Learning Objectives

Chapter 8: Marketing Strategy: Strategies, Positioning, and Marketing Objectives

1. Identify the six components in developing a marketing strategy and plan.

2. Define the terms marketing strategy, positioning, and marketing objective.

3. Explain the concept of segmented marketing strategies and describe the alternative strategies by market focus.

4. Describe the alternative marketing strategies by product life cycle (PLC) stage.

Learning Objectives

Chapter 8: Marketing Strategy: Strategies, Positioning, and Marketing Objectives

5. Describe the alternative strategies by industry position.

6. Explain the concepts of relationship marketing and strategic alliances.

7. Identify the reasons that have made positioning essential in today’s business climate.

8. List and describe the steps required for effective positioning (the five Ds).

Learning Objectives

Chapter 8: Marketing Strategy: Strategies, Positioning, and Marketing Objectives

9. List and describe the six different approaches to positioning.

10. Explain the benefits of having marketing objectives and list the four requirements for good marketing objectives.

Marketing Strategy

The 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 Market

A 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 Mix

A 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 Alliances

Relationship MarketingPlacing an emphasis on building, maintaining, and

enhancing long-term relationships withcustomers, suppliers, travel trade intermediaries,

and perhaps even competitors.

Strategic AlliancesSpecial long-term marketing relationships formed

between 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).

Positioning

Positioning is the development of a service and a marketing mix

to occupy a specific place in the mindsof customers within target markets.

Marketing Objective

A 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 Strategies

Approaches 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:

1. Single-target-market strategy2. Concentrated marketing strategy3. Full-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 Stages

Introduction Stage a. Rapid-skimming strategy (high price/high

promotion).b. Slow-skimming strategy (high price/low

promotion).c. Rapid-penetration strategy (low price/high

promotion).d. Slow-penetration strategy (low price/low

promotion).

Alternative Strategies for Product Life Cycle Stages

Growth Stagea. Improve service quality and add new service

features and elementsb. Pursue new target marketsc. Use new channels of distributiond. Lower prices to attract more price-sensitive

customerse. Shift some advertising emphasis away from

building awareness to creating desire and action

Alternative Strategies for Product Life Cycle Stages

Maturity Stagea. Market-modification strategyb. Product-modification strategyc. Marketing-mix modification strategy

Decline Stagea. Reduce costs and milk the companyb. Sell off or get out of the business

Alternative Strategies by Industry Position

Market Leadersa. Expand the size of the total marketb. Protect market sharec. Expand market share

Market Challengersa. Take on or attack the market leader

Alternative Strategies by Industry Position

Market Followersa. Shy away from any attacks on market leaders

Market Nichersa. Specialize 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 Positioning

1. Perceptual processes of customers They screen out most information2. Greater competition

More organizations competing for share of mind

3. Growing volume of commercial messagesAdvertising and promotion clutter

Steps Required for Effective Positioning (the five Ds)

Documenting Deciding Differentiating Designing Delivering

The 5 Ds of Positioning

DocumentingWhat 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 Positioning

DesigningHow will you develop and communicate these differences?

DeliveringHow will you make good on what you’ve promised, and how do you make sure that you have “delivered?”

Positioning Approaches:Six Major Alternatives

Specific product features Benefits, problem solution, or

needs Specific usage occasions User category Against another “product” “Product class” dissociation