FINALS TTM

• DISTRIBUTION CHANNEL FUNCTIONS

  • Set of independent organizations involved in the process of making a product or service available to the consumer or business user.
  • Traditionally used to move goods from manufacturer to the consumer.
  • Distribution systems are used to move the customer to the product.
• Key marketing activities

  • Information - gathering and distributing marketing research and intelligence information about the marketing environment
  • Promotion - developing and spreading persuasive communications about an offer
  • Contact - finding and communicating with prospective buyers
  • Matching - shaping and fitting the offer to the buyer's needs, including such activities as manufacturing, grading, assembling, and packaging
  • Negotiation - agreeing on price and other terms of the offer so that ownership or possession can be transferred
  • Physical distribution
  • Financing - acquiring and using funds to cover the costs of channel distribution
  • Risk taking
• NUMBER OF CHANNEL LEVELS

  1. Direct marketing channel - has no intermediary level. Consists of a manufacturer selling directly to consumers
  2. Retailer - retail is the sale of goods and services from individuals or businesses to the end user.
  3. Wholesaler - person or firm that buys large quantity of goods from various producers or vendors, warehouses them, and resells to retailers. Wholesalers who carry only non-competing goods or lines are called distributors
• MARKETING INTERMEDIARIES 

  1. Travel agents - one way of reaching a geographically diverse marketplace 
  2. Tour wholesalers - assemble travel packages usually targeted at the leisure market
  3. Hotel representatives - sell hotel rooms and services in a given market area. They receive straight commission.
  4. National, state, and local tourist agencies - promote tourism of their own countries, state resources, and attractions overseas and nationally 
  5. Consortia and reservation systems
• SEGMENTATION AND TARGET MARKET

  • MARKET - a set of actual and potential buyers of a product. 
  • These buyers share a particular need or want that can be satisfied through exchange relationships.
  • Refers to the group of consumers and or organizations that is interested in the product, has the resources to purchase the product, and if permitted by law and other regulations to acquire the product.
  • CONSUMER MARKET - all the individuals and households who buy or acquire goods and services for personal consumption.
  • The market definition begins with the total population and progressively narrows.
• TOTAL POPULATION

  • POTENTIAL MARKET - those in the total population who have the interest in acquiring the product.
  • AVAILABLE MARKET - those in the potential market who have enough money to buy the product.
  • QUALIFIED AVAILABLE MARKET - those in the available market who are legally permitted to buy the product.
  • TARGET MARKET - the segment of the qualified available market that the firm has decided to serve.
  • PENETRATED MARKET - those in the target market who have purchased the product.
• SEGMENTATION - “What customers will we serve?”

  • Involves dividing a market into smaller segments of buyers with distinct needs, characteristics, behaviors that might require separate marketing strategies or mixes. 
  • Different companies identify ways to segment the market and develop profiles of the resulting market segments.
• • Consumers and/or buyers are widely scattered with varied needs and buying practices. While most companies have moved away from mass marketing and geared towards focused marketing.
  • Instead of scattering their marketing efforts (shotgun approach), companies are focusing on buyers who have great interests in their products.
  • Segmenting a market is dividing a group of people to better focus the marketing efforts and resource of the company.
• DEMOGRAPHIC 

  • Divides the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
  • Most popular bases for segmenting customer groups. 
  • One reason is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables.
• PSYCHOGRAPHIC

  • Divides buyers into different segments based on social class, lifestyle, or personality characteristics. People in the same demographic can have very different psychographic characteristics.
  • Given these information, companies segment their consumers thru lifestyle, personality and base their marketing strategies on lifestyle appeals.
• BEHAVIORAL 

  • Divides buyers into segments based on their knowledge, attitude, uses, or responses to a product. Many believe that behavior variables are the best starting point for building market segments. 
• • Occasion segment - when buyers get the idea to buy, actually making their purchase or use of the purchased item.
  • Benefit segment - dividing the market into segments according to different benefits that consumers seek from the product.
  • Consumer loyalty - there’s a segment who are loyal to brands or stores
  • As a Travel Agency owner/manager, this is what we want from our clients
  • Always ask your team/company how to make our clients loyal to us.
• GEOGRAPHIC 

  • Dividing a market into different geographical units such as nations, states, regions, countries, cities or even neighborhoods.
  • A company may decide to operate in one or few geographical areas.
  • Companies are localizing their products, advertising, promotions, and sales efforts to individual regions, countries, cities or even neighborhoods.
• WHAT IS A TARGET MARKET?

  • A set of buyers sharing common needs or characteristics that the company decides to serve. 
  • The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
• MARKET TARGETING STRATEGY

  1. Undifferentiated (mass) Marketing
  2. Differentiated (segmented) Marketing
  3. Concentrated (niche) Marketing
  4. Micromarketing (local or individual marketing)
• UNDIFFERENTIATED MARKETING - mass distribution and mass advertising serve as the basic tools to create a superior image in consumers’ minds. 

  
  

  DIFFERENTIATED MARKETING - using this strategy, a company targets several market segments and designs separate offers for each.

  • Differentiated marketing typically produces more total sales than undifferentiated marketing.
• CONCENTRATED MARKETING - is especially appealing to company with limited resources. Instead of going for a small share of a large market, the firm pursues a large share of one or a few small markets. 

  • Through concentrated marketing, hospitality companies achieve a strong market position in the segments that they serve. 
  • If the segment is well chosen, the company can earn a high rate of ROI.
• MICROMARKETING (LOCAL MARKETING AND SOLOMO) - is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

  • Rather than seeing a customer in every individual, micro-marketers see the individual in every customer.
  • One form of micromarketing is local marketing. 
  • Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups.

  Location-based marketing is going mobile, reaching on-the-go consumers as they come and go in key local market areas. It’s called SoLoMo (social+local+mobile)