Learning ObjectivesChapter 8: Marketing Strategy: Strategies, Positioning, and Marketing ObjectivesIdentify the six components in developing a marketing strategy and plan.Define the terms marketing strategy, positioning, and marketing objective.Explain the concept of segmented marketing strategies and describe the alternative strategies by market focus.Describe the alternative marketing strategies by product life cycle (PLC) stage.

Learning ObjectivesChapter 8: Marketing Strategy: Strategies, Positioning, and Marketing ObjectivesDescribe the alternative strategies by industry position.Explain the concepts of relationship marketing and strategic alliances.Identify the reasons that have made positioning essential in todays business climate.List and describe the steps required for effective positioning (the five Ds).

Learning ObjectivesChapter 8: Marketing Strategy: Strategies, Positioning, and Marketing Objectives

List and describe the six different approaches to positioning.Explain the benefits of having marketing objectives and list the four requirements for good marketing objectives.

Marketing StrategyThe selection of a course of action from among several alternatives that involves specific customer groups, communication methods, distribution channels, and pricing structures.

It is a combination of target markets andmarketing mixes.

Target MarketA target market is a market segment selected by a hospitality and travel organization for marketing attention.

Market segmentation involves dividingcustomers into groups (market segments)with common characteristics.

Marketing MixA marketing mix includes those controllable factors that have been chosen to satisfy customer needs.

The eight controllable factors are product, price, place, promotion, packaging, programming, partnership, and people.

These are also know as the 8 Ps.

Relationship Marketing and Strategic AlliancesRelationship MarketingPlacing an emphasis on building, maintaining, andenhancing long-term relationships withcustomers, suppliers, travel trade intermediaries,and perhaps even competitors.

Strategic AlliancesSpecial long-term marketing relationships formedbetween two or more hospitality and travel organizations, or between a hospitality and travel organization and one or more other types of organizations(e.g., KLM and Northwest, STAR alliance).

PositioningPositioning is the development of a service and a marketing mix to occupy a specific place in the mindsof customers within target markets.

Marketing ObjectiveA marketing objective is a measurable goal that a hospitality or travel organization attempts to achieve for a target market within a specific time period,typically one year.

Segmented Marketing StrategiesApproaches that recognized the differences among target markets by using individualized marketing mixes for each of the target markets selected by a hospitality or travel organization. Also known as a differentiated strategy.

The three alternative segmented strategies are:

Single-target-market strategyConcentrated marketing strategyFull-coverage marketing strategy

Undifferentiated Marketing Strategy

A strategy that overlooks segment differences and uses the same marketing mix for all target markets.

Alternative Strategies for Product Life Cycle StagesIntroduction Stage Rapid-skimming strategy (high price/high promotion).Slow-skimming strategy (high price/low promotion).Rapid-penetration strategy (low price/high promotion).Slow-penetration strategy (low price/low promotion).

Alternative Strategies for Product Life Cycle StagesGrowth StageImprove service quality and add new service features and elementsPursue new target marketsUse new channels of distributionLower prices to attract more price-sensitive customersShift some advertising emphasis away from building awareness to creating desire and action

Alternative Strategies for Product Life Cycle Stages Maturity StageMarket-modification strategyProduct-modification strategyMarketing-mix modification strategy

Decline StageReduce costs and milk the companySell off or get out of the business

Alternative Strategies by Industry Position

Market LeadersExpand the size of the total marketProtect market shareExpand market share

Market ChallengersTake on or attack the market leader

Alternative Strategies by Industry Position

Market FollowersShy away from any attacks on market leaders

Market NichersSpecialize in a particular market segment

Positioning Positioning is the development of a service and a marketing mix to occupy a specific place in the minds of customers within target markets.

Reasons for Increased Importance of PositioningPerceptual processes of customers They screen out most information2.Greater competitionMore organizations competing for share of mind3.Growing volume of commercial messagesAdvertising and promotion clutter

Steps Required for Effective Positioning (the five Ds)DocumentingDecidingDifferentiatingDesigningDelivering

The 5 Ds of PositioningDocumentingWhat benefits are the most important to your current and potential customers?

DecidingWhat image do you want your current and potential customers to have of your organization?DifferentiationWhich competitors do you want to appear different from, and what are the factors that you will use to make your organization different from them?

The 5 Ds of PositioningDesigningHow will you develop and communicate these differences?DeliveringHow will you make good on what youve promised, and how do you make sure that you have delivered?

Positioning Approaches:Six Major AlternativesSpecific product featuresBenefits, problem solution, or needsSpecific usage occasionsUser categoryAgainst another productProduct class dissociation

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