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REVIEWER FOR MARKETING LESSON 5 – Market Segmentation, and regulations guiding the Targeting and Positioning interactions among nations as well as between firms and Market Seg...

REVIEWER FOR MARKETING LESSON 5 – Market Segmentation, and regulations guiding the Targeting and Positioning interactions among nations as well as between firms and Market Segmentation various local governmental ▪ It is the process of dividing a larger agencies. market into smaller, distinct groups 4. The Advancement on Technology of people with similar needs or Segment characteristics. ▪ Firms and other organizations ▪ It is the process of dividing a broad develop new technology and consumer or business market, new products have great normally consisting of existing and advantage in higher market potential customers, into sub-groups share and earn considerable of consumers based on shared advantage. characteristics. 5. The World of Business Segments ▪ It creates subsets of a market based ▪ Globalization of the business on demographics, needs, priorities, market creates both common interests, and other opportunities and challenges. psychographic or behavioral criteria. The present scenario is trade and commerce is the creation of bordless flow of product 6 Segments that affect operation of the Firm: and services. 1. Demographic Segment ▪ It is concerned with the What is Targeting? population’s size, age, structure, geographic ▪ This involves selecting the most distribution system, ethnic attractive ones to focus marketing groups, and economic index efforts on. It involves segmenting 2. Economic Segment the overall market into groups based ▪ It refers to the nature and on relevant characteristics like directions of the country with demographics, interests, behaviors, economic stability. It and location. includes elements such as ▪ It refers to the process of identifying interest rates, inflation rates, a company's potential customers, gross domestic product, choosing the customers to pursue, unemployment rates, levels and creating value. of disposable income, and the general growth or decline of the economy. 3. Political and Legal Segment ▪ It is the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws What are the Targeting Strategies in What are the Positioning Strategies? Marketing? 1. By Price and Quality 1. Undifferentiated Targeting ▪ For instance, budget hotels ▪ When a Business uses a focus on affordability while single strategy for all luxury resorts emphasize segments. exclusive experience ▪ It is also known as Mass 2. By Location or Convenience Marketing ▪ Positioning based on ▪ It is a marketing strategy that location, such as a city hotel aims to reach as large an marketed to business audience as possible travelers or a beachfront 2. Differentiated Targeting resort aimed at vacationers. ▪ Developing unique marketing 3. By Product Attribute strategy for each segment ▪ Highlighting a unique ▪ It is known as Multisegment feature, like an eco-friendly ▪ The strategy of creating one approach, that distinguishes or more marketing campaigns the brand from competitors. targeting one or more segments of customers LESSON 6 – PRODUCT MIX 3. Concentrated Targeting ▪ Focusing on a single, niche What is Product? segment. ▪ Also known as Niche ▪ It is anything that can be Marketing offered to a market for ▪ It is a marketing strategy in attention, acquisition, use or which a company focuses on consumption that might one specific target market satisfy and delight the client. group for most or all of its ▪ Any item or service you sell marketing to serve a customer's need or What is Positioning? want. ▪ It is a set of tangible and ▪ It is about creating a specific image intangible attributes, of a brand in the minds of target including packaging, color, consumers price, quality, and brand. ▪ It refers to the ability to influence ▪ In Tourism, it is the consumer perception regarding a combination of brand or product relative to accommodation, food and competitors beverage, transportation, ▪ Its main focus is on creating a entertainment, and many specific image or idea of your brand other goods and services that in your customers' minds. are used throughout the trip.  A. Tangible Elements C. Industry Products These Includes hotels, restaurants, Goods bought by a business and other physical structures for resale, for further processing, B. Intangible Elements or for use in producing other These includes the History, Climate, products and other aspects of the destination. What are the Levels of Product? C. Services These include transportation, food 1. Core Product and beverage, entertainment, and other ▪ The benefit that the product services that tourists need while provides to the customer. ▪ The primary benefit or traveling and at their destination. feature that a customer What are the Classification of Product? receives from a product or service. 1. According to Durability ▪ It is the main driving ▪ It is how long a product can motivation for wanting a last without needing to be product repaired or replaced 2. Actual Product ▪ It is a measure of a product's ▪ The physical product, ability to maintain its including its design and functionality over time while features. withstanding wear and tear. ▪ The physical, tangible aspects A. Durable Goods of a product, including its Are consumer goods that are design, quality, brand, used over an extended period of features, and packaging. time. 3. Augmented Products B. Nondurable Goods ▪ The additional features that Are consumer goods that are help the customer use the quickly consumed, worn out or product. outdated. ▪ It can provide benefits for 2. According to Type of end-user or the both the buyer and the seller. purpose for which the product is to ▪ It can help the seller market used the product in new ways, and ▪ It can be classified by their it can give the consumer a end-user or purpose into three reason to buy the product. major categories: Augmented Products Features Include the A. Consumer Products following: These are goods that are bought by household consumers 1. Services for their own consumption 2. Freebies 3. Exclusive Features B. Business Products 4. Loyalty Programs Used by businesses for their 5. Faster Shippinh operations or production 6. Charity Donations What are the Product Mix Strategies? 4. Product Differentiation ▪ Differentiation highlights 1. Product Line Expansion unique aspects of a product ▪ This involves expanding the or service, setting it apart range of products or services from competitors. offered by a business to cover ▪ This can include unique more customer needs and selling propositions, appeal to diverse market branding, or special features. segments. Product differentiation can help businesses: ▪ It is a marketing strategy that involves adding new products ▪ Increase Sales and Growth or features to an existing ▪ Develop brand Loyalty product line. ▪ Target Specific Market Segments 2. Product Line Contraction ▪ Opposite to expansion, product line contraction What are the steps in Tourism Product reduces the number of Development? products or services offered 1. Market Research to focus on the most ▪ Understanding customer profitable ones. preferences, emerging trends, ▪ It is a strategy that involves and competitor offerings is reducing the number of essential. products in a product line. 3. Product Alteration 2. Concept Development ▪ This strategy adjusts or ▪ Based on research, businesses improves existing products to create ideas for new or align them with customer improved products, such as expectations, seasonal trends, unique excursions, themed or new market demands. packages, or specialized ▪ It is also known as product services (like spa treatments). modification. It is the process of making significant 3. Feasibility Analysis changes to a product's ▪ This involves assessing the features, design, or financial, operational, and performance to enhance the market viability of a new product's demand, attract new product idea to ensure it customers, and compete with aligns with business goals other products and resources. Product alterations can be minor or major, and can include: 4. Product Design and Testing ▪ Component Changes ▪ Before full launch, businesses ▪ Functional Changes often test new products on a ▪ Quality Changes small scale, collecting ▪ Style Changes feedback to make ▪ Rebranding improvements. ▪ New Sizes  5. Product Launch and Marketing 4. Perceived Value ▪ Finally, the product is ▪ Customers’ perception of the launched, and a targeted service quality influences marketing campaign attracts what they are willing to pay. the intended audience. 5. Government Policies and Taxes What are the Key Considerations in Product ▪ Regulations, such as tourism Development? taxes, influence pricing decisions. ▪ Differentiation ▪ Customer Experience What are the Goals of Pricing? ▪ Sustainability ▪ Continuous Improvement 1. Revenue Maximization ▪ Set prices to maximize earnings during peak seasons. LESSON 7 – PRICING MIX 2. Market Penetration What is Price? ▪ Offer lower prices initially to attract more customers and ▪ It refers to the monetary value establish a market presence. customers pay to acquire a product 3. Customer Satisfaction or service. ▪ Provide value-driven pricing ▪ In the tourism and hospitality to enhance customer loyalty industry, this includes and satisfaction. accommodation costs, travel 4. Profitability expenses, and fees for additional ▪ Ensure that pricing covers services like dining or tours. costs and generates ▪ Price is not just a financial exchange sustainable profit margins. but also reflects the perceived value and quality of the service provided. What are the Pricing Strategies? 1. Cost-Plus Pricing What are the Factors Influencing Price? ▪ Adding a fixed percentage or 1. Cost of Production markup to the total ▪ The expenses incurred to production cost. deliver a service, such as staff 2. Value-Based Pricing wages, utilities, and ▪ Determining prices based on maintenance. the customer’s perceived 2. Market Demand value of the service. ▪ Fluctuations in consumer 3. Dynamic Pricing demand affect pricing, with ▪ Adjusted prices based on high demand often leading to demand, season, or booking higher prices. time. 3. Competition 4. Psychological Pricing ▪ Businesses adjust prices ▪ Using pricing tactics to based on competitors’ pricing influence customer strategies to remain perceptions, such as setting competitive. prices slightly below whole numbers What are the Price Adjustment Strategies? customers about their products and services. 1. Discounts and Promotions ▪ It aims to create awareness, ▪ Offering reduced prices to generate interest, and attract more customers. encourage bookings or 2. Geographical Pricing purchases in the tourism and ▪ Adjusting prices based on hospitality industry. location or region. 3. Seasonal Pricing What is Promotion Mix? ▪ Pricing based on peak or low travel seasons. ▪ The Promotion Mix is a combination of tools and strategies businesses use to achieve their marketing goals. What are the Pricing Strategies to Increase ▪ It focuses on effectively Hotel Revenue? communicating the value of services 1. Bundling Services or experiences to the target audience. ▪ Offering packages that combine multiple services at What are the main components of the a discounted price. Promotion Mix? 2. Upselling and Cross-Selling ▪ Encouraging customers to opt 1. Advertising for higher-value services or ▪ Paid communication via mass add-ons. media channels such as TV, 3. Dynamic Pricing Systems radio, print, or online ▪ Utilizing software to adjust platforms. prices in real time based on 2. Sales Promotion market demand. ▪ Short-term incentives like 4. Loyalty Programs discounts, contests, or ▪ Rewarding repeat customers packages to encourage with discounts or exclusive immediate bookings or offers to encourage more purchases. frequent bookings. 3. Public Relations (PR) 5. Targeted Marketing Campaigns ▪ Building a positive brand ▪ Using personalized image through media promotions based on relations, press releases, and customer preferences and sponsorships. booking history. 4. Personal Selling ▪ Direct interaction between sales representatives and LESSON 8 – PROMOTION STRATEGIES customers to promote What is Promotion? services. 5. Direct Marketing ▪ It refers to the various ▪ Targeting customers through communication strategies and personalized communication tools that businesses use to such as emails or direct mail. inform, persuade, and remind What are the Elements of Promotion? 5. Budget Allocation ▪ Decide on the budget and 1. Message distribute it across media ▪ The content communicated to channels effectively. the target audience to create 6. Implement the Campaign interest or desire. ▪ Launch the campaign and 2. Medium ensure consistent monitoring. ▪ The channel through which 7. Evaluate Effectiveness the message is delivered. ▪ Measure the success of the 3. Target Audience campaign through metrics ▪ Identifying the specific group like website traffic, bookings, of customers who are most or social media engagement. likely to benefit from and respond to the promotion. 4. Timing ▪ Aligning promotions with seasonal demand or peak booking periods to maximize impact. What are the Steps in Developing an Advertising Campaign? 1. Define the Objectives ▪ Clearly state the purpose of the campaign, such as increasing bookings or creating destination awareness. 2. Identify the Target Audience ▪ Understand the demographics, preferences, and behaviors of the intended audience. 3. Craft the Message ▪ Create compelling and engaging content that resonates with the audience. 4. Choose the Media Channels ▪ Select the platforms that will best reach the target audience, such as social media, travel blogs, or tourism magazines.