• We define marketing as a “social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” Kotler

• A management process.

• Identifying, anticipating and satisfying customer requirements.

• Making a profit.

Marketing ManagerMarketing Managerresponsibilities:responsibilities:

• Strategy development• Product development• Positioning of product/company in the

market• Marketing and Communication• Analyses (market) data• Knows the competition and trends of the

industry/market

Kondratieff CurveKondratieff Curve

Marketing AssignmentMarketing Assignment

• Draw up a marketing plan to improve the company’s brand equity, increase brand exposure, turnover and profits.

• Good branding leads to growth and achieving growth strengthens the brand.

Generation Y Generation Y (1981-1995)(1981-1995)

• Traditional marketing techniques don’t have any effect.

• Selfish and self-reliance. • Marketing where Generation Y congregate (offline

and online) work best.• Generation Y go for brands that are hip and

popular and not much commercialised• Generation Y is racially diverse• Three in every four members have working

mothers• They dance differently!

Tourism Marketing Tourism Marketing (Management Mistakes)(Management Mistakes)

The case of ……..The case of ……..

Ron HekmanRon Hekman

• My friend and I including 3 children recently returned from a Holiday to Eurodisney....We booked the Hotel Santa Fe and from the discription in the brochure we thought this was going to be great for ourselves..what a DISAPPIONTMENT to say the least.. It looked like a concrete Jungle with staff that coudn't speak english.The rooms were drab and in need of repair and not warm at all..at breakfast we were greated with a massive queu that took us nearly an hour to get our breakfast.when we did finally get to the food counter we where handed a dirty brown canteen tray from which we where expected to use as a plate and eat off! The food was handled by other guests who mostly used there hands to pick up food with. Then we couldnt find anywhere to sit, Eventually when we did get seated the tables where filthy and to make matters worse we had birds flying around our heads which was so unhygenic...The final straw came when one of my sons aged 8yrs turned and said to us.."I dont like it hear, It makes me feel like im poor like in the film Oliver Twist"..I think the information given regarding the Hotel Santa Fe in the brochure is far to elaberated, and gives people a false impression of this accomodation.

• Disney is one of the great brands in the world

• Euro Disney opened in April 1992

• Disney Parks in Florida (1964), California (1955) and Japan (1983)

Optimism?Optimism?

• Between 1987 – 1991, three $150 million amusement parks opened in France

• By 1991 two were bankrupt.

• Company executives predicted that 11 million Europeans would visit in the first year

• Europeans have more vacation time than Americans

• “My biggest fear is that we will be too successful. I don’t think we can miss. They are masters of marketing. When the place opens it will be perfect. And they know how to make people smile, even the French”

Attendance/Population ratios, Attendance/Population ratios, Disney Parks, 1990Disney Parks, 1990

Visitors Population (millions)

Ratio

U.S.A.

Disneyland California

12.9 250 5.2%

Disney World Florida

28.5 250 11.4%

Total 41.4 16.6%

Japan

Tokyo Disneyland

16.0 124 13.5%

Euro Disney ? 350 ?

The Location DecisionThe Location Decision

• 200 locations were examined in Europe

• Finalist were Barcelona and Paris

Location DecisionLocation Decision

• Within 2 hour drive => 17 million people

• Within 4 hour drive => 41 million people

• Within 6 hour drive => 109 million people

• Within 2 hour flight => 310 million people

• French govt.

ResultsResults

• 2,500 people from print and broadcast media were entertained in a grand way at the opening

• Revenue projections were not being met. Why?• Park activities and hotels were priced to meet revenue targets. This

was based on the assumption that demand was there at any price.• Park admission ($42.25 for adults), a room at the Disneyland hotel

($340) (Skimming)• Misunderstanding of the European culture (breakfast/busdrivers).• First year ended with a $960 million loss.• Occupancy rates down, people not spending enough, lodging in

Paris

Elasticity of DemandElasticity of Demand

Attempts to recover (1994)Attempts to recover (1994)

• Hotel room rates were reduced by 1/3• Expensive jewelry were replaced by $10 shirts and $5 crayons• Luxury sitdown restaurants were converted to selfserve cafe’s• Admission prices were reduced• Merchandise was reduced (30.000 to 17.000)• Food items were reduced by half• Employees were given language courses (German, Spanish)

What can be learned?What can be learned?

• Beware the arrogant mindset, especially when dealing with new situations and new cultures

• Great success may be ephemeral

• Highly leveraged financial structures are extremely vulnerable

• Be sensible with the skimming pricing strategy

do 08 nov 2012, 11:10 Verlies Euro Disney ondanks bezoekersrecord PARIJS (AFN) - Euro Disney, de uitbater van onder meer het pretpark Disneyland Parijs, heeft het afgelopen jaar een recordaantal van 16 miljoen bezoekers over de vloer gehad. De omzet steeg met 2,3 procent tot 1,32 miljard euro. Desondanks leed het bedrijf een verlies van 85,6 miljoen euro, 30 miljoen euro meer dan vorig jaar, zo meldde het donderdag. Dat is vooral het gevolg van de hoge kosten die Euro Disney moest maken voor de herfinanciering van zijn schuld.Het Amerikaanse moederbedrijf Walt Disney schoot in september te hulp met een lening van 1,3 miljard euro. Euro Disney betaalt daardoor nu minder rente. Topman Philippe Gas noemde 2012 ,,een keerpunt'' in het 20-jarige bestaan van het bedrijf.

Part 1 – Marketing PlanPart 1 – Marketing Plan

PESTELPESTELMarket informationMarket informationProduct informationProduct information

Excel sheetExcel sheet

PESTELPESTEL

• For Morocco, The Netherlands or KUONI, TUI, Thomas Cook?

• The Netherlands

• Sources of information:

• CBS, Eurostat and many other.

Market informationMarket information

• The market size: How big is it? How is it segmented/structured?• Its characteristics: Who are the main customers (www.motivaction.nl), (

http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fwww.motivaction.nl%2Fspecialismen%2Fmentality-tm&sl=nl&tl=en) ? Who are the main suppliers? What are the main products sold?

• The state of the market: a new, mature or saturated market?• How well are the companies doing: Related to the market as a whole?

In relation to each other?• Channels of distribution: What are they?• Methods of communication to the target group: Press, tv, internet, direct

mail?• Financial: Are there problems caused by taxes and duties?• Developments: What new areas of the market are developing? What

new products are developing? Are there new regulations/legislation?

Morocco - Morocco - Arrivals of non-resident tourists in Arrivals of non-resident tourists in

hotels and similar establishments, by nationality hotels and similar establishments, by nationality

Market informationMarket information

• Customers• competitors• Market trends• Suppliers• Partners• Social changes • New technologies• Economic environment• Political environment

Product informationProduct information

• Potential customers: Who and where are they? Who are the market leaders?

• Your own company: Do existing products meet customers’ needs? What is your product portfolio? Is product development necessary? What would be the potential of a new product? How is your company perceived in the market?

• Your competitors: Who are they? How do they compare with your company in size? Where are they located? Do they operate in the same market sectors as you? How does their pricing compare with your company? What sales distribution channel do they use? Have they recently introduced new products?

Internal factorsInternal factors

• Company culture• Company identity• Organisational structure• Key staff• Resources (travel agencies – thomas cook)• Experience curve• Operational efficiency• Operational capacity• Brand awareness• Market share• Financial resources• Exclusiveness

The Waiting GameThe Waiting Game

• “Am I suppose to stand here?

• “Why does it take so long”

• “How long is it going to take”

• “Is anyone jumping the queue”

• “Will I be on time”

If I have to wait then you tooIf I have to wait then you too

How do you make waiting more How do you make waiting more bearablebearable

• People waiting have to spend their time conveniently and feel that time flies

• How?

• Wireless internet, monitors with (entertainment) information (=> narrowcasting),entertainers for tourists, content information for businessmen

• Module assignment(Marketing Management Team)

• Key Camp Holidays• ER travel• Tui NL• Tourism Board of Leeuwarden

Document on Tourism Trends in Europe

Presentation

SWOTSWOT

StrengthsStrengths

• • Ryanair first budget airline in Europe, market leader with first mover advantage.

• • Most developed route system with frequent departures on many routes and reasonable punctuality .

• • Pursuing clear strategy, efficient and effective low cost operator

• • Ryanair is creative and resourceful in constantly finding new sources of revenue – e.g. outside plane sponsorship, on board entertainment and sales.

• • Leadership – Michael O’Leary and management team are determined competitors.

WeaknessesWeaknesses• • Overly cost conscious? Could be irritating to passengers.

Note that customers are very dissatisfied with Ryanair, other than value for money. This suggests that low fares are the only factor that attracts customers to Ryanair.

• • Staff issues – EU legislation regarding compulsory trade unions.

* • Reputation – Ryanair has antagonised many constituencies (trade unions,competitors, some politicians, officials and journalists) whose support might have been useful in certain situations, e.g. the EU decision about Charleroi, the court decision on wheelchairs, etc.

• • Much antagonism against Ryanair is really directed against Michael O’Leary personally. Is his personal ‘in-your-face’ style a double-edged sword?

OpportunitiesOpportunities

• EU deregulation has removed barriers to entry for airlines based in Europe.

• Perceived customer demand attracting new entrants to budget sector.

• Aircraft suppliers – hegemony of Boeing in budget sector broken by Airbus giving Boeing less power.

• 75 million new consumers from 10 new EU member states.

• New competitors in budget segment increase buyer power and force down prices.

ThreatsThreats

• Rail and road more likely to be viable substitutes for the shorter journeys typical of budget airlines.

• Fuel – as in general case, but budget airlines have less capacity to pass on fuel cost rises to price-conscious passengers.

• Airports – range from primary to secondary; primary have greater power, but generally power of airports increasing as air traffic in Europe is increasing.

• • Scarcity of landing slots, and reserved slots for national carriers, serves as barrier to entry at certain airports, e.g. British Airways slots at Heathrow, Air France at De Gaulle.

• Capacity utilisation (load factor) especially critical in low margin industry => increased rivalry.