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Unit 2. Market Planning - Coggle Diagram

- - - - A market can also be defined as the aggregate of demand by potential customers for a product or service. For example, there is an agricultural market for petroleum products. In economic theory a market implies a set of conditions and forces that determine prices. That is, the meeting of sellers and buyers, the determination of price and the transfer of title are essential activities for the existence of a market.
    - - . Market segmentation consists of taking the total heterogeneous market for a product and dividing it into several submarkets or sectors, each of which tends to be homogeneous in its important aspects. In terms familiar to an economist, we are preparing several demand patterns - a separate one for each sector of the market - where previously there was only 'one representative pattern of) the total market. So, instead of talking about one market for Bermuda shorts, we now segment this market into several submarkets: those for college students, university students, businessmen, housewives and retirees. Further segmentation could still be done based on geographic location.
        
        For example, we could talk about the market for college students in the East, or the market for college girls on the Pacific Coast.
      - Identifying potential markets and developing distribution channels are responsibilities of the marketing and sales division. This important division performs five basic functions:
        
        Research markets
        
        Cultivate corporate accounts
        
        Sell hotel services for conventions and banquets
        
        Negotiate discounts for wholesalers, large corporations and groups
        
        Promote the hotel to key clients
    - - But these two functions often do not share expertise. One author has suggested four reasons for the lack of coordination between marketing and R&D.
        
        Product-oriented company philosophy: In many companies the orientation is internal, dominated by products, properties and processes. This attitude leads to the development of products that are designed according to the technological capabilities of the organization rather than the needs of the market.
        
        Deference to I&D: Marketing managers' lack of knowledge about the tools and techniques of the "scientists" leads them to be permissive or too deferential to R&D. As a result, some R&D efforts may lead to products that have little chance of achieving commercial success.
        
        Pursuit of perfect products: I&D often tries to achieve product perfection. But the market may well demand more than a technically superior solution. Technically superior products may not be marketable because their complexity may prevent high reliability or ease of maintenance. Alternatively, such products may be priced too high due to excessive production costs.
        
        Science versus art: Although the satisfaction of a market is derived from its benefits (some of which may be intangible), R&D is concerned with the tangible attributes of products.
        
        Since most companies in marketing and R&D tend to see their activities as very different from each other, it is almost impossible to achieve collaboration between them. In a study of small and medium-sized German companies with between 70% and 90% world market share, it was found that these companies viewed the market and technology as equal dynamic forces. These companies believe that when technology dominates, engineers are distanced from customers.
- - - - The distribution structure is a highly complicated organism, made up of a wide variety of reasonably distinct institutions. Very little systematic research has been done on it. Its constantly variable nature makes complete analysis very difficult and yields a result that quickly becomes outdated. Another factor that obscures careful study of the distribution structure is the overly simplistic treatment of it in marketing books and in Bureau of Census data. In the Census of Business, each individual company is placed in a single, traditional category, depending on which category accounts for 50 percent or more of the company's annual sales volume.
  - - - ¿Who are tourists?, ¿why do they travel? , ¿what destinations do they choose and for what reasons? Governments, city planners, public transport companies and resort owners are continually searching for the answers to these questions. Some of the answers are obvious, others need to be researched. Those selling travel and tourism, having obtained this type of information, undertake a task in which they try to communicate with their "target markets" using such means as advertising, promotion and others.
- - - - To train your staff at the lowest possible cost in the difficult transition from waiters and receptionists to salespeople. Each company, individually, would find it difficult to finance this training.
      - To make a geographical area a tourist destination, with each company contributing in part, proportional to the resources necessary to develop common actions.
      - Being stronger visàvis suppliers of products and services, improving the offers. This action helps entrepreneurs to target future actions.
      - Define, control and implement the desired quality levels for the destination. Without a strong association, quality levels drop and a deteriorated and consequently poor area is created.
  - - - In any case, that the offer exhibited is classified and truthfully described in its real characteristics.
      - That the offers and information provided to applicants be transparent to all members of the reservation center.
      - Control the quality of the products served by suppliers, which will avoid offering inadequate quality to visitors to the destination.
      - To create its own labor exchange, avoiding "dealing with the first person who comes along". This pool will train, select, promote and regulate employment. The references of each other will form a real resume for the employee, to avoid surprises in the middle of the season.
- - - - Some advertising professionals focus on creating new markets, others concentrate on established markets.