The paper "Product and Pricing Courses are underrepresented in Undergraduate Marketing Curricula" is a perfect example of a Marketing Case Study. The marketing objective of this travel agency is to capture the interests of potential customers through the endorsement of adventure as part of personal growth and reach an annual growth rate of 10-15%. This marketing plan aims at targeting 80% of young people between the ages of 20 – 35years old, this market segment mainly includes; students who want to travel as a group, solo travelers or couples.
The marketing strategy for the business will focus on creating brand awareness by 80% through advertising and promoting the company’ s personal products such as customized travel packages to customers. The agency seeks to incorporate a personal approach to its services which will include travel arrangements and consulting which is a strategy to acquire at least 30% market share. Marketing Mix The marketing mix is defined as the various variables that a company can use in order to satisfy the needs of its target market (Kotler, 2003). Marketing managers must formulate a systematic strategy that will attract potential customers and assist an organization to acquire a significant market share.
The marketing plan mix is made up of 4Ps that are used in defining the product, place, promotion and pricing strategy of an organization (Goldsmith, 1999). Product Strategy The agency’ s main product is a blend of travel services and products. The tourism services offered include adventurous experiences to destinations that give consumers realistic experiences. Services will depend on the customer’ s preferences and needs. The travel agency core services are transportation to a destination, travel arrangements, consulting, hire services for tour guides, booking arrangements of accommodation or destination of travel among other tourism products around and outside Australia.
The product strategy offers a complete tourism package, which is a product mix of transport, attractive views, and accommodation. Adventurous activities included in the product mix will involve; 30% water rafting or kayaking, 35% snorkeling and scuba diving, 30% biking trips, 70% camping and 65% hiking. The travel agency will focus on hardcore adventurous activities to gain a competitive advantage over its rivals. These experiences include outstanding customer service, value, and quality.
Kellerman et al. , (1995) state that a competitive approach must include products and services that are not only unique but also meet the consumer needs, wants and values of the target market. Thus the agency will focus on providing its customer base with unique, customized and quality services that will satisfy their needs. Pricing Strategy Pricing is a vital feature of management that is used in assisting an organization to reach its target (Robicheaux, 1976). The core pricing objective for the business is to attract customers and increase market share.
Competitive pricing will allow the company to maintain consumer loyalty in the long run and compete favorably with other companies in the industry. The travel agency will base the pricing on after-sale services such as fare, accommodation fee, exclusive utility fee not included in the tour package and additional costs that a client will incur. Pricing will also be determined by the tour destination and season which are used in calculating the demand and supply in the tourism industry. Competition from rival companies will influence the pricing strategy as the agency will have to ensure that the company prices match the current market.
In order to gain competitive advantage an organization must be in a position to match its prices to that of the competitors. This is because pricing is one of the key components that consumers use in deciding which competing brands to settle for (Rosenberg & Czeipel, 1992).
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Kellerman, B. J., Gordon, P. J. & Hekmat, F. (1995). Product and Pricing Courses are underrepresented in Undergraduate Marketing Curricula. Journal of Product & Brand Management, 4(1), 18-25.
Kotler, P. (2003). Marketing Management (11th ed.). Prentice Hall International Editions.
Möller, K. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing by E. Constantinides. Journal of Marketing Management, 22(3), 439-450.
Robicheaux, R. A. (1976). How Important Is Pricing in Competitive Strategy?. In Nash, H. W & Donald, P.R. (Eds). Southern Marketing Association 1975 Conference, Southern Marketing Association, Atlanta, 55-57.
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