© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Chapter Thirteen Branding and Market Positioning
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Salience, Importance, and Determinance Need to understand how customers perceive and differentiate in order to develop an effective strategy –Salience “Top of mind” –Determinance Attributes that determine choice –Importance Attributes that are important after the initial choice
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Objective Positioning Creating an image for a product that reflects its physical and functional characteristics –Concrete: e.g., red –Abstract: e.g., fast Important in hospitality to create an image in the mind that is different from the competition
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Subjective Positioning Create a tangible image of a product based on intangible customer perceptions of product attributes Marketer hopes that the target market will agree on a favorable image
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Tangible Positioning Creating an intangible, subjective image based on a tangible attribute Important in hospitality as many products reach commodity status “When it rains, it pours” “I’m lovin’ it”
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Intangible Positioning Creating a tangible, objective image based on intangible attributes Important in hospitality because our “product” is largely intangible
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Effective Positioning Must create an image, differentiate itself, and promise a benefit Positioning approaches: –By attribute, feature, or customer benefit –By price/quality –With respect to use or application –According to users or class of users –With respect to a product class –Vis-à-vis the competition
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Positioning’s Vital Role Should be a “single concept umbrella from which everything else in the organization flows” Example: Kentucky Fried Chicken as “KFC”
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Repositioning Changing the image in the marketplace May stem from an unsuccessful position, failure to achieve your position, overcrowded position, or exploiting a new niche or segment Examples: –Dunkin’ Donuts –Nikko/Atlanta
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Art of Repositioning Procedures: –Determine the present position –Determine what position you wish to occupy –Make sure the product is truly different for the repositioning –Initiate the repositioning campaign based on the three criteria of effective positioning –Measure to see if the position has significantly changed in the desired direction
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Developing a Market Positioning Strategy Market analysis Definition and analysis of market segments Selection of most appropriate target markets to serve Articulation of desired market position Marketing action plan
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Developing Positioning Strategies Company: –What are strengths and weaknesses, resources, management capabilities, present market position, values, objectives, and policies? –Where are we now? –Where do we want to go? Product/service: –What are facilities, location, attributes (salient, determinant, important), physical condition, level of service? –What is it? –What does it do, in functional terms? –Why do/should people come? Brand position: –What are awareness, loyalty, and image? –How does it compare to competition? –What are the market segments? –What are the perceived attributes and how are they distributed among the segments? –Where are we positioned?
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Developing Positioning Strategies (cont.) Customers: –What are their segments and needs and wants? –What benefits do they seek? –What is the optimal position of attributes for each segment? Competition: –Who is their customer and why do they go there? –What do they do or not do better? –How are we differentiated? –What positions do they occupy? The Marketplace: –Where is it? What are the segments? –What is the generic demand? –What is our market share? –How are the segments reached?
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Developing Positioning Strategies (cont.) Opportunities: –What needs are unmet? –Can we meet them? –Can we improve on them? –What innovations are needed? –Are they worth going after? –Are there new uses, new users, or greater usage? Decision: –What is the best overall position?
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Competitive Positioning Checklist for Evaluating Positioning Strategy Does it say who you are and what you stand for? Does it create a mental picture? Does it set you apart and show how you are different? Does it preempt a benefit niche and capitalize on an advantage? Does it turn any liability into an asset? Does it have benefits for the target market you are trying to reach? Does it provide tangible evidence or clues? Does it feature the one or two things that your target market wants most? Is it consistent with strategy—for instance, does it expand or exchange usage patterns? Create new awareness? Project the right image? Does it have credibility? Does it make a promise you can keep?
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Internal Positioning Analysis Positioning the offer with regard to the competition
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Branding and Positioning Brand equity Brand can supply “instant recognition” Important in franchising Important with Internet distribution Must have consistency and integrity of brand Hotel restaurant branding Multiple brand and product positioning
© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition