Niche Tourism Marketing Part 1

What is Marketing?
The management process responsible for identifying, anticipating

and satisfying customer requirements

profitably.

New definition of marketing

The strategic business function that creates value by stimulating,

facilitating and fulfilling customer demand.

How to do it
It does this by building brands,

nurturing innovation, developing relationships, creating good customer service and communicating benefits.

New definition of marketing

By operating customer-centrically,

marketing brings positive return on investment,

satisfies shareholders and stakeholders from business and the community,

and contributes to positive behavioural

change and a sustainable business future.

Core concepts of marketing

Marketing rests on the following core concepts:

Needs, Wants and Demands Needs describe basic human requirements. Needs become wants when they are directed to specific objects that might satisfy the need. Wants are shaped by ones society. Demands are wants for specific products backed by the ability to pay.
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Core concepts of marketing

Products and Offerings

A product satisfies peoples needs and wants. A product is an offering that can satisfy a need or a want. A brand is an offering from a known source e.g. Novotel, Ramada...

Core concepts of marketing

Value, Cost and Satisfaction

The product will be successful if it delivers value and satisfaction to the target buyer. The buyer chooses the offering that provides him/her with the greatest value. Value is the relationship between what the customer gets and what he gives.

Value = Benefits = Functional Benefits + Emotional Benefits Costs Monetary costs + time costs + energy costs + psychic costs

Core concepts of marketing

Exchange, Transactions and Relationships Exchange involves obtaining a product from someone by offering something in return. Five conditions must be satisfied: There are at least two parties. Each party has something that might be a value to the other party. Each party is capable of communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.
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Core concepts of marketing

Exchange, Transactions and Relationships

A transaction is a trade of values between two or more parties.

Relationship (more often referred to as relationship marketing) has the aim of building long-term mutual satisfying relations with key parties customers, suppliers and distributors.

Core concepts of marketing

Markets
The marketer may reach the markets by using a combination of three different channels:

Communication channels e.g. radio, mail, billboards, social media Distribution channels and service distribution channels to display or deliver the physical product or service e.g. warehouses, distributors, wholesalers, retailers. Selling channels to effect transactions with potential buyers.
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Core concepts of marketing

Marketing & marketers

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The concept of market segmentation

Market segmentation is the division of a market into

different groups of customers with distinctly similar needs and product/service requirements.
Market segmentation is the division of a mass market

into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to marketing actions.

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The concept of market segmentation

The way organizations determine the markets in which

they need to concentrate their commercial efforts.

The method by which the market is divided into different

segments is called the STP process:

Segmentation Targeting Positioning

This process is an integral part of the marketing strategy.

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The STP process

It is a direct result of:
the prevalence of mature markets, the greater diversity in customer needs, and the ability to reach specialized or niche segments.

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The STP process

Marketers are increasingly segmenting markets and

identifying attractive segments (who to focus on and why?) in order to:

identify new product opportunities, develop suitable positioning and communications strategies

(what message to communicate), and effectively allocate resources to key marketing activities (how much should we spend and where?).

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Product differentiation vs Market segmentation

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Segmenting criteria
Profile Demographics Life cycle Geographical Geodemographic Psychological Lifestyle Benefits sought
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Behavioural Transaction Product usage Media usage

Target markets
Kotler (1984) suggested that in order for market segmentation to be effective, all segments must be:
Distinctis each segment clearly different from other

segments? Accessiblecan buyers be reached through appropriate promotional programmes and distribution channels? Measurableis the segment easy to identify and measure? Profitableis the segment sufficiently large to provide a stream of constant future revenues and profits?

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Targeting approaches

Niche Marketing

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A niche marketing strategy

The strategy recognizes that there are segments in the market,

but implements a concentrated strategy by focusing on just a few market segments.

Often adopted by firms that either have limited resources by

which to fund their marketing strategy, or are adopting a very exclusive strategy in the market.
This approach is also used a lot by SMEs and micro-sized

organizations, given their limited resources.

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What is Niche Marketing?

Niche Marketing refers to finding a segment of the

general market for a service or product line.

A niche market is the subset of the market on which a

specific product is focusing.

The market niche defines:
the specific product features aimed at satisfying specific

market needs
the price range production quality, and the demographics that is intended to impact.
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Some examples of niche tourism markets:

Eco-tourism Sports tourism Pro-poor tourism Educational tourism Fitness tourism Recession tourism Creative tourism Dark tourism Doom tourism Space tourism

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What is Niche Marketing?

Develop a solution for the needs of that segment and

then market to the segment

Niche marketing can be extremely cost-effective

For instance, imagine you offer a product or service that's

just right for a select demographic group

Promotion may be more focused and cost effective

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Rules for Niche Marketing

Meet your target market unique needs.
The benefits you promise must have special appeal to the

market niche.
Tailor your product or service to meet their unique needs.
Consider all the product or service variations you might

offer.

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Rules for Niche Marketing

Say the right thing When approaching a new market niche, it's imperative to speak their language. You should be prepared to communicate with the target group as an understanding member not an outsider. It is vital to understand the key issues of the target market and how they prefer to communicate.

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Rules for Niche Marketing

Test the market Assess the direct competitors in the new market niche and determine how your business will position against them Look for their key selling points, pricing, delivery and other service characteristics What if there is no existing competition? Always test-market carefully to gauge the market's receptiveness to your product/service and message Keep your risks manageable.
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