1. Module 19 Marketing plan

2. Planning should be designed to ensure that the organisation’s goals are matched to its marketing opportunities

3. Any tourism marketing plan must be flexible enough to permit rapid adjustment in the light of changing circumstances

4. Marketing planning means knowing: Where the organisation is Where it wants to be What are its goals Who are its customers, and How it can reach them

5. PRICING What is Price? Price: the amount of money charged for a product or service, or the sum of values that consumers exchange for the benefits of having or using the product or service

6. Why Is Price Important? –It produces revenue –It influences demand

7. Evolution of Pricing Most early pricing was through negotiation, also known as “haggling” between buyer and seller Fixed pricing became the standard practice for self-serve retailing, charging one price for all buyers Dynamic pricing: the practice of charging different prices depending on individual customers and situations

8. Common Pricing Mistakes 1.Pricing is too cost-oriented. 2.Prices are not revised often enough to reflect market changes. 3.Prices do not take into account the other elements of the marketing mix. 4.Prices are not varied for different products, market segments, and purchase occasions. 1.Pricing is too cost-oriented. 2.Prices are not revised often enough to reflect market changes. 3.Prices do not take into account the other elements of the marketing mix. 4.Prices are not varied for different products, market segments, and purchase occasions.

9. 3 Approaches to Pricing Cost-Based Value-Based Competition-Based

10. Cost-Based Pricing Approaches Figure 10-4 Sell 15,000 to cover overhead Sell 30,000 to Breakeven

11. Value-Based Pricing Approaches Value-based pricing –price based on buyers’ perceptions of value rather than on the seller’s cost Everyday low pricing (EDLP) –pricing consistently low, relatively few discounts or temporary price promotions High-Low pricing –higher prices are charged on a daily basis, but frequent promotions

12. General Pricing Approaches Figure 10-5 Product CostPriceValueCustomers Cost-based Pricing Customers ValuePriceCostProduct Value-based Pricing

13. Competition-Based Pricing Competition-based pricing –Setting price based on the prices that competitors charge for similar products –May be a market leader who sets prices and the other companies follow suit –Going-rate pricing sets prices at the level of competition within the industry –reflects collective wisdom of the industry? –Sealed-bid pricing is used for selling to business and government, where bidding is used

14. Pricing Strategy Summary 5 Key Considerations Customers Competition Channels Cost Company Considerations