This document discusses various concepts related to tourism marketing including market segmentation, target marketing, product positioning, and new product development. It begins by defining marketing and tourism marketing. It then covers bases for segmenting the tourism market such as demographic, geographic, behavioural, and psychographic factors. Other sections discuss SWOT analysis, target marketing, product positioning techniques, the product life cycle, and the process for new product development.

2. MARKETING
Accor: ENIS(1974)
“Marketing encompasses exchange
activities conducted by individuals and
organisation for the purpose of satisfying human
wants.”

3. TOURISM MARKETING
Accor: Gilbert(1992)
“Marketing within tourism becomes the
application of marketing process to the specific
characteristics which apply to the tourism
industry and its products.”

4. NATURE OF TOURISM MARKETING
• Marketing is an activity
• Marketing is an economic process
• Marketing is a social process
• Marketing is a managerial process

6. SWOT ANALYSIS
• Tool that help a firm to assess its environment
to find the opportunities and threats and
identify its internal strength and weaknesses
in a systematic manner.

7. SWOT MATRIX
Positive Negative
Internal environment
Strength
Advantages of firm in
•Physical assets
•Human assets
•Intangible assets
•Financial assets
Weaknesses
Disadvantage of a firm in
•Physical assets
•Human assets
•Intangible assets
•Financial assets
External environment
Opportunities
•New markets
•New products
•New technology
•Alliances
•Vertical and horizontal
integration
Threats
•New competitors
•Substitutes
•Changing customer tastes

8. STRENGTH
• Strength are the characteristics of a firm that
increase its competitiveness.
Strengths
Vast geography with forests, deserts,
mountains & beaches.
Varied culture.
Many historical monuments.
Knowledge of English by majority of
local people.
Efficient transport facilities.

9. WEAKNESSES
• Weaknesses are those characteristics that
decrease competitiveness.
Weakness
– Lack of adequate infrastructure.
– Safety and security of foreign tourists.
– Misconception about India by foreigners
– Lack of maintenance of monuments, forts etc.
– Many languages and dialects.

10. OPPURTUNITIES
• Opportunities are the positive environmental
forces.
Opportunities
Increased privatization.
CWG 2010, Grandprix2011
Medical tourism.
Go-green initiative.
World-class hotels and
airports

11. THREATS
• Threats are the negative forces for a company.
Threats
Terrorism.
Tensions with Pakistan.
Better promotion by other
countries.
Economic slowdown.

12. MARKET
SEGMENTATION

13. Accor: Alan A Robert
“market segmentation is the strategy of dividing
markets in order to conquer them.”
Accor: Kotler
“market segmentation is the subdividing of market
into homogeneous subsections of customers, where
any subsection may conceivable be selected as a target
market to be reached with a distinct marketing mix.”

15. MARKET SEGMENT
• Market segment is a meaningful group of
buyers having similar wants and
characteristics .

16. MARKET SEGMENTATIONS PROCESS
ESTABLISHING
OVERALL
STRATEGY/OBJECTIVE
DECIDE THE BASES OF
SEGMENTATING THE
MARKET
SELECT
SEGMENTATION
VARIABLES
PROFILE THE
SEGMENTS
EVALUATE SEGMENT
ATTRACTIVENESS
SELECT
SEGMENT/S(OR
TARGET MARKET)

17. Market segmentation Product differentiation
Consumer oriented. Product oriented.
Focuses on group of customers. Focuses on product differences to attract
buyers.
Attempt to match the supply with demand. Attempt to match the demand with supply.
Aims at increasing sales. Aims at facing intense competition.
Concentrates on a limited market. Concentrated on a large market.
It help to increase the sale. It helps to win the competition.

18. IMPORTANCE OF MARKET
SEGMENTATION
ADVANTAGES TO FIRMS
• Increases sales volume
• Helps to prepare effective marketing plan
• Enables to take decisions
• Help to understand the needs of consumers
• Help to win competition
• Make best use of resources
• Achieves marketing goal
• Expands markets
• Specialised marketing
• Creates innovation
• Higher market share

19. ADVANTAGES TO CONSUMERS
• Customer oriented
• Quality products at reasonable price
• Other benefits

20. PATTERNS OF SEGMENTATION
Undifferentiated marketing
Only one market strategy for several market
segments and has only one type of product to
be produced and marketed.

21. Differentiated marketing
A number of market segments are identified and
a different marketing mix is developed for each
of the segments.

22. Concentrated marketing
The concentration of all marketing efforts on one selected segment within the
total market.
The producer/marketer selects a market where there is a little or no
competition and it can do the best in that segment.

23. Customised/personalised marketing
In this case the firms view each customer as a separate segment
and customise marketing programmes to that individuals specific
requirements.
This approach is necessary in certain types of industrial markets
where the product cannot be standardised.

24. LEVELS OF MARKET SEGMENTATION
SEGMENT MARKETING
• In this market is divided into two or more segments.
• A market segment consists of buyers having similar needs,
buying habits, purchasing power and lifestyle.
• The marketer selects one or more segments to target.
• For each segments, a separate marketing mix is designed.

25. NICHE MARKETING
• It is a segment(sub segment) within a segment.
• This segment is a very small section of the market
which has not yet been identified and served by
competitors.
• Niche marketing means serving a small market not
served by competitors.
• It is a strategy of devising and selling products
specifically for a small unexploited part of a market.

26. LOCAL MARKETING
• Marketing programme is tailored to the needs and wants of
local customer groups.

27. INDIVIDUAL MARKETING
• Ultimate level of market segmentation.
• Companies customize their products, services in and
messages on a one to one basis.

28. BASES OF MARKET
SEGMENTATION
1. DEMOGRAPHIC SEGMENTATION
2. GEOGRAPHIC SEGMENTATION
3. BEHAVIOURAL SEGMENTATION
4. PSYCHOGRAPHIC SEGMENTATION

29. DEMOGRAPHIC SEGMENTATION
• Derived from the Greek word ‘demoes’ and
‘graphein’.
• It is the study of population/people.
• Most popular bases of segmentation of
marketing.
• Consumer wants, preferences and usage rates
often associated with demographic variables.

30. AGE
• Age is the important factor for market
segmentation.
• Demand and brand choice of people change with
age.
On the basis of age market is divided in to :
1. Children
2. Teenagers
3. Adults
4. Grown-ups

32. GENDER
• Grouping costumers in to male and female.

34. FAMILY LIFE CYCLE
• Stage 1:childhood
• Stage 2:bachelorhood(unmarried)
• Stage 3:honeymooners-young married couples
• Stage 4:parenthood-Stage 5:post parenthood-
• Stage 6:dissolution

36. RELIGION
• Religious difference have important effect on
marketing.

37. INCOME
• Important variable.
• This classification is useful for pricing policies
and product development.

39. FAMILY SIZE
• A marketer launches different size of products
according to the family size.

40. OCCUPATION
• Market segmentation is also done on the basis
of occupation.

41. EDUCATION
• Mainly market of books are divided in to
1. School
2. Colleges

42. GEOGRAPHIC SEGMENTATION
• Simplest form of segmenting the market.
• Theory behind this strategy is that people who
live in same area have some similar needs and
wants and that needs and wants differ from
those of people living in those areas.

43. AREA
• Market divided into urban and rural markets.

44. CLIMATE
• On the basis of climate, areas can be classified
as hot, cold humid and rainy regions.

45. POPULATION DENSITY
• The size of the population affects the demand
for consumer goods.

46. BEHAVIOURAL SEGMENTATION
Classify customers on the basis of their
knowledge of product, attitude towards the
product, use of product, response of
product/product characteristics.Ie,the way of
people behave during and after purchase.

47. ATTITUDE
Segmented on the basis of attitude.
1. Enthusiastic consumers
2. Negative consumers

48. PRODUCT SEGMENTATION
On the basis of product characteristic that are
capable of satisfying certain special needs of
customer.
1) PRESTIGE PRODUCTS.

49. 2) MATURITY PRODUCTS
3) STATUS PRODUCTS

50. 4) ANXIETY PRODUCTS
5) FUNCTIONAL PRODUCTS

51. OCCASION SEGMENTATION
• People buy different products and brands in
different situations.
1. Regular situation
1. Special situation

52. BENEFIT SEGMENTATION
• Market can be broken down on the basis of
benefits sought by consumers.
PRODUCT GENERIC/
PRIMARY UTILITIES
SECONDARY/
EVOLVED UTILITIES
TOOTH PASTE cleaning Breath freshing,
brightness
SHAMBOO Cleaning Shiny
hair,thicknening
hair
VEHICLES convenience status

53. VOLUME SEGMENTATION
• On the basis of volume/quantity of purchase.
Bulk buyers
Moderate buyers
Small buyers

54. LOYALITY SEGMENTATION
• Brand loyalty is used as a basis for
segmentation.
Hard-core loyal-loyal to one brand.
Soft-core loyal-divide loyalty between 2/more
brands.
Shifting loyalty-switch their loyalty.
Switchers-no brand loyalty.

55. PSYCHOGRAPHIC SEGMENTATION
• It is the analysis of people from inside.
• Grouping of people into homogeneous
segments on the basis of psychological make
up namely personality and life style.

56. LIFE STYLE
• Life style refers to the way one lives.
• A person’s life styles is the pattern of living as
expressed in the person’s activities, interest
and opinion.

57. PERSONALITY
• Personality reflects a person’s traits,attitudes
and habits.
• On the basis the person is classified into
different types.
• It plays important role in the products like
cloths,cosmetics,…

58. SOCIAL CLASS
Lower class
Middle class
Upper class
it determined by income, occupation and
education.
Many companies design products and services
for specific social class.

59. PLOG’S CLASSIFICATION

60. ALLOCENTERIC AND NEAR
ALLOCENTRIC
• These tourists are –self confident, have an
open spectrum on life, enjoy discovery and
new experience and are more versatile.
• Travel to unfamiliar place.
• Above average income group and are
independent travellers.

61. MID-CENTERIC
• Tends to value of comfort and familiarity in its
travel experience.
• Travel to get relax and pleasure.
• This category consist of majority of travellers
who go to familiar places that have been
populated by allocentrics.

62. PSYCHOCENTRIC AND NEAR-
PSYCHOCENTRIC
• Tend to concentrated on life’s small problems,
is bound to specific location, has generalized
anxieties and sense of powerlessness.
• Travel to frequent famous tourist attractions.
• Also travel to places similar to therir home
place.
• They are called repeat visitors.

63. GRAY’S CLASSIFICATION
WONDERLUST SUNLUST
• May visit several countries. • Usually visit only one country at a
time.
• More interest in foreign travel. • More interested in domestic travel.
• Travel is the essential component. • Travel is a minor component .
• Climate is unimportant. • Climate is important.
• Search for difference. • Traditional method.

64. LIMITATION OF MARKET
SEGMENTATION
• Cost of production is high because a variety of different
brands are produced in small quantities for different
segments.
• For promoting separate brands, heavy advertising and other
promotional expenses are required.
• Administration expenses are also higher.
• Segmentation variables are too many and diverse. choosing
appropriate base is not easy.
• It is difficult to get skilled and experienced marketing
researchers for measuring segmentation variables.

65. TARGET MARKETING
Accor: DAVID CRAVENS "Target market is a group
of existing or potential customers within a
particular product market towards which an
organisation directs its marketing efforts”

66. Total market approach
• Developing a single marketing mix and directs
it at the entire market for a particular product.
• It is used when an organisation defines the
total market for a particular product as target
market.
• Creates a single marketing mix that it hopes
will satisfy most of those customers.

67. Concentrated approach
• Directs its marketing efforts towards a single
market segment through a single marketing
mix.
• The total market may consists of several
segments, but the organisation select one of
the segment as its target market.

68. Multi-segment approach
• In those an organisation directs its marketing
efforts at two or more segments by
developing a marketing mix for each segment.

69. STAGES IN TARGET MARKETING
MARKET
SEGMENTATION
MARKET TARGETING
DESIGNING THE
MARKETING MIX
PRODUCT POSITIONING

70. PRODUCT
POSITIONING

71. PRODUCT POSITIONING
Accor: Kotler
“positioning is the act of designing the
company's offer and image so that it occupies a
distinct and valued place in the target customers
mind.”

72. STEPS IN POSITIONING
Identifying
potential
competitive
advantages.
Identifying the
competitors
position.
Choosing the right
competitive
advantages.
Communicating the
competitive
advantages.
Monitoring the
positioning
strategy.

73. ELEMENTS OF POSITIONING
PRODUCT COMPANY
COMPETITORS CONSUMER

74. TECHNIQUES OF PRODUCT
POSITIONING
POSITIONING BY CORPORATE IDENTITY
The companies that have become a tried and
trusted household name.

75. POSITIONING BY BRAND ENDROSEMENT
Marketers use the name of company's powerful
brands for line extension or while another
product category.

76. POSITIONING BY PRODUCT ATTRIBUTES AND
BENEFITS
Emphasise the special attributes and benefits of
the product.

77. POSITIONING BY USE,OCCATION AND TIME
Using some occasion and uses.

78. POSITIONING BY PRICE AND QUALITY
Powerful approach
Company position its brand by emphasizing its
price and quality.

79. POSITIONING BY PRODUCT CATEGORY
This approach is used so that the brand is
perceived belonging to another product
category.

80. POSITIONING BY PRODUCT USERS
Positioning the product as an exclusive for
particular class of customer.

81. POSITIONING BY COMPETITOR
An offensive positioning strategy and is often
seen in case of comparative advertising.

82. POSITIONING BY SYMBOLS
Some companies use some symbols for
positioning their products.

83. PRODUCT
FORMULATION

84. PRODUCT LIFE CYCLE
PLC was popularised by Theodre Levitt(1965)
• Accor: to ARCH PLATON “life cycle of a product is akin to
human life cycle from several angles. Like a man, the product
also take birth, rapid growth, attain maturity and then enter
the decline stage”.

85. INTRODUCTION
• Low sales
• Low profit/losses
• High cost because of promotional expenses
• Generally high price
• Less competition
create product awareness and trail.

86. GROWTH
• Rapidly rising sales
• Exapansion in the scales of production
• Rising profit
• Lower unit cost
• Competition
• Stable/slightly reduced price
maximize market share

87. MATURITY
• Sales grows at diminishing rates
• Prices tend to fall
• Profits starts declining
• Stiff competition
• Product supply may exceed demand
• Product modification and improvement
defend market share by maintaining the
sales and profit levels.

88. DECLINE
• Rapid fall in sales
• Fall in prices
• No promotional expenses
• Reducing distribution network to the
minimum
• Product technology becomes obsolete

89. ADVANTAGES OF PLC
• It help to planning new product.
• It enables a producer to estimate the profit in
different stages of the PLC.
• It help in determining the cost of product
development.
• It hel in setting prices.
• It help in sales promotion.it helpful in marketing
control.
• It helps in product differentiation.

90. NEW PRODUCT DEVELOPMENT
Accor: STANTON, "product development
encompasses the technical activities of product
research ,engineering and designing.”

91. 1.GENERATING PRODUCT IDEA
• Ideas may generated from various sources.
1.internal sources
-R&D department, company's sales persons,
employees, top management.
2.external sources
-customers,competitors,distributors,
advertisement agencies, trade associations,
external research firm, university laboratory.

93. 2.SCREENING OF IDEAS
• Ideas collected are scrutinised and evaluated
to eliminate unsuitable ideas.
• Only profitable and promising ideas are
selected for further investigation.

94. 3.CONCEPT DEVELOPMENT AND
TESTING
• PRODUCT IDEA PRODUCT CONCEPT
• Product idea is an idea for possible product that can
be offered to the market.
• Product concept is a detailed overview of the idea.

95. 4.BUSINESS ANALYSIS
• Involves projection of future demand,
financial requirement, cost estimates and
profit,
• Also estimating the total market potential.
• Market research is critical during this phase.

96. 5.MARKET TESTING
• Introduction of new product in selected area
and studying the consumer response.
Accr: J.A GOLD “test marketing is a research
technique in which the product under study is
placed on sale in one more selected localities or
areas and its reception by consumers or trade is
observed, recorded and analysed.”

97. HOW MARKET TEST IS CONDUCTED
Determination of
cities
Decide the duration
of test
Decide what information
should be collected during
the test
Action after test

98. ADVANTAGES OF MARKET TESTING
• It enables to ascertain the first hand reaction
of consumers.
• It help to find out fault, if any, in the product.
• It will give clues to problem of distribution.
• It help to make necessary improvement or
modification in the product, if necessary.
• It help in forecasting the sales of the
enterprise.

99. 4.COMMERCIALISATION
(PRODUCT LAUNCH)
• It means large scale production and
distribution of a product.
• Product is submitted in the market.
• Marketing programmes begin to operate.
• Product starts its life cycle.

100. BUTLER’S 1980 TOURISM AREA LIFE
CYCLE (TALC) MODEL

101. Exploration
• Small numbers of tourists
• Based on primary tourist attractions. These
maybe natural or cultural.
• No secondary tourism attractions.
• Tourism has no economic or social significance
to local residents

102. Involvement
• Local residents become involved in tourism
• Emergence of secondary tourism facilities
such as guest houses.
• A tourism season may develop.
• Pressure develops for governments to
improve transport for tourists

103. Development
• High numbers of tourists that may exceed the local
population during peak periods.
• Heavy advertising will create a well-definined tourist
market.
• Local involvement and control of tourism declines
rapidly.
• External organisations will provide secondary tourism
attractions.
• Natural and cultural attractions will be developed and
marketed.
• Local people experience physical changes to the area
that they may not approve of.

104. Consolidation
• Tourism growth slows but the numbers of tourists
exceeds the local population.
• The area's economy is tied to tourism
• Marketing and advertising will be wide-reaching.
• Major franchises and tourism chains will be
represented.
• Resort areas will have a well-defined recreational
business district.
• Tourism arouses opposition and discontent from some
local people.

105. Stagnation
• Visitor numbers have reached their peak.
• Carrying capacity has been reached or exceeded.
• Tourism causes environmental, social and
economic problems.
• The resort becomes divorced from its geographic
environment.
• Artificial tourism attractions now supersede the
original primary attractions.
• Area has well-established image but will no
longer be fashionable.

106. Decline
• Unable to compete with newer tourism
attractions
• Holidaymakers replaced by weekend or day-
trippers.
• Tourism facilities replaced by non-tourism
activities.
• Hotels may become retirement homes or flats for
local residents.
• Ultimately, the area may become a tourism slum
or drop out of the tourism market completely.

107. Rejuvenation
• Requires a complete change in tourism
attractions.
• Previously untapped tourism resources maybe
found.