Professional Documents
Culture Documents
Research
Case Study Module I
Definition of Marketing
Marketing consists of the strategies and tactics used
to identify, create and maintain satisfying
relationships with customers that result in value for
both the customer and the marketer.
A social and managerial process by which
individuals and groups obtain what they need and
want through creating and exchanging products and
value with others (Kotler, 1988,p.3)
The management process responsible for
identifying, anticipating and satisfying customers
requirements profitably (CIM, 1984)
Cost Implications
While research is key to marketing decision making,
it does not always need to be elaborate to be
effective. Sometimes small efforts, such as doing a
quick search on the Internet, will provide the needed
information.
However, for most marketers there are times when
more elaborate research work is needed and
understanding the right way to conduct research,
whether performing the work themselves or hiring
someone else to handle it, can increase the
effectiveness of these projects.
Target Markets-
Product-
positioning
Distribution
distributor interest;
Promotion
advertising),
Pricing
External Factors
Other
E/D Card
The E/D card is a rich source of data for
tourism purposes. Serving both the
operational and policy aspects of the
tourism industry.
The Caribbean is in an advantageous
position compared to larger countries who
utilize passenger surveys to estimate
tourist counts versus the Caribbean where
our data is virtually census data.
E/D Card
Every permutation of data from the E/D
card is useful.
Apart from the tourists count, this data can
be used for marketing purposes
E/D Card
Today regional governments heavily
subsidize airline carriers into the region.
Therefore it is imperative that
governments understand the implications
of their investments
Data from the E/D cards can aid in
determining this kind of investment
Airline load factors
Occupancies for hotels
E/D Card
Following trends from the E/D cards can
also guide in the development of supply in
terms of room stock.
i.e if there is a heavy leaning towards a
particular type of product then countries
can invest in this type of product
Survey Data
Types of surveys
Visitor Exit Surveys
Travel agent surveys
Delphi pannel
Hotel Registration information
Target Markets
Segmentation Analysis
Addresses four fundamental marketing
questions
Who are the target you want to reach?
What are they like?
Where do they live?
How can we reach them most cost
effectively?
PRIZM ANALYSIS
The strategy for identifying our marketing
targets is based on two tried and true
observations
The customers of our product are existing
customers
Birds of a feather flock together
PRIZM ANALYSIS
Methodology
Data Collected from E/D cards
Names and addresses of all USA customers
All duplicates removed from dataset
All VFR travelers removed from dataset
Total unique households
Core
Index 100
NonTarget
Conversion
Percent of
Core. There is a large proportion of customers in these clusters and households are more likely than average to be
customers.
Expansion. Households in these clusters are more likely to be customers, but there are not many of them in either
the customer population or the base population.
Conversion. Conversion clusters contain a significant proportion of customers; however, they represent an even
larger proportion of the base population. Therefore, indices suggest they are less likely than average to be customers.
Since these clusters represent a significant portion of total customers, they do have potential. However, because of
their under representation with respect to the base population, there are many households that have not been reached
yet. Target marketing strategies designed specifically for these clusters may attract or convert non-customers into the
Core group.
NonTarget. NonTarget clusters account for a small proportion of customer households, and indices
suggest they are less likely than average to be customers. These clusters may require further analysis for classification
due to their small numbers.
US Visitors
Target
Category
Number of
Clusters
Core
Expansion
Conversion
NonTarget
17
2
4
39
Percent of
Base
Households
37.17
1.48
11.76
49.58
Percent
of
US
Visitors
62.90
1.51
11.11
24.49
Index
188
103
94
49
Percent of US Visitor
Older Wealthy Couples
Wealthy Midlife Families
Young Professionals
Older Upper-mid Mix
Young Urban Mix
Non target
% Comp
Index
15.8
12.42
11.93
17.55
8.04
34.87
232
204
199
157
110
55
16%
35%
12%
Young Professionals
Older Upper-mid Mix
8%
12%
17%
6%
Young Professionals
Older Upper-mid Mix
63%
7%
Young Urban Mix
Non target
CORE GROUP
Social
Group
S1
S1
S1
U1
T1
S1
U1
S2
T1
C1
T1
C1
S2
S2
U1
U1
U1
U2
Lifestage
Group
M1
F1
Y1
Y2
F1
F1
M1
Y1
M1
M1
Y1
Y1
M2
M2
Y2
M2
F2
Y2
Cluster
1
2
3
4
5
6
7
8
9
10
11
12
14
15
16
26
29
31
Nickname
Upper Crust
Blue Blood Estates
Movers & Shakers
Young Digerati
Country Squires
Winner's Circle
Money & Brains
Executive Suites
Big Fish, Small Pond
Second City Elite
God's Country
Brite lites, Li'l City
New Empty Nests
Pools & Patios
Bohemian Mix
The Cosmopolitans
American Dreams
Urban Achievers
TOTAL
Base
Households
% Comp
2.21
1.40
2.29
1.79
2.38
1.48
2.93
1.57
2.03
1.56
1.92
1.99
1.46
1.69
2.63
1.62
2.90
2.44
US Visitor
Analysis
2000-2004
% Comp
6.37
3.80
5.05
5.20
5.07
2.61
6.61
2.07
3.76
2.18
3.19
2.18
1.70
1.95
4.66
1.91
3.37
2.49
Index
288
270
220
290
213
177
226
132
185
140
166
109
117
115
177
118
116
102
36.31
64.18
177
Expansion
Social
Group
T1
Lifestage
Group
F2
Cluster
20
Nickname
Fast-Track Families
TOTAL
Social
Group
C1
S2
S2
T2
U3
Lifestage
Group
F2
F2
Y1
M2
M4
Cluster
13
18
19
28
59
Nickname
Upward Bound
Kids & Cul-de-sacs
Home Sweet Home
Traditional Times
Urban Elders
TOTAL
US Visitor
Base
Analysis
Households 2000-2004
% Comp
% Comp
0.84
0.94
0.84
0.94
US Visitor
Base
Analysis
Households 2000-2004
% Comp
% Comp
2.04
1.93
2.04
1.71
2.34
1.82
1.99
1.72
1.78
1.75
10.19
8.93
Index
113
113
Index
95
84
78
86
98
88
Base Households
Count % Comp
1,613,101
2.21
1,672,033
2.29
1,480,865
2.03
4,765,999
6.53
1,024,348
1,736,830
1,077,838
610,702
4,449,718
1.40
2.38
1.48
0.84
6.10
7,179
9,583
4,942
1,782
23,486
3.80
5.07
2.61
0.94
12.42
0.70
0.55
0.46
0.29
0.53
270
213
177
113
204
Young Digerati
Bohemian Mix
Executive Suites
Young Professionals
1,308,793
1,919,575
1,143,974
4,372,342
1.79
2.63
1.57
5.99
9,828
8,818
3,912
22,558
5.20
4.66
2.07
11.93
0.75
0.46
0.34
0.52
290
177
132
199
2,136,713
1,402,639
1,138,957
1,183,871
1,063,372
1,234,694
8,160,246
2.93
1.92
1.56
1.62
1.46
1.69
11.19
12,496
6,032
4,130
3,615
3,218
3,692
33,183
6.61
3.19
2.18
1.91
1.70
1.95
17.55
0.58
0.43
0.36
0.31
0.30
0.30
0.41
226
166
140
118
117
115
157
American Dreams
Brite Lites, Li'l City
Urban Achievers
Young Urban Mix
2,115,686
1,455,404
1,779,206
5,350,296
2.90
1.99
2.44
7.33
6,379
4,125
4,702
15,206
3.37
2.18
2.49
8.04
0.30
0.28
0.26
0.28
102
110
PRIZMNE Clusters
1 Upper Crust
3 Movers & Shakers
9 Big Fish, Small Pond
Lifestage
Group
M1
Y1
M1
Social
Group
S1
S1
T1
TOTAL
Base
Households
%Comp
2.21
2.29
2.03
US Visitor
Analysis
2000-2004
%Comp
6.37
5.05
3.76
US Visitor
Analysis
2000-2004
Index
288
220
185
6.53
15.18
232
1) Older Wealthy Couples are predominantly middle-aged and older married couples living
in expensive, single-unit homes. There is a somewhat higher than average Asian
representation in these households. These comfortable couples tend to be college-educated,
often with advanced degrees, and hold white-collar occupations with high incomes. The
median household income for this target group is $89,930. Older Wealthy Couples enjoy
travel, and are likely to be members of any frequent flyer program. When traveling
domestically, they are likely to use Continental Airlines and visit Maine, New Hampshire, or
Vermont. International travel destinations likely include European countries such as Spain,
Portugal, Ireland/UK, France, or Italy.
Older Wealthy Couples are also...
More Likely to...
PRIZMNE Clusters
2 Blue Blood Estates
5 Country Squires
6 Winner's Circle
20 Fast-Track Families
Lifestage
Group
F1
F1
F1
F2
Social
Group
S1
T1
S1
T1
TOTAL
Base
Households
%Comp
1.40
2.38
1.48
0.84
US Visitor
Analysis
2000-2004
%Comp
3.80
5.07
2.61
0.94
US Visitor
Analysis
2000-2004
Index
270
213
177
113
6.10
12.42
204
2) Wealthy Midlife Families are predominantly middle-aged (35-54) married couples with
children living in expensive single-unit homes. These affluent households have a slightly
higher than average Asian representation. Adults in this group tend to have earned bachelor
and graduate degrees and hold a variety of white-collar occupations with high incomes. The
median household income for households in this group is $92,915. Wealthy Midlife Families
travel regularly and are likely to be members of Delta or USAirs frequent flyer programs.
Their last trip was likely to have been domestic travel for business purposes and they tend to
travel by airplane on domestic business trips three or more times a year.
Wealthy Midlife Families are also...
More Likely to...
Young Professionals
PRIZMNE Clusters
4 Young Digerati
8 Executive Suites
16 Bohemian Mix
Lifestage
Group
Y2
Y1
Y2
Social
Group
U1
S2
U1
TOTAL
Base
Households
%Comp
1.79
1.57
2.63
US Visitor
Analysis
2000-2004
%Comp
5.20
2.07
4.66
US Visitor
Analysis
2000-2004
Index
290
132
177
5.99
11.93
199
3) Young Professionals are predominantly younger (<45) singles and couples living in
multi-unit housing, often in urban areas. Households in this group are three times as likely as
average to be Asian and have a slightly higher than average Hispanic representation. These
young, white-collar workers tend to have bachelor and advanced degrees and earn uppermidscale incomes. The median household income for this group is $63,624. Young
Professionals are likely to be members of Continental or United Airlines frequent flyer
programs and travel internationally by railroad. Travel destinations tend to include Asia,
Italy, and France.
Young Professionals are also...
More Likely to...
PRIZMNE Clusters
7 Money & Brains
10 Second City Elite
11 God's Country
14 New Empty Nests
15 Pools & Patios
26 The Cosmopolitans
Lifestage
Group
M1
M1
Y1
M2
M2
M2
Social
Group
U1
C1
T1
S2
S2
U1
TOTAL
Base
Households
%Comp
2.93
1.56
1.92
1.46
1.69
1.62
US Visitor
Analysis
2000-2004
%Comp
6.61
2.18
3.19
1.70
1.95
1.91
US Visitor
Analysis
2000-2004
Index
226
140
166
117
115
118
11.19
17.55
157
4) Older Upper-mid Mix are predominantly older (45+) singles and couples living in singleunit homes. There is a higher than average Asian representation within these households.
They are likely to have bachelor or advanced degrees and are employed in white-collar
occupations. The median household income for this group is $71,025. Members of Older
Upper-mid Mix are likely to stay at a Hilton on vacation, be a member of Deltas frequent
flyer program, and visit Orbitz.com. Likely travel destinations include Spain/Portugal,
Ireland/UK, France, and the U.S. Virgin Islands. Airlines for international travel tend to
include Continental and Delta.
Older Upper-mid Mix are also...
More Likely to...
PRIZMNE Clusters
12 Brite Lites, Li'l City
29 American Dreams
31 Urban Achievers
Lifestage
Group
Y1
F2
Y2
Social
Group
C1
U1
U2
TOTAL
Base
Households
%Comp
1.99
2.90
2.44
US Visitor
Analysis
2000-2004
%Comp
2.18
3.37
2.49
US Visitor
Analysis
2000-2004
Index
109
116
102
7.33
8.04
110
5) Young Urban Mix are predominantly singles and couples under age 45 living in multi-unit
housing in urban areas. These young urbanites have a higher than average likelihood of
being Asian or Hispanic. They tend to be college educated and are employed in white-collar
and sales/office administration occupations with midscale incomes. The median household
income for this target group is $49,800. Members of Young Urban Mix tend to eat at a
variety of restaurant chains, including Arthur Treacher, Roy Rogers, Boston Market, and
Romanos Macaroni Grill. They are likely to travel domestically on American or United
Airlines and belong to Columbia House or a classical music club.
Young Urban Mix are also...
More Likely to...
Television Programs
3. Young Professionals
New York Times, Daily & Sunday
Access Hollywood (S)
Fortune
Travel, Travel Channel Secrets
Los Angeles Times, Daily & Sunday
VH1, VH1 All Access
Scientific American
MTV, Road Rules
Washington Post, Daily
MTV, Sorority Life
4. Older Upper-mid Mix
The New Yorker
Kennedy Center Honors
Scientific American
CNBC, Closing Bell
Fortune
CNN, Lou Dobbs Moneyline
New York Times, Daily & Sunday
NHL Playoffs/Finals
Money
CNBC, Louis Rukeysers Wall Street
5. Young Urban Mix
Los Angeles Times, Daily & Sunday
Nick at Nite, Family Ties
Chicago Tribune, Daily
Soul Train Music Awards
Vanity Fair
BET, Rap City
Elle
Grammy Awards
GQ
Malcolm in the Middle
Why segmentation
Segmentation and target marketing are
central to our marketing strategy
Different customer groups require the correct
marketing mix to suit their individual needs
NTAs operate on a limited budget which has
to serve all major markets and therefore
targeting ensures an effective allocation of
resources in areas with a high potential for
conversion
Product
The effectiveness of planning the
marketing mix depends as much on the
ability to select the right target markets as
on devising a product which will generate
high levels of satisfaction.
Tourist have to believe that the product
offers high value.
There should be continuous monitoring of
product via exit surveys
Product
ZAGAT
AAA
Brand Image
In order to effectively
sell and promote a
country we need to
understand the
consumers perception
of the destination and
determine what points of
differentiation set the
island apart from the
competition
Conducting brand audits
starting with the
perceptions of current
customers
Barbados for example
trades on Friendliness,
safety and security
The island that works.
Price
Extremely challenging for a destination
marketing organization as they do not
control any inventory
We cannot tell a supplier to sell his
product at any specific price even if its
priced above where it should be.
Advertising &
Promotion
Testing of Concepts
Before launching any
campaign it is tested
either through focus
groups or more
recently we have
embraced the new
technologies to test
our concepts to
ensure that the
message is most
effectively
communicated
Distribution
Forecasting
Tourism is a highly perishable commodity. A
room or airline seat not sold today cannot be
sold tomorrow
This highlights the need for accurate forecasting
as it has implications for jobs and the general
health of the economy as tourism is the main
engine of growth for many islands within the
region
Countries can be proactive in devising strategies
in the event of fall off in business.
The data from the E/D cards is useful as well as
information from travel partners
Forecasting
The BTA reported this to the government for
planning purposes.
This has resulted in a US$15 million fund being
established to aid properties and attractions in
distress due to the economic fallout
This will minimize job losses and to try to
prevent any major downturn in the economy
from the tourism sector as it is heavily tied to the
other sectors of the economy
Evaluation of Proposal
The evaluation of all proposals should be
conducted based on the information
sources available
This should be done with a ROI on these
events in mind.
Must provide a minimum return of 20:1 to be a
viable option
Coverage of the event must be significant
band in line with the image and profile of
Barbados.
Event Evaluation
Focus testing and surveys of participants
to help with future events
Other Events
At this time not viable as the profile of
clients not necessarily Barbados clients
Conclusion
Destination marketing and planning for the
Barbados Tourism Authority involves interaction
with various publics from the both from the
supply side and the demand side and protecting
their interest.
It is imperative that the relevant information to
make sound decisions is available and that
actions are taken in the most cost effective way
to the benefit of Barbados as a whole.
QUESTIONS