Chapter 2 Flashcards
Marketing mix programme
4P’s (sellers) Product Price Place Promotion
4C’s (buyers) Customer solution Customer cost Convenience Communication
What are considered products?
- Physical objects
- Services - core product, tangible product, augmented/extended product
- Places
- Organisations
What is a core product?
Delivers fundamental functional benefits that the customer is seeking
E.g. hotel = sleep Restaurant = eat
What is a tangible product?
Physical elements necessary for the core product to be delivered
The actual product basically
E.g. sofa = sitting comfortably = must have soft cushion, sofa of a certain length (basically design and quality)
What is an augmented/extended product?
Includes intangible elements (service, experience, etc.) of the product that can add value and provide customers with additional benefits
Draw the product lifecycle
Introduction of product
Product growth
Maturity
Decline
What to do if a product is in the decline stage?
To kill it or to improve the product
What are the pricing factors affecting pricing decisions?
Internal: Marketing objectives, marketing mix strategies, costs, organisational consideration
External: market & demand, buyers’ perception, competition, legal & regulatory issues
What is pricing objectives and the possible objectives that a company might set?
Survival
Profit
Market share
Product-quality
What are the introductory pricing strategies?
Prestige pricing
Market skimming pricing
Market penetration pricing
What are the product-mix pricing strategies?
Product-line pricing
Optional-product pricing
Captive-product pricing
Product-bundle pricing
What are the price adjustment strategies?
Volume discounts Discounts based in time of purchase Segmented / Discriminatory pricing Yield management / revenue management Promotional pricing Psychological pricing
Purpose of placement
Making the company’s product or service available to consumer
Definition of marketing channel
Groups of individual and organisation directing the flow of products from producers to consumers
What is the major role marketing channels?
Making products available at the right time at the right place in right quantities
Possible marketing intermediaries (person who acts as a link between people to bring about an agreement)
Travel agent Tour operator Conference and meeting planner Corporate business travel agent Incentive travel house Representative agent Interbnet web portal and virtual travel agent
What are the 2 types of channel organisation?
Conventional marketing system: traditional, conventional hierarchical structure which is consistent with structure within individual organisations
Verticsl marketing system: members working together as a unified whole
What are the 3 distribution systems?
Intensive distribution
Exclusive distribution
Selective distribution
5 factors to consider for choosing a distribution system
Market coverage Costs Positioning and image Motivation and intermediaries Characteristics of the tourism organisation
