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Definitions of marketing
‘Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably’
The Chartered Institute of Marketing
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‘Marketing is the human activity
directed at satisfying human needs
and wants through an exchange
process’
Kotler 1980
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‘Marketing is a social and managerial
process by which individuals and groups
obtain what they want and need
through creating, offering and
exchanging products of value with
others’
Kotler 1991
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‘The right product, in the right place,
at the right time, and at the right
price’
Adcock et al
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Needs, wants,
and demands
Products
Value, satisfaction,
and quality
Exchange,
transactions, and
relationships
Markets
Core marketing concepts
Source: Kotler et al, 2006
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Implications of marketing
• Who are our existing / potential customers?
• What are their current / future needs?
• How can we satisfy these needs?
• Can we offer a product/ service that the customer would
value?
• Can we communicate with our customers?
• Why should customers buy from us?
9. 964 711 9
Marketing management process
• Analysis/Audit - where are we now?
• Objectives - where do we want to be?
• Strategies - which way is best?
• Tactics - how do we get there?
• Control - Ensuring arrival
17. Products
Is anything that can be offered to a market
for attention, acquisition, use, or
consumption that might satisfy a want or
need. It includes physical objects, services
places, organizations, and ideas.
17
28. 28
Characteristics of Tourism
Tourism products
represent an infrequent
but high value purchase
Products can be sold
individually e.g. airline
seats or hotel beds
Product can be combined
into composite products
e.g. package holidays
The same product is sold
simultaneously: direct to
customers, via agents
29. 29
Characteristics of Tourism
Destination products exist at a number of geographical levels:
• local,
• regional,
• national,
• continental
Product only bestows on the purchaser:
• temporary user rights e.g. right to use hotel for a week,
• shared user rights e.g. have to share the hotel with other people
30. 30
Characteristics of Tourism
Organizations marketing the destination product do not
own or control all the elements of the product e.g. TAT do
not own hotels or tourist destinations
External influences have a major impact on purchase
decisions e.g. friends, relatives, literature, media
Distinction between consumers and customers
e.g. incentive travel, business tourism where companies
pay the bills and are the customers, while the business
traveller uses the service and is the consumer
32. Product level
• Core product : What is the buyer really buying?
• Facilitating product : Service or goods that must be
present for the guest to use the core product.
• Supporting product : extra products offered to add value
to the core product and help to differentiate it from the
competition.
• Augmented product : includes accessibility,
atmosphere, customer interaction with the service
organization, customer participation, and customers’
interaction with each other.
These elements combine with the core facilitation and
supporting products to provide the augmented product.
32
35. Augmented Product considerations
• Accessibility
– in terms of location and hours of operation
• Atmosphere
– Sight, sound, scent, and touch
• Customer interactions with the service system
– How customers use the product in the three phase: joining,
consumption, and detachment
• Customer interactions with other customers
– Customers become part of the product you are offering
• Participation
– Involving the guest in service delivery can increase capacity, improve
customer satisfaction, and reduce costs
35
37. Brand
A name, term, sign, symbol, design, or a
combination of these elements that is intended to
identify the goods or services of a seller and
differentiate them from those of competitors
37
41. Conditions that support branding..
• The product is easy to identify by brand or
trademark
– It should suggest something about the product’s benefits
and qualities.
– It should be easy to pronounce, recognize and remember
– It should be distinctive
– For larger firms looking at future expansion into foreign
markets, the name should translate easily into foreign
languages
– It should be capable of registration and legal protection
41
42. ..Conditions that support branding
• The product is perceived as the best value for the
price
• Quality and standards are easy to maintain
• The demand for the general product class is large
enough to support a regional or national chain
• There are economies of scale.
42
84. When then should you re-brand?
• When your core business/product has changed and no
longer reflects current branding.
• When your customers and/or employees can no longer
articulate your brand offering.
• When your current brand image and target market
have become unaligned.
84
85. Steps in the re-branding process:
• Identify all company stakeholders and potential
stakeholders.
• Review all current brand communication material: logo,
advertising, letterheads, website etc.
• Determine what your brand should stand for and set
measurable targets for its achievement.
• Schedule the transition and appoint a project team to
manage it.
• Celebrate and sell the changes with appropriate publicity
and events to ensure the transition and acceptance from
“old” to “new”.
85
97. Product life cycle
• All product eventually decline
• The firm must understand how its products
age and change marketing strategies as
products pass through life-cycle stages
• A company has to develop new products to
survive
97
100. New-product development process
• Idea generation
• Idea screening
• Concept development and testing
• Marketing strategy development
• Business analysis
• Product development
• Market testing
• Commercialization
100
101. Idea generation.. สร้างและรวบรวมความคิด
• Internal sources
– 55% of new product idea come from within the
company ; research, brainstorm, etc.
• Customers
– 28% of new product idea come from customer
• Competitors
– 27% of new product idea come from analyzing
competitors
101
102. ..Idea generation
• Distributors and suppliers
– Distributors are close to the market and can pass
along information about consumer problems.
– Suppliers can tell about new concepts, techniques,
materials, etc.
• Other sources
– Trade magazines, shows, and seminars;
government agencies, consultants, advertising
agencies, research firm, university, etc.
102
105. Concept development and testing
พัฒนาแนวคิดและทดสอบ
• Surviving ideas must now be developed into
product concepts
• These concepts are tested with target
customers
105
106. Marketing strategy development
พัฒนากลยุทธ์การตลาด
• Describes the target market, the planned
product positioning, and the sales, market
share, and profit goals for the first two years
• Outlines the product’s planned price,
distribution, and marketing budget for the first
year
• Describes the planned long-run sales, profit,
and the marketing-mix strategy over time
106
107. Business analysis วิเคราะห์ธุรกิจ
• Review of the sales, costs, and profit
projections to determine whether they satisfy
the company’s objectives
107
113. Product life cycle stages
• Product development
– Finds and develops a new product idea.
• Introduction
– Slow sales growth as the product is being introduced into the market. Profits are
nonexistent at this stage.
• Growth stage
– Rapid market acceptance and increasing profits.
• Maturity stage
– Slowdown in sales growth because the product has achieved acceptance by most
of its potential buyers.
• Decline stage
– Sales fall off quickly and profits drop.
113
116. 116
Stage Characteristic
Exploration Few adventurous tourist, visiting sites with no public facilities
Visitors attracted to the destination by a natural physical feature
Specific visitor type of a select nature
Involvement Limited interaction between local residents and the developing tourism
industry leads to the provision of basic services
Increased advertising induces a definable pattern of seasonal variation
Definite market area begins to emerge
Development Development of additional tourist facilities and increased promotional
efforts
Greater control of the tourist trade by outsiders
Number of tourist a peak periods far outweighs the size of the resident
population, inducing rising antagonism by the latter towards the former
Consolidation Tourism has become a major part of the local economy, but growth rates
have begun to level off
A well-delineated business district has taken shape
Some of he older deteriorating facilities are perceived as second rate
Local efforts are made to extend the tourist season
Stagnation Peak numbers of tourists and capacity levels are reached
The destination has a well-established image, but it is no longer in fashion
The accommodation stock is gradually eroded and property turnover rates
are high
Post-
stagnation
A number of possibilities, reflecting a range of options that may be
followed, depending partly on the success of local management decisions.
At either extreme are rejuvenation and decline
Source:
Adapted from Mason (2003, p. 24)
117. Products Decisions
• Product and Service Classification
System?
• The Product Life Cycle stages?
• Growth/Share?
• Product Market?
117
120. You can position a product using a positioning
statement that answers the important questions:
• For whom is the product designed?
• What kind of product is it?
• What is the single most important benefit it
offers?
• What is its most important competitor?
• How is it different from that competitor?
• What is the customer benefit of that
difference?
120