niche tourism marketing

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Niche Tourism Marketing Part 1

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What is Marketing?

‘The management process responsible for identifying, anticipating and satisfying customer requirements profitably.’

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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.

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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.’

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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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Products and Offerings

A product satisfies people’s 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...

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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

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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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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.

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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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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 TargetingPositioning

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 processMarketers 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 criteriaProfile

DemographicsLife cycleGeographical Geodemographic

Psychological LifestyleBenefits sought

BehaviouralTransaction Product usage Media usage

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Target marketsKotler (1984) suggested that in order for market segmentation to be effective, all segments must be:

Distinct—is each segment clearly different from other segments?

Accessible—can buyers be reached through appropriate promotional programmes and distribution channels?

Measurable—is the segment easy to identify and measure?Profitable—is 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 strategyThe 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 rangeproduction quality, and the demographics that is intended to impact.

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Some examples of niche tourism markets:

Eco-tourism Sports tourismPro-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 groupPromotion 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 messageKeep your risks manageable.