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POSITIONING
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The Hotel Market
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How Does positioning Fit Into the Marketing Mix
Sellers have 3 basic approaches to market Mass market, Product differentiation or target market Target marketing has 3 steps which are segmentation, targeting and positioning
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POSITIONING Positioning is something (perception) that is done in the minds of the target market. A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors.
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Al Ries and Jack Trout 1969 The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing.
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Relative Competitive Position
How a company performs relatively towards its competitors (relative competitive position) their position relative to competitors Michael E Porter's five forces of competitive position model Market attractiveness and directional policy matrix
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The Hotel Market
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Positioning of Hotel Industry ( product positioning map)
HIGH QUALITY Boutique Hotel 6 B & B 3 1 5 Hilton Travel Lodge 2 Best Western LOW PRICE HIGH PRICE ? 4 Formula 1 LOW QUALITY “Product Space” Representing Consumers’ Perception for Different Types of Hotels
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Examples in Hotel Industry
Positioning on specific product features : Large or well known chain, safe and reliable. HILTON Positioning on specific benefits, needs, or solutions : budget business accomodation for the budget conscious TRAVEL LODGE Positioning on specific use categories : fed up of dreary chains INDEPENDENT HOTEL Positioning on specific usage occasions :looking for a home from home, homely hotel. B & B Positioning against another product : why spend on the TL when you can get a room for half the price. Formula 1 Positioning through product class dissociation : not a hotel but an office away from home. BEST WESTERN
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