Marketing

1. Marketing Les Maisonettes

2. Issues To Revise • Eco-tourism: definition, advantages and disadvantages. • AFE and Regional Tourist Board – advantages and disadvantages of Sophie being member. • Market research • Product versus service marketing • Marketing mix

3. Elasticity Service Ecotourism Reputation 1) Product USP Branding Strategy

4. Definition of ecotourism branding • Refer to www.ecotourism.org • "Responsible travel to natural areas that conserves the environment and improves the well-being of local people." (TIES, 1990)

5. Objectives of ecotourism • Minimize impact on their environment. • Build respect of the environmental and cultural awareness. • Provide positive experiences for both visitors and hosts. • Provide direct financial benefits for conservation. • Provide financial benefits and empowerment for local people. • Raise sensitivity to France’s political, environmental, and social climate.

6. Family Branding • Family branding allows a range of products and services to be sold under a single brand name, such as, Kellogg’s and Sony. • Ecotourism family brand encompasses a product mix ranging from jungle tourism to cultural heritage holidays.

7. Advantages of family branding • Creates a higher market share by attracting green conscientious Europeans. • Allow LM to charge higher prices. [Note that ‘good value’ does not mean that the prices are cheap] • Creates demand price inelasticity and customer loyalty. • Develop brand extension strategies, for example, cultural heritage holidays around St Germain.

8. Change in strategy • LM originally started as a grocery shop with products for sale. • Sophie has now decided to market LM as service. • This will have implications on the type of marketing strategies she will now adopt.

9. Marketing a good • Product • Price • Place • Promotion

10. Marketing a service • The 4ps plus • People • Processes • Physical evidence

11. Aspects of marketing a tangible product • Buyers  can see/feel the product • Buyers  judge  the  value of the product • Brochures  can help  to support the understanding of how the product works • Products can be left for  test  trial or displayed in the shop. • Products are returnable if they are faulty or damaged.

12. Aspects of marketing an intangible service • LM will have to market the relationships between itself and their customers. • Face-to-face exchanges between employees and customers are important; dealing with complaints and supporting customer needs are vital. • Establish a reputation through good interior and exterior buildings, health and safety, quality food/experience

13. Possible extension strategies • USP: Creating a luxury retreat • Sell high quality local produce • Beauty treatments • Upgrading facilities • Attracting international travellers (ecotourism – global brand) • Energy efficient and carbon neutral accommodation

14. Summary of product • Product Differentiation through eco-tourism • Activities including the French classes have helped to add value to LM. • Revise Product portfolio analysis – including the Boston Matrix and the Ansoff Matrix. Can we relate these to LM? • Revise the difference between marketing a product and marketing a service – what is the difference?

15. Competitive Discount Elasticity Profit Margin 2) Price Substitution Demand Discrimination

16. Pricing Strategies Market demand for LM services might be elastic as they can be substituted for the Sanctuary’s services. LM could use the following competitive strategies: • Price Discrimination, offering low prices to the 18 – 30 market (esp. those who endorse eco-tourism). • Promotional Pricing, offering discounts for regular visitors

17. Price summary • She has been charging the same price all year. • She is thinking of charging higher prices during peak season – which can increase sales. • But, competition is increasing (she may be forced to lower prices to keep up with competition and the external environment). • Don’t forget the holiday packages she is considering (line 90)

18. Ecommerce Airport Passing Trade Accessibility 3) Place Suppliers Internet Infrastructure

19. Advantages of E - Commerce • Customers can use 24 hour booking service • No communication barriers caused by distance or telephone booking. • Lower sales cost, e.g., reduced documents and office wages. • Generating high volumes of interest are ideal for small LM niche marketing like Ecotourism. • Improve LM competitive position.

20. Disadvantages of ecommerce • Long Time for delivery of physical products might be a problem for perishable goods. • Sensory information about their products might be limited and selected. Customers cannot feel or touch products. • Privacy, security, payment, identity, contract: credit card processing. • Personal service might be affected as the company looses interaction with customers • Set up costs will have to be paid, additionally spam will have to be blocked

21. Persuade Remind Infiltration Inform 4) Promotion Word of mouth Branding Logo

22. Below the line Promotion • Branding/logo/slogan for LM • Word-of-mouth promotion • More convincing and believable than others types of promotion • Very low cost method of marketing. • ‘Talking up’ a product to create a ‘vibe’ or ‘buzz’ might lead to ethical concerns. • Problems with controlling the message.

23. Above the line promotion • Ecommerce/internet: portal web sites allow users to make online bookings. • Infiltration marketing: contributing to eco-blogs or chat rooms by acting as an ordinary user. LM can create posting about the excellent service offered by the company.

24. Feedback Relationships Communication Efficiency 5) People Accuracy Appearance Support

25. People Customer relations management • Front office operations: Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc. • Back office operations: Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.) • Business relationships: Interaction between LM with other companies and partners, such as suppliers or vendors and retail outlets or distributors.

26. LM - People • Her staff require further training according to new H&S law. She has to invest more in her people – costly. • HR problems may affect word of mouth and customer service – which is very important for LM.

27. Waiting Help Desk After-sales care Payment 6) Process Services Delivery Methods

28. Process • Can be achieved/improved through: • Waiting time (complaints, bookings.. Etc) • Payment methods (offer different methods of payment) • Customer service (how attentive are staff towards customers – quality of service) • After-sales care (its quality)

29. Process • How LM deals with complaints? • How LM provides the best service possible? • Free deliveries for local produce • Meeting order times and commitments

30. People Management Quality Peripheral Product Measuring Productivity 7) Physical Evidence Correcting mistakes Environment Positive Experience

31. Physical Evidence • Physical layout of the guest rooms and shop. • Does the accommodation use modern fixtures and fittings. • Up to date facilities: internet, phones • Appearance: clean bathrooms, decoration

32. 8) Packaging

33. 8) Packaging • Local produce sold in eco-friendly, reusable packaging.

34. Biodegradable Consumer Friendly Less Plastic Renewable Increase brand visibility

35. Niche Porters Social marketing Customer Profile Concepts Ethical Marketing Ansoff Standards

36. Porter’s Generic Strategies Model • Cost Leadership • Can LM become a low cost supplier by selling local produce (see option 1). This might be vital under the current economic conditions. • Sanctuary are promoting low cost holidays • Differentiation • Winery, French classes, activities • Focus • LM should market on the quality of its service (Sanctuary are receiving complaints) • Ecotourism provides LM with an opportunity Niche market

37. Porter Five forces New Entrants Substitutes Buyers Competitive Rivalry Suppliers

38. BCG

39. Ansoff Matrix Products Market Penetration Product Development Existing markets Diversification Market Development New

40. Social Marketing • “The planning and implementation of programs designed to bring about social change using concepts from commercial marketing”. • Examples can be marketing to encourage recycling or discourage littering, smoking and abusing alcoholic drinking.

41. Ethical Marketing • Honest and factual representation of a product or service. • LM must avoid exploiting the ecotourism brand by making false claims about how its services might be helping the local environment. • LM must follow EU’s code of marketing ethics or advertising standards.

42. Association Francais d’Ecotourisme • The (A.F.E.) is a pressure group. • AFE will provide advice and help as well as providing a known quality standard. • AFE will lobby the Government for their particular cause.

43. What factors will determine how successful AFE are? • Funding is a problem for many pressure groups, their success is dependent the money they receive rather than the level of popular support. • Public opinion, if the public are broadly behind the objectives of the group then it is more likely to be successful in achieving its aims. Number of members and their commitment. • How effective it is getting its voice across, e.g., compare friends of the Earth and Greenpeace.

44. Customer Profiling • 30 years old and above • Socio economic group: B and C1? • Customers have values that are sensitive to the environment • European and British

45. Niche Marketing • Ecotourism is a small (and growing) and specialist market segment. • Allows LM to charge premium prices. What are the advantages and disadvantages of niche marketing?