Transcript Chapter Fourteen

Chapter Fourteen
Market Positioning and Branding
Positioning
Creating a distinct image in the mind
of the consumer
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Who the firm is
How the firm is different from the
competition
How the firm can satisfy their wants and
needs
Positioning is the perception the
customer has of the product offering
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Positioning
Pitfalls
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Forced into a position by a strong
competitor
Firm’s position is unclear to the
customer
The firm has no position
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Salience, Determinance, and
Importance
In order to position, need to how customers
perceive and place each
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Salience
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Attributes that are “top of mind”
Determinance
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Attributes that actually determine the decision to purchase
a product
Importance
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Attributes that are important to the customer after the
choice
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Objective Positioning
Creating an image of the product that
reflects physical characteristics and
functional features
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“The car is red”
Ruth’s Chris Steakhouse
Very important and often used in
hospitality
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Can create a unique image and differentiate
Not effective when the feature is not unique
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Subjective Positioning
Creating a unique product image in the
mind of the customer based on subjective
attributes
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Attributes are not physical attributes of the
product, but the customer’s mental perception
of the product
Can occur automatically in the consumer
Marketer hopes to control the positioning
Marketer hope to create an image that will
be shared by consumers
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Tangible Positioning
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Creating an intangible, subjective
image of a product based on a
tangible feature of the product
Used in the hospitality industry as
products reach commodity status
Morton’s positioning statement
“When it rains, it pours”
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Intangible Positioning
Creating a tangible, objective image based on
an intangible aspect of the product
Consumers purchase tangibles (meals, hotel
rooms) but we market intangibles
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A hotel atrium
The steak’s sizzle
Positioning is not brand perception alone, but
how the image stands in relation to competing
images
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Effective Positioning
The need to make the brand different from
other similar brands
Positioning must promise the benefit that
the customer will receive
Good positioning creates an image,
differentiates itself and promotes a benefit
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Motel 6: “We’ll leave the light on for ya”
Should clearly distinguishes from the
competition on factors important to the
target market
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All Rights Reserved.
Effective Positioning
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U.S. Army: An Army of One
U.S. Army: Be all that you
can be
Marines: The Few, The
Proud, The Marines
Toyota Today: Moving
Forward
Toyota Old: Get the feeling
McDonald’s Today: I’m
Loving It.
McDonald’s Old: You
Deserve a Break Today.
Burger King: Have it your
way.
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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General Electric Today:
Imagination at Work.
General Electric Old: We
bring good things to life.
Microsoft Today: Your
passion, our commitment.
Microsoft Old: Where do
you want to go today?
Holiday Inn Express: Stay
Smart.
Motel 6: We’ll leave the
light on for ya.
Nike: Just do it.
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
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Positioning’s Vital Role
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Positioning goes beyond advertising
Is a single-minded concept from which
everything flows
Positioning is about creating a
marketing niche
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Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Repositioning
Changing the position or image in the
marketplace
Reasons to reposition
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Unsuccessful position
Tried and failed to achieve a desired position
Competitors have overcrowded the position
Appeal to a new segment
Add a new segment
Increase the size of a segment
Merging of properties
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Branding and Positioning
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A brand is a well known product or service
of consistent quality available to
consumers in multiple locations
Strong brands attract more franchises and
higher revenues
Technology has had a significant impact on
branding
Product consistency and the integrity of
branded properties affects positioning of
the entire brand
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Hotel Restaurant Branding
Outsourcing hotel F&B outlets is in some cases
more profitable
Put brand names in house to avoid patrons eating
out at brands
How it works
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Hotel leases space for a flat fee or percentage of sales
Acquire and become a franchise
Undertake a joint venture where the hotel and
restaurant share the costs and profits
Hospitality and non-hospitality firms take on joint
ventures
Marketing Essentials in Hospitality and Tourism:
Foundations and Practices by Shoemaker & Shaw
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Multiple Brands and Product
Positioning
Developed for growth purposes and for
market segments
Also provides protection from the
competition against the single brand
Different market segments may include
many of the same people, but for different
purposes, different contexts or different
times
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Manage to avoid cannibalization
Keep separate and distinct images
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Discussion
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Give an example of a hospitality firm
whose advertising demonstrates
tangible or intangible positioning.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.