Presentation Transcript

1. Consumer Behavior Lecture 15 Made by HazemBadwan 5712008 Mohammed Ahmed Mahmoud 5712023 Bouthina Mohammed 5712007 Nourhan Adel 5712031 ShahiraAfifi 5712018 To Dr.Nabil El-Shemy
2. Positioning Two forms of positioning can be used : Objective positioning Subjective positioning
3. Objective positioning The organization tries to tailor its services and products to the needs and desires of the target market selected. The emphasis is on adding to or modifying one or more of the objective characteristics of the services or facilities being offered.
4. Subjective positioning This is an attempt to form, reinforce or change the potential visitor's image without really altering the physical characteristics of the services and products. This is usually achieved by an intensive advertising campaign.
5. Marketers can follow a combination of several positioning strategies Positioning on specific product features. Positioning on benefits, needs or problem solution. Positioning for specific usage occasions. Positioning for user categories. Positioning against competitors. Positioning away from competitors.
6. Product Decisions The product decision is one of the basic elements of the marketing mix. is one of the most important activities in marketing. if the product delivered does satisfy the needs of the consumer: The purchase is likely to be repeated. The purchaser may buy other products offered by the same producer or organization. He is likely to recommend the organizations products other consumers.
7. Product definition A product can be defined as anything that is offered to a market to satisfy a desire or need.
8. Organizations can distinguish or differentiatetheir products in a number of ways: Quality products and services Cheaper products and services Design or style Image or personality
9. Branding Giving a product a brand name is not only a useful way of differentiating it from other product offerings, but also adds perceived value. A brand consists of a brand name and a trade mark. The brand name is the feature of the brand that can be verbalized. A trade mark is the feature of the brand that can be recognized but not verbalized.
10. Assigning a brand name or symbol to a product or service offers a marketera number of advantages: It helps to identify a particular product. Customers associate particular benefits.. Brand loyalty can be creator Branding enables an organization to employ brand stretching. Branding provides the opportunity for an organization to enhance its corporate image.
11. Product‐mix decisions Product‐mix decisions comprise decisions regarding: The range of different product lines that the organization offers. The number of variants offered within each product line, e.g. business class and economy class. Different product offerings may target different market segments. Some products may be marketed in an intensively competitive environment for pricing and profit margins.
12. For this reason an organization may organize its products into separate divisions under separate product managers, producing separate brochures.
13. Product life cycle Although the exact duration of a product's life cycle cannot be forecasted, all products exhibit characteristic life cycles which can be illustrated graphically. Steady growth is then achieved until sales even out. The product also faces increasing competition as its sales expand, so that at a saturation point it may be fighting harder to retain its existing share in a stagnant market.
14. Each stage of the product life cycle has certain marketing requirements Growth Maturity Saturation Decline
15. Growth The product or service is accepted by the target mark­et, Market acceptance means that both sales and profits rise. Promotional expenditure remains high. The number of outlets handling the product or service usually increases.
16. Maturity Sales may still be increasing, but at a much slower rate. Outlets are selling the product or service, and they are very competitive, particularly in terms of price. Timeshare is example of this stage. Sales are now leveling off, indicating that maturity has been reached.
17. Saturation Sales volume reaches its peak; the product or service has penetrated the market-place to the greatest degree possible.
18. Decline Sooner or later obsolescence sets in, and new products are introduced to replace old ones. Demand drops, advertising expenditure is lower, and the number of competitors usually drops. Managing the tourism product through its life cycle is one of the challenges facing managers of tourism services.
19. Price Decisions Price is a critical element in the marketing mix and plays an important role in satisfying the needs and desires of consumers.
20. Price has different meanings for the final consumer &for the organization To the consumer: price represents the amount of money he pays for a prod‐uct and satisfaction that he receives. To the organization: price is important because it relates directly to the organization's income and profitability because: Profits = total income ‐ total costs Profits = (price x sales) ‐ total costs
21. example You are the marketing manager in tourism's company and you sale one hundred tourism trips to Sharmfor 1000 L.E. per each consumer . the cost for each consumer 700 L.E . What is the profit of your company ? Profits = total income ‐ total costs Profits = (price x sales) ‐ total costs Profits = 100 000 – 70 000 = profits= 30 000 ( 1000 x 100 ) – ( 700 x 100 ) = profits = 30 000
22. Characteristics of tourism products & services that influence pricing These characteristics are: High price elasticity in many segments. Long lead times between price decisions and product sales. No possibility of stock holding. High level of psychological involvement of Customers. High fixed costs of operation.
23. Factors influencing the price decision Product quality: The quality of the product Product distinctiveness: standard product with no distinctive features Extent of the competition: A product that is comparable to competitors' products must be priced with due consideration for the prices of competitors. Method of distribution: The price of the product must include adequate margins. Character of the market:Thetype and number of possible consumers must be considered. Cost of the product and service:Theprice must exceed the costs in the long term or the business will not survive. Cost of distribution: difficult to calculate, must always be included in the pricing equation. Margin of profit desired: The profit margin built into the price of the product must be higher than returns Seasonality: Most tourism products are affected by seasonality . Special p promotional prices: often good strategy to offer introductory prices However, these must be carefully planned so that they achieve the purpose Psychological considerations: Generally consumers respond favorably to odd pricing
24. The above factors can be grouped into three main factors that influenceprice, namely costs, demand and competition Costs determine the floor price that the organization can charge for its product. Demand determines the ceiling price, that is the maximum price that the mark‐et can carry. In this regard marketers should consider: The price sensitivity of the market The notion of using price as an indicator of the product Competition gives marketers the following options: Sell products at the same price that everyone else charges. ‐ Charge above‐market prices to foster an image of quality & prestige