll right are reserved with CU-IDOL

Identifying 35 Market Segments and Targets https://www.toppr.com/guides/business-economics/theory-of-demand/demand-segmentation www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Segmentation, Targeting and Positioning 36 • Segmentation: process of dividing the market into subsets of consumers with common needs or characteristics • Targeting: selecting one ore more of the segments to pursue • Positioning: developing a distinct image for the product in the mind of the consumer https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_ylu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDB HNlYwNwaXZz?p www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Steps in Market Segmentation, Targeting, and 37 Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWpROhheVRcAmzDnHgx.;_ylu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBH BvcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

What is a Market Segment? 38 A market segment consists of a group of customers who share a similar set of needs ad wants. • Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs • The concept of market segmentation was coined by Wendell R. Smith who in his article “Product Differentiation and Market Segmentation as Alternative Marketing Strategies” observed “many examples of segmentation” in 1956. Present-day market segmentation exists basically to solve one major problem of marketers; more conversions. More conversion is possible through personalized marketing campaigns which require marketers to segment market and draft better product and communication strategies according to the needs of the segment. www.cuidol.in Unit 1( BTT 112) 3A8ll right are reserved with CU-IDOL

Basic Market Preference Patterns 39 https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_ylu=X3oDMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQD BHNlYwNwaXZz?p www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Segmenting Consumer Markets (Bases) 40 Geographic Demographic Psychographic Behavioral www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Segmenting Consumer Markets 41 Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities. • This type of market segmentation is important for marketers as people belonging to different regions may have different requirements. For example, water might be scarce in some regions which inflates the demand for bottled water but, at the same time, it might be in abundance in other regions where the demand for the same is very less. • People belonging to different regions may have different reasons to use the same product as well. Geographic segmentation helps marketer draft personalized marketing campaigns for everyone. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

42 https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Segmenting Consumer Markets 43 Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality Demographic segmentation is the most popular segmentation method because consumer needs, wants, and usage often vary closely with demographic variables and are easier to measure than other types of variables. Demographic segmentation is seen almost in every industry like automobiles, beauty products, mobile phones, apparels, etc and is set on a premise that the customers’ buying behaviour is hugely influenced by their demographics. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Demographic Segmentation 44 Age and Life Cycle Life Stage Gender Income Generation https://www.hult.edu/blog/psychographics-big-data-watching/market-segmen Social Class tation/ www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Age and Life-Cycle Stage 45 Gender https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation/ www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Psychographic Segmentation 46 Psychographic segmentation divides buyers into different groups based on: ❖ Social class ❖ Lifestyle ❖ Personality traits ❖ Personality and lifestyle influence the buying decision and habits of a person to a great extent. A person having a lavish lifestyle may consider having an air conditioner in every room as a need, whereas a person living in the same city but having a conservative lifestyle may consider it as a luxury. https://www.hult.edu/blog/psychographics-big-data-watching/market-segmentation www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Behavioral Segmentation The market is also segmented based on audience’s 47 behaviour, usage, preference, choices and decision making. The segments are usually divided based on their knowledge https://www.pointillist.com/blog/behavioral-segmentation/ of the product and usage of the product. It is believed that the All right are reserved with CU-IDOL knowledge of the product and its use affect the buying decision of an individual. The audience can be segmented into – •Those who know about the product, •Those who don’t know about the product, •Ex-users, •Potential users, •Current Users, •First time users, etc. www.cuidol.in Unit 1( BTT 112)

Steps in Segmenting Markets 48 1 2 3 4 5 6 Select Choose Select Profile Select Design, a market bases descriptors/ and target implement, knowing the markets for for customers analyze maintain study segmentati segments marketing on mix Note that steps 5 and 6 are actually marketing activities that follow market segmentation (steps 1 through 4). slideserve.com/talon/steps-in-market-segmentation-targeting-and-positioning www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Market Targeting 49 Evaluating Market Segments Selecting Market Segments Choosing a Market Coverage Strategy www.cuidol.in https://slideplayer.com/slide/5242632/ All right are reserved with CU-IDOL Unit 1( BTT 112)

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