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Les Maisonnettes Marketing
Marketing
Les Maisonettes
Les Maisonnettes Marketing
Issues To Revise
• Eco-tourism: definition, advantages and disadvantages.
• AFE and Regional Tourist Board – advantages and disadvantages of Sophie being member.
• Market research
• Product versus service marketing
• Marketing mix
Les Maisonnettes Marketing
Strategy
ReputationEcotourism
Branding
USP
ServiceElasticity
1) Product
Les Maisonnettes Marketing
Definition of ecotourism branding
• Refer to www.ecotourism.org
• "Responsible travel to natural areas that conserves the environment and improves the well-being of local people." (TIES, 1990)
Les Maisonnettes Marketing
Objectives of ecotourism
• Minimize impact on their environment. • Build respect of the environmental and cultural
awareness. • Provide positive experiences for both visitors
and hosts. • Provide direct financial benefits for conservation. • Provide financial benefits and empowerment for
local people. • Raise sensitivity to France’s political,
environmental, and social climate.
Les Maisonnettes Marketing
Family Branding
• Family branding allows a range of products and services to be sold under a single brand name, such as, Kellogg’s and Sony.
• Ecotourism family brand encompasses a product mix ranging from jungle tourism to cultural heritage holidays.
Les Maisonnettes Marketing
Advantages of family branding• Creates a higher market share by attracting
green conscientious Europeans.• Allow LM to charge higher prices. [Note that
‘good value’ does not mean that the prices are cheap]
• Creates demand price inelasticity and customer loyalty.
• Develop brand extension strategies, for example, cultural heritage holidays around St Germain.
Les Maisonnettes Marketing
Change in strategy
• LM originally started as a grocery shop with products for sale.
• Sophie has now decided to market LM as service.
• This will have implications on the type of marketing strategies she will now adopt.
Les Maisonnettes Marketing
Marketing a good
• Product
• Price
• Place
• Promotion
Les Maisonnettes Marketing
Marketing a service
• The 4ps plus
• People
• Processes
• Physical evidence
Les Maisonnettes Marketing
Aspects of marketing a tangible product
• Buyers can see/feel the product
• Buyers judge the value of the product
• Brochures can help to support the understanding of how the product works
• Products can be left for test trial or displayed in the shop.
• Products are returnable if they are faulty or damaged.
Les Maisonnettes Marketing
Aspects of marketing an intangible service
• LM will have to market the relationships between itself and their customers.
• Face-to-face exchanges between employees and customers are important; dealing with complaints and supporting customer needs are vital.
• Establish a reputation through good interior and exterior buildings, health and safety, quality food/experience
Les Maisonnettes Marketing
Possible extension strategies
• USP: Creating a luxury retreat
• Sell high quality local produce
• Beauty treatments
• Upgrading facilities
• Attracting international travellers (ecotourism – global brand)
• Energy efficient and carbon neutral accommodation
Les Maisonnettes Marketing
Summary of product
• Product Differentiation through eco-tourism• Activities including the French classes have
helped to add value to LM.• Revise Product portfolio analysis – including the
Boston Matrix and the Ansoff Matrix. Can we relate these to LM?• Revise the difference between marketing a
product and marketing a service – what is the difference?
Les Maisonnettes Marketing
Discrimination
Profit MarginElasticity
DemandSubstitution
DiscountCompetitive
2) Price
Les Maisonnettes Marketing
Pricing StrategiesMarket demand for LM services might be elastic as they can be substituted for the Sanctuary’s services. LM could use the following competitive strategies:
– Price Discrimination, offering low prices to the 18 – 30 market (esp. those who endorse eco-tourism).
– Promotional Pricing, offering discounts for regular visitors
Les Maisonnettes Marketing
Price summary
• She has been charging the same price all year.• She is thinking of charging higher prices during
peak season – which can increase sales.• But, competition is increasing (she may be
forced to lower prices to keep up with competition and the external environment).
• Don’t forget the holiday packages she is considering (line 90)
Les Maisonnettes Marketing
Infrastructure
AccessibilityPassing Trade
InternetSuppliers
AirportEcommerce
3) Place
Les Maisonnettes Marketing
Advantages of E - Commerce
• Customers can use 24 hour booking service• No communication barriers caused by distance
or telephone booking. • Lower sales cost, e.g., reduced documents and
office wages.• Generating high volumes of interest are ideal for
small LM niche marketing like Ecotourism.• Improve LM competitive position.
Les Maisonnettes Marketing
Disadvantages of ecommerce
• Long Time for delivery of physical products might be a problem for perishable goods.
• Sensory information about their products might be limited and selected. Customers cannot feel or touch products.
• Privacy, security, payment, identity, contract: credit card processing.
• Personal service might be affected as the company looses interaction with customers
• Set up costs will have to be paid, additionally spam will have to be blocked
Les Maisonnettes Marketing
Logo
InformInfiltration
Branding
Word of mouth
RemindPersuade
4) Promotion
Les Maisonnettes Marketing
Below the line Promotion
• Branding/logo/slogan for LM
• Word-of-mouth promotion– More convincing and believable than others
types of promotion– Very low cost method of marketing.– ‘Talking up’ a product to create a ‘vibe’ or
‘buzz’ might lead to ethical concerns.– Problems with controlling the message.
Les Maisonnettes Marketing
Above the line promotion
• Ecommerce/internet: portal web sites allow users to make online bookings.
• Infiltration marketing: contributing to eco-blogs or chat rooms by acting as an ordinary user. LM can create posting about the excellent service offered by the company.
Label1
Les Maisonnettes Marketing
Support
EfficiencyCommunication
Appearance
Accuracy
FeedbackRelationships
5) People
Les Maisonnettes Marketing
PeopleCustomer relations management1. Front office operations: Direct interaction
with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.
2. Back office operations: Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.)
3. Business relationships: Interaction between LM with other companies and partners, such as suppliers or vendors and retail outlets or distributors.
Les Maisonnettes Marketing
LM - People
• Her staff require further training according to new H&S law. She has to invest more in her people – costly.
• HR problems may affect word of mouth and customer service – which is very important for LM.
Les Maisonnettes Marketing
Methods
PaymentAfter-sales care
Delivery
Services
Help DeskWaiting
6) Process
Les Maisonnettes Marketing
Process
• Can be achieved/improved through:
• Waiting time (complaints, bookings.. Etc)
• Payment methods (offer different methods of payment)
• Customer service (how attentive are staff towards customers – quality of service)
• After-sales care (its quality)
Les Maisonnettes Marketing
Process
• How LM deals with complaints?
• How LM provides the best service possible?– Free deliveries for local produce– Meeting order times and commitments
Les Maisonnettes Marketing
Positive Experience
Measuring Productivity
Peripheral Product
Environment
Correcting mistakes
QualityPeople Management
7) Physical Evidence
Les Maisonnettes Marketing
Physical Evidence
• Physical layout of the guest rooms and shop.
• Does the accommodation use modern fixtures and fittings.
• Up to date facilities: internet, phones
• Appearance: clean bathrooms, decoration
Les Maisonnettes Marketing
8) Packaging
Les Maisonnettes Marketing
8) Packaging
• Local produce sold in eco-friendly, reusable packaging.
Les Maisonnettes Marketing
Biodegradable
Less Plastic
Renewable
Consumer Friendly
Increase brand visibility
Les Maisonnettes Marketing
Standards
Social marketing Customer Profile
Ansoff
Ethical Marketing
PortersNiche
Concepts
Les Maisonnettes Marketing
Porter’s Generic Strategies Model• Cost Leadership
– Can LM become a low cost supplier by selling local produce (see option 1). This might be vital under the current economic conditions.
– Sanctuary are promoting low cost holidays • Differentiation
– Winery, French classes, activities• Focus
– LM should market on the quality of its service (Sanctuary are receiving complaints)
– Ecotourism provides LM with an opportunity Niche market
Les Maisonnettes Marketing
Porter Five forces
Buyers Substitutes
New Entrants
Suppliers
Competitive Rivalry
Les Maisonnettes Marketing
BCG
High Low
High Stars Problem Child
Low Cash Cow Dogs
Les Maisonnettes Marketing
Ansoff Matrix
Existing New
Products
mar
kets
New
E
xist
ing Market Penetration
Market Development
Product Development
Diversification
Les Maisonnettes Marketing
Social Marketing
• “The planning and implementation of programs designed to bring about social change using concepts from commercial marketing”.
• Examples can be marketing to encourage recycling or discourage littering, smoking and abusing alcoholic drinking.
Les Maisonnettes Marketing
Ethical Marketing• Honest and factual representation of a
product or service.
• LM must avoid exploiting the ecotourism brand by making false claims about how its services might be helping the local environment.
• LM must follow EU’s code of marketing ethics or advertising standards.
Les Maisonnettes Marketing
Association Francais d’Ecotourisme
• The (A.F.E.) is a pressure group.
• AFE will provide advice and help as well as providing a known quality standard.
• AFE will lobby the Government for their particular cause.
Les Maisonnettes Marketing
What factors will determine how successful AFE are?
• Funding is a problem for many pressure groups, their success is dependent the money they receive rather than the level of popular support.
• Public opinion, if the public are broadly behind the objectives of the group then it is more likely to be successful in achieving its aims. Number of members and their commitment.
• How effective it is getting its voice across, e.g., compare friends of the Earth and Greenpeace.
Les Maisonnettes Marketing
Customer Profiling
• 30 years old and above
• Socio economic group: B and C1?
• Customers have values that are sensitive to the environment
• European and British
Les Maisonnettes Marketing
Niche Marketing
• Ecotourism is a small (and growing) and specialist market segment.
• Allows LM to charge premium prices.
What are the advantages and disadvantages of niche marketing?