BSC TTM_SEM-3_Tourism Marketing_U-2

Selecting Market 51 Segments • Single Segment Concentration (single product & single market) eq- Nirma, Mahindra & Mahindra • Selective Specialization (Multiple product & multiple market with selection of specific market for specific product) eq- Apple (laptop, ipad, iphones), HUL (Dove-beauty, lux-fragrance , lifebuoy-Hygiene) • Product Specialization (Single product & multiple market) eq- Nokia phones • Market Specialization (Multiple product & single market) eq- Johnson & Johnson, Amul • Full Marketing Coverage (all customer groups, multiple products & all markets) eq- Coca Cola, Kinley www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Target Marketing Strategies 52 www.cuidol.in https://link.springer.com/chapter/10.1007/978-981-10-8818-6_2 All right are reserved with CU-IDOL Unit 1( BTT 112)

Target Marketing Strategies 53 Undifferentiated marketing targets the whole market with one offer (eq- Coca Cola) • Mass marketing • Focuses on common needs rather than what’s different Differentiated marketing targets several different market segments and designs separate offers for each (eq- Colgate) • Goal is to achieve higher sales and stronger position • More expensive than undifferentiated marketing www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Target Marketing Strategies 54 Concentrated marketing targets a small share of a large market (eq- Ford, Volkswagen) • Limited company resources • Knowledge of the market • More effective and efficient Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations • Local marketing • Individual marketing www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Target Marketing 55 Strategies Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups (depend upon area, cities and local stores) • Increased marketing effectiveness in competitive markets • More customer-specific offerings Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers (individual plans) • Also known as: Unit 1( BTT 112) All right are reserved with CU-IDOL • One-to-one marketing • Mass customization www.cuidol.in

SELECTING TARGET 56 MARKET Single Selective Product Market www.cuidol.in Unit 1( BTT 112) 5A6ll right are reserved with CU-IDOL

57 SELECTING TARGET 57 MARKET www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

58 58 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

59 59 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

60 60 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

61 61 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

62 62 ADDITIONAL CONSIDERATION www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Choosing a Targeting Strategy 63 Company resources Competitor’s Product marketing variability strategies Market Product variability life-cycle stage www.cuidol.in https://www.anchorcomputer.com/index.php/2016/03/07/direct-mail-guide/ All right are reserved with CU-IDOL Unit 1( BTT 112)

Positioning 64 Positioning is the act of defining the company’s offering and image to make a distinct place in the mind of target market or consumer. Positioning Strategies Products can be positioned on specific attributes or against another product class. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Types of Positioning 65 • Attribute based positioning (physical & other, Raymonds Since 1925) • Benefit based positioning (Colgate sensitive) • Usage Occasion based positioning (Itch Guard) • Competitor’s based positioning (Compaq & IBM, Thumps & Pepsi) • Quality based positioning (Sony) • Price based positioning (Tata, McD) www.cuidol.in Unit 1( BTT 112) 6A5ll right are reserved with CU-IDOL

Click to edit Master title style 66 POSITIONING OF SERVICES www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

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

68 Al Ries and Jack Trout came up with Positioning in 1972. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

69 69 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

70 70 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

3 C’S OF POSITIONING 71 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

OBJECTIVES 72 • To create the distinctive image in the minds of the consumers • To get the competitive edge over others • To placing our intangible services in a manner with more of tangible framework • Consider the competitors moves and take necessary actions as early as possible. • To give the reason to your target audience to buy our product www.cuidol.in Unit 1( BTT 112) 7A2ll right are reserved with CU-IDOL

DESIGNING A POSITIONING SERVICE 73 CURRENT • The way that a company is seen by IMAGE different groups. MIRROR • The way that a company thinks it is IMAGE seen by different groups. WISH • The way that a company would like IMAGE to be seen by different groups. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

IMPORTANCE OF POSITIONING 74 1. To Make Entire Organisation Market-oriented 2. To Cope with Market Changes 3. To Meet Expectation of Buyers 4. To Promote Consumer Goodwill and Loyalty 5. To Design Promotional Strategy www.cuidol.in Unit 1( BTT 112) 7A4ll right are reserved with CU-IDOL

IMPORTANCE OF POSITIONING 75 6. To Win Attention and Interest of Consumer 7. To Attract Different Types of Consumers 8. To Face Competition 9. To Introduce New Product Successfully 10. To Communicate New and Varied Feature Added Later on www.cuidol.in Unit 1( BTT 112) 7A5ll right are reserved with CU-IDOL

SERVICE POSITIONING STEPS 76 3 STEPS MARKET POSITIONING PSYCHOLOGICAL POSITIONING POSITIONING APPROACHES www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

MARKET POSITIONING- what you stand in the minds of 77 the consumer. www.cuidol.in Market All right are reserved with CU-IDOL segmentation Target market strategy Service differentiation Service positioning Unit 1( BTT 112)

Market segmentation of Air India 78 Demographic Geographic Psychological segmentation segmentation segmentation • Business class • Economy class • Serves 31 • People who International travel throgh Air www.cuidol.in destinations india since past few decades are • Serves 60 still loyal to it Domestic destinations All right are reserved with CU-IDOL Unit 1( BTT 112)

Target market 79 High class Lower and middle class www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Service differentiation and service 80 positioning www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

81 PSYCHOLOGICAL POSITIONING Conveying the firm’s image & identity to target market SUBJECTIVE OBJECTIVE POSITIONING POSITIONING www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

OBJECTIVE POSITIONING- Based on physical 82 attributes. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

83 SUBJECTIVE POSITIONING- It is not based on physical attributes. In other words, it’s just a mental perception that is perceived by the customers. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

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

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

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

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

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

SUMMARY 89 3 STEPS MARKET POSITIONING PSYCHOLOGICAL POSITIONING POSITIONING APPROACHES www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

SUMMARY 90 www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 91 National security situation will be considered in the macro economic environment as: A) Political Factor B) Social factor C) Military factor D) Economic factor www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 92 Socio-Economic Forces consists___ • customer • competition • substitutes • all of these www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 93 When analysing the marketing environment, which heading should the company’s increased brand equity go under? • political • personal • organisational • environmental • regulatory www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 94 Which of the following statement is true? • Environmental analysis and diagnosis involve understanding the five forces, namely socio-economic, competition, technology, government policies and supplies. • Understanding the socio-economic, forces is important as they determine the demand for a product or service at any given time. This involves an analysis of structural changes in the population and economic change in the society • Technology factor involves understanding technological change affecting the firm’s products, process and systems and its capacity to respond faster to the customer. The technological development in the industry creats an opportunity for a marker to develop new products the consumer also tends to benefit from these developments. • all of these www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 95 The process of dividing a total market into market groups so that persons within each group have relatively similar product needs is called: 1)segmenting 2)differentiating 3)target marketing 4)concentrating www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 96 By offering Signal for Kids (attractive taste for children), Regular Signal for cavity control, and Tartar Control Signal toothpastes, Unilever is segmenting the market based on: 1)benefits 2)psychographics 3)lifestyle 4)demographics 5)attitudes www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Multiple Choice Questions 97 Toyota knows that some people want sports cars, others want vans, estate cars, or economy cars. In this case Toyota has found its markets to be: 1) heterogeneous 2) undifferentiated 3) focused 4) homogeneous www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Summary 98 • Environmental scanning is an important requirement for companies to understand threats and opportunities. • Companies will face forces from the micro environment and the macro environment. • PESTEL analysis is a technique used by companies for analysing the environmental forces. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Summary 99 • Demand forecasting is an important activity for all marketing companies to understand the potential of the market and based on which to develop their sales forecast. • Market segmentation is the process of dividing the total market into small groups or subgroups of homogenous customers. • After segmentation, target market is selected and then positioning is done. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL

Frequently Asked Questions 100 Q1. What are the factors affecting marketing in macro environment? Ans. The Macro Environment consists of 6 different forces. These are: Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological forces. This can easily be remembered: the DESTEP model, also called DEPEST model, helps to consider the different factors of the Macro Environment. Q2. Discuss the role of environment in the success of marketing function and activities. Ans. Both large and small organizations operate within their business environments. Various external and internal forces influence the marketing strategies of a company. Such forces can affect a firm either positively or negatively. Consequently, it is the duty of marketers to monitor any changes in these forces, which then assists them in decision-making. Q3. You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. What are you studying? Ans. Micro environment. www.cuidol.in Unit 1( BTT 112) All right are reserved with CU-IDOL