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