Marketing Les Maisonettes Les Maisonnettes Marketing Issues

Marketing Les Maisonettes Les Maisonnettes Marketing

Issues To Revise • Eco-tourism: definition, advantages and disadvantages. • AFE and Regional Tourist Board – advantages and disadvantages of Sophie being member. • Market research • Product versus service marketing • Marketing mix Les Maisonnettes Marketing

Elasticity Reputation Service Ecotourism 1) Product USP Strategy Les Maisonnettes Marketing Branding

Definition of ecotourism branding • Refer to www. ecotourism. org • "Responsible travel to natural areas that conserves the environment and improves the well-being of local people. " (TIES, 1990) Les Maisonnettes Marketing

Objectives of ecotourism • Minimize impact on their environment. • Build respect of the environmental and cultural awareness. • Provide positive experiences for both visitors and hosts. • Provide direct financial benefits for conservation. • Provide financial benefits and empowerment for local people. • Raise sensitivity to France’s political, environmental, and social climate. Les Maisonnettes Marketing

Family Branding • Family branding allows a range of products and services to be sold under a single brand name, such as, Kellogg’s and Sony. • Ecotourism family brand encompasses a product mix ranging from jungle tourism to cultural heritage holidays. Les Maisonnettes Marketing

Advantages of family branding • Creates a higher market share by attracting green conscientious Europeans. • Allow LM to charge higher prices. [Note that ‘good value’ does not mean that the prices are cheap] • Creates demand price inelasticity and customer loyalty. • Develop brand extension strategies, for example, cultural heritage holidays around St Germain. Les Maisonnettes Marketing

Change in strategy • LM originally started as a grocery shop with products for sale. • Sophie has now decided to market LM as service. • This will have implications on the type of marketing strategies she will now adopt. Les Maisonnettes Marketing

Marketing a good • • Product Price Place Promotion Les Maisonnettes Marketing

Marketing a service • The 4 ps plus • People • Processes • Physical evidence Les Maisonnettes Marketing

Aspects of marketing a tangible product • Buyers can see/feel the product • Buyers judge the value of the product • Brochures can help to support the understanding of how the product works • Products can be left for test trial or displayed in the shop. • Products are returnable if they are faulty or damaged. Les Maisonnettes Marketing

Aspects of marketing an intangible service • LM will have to market the relationships between itself and their customers. • Face-to-face exchanges between employees and customers are important; dealing with complaints and supporting customer needs are vital. • Establish a reputation through good interior and exterior buildings, health and safety, quality food/experience Les Maisonnettes Marketing

Possible extension strategies • • • USP: Creating a luxury retreat Sell high quality local produce Beauty treatments Upgrading facilities Attracting international travellers (ecotourism – global brand) • Energy efficient and carbon neutral accommodation Les Maisonnettes Marketing

Summary of product • Product Differentiation through eco-tourism • Activities including the French classes have helped to add value to LM. • Revise Product portfolio analysis – including the Boston Matrix and the Ansoff Matrix. Can we relate these to LM? • Revise the difference between marketing a product and marketing a service – what is the difference? Les Maisonnettes Marketing

Competitive Discount Elasticity Profit Margin 2) Price Substitution Demand Discrimination Les Maisonnettes Marketing

Pricing Strategies Market demand for LM services might be elastic as they can be substituted for the Sanctuary’s services. LM could use the following competitive strategies: – Price Discrimination, offering low prices to the 18 – 30 market (esp. those who endorse ecotourism). – Promotional Pricing, offering discounts for regular visitors Les Maisonnettes Marketing

Price summary • She has been charging the same price all year. • She is thinking of charging higher prices during peak season – which can increase sales. • But, competition is increasing (she may be forced to lower prices to keep up with competition and the external environment). • Don’t forget the holiday packages she is considering (line 90) Les Maisonnettes Marketing

Ecommerce Accessibility Airport Passing Trade 3) Place Suppliers Internet Infrastructure Les Maisonnettes Marketing

Advantages of E - Commerce • Customers can use 24 hour booking service • No communication barriers caused by distance or telephone booking. • Lower sales cost, e. g. , reduced documents and office wages. • Generating high volumes of interest are ideal for small LM niche marketing like Ecotourism. • Improve LM competitive position. Les Maisonnettes Marketing

Disadvantages of ecommerce • Long Time for delivery of physical products might be a problem for perishable goods. • Sensory information about their products might be limited and selected. Customers cannot feel or touch products. • Privacy, security, payment, identity, contract: credit card processing. • Personal service might be affected as the company looses interaction with customers • Set up costs will have to be paid, additionally spam will have to be blocked Les Maisonnettes Marketing

Persuade Remind Infiltration Inform 4) Promotion Word of mouth Logo Les Maisonnettes Marketing Branding

Below the line Promotion • Branding/logo/slogan for LM • Word-of-mouth promotion – More convincing and believable than others types of promotion – Very low cost method of marketing. – ‘Talking up’ a product to create a ‘vibe’ or ‘buzz’ might lead to ethical concerns. – Problems with controlling the message. Les Maisonnettes Marketing

Above the line promotion • Ecommerce/internet: portal web sites allow users to make online bookings. • Infiltration marketing: contributing to ecoblogs or chat rooms by acting as an ordinary user. LM can create posting about the excellent service offered by the company. Les Maisonnettes Marketing

Relationships Efficiency Feedback Communication 5) People Accuracy Support Les Maisonnettes Marketing Appearance

People Customer relations management 1. Front office operations: Direct interaction with customers, e. g. face to face meetings, phone calls, e-mail, online services etc. 2. Back office operations: Operations that ultimately affect the activities of the front office (e. g. , billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc. ) 3. Business relationships: Interaction between LM with other companies and partners, such as suppliers or vendors and retail outlets or distributors. Les Maisonnettes Marketing

LM - People • Her staff require further training according to new H&S law. She has to invest more in her people – costly. • HR problems may affect word of mouth and customer service – which is very important for LM. Les Maisonnettes Marketing

Waiting Payment Help Desk After-sales care 6) Process Services Methods Les Maisonnettes Marketing Delivery

Process • Can be achieved/improved through: • Waiting time (complaints, bookings. . Etc) • Payment methods (offer different methods of payment) • Customer service (how attentive are staff towards customers – quality of service) • After-sales care (its quality) Les Maisonnettes Marketing

Process • How LM deals with complaints? • How LM provides the best service possible? – Free deliveries for local produce – Meeting order times and commitments Les Maisonnettes Marketing

People Management Quality Peripheral Product Measuring Productivity 7) Physical Evidence Correcting mistakes Environment Positive Experience Les Maisonnettes Marketing

Physical Evidence • Physical layout of the guest rooms and shop. • Does the accommodation use modern fixtures and fittings. • Up to date facilities: internet, phones • Appearance: clean bathrooms, decoration Les Maisonnettes Marketing

8) Packaging Les Maisonnettes Marketing

8) Packaging • Local produce sold in eco-friendly, reusable packaging. Les Maisonnettes Marketing

Biodegradable Consumer Friendly Less Plastic Renewable Increase brand visibility Les Maisonnettes Marketing

Niche Porters Social marketing Customer Profile Concepts Ethical Marketing Standards Les Maisonnettes Marketing Ansoff

Porter’s Generic Strategies Model • Cost Leadership – Can LM become a low cost supplier by selling local produce (see option 1). This might be vital under the current economic conditions. – Sanctuary are promoting low cost holidays • Differentiation – Winery, French classes, activities • Focus – LM should market on the quality of its service (Sanctuary are receiving complaints) – Ecotourism provides LM with an opportunity Niche market Les Maisonnettes Marketing

Porter Five forces New Entrants Substitutes Buyers Competitive Rivalry Suppliers Les Maisonnettes Marketing

BCG High Low High Stars Problem Child Low Dogs Cash Cow Les Maisonnettes Marketing

Ansoff Matrix Products Market Penetration Existing New markets Existing Product Development Market Development Les Maisonnettes New Marketing Diversification

Social Marketing • “The planning and implementation of programs designed to bring about social change using concepts from commercial marketing”. • Examples can be marketing to encourage recycling or discourage littering, smoking and abusing alcoholic drinking. Les Maisonnettes Marketing

Ethical Marketing • Honest and factual representation of a product or service. • LM must avoid exploiting the ecotourism brand by making false claims about how its services might be helping the local environment. • LM must follow EU’s code of marketing ethics or advertising standards. Les Maisonnettes Marketing

Association Francais d’Ecotourisme • The (A. F. E. ) is a pressure group. • AFE will provide advice and help as well as providing a known quality standard. • AFE will lobby the Government for their particular cause. Les Maisonnettes Marketing

What factors will determine how successful AFE are? • Funding is a problem for many pressure groups, their success is dependent the money they receive rather than the level of popular support. • Public opinion, if the public are broadly behind the objectives of the group then it is more likely to be successful in achieving its aims. Number of members and their commitment. • How effective it is getting its voice across, e. g. , compare friends of the Earth and Greenpeace. Les Maisonnettes Marketing

Customer Profiling • 30 years old and above • Socio economic group: B and C 1? • Customers have values that are sensitive to the environment • European and British Les Maisonnettes Marketing

Niche Marketing • Ecotourism is a small (and growing) and specialist market segment. • Allows LM to charge premium prices. What are the advantages and disadvantages of niche marketing? Les Maisonnettes Marketing