HTM 231 Final
What are the bases commonly used for segmenting hospitality and travel markets?
-Geographic Nations, states, regions, counties, cities or neighborhoods -Demographics Age and life-cycle stage Gender Income segmentation -Psychographic Lifestyle Personality -Behavioral Occasion segmentation Benefits sought User status Usage rate Loyalty status
Ryan Air utilizes this pricing strategy A. Penetration strategy B. Skimming strategy C. Premium pricing D. All of the above
A
The PIB model discussed in class refers to: A. Positioning, image and branding B. Positioning, image and budgeting C. Profit, image and budgeting D. Profitable and important brands
A
When the beer industry is segmented by consumers' preferences for brands, consumption location and preference for beer strength, it is called A. A multi-stage segmentation approach B. Single stage segmentation C. Programming D. Promotion E. Partnership
A
Message format
A broad creative approach used to communicate the message Idea to target the audiences
What is a brand?
A name, term, sign, symbol, design or combination of these elements that is intended to identify the goods or services of a seller and differentiate them from competitors
Price-adjustment strategy
Adjust basic prices to account for customer differences and changing situations
What can Projective Technique do?
Allows researcher to tap into consumers deep motivations, beliefs, attitudes and values
What are main GDSs in HTM?
Amadeus Sabre Galileo Worldspan
What is advertising?
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor
Point of Differentiation (POD)/Unique Selling Proposition (USP)
Attributes that make your brand unique and give you a competitive advantage
The check-in and check-out services in a hotel are examples of: A. Not important products B. Facilitating products C. Packages D. Programs E. Augmented products
B
Cost based pricing
Based on cost of production and also adds in market conditions to set pricing
What is BCG Matrix?
Boson Consulting Group Approach that compares relative market share and market growth rate
Product bundle pricing
Bundle packages at a reduced price
What does "USP" for a business stand for? A. United Selling Position B. Unique Strategy Parity C. Unique Selling Proposition D. Universal Selling Point
C
What is franchising?
Contractual vertical marketing system in which a channel member called a franchiser links several stages in the production distribution process
Cost plus pricing
Cost plus pricing sets the price of product by adding a set amount to production costs
What are the commonly seen partnership types?
Customers Working with DMOs Organizations in the same business Organizations in a related business Organizations in a non-related business Digital alliances
Direct booking vs. OTAs
Direct booking Low transaction costs OTAs Online travel agency that could be opaque or non-opaque
What is market segmentation?
Dividing a market into distinct groups who might require separate products and/or marketing mixes i. Identify bases for segmenting the market ii. Develop profiles of resulting segments
What are the 5 Ds of positioning?
Documenting What benefits are the most important to your current and potential customers Deciding What image do you want your current and potential customers to have of your organization? Differentiation Which competitors do you want to appear different from and what are the factors that you will use to make your organization different from them? Designing How will you develop and communicate these differences? Delivering How will you make good on what you've promised and how do you make sure you have "delivered"?
Accessibility, atmosphere, customer interaction with the organization are examples of which level of the product concept: A. The core product B. The facilitating product C. The dominating product D. The supporting product E. The augmented product
E
Point of Parity (POP)
Elements that are considered mandatory for a brand to be considered a legitimate competitor in its specific category/what makes a consumer consider your brand along with your competitors
What products does airb&b distribute?
Experiences Homes Restaurants
What functions can social media contents have?
Exposure Awareness preference
What are the common search engine optimization approaches?
Focus on the way people look for information Produce your own buyer-centric content
What is a GDS?
Global distribution systems are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products and facility automatic transactions between third party and booking agents
stars
High growth and share Profit potential May need heavy investment to grow
question marks
High growth, low share Build into stars or phase out Require cash to hold the market share
What are the common advertising Objectives
Informative advertising Reminder advertising Persuasive advertising
What is in a price (factors to consider when deciding on pricing strategies)?
Internal factors Marketing objectives Marketing-mix strategy Costs Organization for pricing External factors Nature of the market and demand Competition Other environmental factors Economy, resellers, government
dogs
Low growth and share Low profit potential
cash cows
Low growth, high share Established and successful Produce cash
Copy platform
Main theme, appeal or benefit to be communicated in the message
The three stages of target marketing are market segmentation, market targeting and: Product introduction Product segmentation Market positioning Mass marketing
Market positioning
Undifferentiated marketing
Mass marketing Ignores market segmentation differences and goes after the entire market with one market offer Focuses on common needs of the consumer rather than on differences
What are the requirements for effective segmentation?
Measurability Degree to which the segment's size and purchasing power can be measured Accessibility The degree to which segments can be assessed and served Substantiality The degree to which segments are large or profitable enough to serve markets Actionability The degree to which effective programs can be designed for attracting and serving segments
Brand identity
Message the consumer receives from the product, person or thing
What are the major means of restaurant distribution?
Online reservations Delivery, take-out, drive-thru Food trucks Concierges
What is a hospitality and tourism product? What are the four levels of HTM products?
Physical environment Accessibility of the product Customer participation interactions
Prestige pricing
Position as luxurious
What is positioning? Why is positioning important?
Position is a company's value proposition to differentiate itself from competitors in the minds of consumers Translated into a positioning statement/slogan Communicates: Beliefs and values Benefits attributes
What is P-I-B Model?
Positioning - image - branding The brand image is made up of consumer perceptions and images and the organizations branding and positioning
Product line pricing
Pricing different products within the same product range at different price points
Pros and cons of single market coverage strategies?
Pros Can focus all attention on satisfying one group's needs A firm with limited resources can compete with larger organization Cons Put all eggs in one basket Small shift in consumer tastes can greatly affect the firm May have trouble expanding into markets
Pros and cons of full market coverage strategies?
Pros Shift excess capacity Can achieve same market coverage as with mass marketing Price differentials among different brands can be maintained Consumers in each segment may be willing to pay a premium for the tailor-made product Less risk not relying on one market Cons Demands a greater number of processes Costs and resources and increased marketing costs through selling through different channels and promoting more brands Must be careful to maintain the product distinctiveness in each consumer group and guard its overall image
How do companies evaluate market segments?
Segment size and growth Collect and analyze data on current segment sales growth rates and expected profitability for various segments Segment structural attractiveness Segment might have desirable size and growth and still not offer attractive profits Company objectives and resources All companies must consider their own objective and resources in relation to available segments Some attractive segments can be dismissed quickly because they do not mesh with the company's long-run objectives
Psychological pricing
Seller considered the psychology of price and the positioning of price within the market place
Market-penetration pricing
Set low price to attract a large market share
Market-skimming
Setting a high price when the market is price-insensitive
Brand personality
Something to which the consumer can relate with, human characteristics associated with the brand
Single target marketing strategy
Specialization
Message idea
Statement that fully describes the message idea
What are the common platforms and methods for advertising?
TV, print and other offline ad channels Online advertising 46% of travel brands are advertising on social media Consumer engagement through user generated content and other organic contents Social influencers Reporters Bloggers
Full market coverage strategy
Targeting all market segments but with a tailored message and brands E.g.: Marriott
Differentiated marketing
Targets several market segments and designs separate offers for each Differentiated marketing typically produces more total sales than undifferentiated marketing
Brand equity
The added value endowed on products and services May be reflected in the way consumers think, feel and act with respect to the brand as well as in the prices, market share and profitability the brand commands for the firm
Brand awareness
The extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services
Why do companies use segmentation?
The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they can use their corporate resources more effectively and make better strategic marketing decisions.
brand image
The impression of a product held by real or potential customers
Positioning and Branding of Ritz Carlton
The lion and crown communicate elegance, refinement and noble bearing
Brand promise
The marketer's vision of what the brand must be and do for consumers
Brandscape
The range of brands available in the market or specific segment of the market
Why does partnership play such an important role in HTM?
They serve as vehicles for tapping into new customer segments, markets and product lines
core product
This is the basic product and the focus is on the purpose for which the product is intended
Why do companies sometimes use multi-stage segmentation instead of single stage segmentation?
To cover a larger share of the market
What are the elements in a communication mix?
Tradition and online advertising Content marketing and consumer engagement Direct marketing Public relations Personal selling
Major players in the sharing economy?
Uber airBNB
what is VAL?
Values and lifestyles Innovators vs survivors in relation to ideals achievement and self-expression Thinkers vs believers Achievers vs strivers Experiencers vs makers
Expressive videos
We want to amaze and entertain our friends
Intellectual videos
We want to help people by providing them with valuable information and insight
introspective videos
We want to reveal aspects of our true selves to friends to build stronger relationships
which of the following is not a requirement for effective segmentation: accountability substantility accessibility measurability
accountability
The added value endowed on products and services is the: Brand equity Brand mark Brand name Trademark
brand equity
The ________ product level answers the question of what is really being bought. Core Supportive Facilitating Augmented
core
supporting product
extra products to add value to the core product
augmented product
factors that set the product apart from the competition
true or false: With Differentiation marketing , the seller identifies market segments, selects one or more, and develops products and services tailored to each selected segment.
false
facilitating products
goods and services that must be present for guest to use core product
In the ________ phase of the new product development process prototypes appear for the first time. Product development Idea generation Concept development Test marketing
product development
dominating product
the benefit or satisfaction the customer expects from the product
true or false Companies can leverage an existing brand by employing co-branding and ingredient branding.
true
true or false: Phase-out is the ideal way of removing a product from the market
true
true or false: In using a(n) Undifferentiated marketing strategy, a company ignores market segmentation and goes after the entire market with one market offer.
true
which of the following is not a demographic variable: religion age gender user status religion
user status