ADHM 141 Lecture Notes - Lecture 7: Competitive Advantage, Psychographic, Magnificent Mile
22 Jun 2018
School
Department
Course
Professor
Tourism Marketing is Unique
Intangible experience and perishable
§
A mixture of several services and some facilities and products
§
The organizations that market tourism destinations usually have little control
over the quality and quantity of services provided
§
The guest's satisfaction is a function of the staff providing the service
§
The big role of travel trade intermediaries
§
Tourism demand is highly elastic, seasonal in nature, and is influenced by
subjective factors as well as more objective factors
§
The intangible nature of tourism services
§
•
Tourism Marketing Defined
“Marketing is a continuous, sequential process through which management in
tourism plans, researches, implements, controls, and evaluates activities
designed to satisfy both customers’ needs and wants and their own
organization’s objectives. To be effective, marketing requires the efforts of
everyone in an organization and can be made more or less effective by the
actions of complementary organizations.”
§
•
Market Segmentation
The process through which people with similar needs, wants, and
characteristics are grouped together so that a tourism organization can use
greater precision in serving and communicating with these people.
Decide how to group all potential visitors
-> market segments
○
Select specific groups from market segments to pursue
-> target markets
○
§
•
Assumptions in Market Segmentation
Not all visitors are alike
§
Visitors within a specific segment have similar and identifiable characteristics
§
A trip appeals to some segments more than others
§
Products/services can be developed to serve specific segments
§
•
Criteria for A Viable Market Segment
Measurable – number of visitors
§
Accessible – to be reached with marketing activities
§
Substantial – sufficient numbers of visitors
§
Defensible -uniqueness
§
Durable – maintain uniqueness
§
Competitive – advantage over competition
§
Homogeneous – similar enough in the segment
§
Compatible – harmony with other market
§
•
Market Segmentation Bases
1. Demographic and socio-economic: Age; education; gender; income; family
size and composition; family life cycle stage; social class; type of
residence/home ownership status; second home ownership; race or ethnic
group; occupation.
2. Geographic: County; region; market area; urban/suburban/rural; city size;
population density; zip or postal code; neighborhood.
3. Purpose of trip: Regular business travel, business travel related to meetings;
conventions, and congresses; incentive travel; visiting friends and relatives;
close-to-home leisure trips; touring vacation; city trip; outdoors vacation; resort
vacation; cruise trip; visit to a theme park; exhibition or event.
4. Behavioral: Volume of use; frequency of use; usage status; use occasions;
brand loyalty; benefits sought; lengths of stay; transportation modes used;
expenditure levels; experience preferences; activity participation patterns.
5. Psychographic: Lifestyle; attitudes, interests, and opinions; values.
6. Product related: Recreation activity; equipment type; price level; type of
hotel or resort property.
7. Channel of distribution: Principal function; area of specialization; size and
structure; geographic location.
•
Positioning
The purpose is to create a perception or image —to establish a position —in
the targeted visitor’s mind.
§
Objective positioning : product-market matching
§
The destination attempts to tailor-make its services or products to the needs
and wants of a selected target market or markets.
Subjective positioning : Repositioning
§
An attempt is made to form, reinforce, or change the potential visitor’s image
without altering the physical characteristics of the services or products offered.
•
Examples of Positioning
Ohio, So Much to Discover (Ohio)
§
The State of Independence (Pennsylvania)
§
I (Love) New York (New York)
§
Hawaii, the Islands of Aloha (Hawaii)
§
Illinois, Mile After Magnificent Mile (Illinois)
§
Virginia is for Lovers (Virginia)
§
The Land of Golden Opportunities (California)
§
•
Six Positioning Approaches
Positioning on specific product features
: No artificial ingredients (Costa Rica Tourist Board)
○
§
Positioning on benefits, problem solution, or needs
: No everyone can fly (Air Asia)
○
§
Positioning for specific usage occasions
: Weddings & Honeymoons: Love grows in Jamaica (Jamaica Tourist
Board)
○
§
Positioning for user category
: Beijing - a New MICE Attraction (Beijing Municipal Bureau of Tourism)
○
§
Positioning against another product : We try harder (AVIS)
§
Positioning by product class dissociation.
§
•
A System Approach to Tourism Marketing
•
Step 1: Where are we now?
1. Scan the marketing environment
2. Consider the development goals and strategies
3. Evaluate services, products, & destination mix
4. Analyze competition
§
Step 2: Where would we like to be?
Define a vision and vision statement1.
Establish marketing goals2.
Select target markets3.
Create a positioning approach4.
Set marketing objectives5.
§
Step 3: How do we get there?
Develop a marketing plan1.
Develop a marketing mix using each of the “Eight Ps”
Elements of the Marketing Mix
Product
Price
Promotion
Place (Distribution)
Packaging
Programming
People
Partnership
□
2.
Prepare a budget3.
Prepare an implementation timetable4.
§
Step 4: How do we make sure we get there?
1. Monitor implementation
2. Check progress towards achieving objectives
3. Modify the marketing plan if necessary
§
Step 5: How do we know if we got there?
1. Measure and evaluate results and outcomes
2. Determine if goals and objectives have been achieved
3. Draw conclusions and implications for next round
§
•
4 P's of Marketing Mix
TOURISM MARKETING CH. 7
Thursday, April 6, 2017
12:33 PM
Tourism Marketing is Unique
Intangible experience and perishable
§
A mixture of several services and some facilities and products
§
The organizations that market tourism destinations usually have little control
over the quality and quantity of services provided
§
The guest's satisfaction is a function of the staff providing the service
§
The big role of travel trade intermediaries
§
Tourism demand is highly elastic, seasonal in nature, and is influenced by
subjective factors as well as more objective factors
§
The intangible nature of tourism services
§
•
Tourism Marketing Defined
“Marketing is a continuous, sequential process through which management in
tourism plans, researches, implements, controls, and evaluates activities
designed to satisfy both customers’ needs and wants and their own
organization’s objectives. To be effective, marketing requires the efforts of
everyone in an organization and can be made more or less effective by the
actions of complementary organizations.”
§
•
Market Segmentation
The process through which people with similar needs, wants, and
characteristics are grouped together so that a tourism organization can use
greater precision in serving and communicating with these people.
Decide how to group all potential visitors
-> market segments
○
Select specific groups from market segments to pursue
-> target markets
○
§
•
Assumptions in Market Segmentation
Not all visitors are alike
§
Visitors within a specific segment have similar and identifiable characteristics
§
A trip appeals to some segments more than others
§
Products/services can be developed to serve specific segments
§
•
Criteria for A Viable Market Segment
Measurable – number of visitors
§
Accessible – to be reached with marketing activities
§
Substantial – sufficient numbers of visitors
§
Defensible -uniqueness
§
Durable – maintain uniqueness
§
Competitive – advantage over competition
§
Homogeneous – similar enough in the segment
§
Compatible – harmony with other market
§
•
Market Segmentation Bases
1. Demographic and socio-economic: Age; education; gender; income; family
size and composition; family life cycle stage; social class; type of
residence/home ownership status; second home ownership; race or ethnic
group; occupation.
2. Geographic: County; region; market area; urban/suburban/rural; city size;
population density; zip or postal code; neighborhood.
3. Purpose of trip: Regular business travel, business travel related to meetings;
conventions, and congresses; incentive travel; visiting friends and relatives;
close-to-home leisure trips; touring vacation; city trip; outdoors vacation; resort
vacation; cruise trip; visit to a theme park; exhibition or event.
4. Behavioral: Volume of use; frequency of use; usage status; use occasions;
brand loyalty; benefits sought; lengths of stay; transportation modes used;
expenditure levels; experience preferences; activity participation patterns.
5. Psychographic: Lifestyle; attitudes, interests, and opinions; values.
6. Product related: Recreation activity; equipment type; price level; type of
hotel or resort property.
7. Channel of distribution: Principal function; area of specialization; size and
structure; geographic location.
•
Positioning
The purpose is to create a perception or image —to establish a position —in
the targeted visitor’s mind.
§
Objective positioning : product-market matching
§
The destination attempts to tailor-make its services or products to the needs
and wants of a selected target market or markets.
Subjective positioning : Repositioning
§
An attempt is made to form, reinforce, or change the potential visitor’s image
without altering the physical characteristics of the services or products offered.
•
Examples of Positioning
Ohio, So Much to Discover (Ohio)
§
The State of Independence (Pennsylvania)
§
I (Love) New York (New York)
§
Hawaii, the Islands of Aloha (Hawaii)
§
Illinois, Mile After Magnificent Mile (Illinois)
§
Virginia is for Lovers (Virginia)
§
The Land of Golden Opportunities (California)
§
•
Six Positioning Approaches
Positioning on specific product features
: No artificial ingredients (Costa Rica Tourist Board)
○
§
Positioning on benefits, problem solution, or needs
: No everyone can fly (Air Asia)
○
§
Positioning for specific usage occasions
: Weddings & Honeymoons: Love grows in Jamaica (Jamaica Tourist
Board)
○
§
Positioning for user category
: Beijing - a New MICE Attraction (Beijing Municipal Bureau of Tourism)
○
§
Positioning against another product : We try harder (AVIS)
§
Positioning by product class dissociation.
§
•
A System Approach to Tourism Marketing
•
Step 1: Where are we now?
1. Scan the marketing environment
2. Consider the development goals and strategies
3. Evaluate services, products, & destination mix
4. Analyze competition
§
Step 2: Where would we like to be?
Define a vision and vision statement1.
Establish marketing goals2.
Select target markets3.
Create a positioning approach4.
Set marketing objectives5.
§
Step 3: How do we get there?
Develop a marketing plan1.
Develop a marketing mix using each of the “Eight Ps”
Elements of the Marketing Mix
Product
Price
Promotion
Place (Distribution)
Packaging
Programming
People
Partnership
□
2.
Prepare a budget3.
Prepare an implementation timetable4.
§
Step 4: How do we make sure we get there?
1. Monitor implementation
2. Check progress towards achieving objectives
3. Modify the marketing plan if necessary
§
Step 5: How do we know if we got there?
1. Measure and evaluate results and outcomes
2. Determine if goals and objectives have been achieved
3. Draw conclusions and implications for next round
§
•
4 P's of Marketing Mix
TOURISM MARKETING CH. 7
Thursday, April 6, 2017
12:33 PM
Tourism Marketing is Unique
Intangible experience and perishable
§
A mixture of several services and some facilities and products
§
The organizations that market tourism destinations usually have little control
over the quality and quantity of services provided
§
The guest's satisfaction is a function of the staff providing the service
§
The big role of travel trade intermediaries
§
Tourism demand is highly elastic, seasonal in nature, and is influenced by
subjective factors as well as more objective factors
§
The intangible nature of tourism services
§
•
Tourism Marketing Defined
“Marketing is a continuous, sequential process through which management in
tourism plans, researches, implements, controls, and evaluates activities
designed to satisfy both customers’ needs and wants and their own
organization’s objectives. To be effective, marketing requires the efforts of
everyone in an organization and can be made more or less effective by the
actions of complementary organizations.”
§
•
Market Segmentation
The process through which people with similar needs, wants, and
characteristics are grouped together so that a tourism organization can use
greater precision in serving and communicating with these people.
Decide how to group all potential visitors
-> market segments
○
Select specific groups from market segments to pursue
-> target markets
○
§
•
Assumptions in Market Segmentation
Not all visitors are alike
§
Visitors within a specific segment have similar and identifiable characteristics
§
A trip appeals to some segments more than others
§
Products/services can be developed to serve specific segments
§
•
Criteria for A Viable Market Segment
Measurable – number of visitors
§
Accessible – to be reached with marketing activities
§
Substantial – sufficient numbers of visitors
§
Defensible -uniqueness
§
Durable – maintain uniqueness
§
Competitive – advantage over competition
§
Homogeneous – similar enough in the segment
§
Compatible – harmony with other market
§
•
Market Segmentation Bases
1. Demographic and socio-economic: Age; education; gender; income; family
size and composition; family life cycle stage; social class; type of
residence/home ownership status; second home ownership; race or ethnic
group; occupation.
2. Geographic: County; region; market area; urban/suburban/rural; city size;
population density; zip or postal code; neighborhood.
3. Purpose of trip: Regular business travel, business travel related to meetings;
conventions, and congresses; incentive travel; visiting friends and relatives;
close-to-home leisure trips; touring vacation; city trip; outdoors vacation; resort
vacation; cruise trip; visit to a theme park; exhibition or event.
4. Behavioral: Volume of use; frequency of use; usage status; use occasions;
brand loyalty; benefits sought; lengths of stay; transportation modes used;
expenditure levels; experience preferences; activity participation patterns.
5. Psychographic: Lifestyle; attitudes, interests, and opinions; values.
6. Product related: Recreation activity; equipment type; price level; type of
hotel or resort property.
7. Channel of distribution: Principal function; area of specialization; size and
structure; geographic location.
•
Positioning
The purpose is to create a perception or image —to establish a position —in
the targeted visitor’s mind.
§
Objective positioning : product-market matching
§
The destination attempts to tailor-make its services or products to the needs
and wants of a selected target market or markets.
Subjective positioning : Repositioning
§
An attempt is made to form, reinforce, or change the potential visitor’s image
without altering the physical characteristics of the services or products offered.
•
Examples of Positioning
Ohio, So Much to Discover (Ohio)
§
The State of Independence (Pennsylvania)
§
I (Love) New York (New York)
§
Hawaii, the Islands of Aloha (Hawaii)
§
Illinois, Mile After Magnificent Mile (Illinois)
§
Virginia is for Lovers (Virginia)
§
The Land of Golden Opportunities (California)
§
•
Six Positioning Approaches
Positioning on specific product features
: No artificial ingredients (Costa Rica Tourist Board)
○
§
Positioning on benefits, problem solution, or needs
: No everyone can fly (Air Asia)
○
§
Positioning for specific usage occasions
: Weddings & Honeymoons: Love grows in Jamaica (Jamaica Tourist
Board)
○
§
Positioning for user category
: Beijing - a New MICE Attraction (Beijing Municipal Bureau of Tourism)
○
§
Positioning against another product : We try harder (AVIS)
§
Positioning by product class dissociation.
§
•
A System Approach to Tourism Marketing
•
Step 1: Where are we now?
1. Scan the marketing environment
2. Consider the development goals and strategies
3. Evaluate services, products, & destination mix
4. Analyze competition
§
Step 2: Where would we like to be?
Define a vision and vision statement1.
Establish marketing goals2.
Select target markets3.
Create a positioning approach4.
Set marketing objectives5.
§
Step 3: How do we get there?
Develop a marketing plan1.
Develop a marketing mix using each of the “Eight Ps”
Elements of the Marketing Mix
Product
Price
Promotion
Place (Distribution)
Packaging
Programming
People
Partnership
□
2.
Prepare a budget3.
Prepare an implementation timetable4.
§
Step 4: How do we make sure we get there?
1. Monitor implementation
2. Check progress towards achieving objectives
3. Modify the marketing plan if necessary
§
Step 5: How do we know if we got there?
1. Measure and evaluate results and outcomes
2. Determine if goals and objectives have been achieved
3. Draw conclusions and implications for next round
§
•
4 P's of Marketing Mix
TOURISM MARKETING CH. 7
Thursday, April 6, 2017 12:33 PM
Document Summary
A mixture of several services and some facilities and products. The organizations that market tourism destinations usually have little control over the quality and quantity of services provided. The guest"s satisfaction is a function of the staff providing the service. Tourism demand is highly elastic, seasonal in nature, and is influenced by subjective factors as well as more objective factors. Marketing is a continuous, sequential process through which management in tourism plans, researches, implements, controls, and evaluates activities designed to satisfy both customers" needs and wants and their own organization"s objectives. To be effective, marketing requires the efforts of everyone in an organization and can be made more or less effective by the actions of complementary organizations. The process through which people with similar needs, wants, and characteristics are grouped together so that a tourism organization can use greater precision in serving and communicating with these people. Select specific groups from market segments to pursue.
