Tuesday, July 31, 2018

Business Models Assignment

Business Models Assignment

11-12-17 Maddox Smith 0 comment

Business Models AssignmentBusiness Models Assignment

Introduction

E- Commerce is an extensive sector where purchase, exchange, product, service and sale are some of the major factors. Simply, it can be described as a bridge for exchanging the commodities and other activities which mainly involves transfer of suppliesfrom the producers to that of the consumers. From the facts mentioned in the website of European Union, e-commerce is famous its different types of business transaction as well as exchange of information by the use of ICT otherwise known as Information and Communication Technology among diverse companies, in the companies and among the consumers as well as public administrations(Jones et al., 2000). However, from the website of IBM, the definition of e-Business is quite clear-cut and it is the modern concept regarding the transformation of major business activities with the help of internet technologies(Jones et al., 2000).
Here in Unit 30 E – Business Models Assignment research paper, the scenario of A2Z Cosmetics is the point of interest in terms of factors like- internet and e-business along with e-business solutions. It is an established manufacturing company that deals with cosmetic products. For the different marketing strategies in this rapidly-transforming and competitive business sector, structuring an e-business strategy with all sorts of e-commerce by gathering all the e-business knowledgein the mind is the main purpose of this paper. Therefore this report with four tasks and imperative questions will be presented to the Chief Executive of A2Z Cosmetics Mr. J. Simon so that the BOD or Board of Directors Committee of this company will get convinced with the implementation of the new e-business strategies(Zhu & Kraemer,2005).
The major objectives of this Unit 30 E – Business Models Assignment are-
  • Understanding the scope of e-business
  • To get ample knowledge about the functioning of internet in the company
  • Knowledge and Utilization of different e-business models
  • Superior quality website designing

TASK-1

a) Discuss the environment in which e-business is conducted and describe various e-business transaction types.

Importance of the environmental analysis regarding an organization or monitoring the changes related to the environment is necessary for companies, like- A2Z Cosmetics. There are two major environmental factors known as micro-environmental factors as well as macro-environmental factors that have direct impact on A2Z Cosmetics(Amit&Zott, 2001).
Macro-environment factors include- Social, Legal, ethical and taxation, Economic, Political, Technological and Competitive aspects related to the organization, whereas Micro-environment consists of the aspects of e-marketplace like- the organization, its suppliers, the consumers, its competitors, the intermediaries and the public(Amit&Zott, 2001).
Internet is the most imperative environment in which all the e-commerce processes through a computer network can be conducted like- buying or selling. E-commerce based on internet has created revolutionary business style along with management and global trading. In case of A2Z Cosmetics, information sharing is a significant activity which helps to sustain the coordination among the clients and the company as well as coordination with the trading partners.(Zhu et al., 2006)Due to the vast network of internet through which people can share unlimited information and it also works like an enabler for the e-commerce of companies, like- A2Z Cosmetics as it allows cosmetic business to showcaseas well as sell the products to the customers and providing the services(Menasce, 2000).
According to the CREC or Center for Research and Electronic Commerce of University of Texas there are four key layers present in the conceptual framework related to the internet and according to this concept, those layers are- Internet Infrastructure, Internet Applications Infrastructure, Internet Intermediaries and Internet Commerce and A2Z Cosmetics will come under the forth layer as it sells the products directly to the end-users. Internet based business is directly dependent on the different types of e-business transactions and those transactions are mentioned below-
  • Business-to-Business type transaction: In this type of transaction both the sellers as well as the buyers are two sorts of business organizations and the extensive range of e-commerce volume is of this particular type of transaction. This transaction is confined to the business partners and protective measures like- firewall, encryption, top level of authorization are integrated with the payment methods.
    Example- Oracle and Linkshare are two prominent organizations that deal with the main application service and it makes the transaction type B2B(Beattie & Pratt, 2003).
  • Collaborative Commerce or c-commerce: Collaboration among the business partners electronically is the keyapproach in c-commerce. All along the supply chain, this type of collaboration occurs among the business partners.
  • Business-to-Consumers: In this particular type of transaction, sellers or wholesalers are the organizations and the customers are individuals.
    Example- Amazon.com would be the perfect example as the top web storefront, where customers are allowed to browse through the catalogs and then they can place orders and the products are directly get delivered with the help of distributors.
  • Consumers-to-Businesses: It is known as C2B type of e-business transaction and here particular products are set according to the needs of theconsumers. Then, the suppliers compete among themselves to provide better services or products in terms of quality and other factors like- faster serviceto the consumers.
  • Consumer-to-Consumer: In this type of transaction, a person sells the products or provides services to other persons. The individuals also linked with one another by exchanging the products or services in this sort of transaction(Beattie & Pratt, 2003).
  • Intra-business or Intra-organizational Commerce: In this type of transaction, e-commerce operations are utilized by the organizations for the improvement. B2E or Business to Employee is a special case which comes under this transaction type.

b) Explain the benefits and barriers to a business considering its online presence.There are three stages of benefits which

There are three stages of benefits which are being experience in case of A2Z Cosmetics and these benefits occur due to the online presence of A2Z Cosmetics in the internet world.
Those benefits are based on in terms of-
The Organization
  • Expansion of the marketplace related to A2Z Cosmetics to the national as well as international level has been possible, with minimum capital investment.
  • With the help of online presence the company can locate its potential customers in a faster manner.
  • Finding the best suppliers along with appropriate business partners is not at all a problematic issue for A2Z Cosmetics.
  • It provides a platform for the company to procure better products as well as servicesin comparison to its competitors and with lower cost.
  • With the shortening of the distribution channels which can be possible with e-business products will be cheaper and the revenue of A2Z Cosmetics will increase, vendors will also get higher profits(Fernandez et al., 2011).
  • With digitalization of the different processes, around 90% of the costs related to the processing, storage, distribution etc can be minimized.
  • It allows A2Z to maintain a lower inventory with the help of supply chain management which is based on the pull-type management and in this way; it consents to the processes like- product customization as well as reducing the inventory rates.
  • VANs or Value-added Networks are quite expensive, so online presence helps to reduce the telecommunication costs as internet is much cheaper.
  • It provides a competitive platform to companies, like- A2Z cosmetics to compete against giant firms.
  • It works as an enabler to create a specific and focused niche market.
Customers
  • Cheap products as well as services which can be achieved by the consumers with the help of quicker online searches and effective products and services comparison.
  • Extensive ranges of choice so that they can select suitable products as well as vendors(Fernandez et al., 2011).
  • 24 hours online service and shopping is the benefit of e-business and the products get delivered to any location the consumers want.
  • Customized products in most of the product types are the specialty of this type of business.
  • Electronic auctions for the benefit of both consumers and the vendors.
Society
  • With the help of this, the individuals can simply work at homes which helps in less travelling and hence less pollution.
  • Manyproducts can be sold with low price with which standard of living of the people will be improved.
  • In developing countries as well as rural areas, the people can enjoy the services along with the products which generally are not available at those places.
Barriers to a business
There are two types of barriers, one is- technological Barriers and the other one isnon-technological barriers.
Technological Barriers
  • Lower standard of acceptance related to thequality of products and services along with the security as well as reliability factors.
  • Inadequate telecommunication bandwidth.
  • Software development tools that are of self-evolving nature.
  • Problems regarding the integration of e-commerce applications and the internet along with the software.
  • Requirement of the special Web Servers plusthe Network Servers.
  • Expansive factor as well as inconvenient accessibility issues related to the internet.
Non-technological Barriers
  • Some of the legal issues are unresolved.
  • It requires more appropriate and relevant national as well as international government policies as well as standards.
  • More mature and established methodologies are required for measuring the benefits of e-business.
  • Most of the sellers as well as customers wait so that e-commerce gets stabilized and then, they will take part.
  • Resistance of consumers to get inclined towards a virtual store by leaving the real ones due to lack of trust and faceless and unknown transactions where there is no need of paperwork.
  • There is a perception in the market, that e-commerce is pricey and it is unsecured which is a misconception of the people.

c) Assess the security and legislative issues facing the online business of ‘A2Z Cosmetics’.

Ethical standards as well as their incorporation in case of online business activities of the company A2Z Cosmetics is the major purpose of this assessment section. The revolutionary approach of e-commerce and its changing to new forms style have created new risks which could be the result of new style of business practices(Eger et al., 2007).
  • Consumer and Seller Protection:In thesetypes of transactions, buyers and sellers don’t get to know each other (many times the transactions happen among the individuals or organizations that belong to different countries.). So, there is always a chance of dishonesty and thereby people often face a situation of fraud as well as many other crimes in the world of internet.Starting from the commencement of e-business, consumers have been facing this particular problem, e.g. -a virtual bank got disappeared by taking all the deposits from the investors, other example of this issue is stock price manipulation. These fraudulent activities are increasing day by day which is an alarming issue(Fernandez et al., 2011).
  • Fraud in the world of Internet:Internet fraud as well as its complexity has increased a lot in this modern era of internet technology. Cases of stock fraud are quite frequent as there is no reliability in the information provided.
Likewise auctions are quite favorable towards fraudulent activities over internet. However, other areas like- bogus deals or investments as well as phantom trade opportunities come under the potential issues of fraud in the sector of e-business. In case of A2Z Cosmetics, Financial Criminals are there who have access to more and more people which could be due to the greater inclination towards electronic mail. The initiatives by the governments, like- exemplary activity by the US Federal Trade Commissioncan create revolutionary step by which the legitimate issues of e-business can come to the front. E.g.-the ftc.gov published twelve examples of scams that arrived via e-mail as well as located on the web(Beattie & Pratt, 2003).

Business Models Assignment

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d) State different modes of communication available to an e-business and their applications.

Due to the progress of technology, new modes of communication are evolved and similarly the old ones are fading away. The cost-effective factor of these avant-garde modes of communication is the key reason for which people are getting more habituated towards electronic media.
Communication through Mobile Devices:The increasing manner of this style of communication has created a platform for the communication which is availableto the e-business sector. Text messages, short emails are the new forms of communication in this era with the help of cellular phonesas well as PDAs otherwise known as Personal Digital Assistants. Text messaging is the most favorable manner of communication which has been found from the researches. Quick Messages Services is a modern way of communication which occurs among the sellers and buyers(Amit&Zott, 2001).
Social Media:Social Networking Media is considered as the most prominent tool of communication which continues to take the first position among all sorts of communication modes. A2Z Cosmetics can promote the exclusive products along with the exciting offers via these social media sites which creates a center of attention for the potential customers. The recruiters as well as salespeople of the company very often get major contacts with the help of these sites.
Email:It is the oldest form of communication mode among all the three types of communication medium in e-business. But, due to its versatility it still managesto take the market as this form of communication is effective in case of asking questions as well as getting the solutions, mini conferences as well as awareness programs, sending documents and sharing of information. Nowadays, many courts are considering email as a piece of evidence and can be issued as a legal testimony so that transactions can be analyzed(Zhu & Kraemer,2005).
Business communications like- shopping carts are quite popular in this era of e-business. Shopping Cart is for the simplification of the shopping process so that an online consumer can purchase multiple goods easily from the e-commerce websites. The deeper style of infrastructure of the company website offers a user-friendly interface to the consumer which allowsthe consumers to select the merchandise according to their choices and then they can also review those and purchase them. This is a type of software with the help of which a list of products can be created by the customers and subsequently the overall fees are shown to the consumer automatically(Zhu & Kraemer,2005).
FAQs:  In case of FAQs, the consumers can directly get their solutions as specific solutions are mentioned in the websites previously. Consumers have to just click on the selected problems and then the solutions related to the problems will occur which is quite a simple process. Therefore it is called Frequently Asked Questions.

TASK 3

Illustrate different e-business models that can be used to generate revenue for a business

  • Web Catalogue Revenue Model: Reduction of the cost and improvement related to the customer services are the main motives behind e-business, but one of the primary aimsis also to make considerable revenue as well as get profit. It is the simplest style of e-business model which is intended for generating revenue. Electronic catalogue along with integration of shopping cart is the main concern here in this model. Payment that is received from the consumers is the sourceof revenue(Fernandez et al., 2011).
  • Digital Content Revenue Model: Diverse information services are offered by many e-businesses, like- legal data, corporate and government information, other news as well as resources for the academic libraries and many others. Based on the requirements and usage pattern, all these services are customized through e-business but in line with the sizes of the organizations. A define amount of subscription charge is required to access the information and there is also an option of credit card. Digital Content Revenue Model provides the knowledge regarding this type of revenue generation(Fernandez et al., 2011).
  • Advertising-Supported Revenue Model: In this particular model, the information is offered without any charges applied to the consumers so that certain audiences get attracted. Here the advertising revenue is adequate enough for the support of the operating cost of the website. E.g.-Yahoo provides data which is free of cost but the website earns most of the revenue from advertisements which is beyond the operational cost.
  • Advertising-Subscription Mixed Revenue Model: In this model, the subscribers pay a certain amount of fee but they have to accept advertising to a little extent. In this way, the e-business creates revenue from both the sources which is from the subscription as well as from the advertisements. Online newspaper sites come under this particular model.

b)  Compare and contrast two models by assessing the benefits and challenges. Analyze each model in terms of its capacity to generate revenue.

Fee-for-Transaction Revenue Model: According to this model of revenue, the businesses charge an amount according to the transaction size of the deal. From this e-business type, information get received by the consumers and that information is compulsory for the completion of a transaction, so the revenue is based on the size of the transaction. E.g.-Online travel sites are based on this e-business revenue model along with the stock brokerage firms in which they get commissions according to the size of each of the transaction of stocks or the shares(Fernandez et al., 2011).
Fee-for-Service Revenue Model: This model is just the opposite of Fee-for-Transaction Revenue Model, in which the fee is dependant to the value of a few services. Some of the professional services offered by the doctors, lawyers, consultants and accountants online come under this model of revenue. The e-business related to entertainment or online games also come under this model(Fernandez et al., 2011).

c) Report on future developments in e-business models

Some of the emerging grounds which can be observed while analyzing the e-business models are-
The e-business models are rising in the form of new unit of study which is the major developmental step in this sector.
Holistic approaches of the e-commerce websites with the explanation of how the business is going on in case of a firm is also an innovative approach. Here, the models are being developed to emphasize the system-level approach of a company.
Organizational activities are not mentioned upon which researches are continuing and this is a topic of thinking by which e-business can be progressedfaster.
The e-business models are being improved so that these can reach up to the explanation associated with the values of the organizations.
A process of doing business by following which, revenue can be generated for sustainability is known as the e-business models. Value proposition of the customers is the future direction that is related with the business model structure and it denotes the quality services offered to the customers along with the relationship of the e-commerce companies with the customers. For this the imperative and fundamental work is to make a proper list of resources according to its availability, the need of development and those resource that need to be obtained. A proper description of supply chain of the organization along with the suppliers as well as business partners is also required for the future development. Perfect implementation of the appropriate kind of revenue model along with anticipated costs, financial viability as well as finance sources are some of the essential points of concern here.

TASK 4

Use key elements of good website design structure

  • Strategy Formulation
  • User Experience Definition
  • Architecture Design Process
  • Implementation
  • Test/Fix
These are the major steps and imperative elements those are required to build a good e-commerce website. In the implementation, the major components for the website design structure are required that are- template designing, content writing, backend coding and at lastthe integration of security network. Testing of the website is an important part which is obligatory before the launch of the website. Apart from this, the website must feature the multimedia aspects,content as well as other functions. Other additional components are- functional specification, change management and project planning.
Along with it, there are several details which should be developed and redeveloped while thinking about a well-designed website structure. Among the top prominent online retailers, there key elements are quite common which trigger success towards the company. These elements are-
  • Relevant contents: No matter how beautiful is the website but, if the content of the ecommerce website is not useful, the customers lose interest about knowing the products and services of the organization.
  • Clear and understandable Visual Hierarchy: This particular element is about impressive designing along with clear-cut visual hierarchy related to the company website. Using attractive graphics and simple design show creativity with higher level of usability, by which conveying the message to the potential consumers gets easy.
  • Usability: It is about the consumer satisfaction which can be achieved with the help of well-designed navigation structure, high-level security and solid search tool. A simple but comprehensive style of shopping cart system along with instantaneous conformation page of order, tracking page of the orders and wish lists are the points of concern here.
  • Good navigation: Consistent navigation structure across the overall pages of the official company website creates a centre of attention. Here the organizational goal must include the minimum number of clicks for the best practice among the consumers and the messages along with the information regarding the products and services offered by the company.
  • Interactivity: Well-organized interactive communication system facilitates robust interaction among the audiences and the corporation. Top-quality links along with unique and remarkable contents, eye-catching graphics are some of the factors which come under the notice of people who browse through the website. With this approach, valuable feedback of the potential consumers can be gained which might be useful for the development of ecommerce website.

b) Evaluate the impact of a well-designed website on an e-business

For expansion of an organization, a well-built website with impressive design is the key element in the e-commerce world. Customers all over the world will visit the designed website, so it will create an impression in case of the consumers which will directly affect the reputation of the company. The virtual modes of shopping or getting the services should be properly elaborated with a touch of elegance and attractiveness, otherwise people lose interest and they will go for another company. User-friendliness along with attractiveness is the major areas of concern while designing a website and it has been known from the customers’ point of view(Eger et al., 2007).
Impact of a well-designed website to the e-business can be considered under the following areas-
  • Information sharing and message transmission: With the help of high-tech tools and their integration into the company website, interactive communication among the organization and the potential customers can be increased. It can be considered as an element of opportunity that stimulates two-way sharing process related to information and facts.
  • Public awareness: With the help of a well-designed website, the function of website, tools and search engine can be balanced which will strengthen the operation, campaigns and promotional activities of the organization.
  • Branding: Clear visual hierarchy provides attractiveness and when rich content is used in those spaces, consistency gets reflected from the website with valuable message and the name of the organization becomes a brand for the consumers.
  • Public relations: People know about the perfect services and exclusive product details from the well-designed website which acts like a major source of reference that supports the correlation among the customers and the organization
  • Marketing: The marketing strategy of ASDA is dependent on the output of the company and marketing of the products, services as well as the whole organization as a brand can be effectively done with the help of well-designed website.

c)  Report on the issues concerning website usability

From thestakeholders’ accessibility standpoint, the website is quite effective as they have complete access to analyze the products and services of A2Z Cosmetics. Major groups of audience will get fascinated due to the exclusivity of the product range and the services. In addition to that, the usability of the website is quite inventive due to the multi-sensory access which is very helpful for the visually impaired persons and individuals who have color blindness. According to the legal responsibilities of the company, the website perfectly fits the consumers as discrimination legislation is provided on it.
There are some common problematic issues related to the usability of the website and those are-
  • Indistinct explanation of product details and other information which creates confusion.
  • Due to the overusing of Java applets, flashy elements, ad banners and larger graphics, longer loading time is often come to the sight.
  • Sometimes sites need the installation of unnecessary and useless software which leads to inconvenience.
  • Difficulty in navigation control due to ineffective style of systematization related to the navigation links.
  • Inappropriate designing of the website causes poor quality of readability
  • Inconsistent designing of graphics related to the website also causes ugliness, as a result of which customers don’t want to visit the website anymore.

Reference

Jones, S., Wilikens, M., Morris, P., &Masera, M. (2000). Trust requirements in e-business. Communications of the ACM43(12), 81-87.
Tsalgatidou, A., &Pitoura, E. (2001). Business models and transactions in mobile electronic commerce: requirements and properties. Computer Networks,37(2), 221-236.
Zhu, K., & Kraemer, K. L. (2005). Post-adoption variations in usage and value of e-business by organizations: cross-country evidence from the retail industry.Information Systems Research16(1), 61-84.
Amit, R., &Zott, C. (2001).Value creation in e?business. Strategic management journal22(6?7), 493-520.
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Marketing Objectives of Starbucks

Marketing Objectives of Starbucks Assignment:

Introduction

Starbucks is one of the most recognized and biggest coffee brands in the globe. It started in the U.S. in 1971 and today has become the largest coffee selling firm in the world. This unassailed position is a result of careful deliberation by way of numerous strategies and careful and well thought out international expansion into key territories. Even with its higher than normal pricing, Starbucks is able to hold its head high up above the competition primarily due to the quality of its offerings and secondary due to the ambience offered at its stores. Starbucks lays a lot of emphasis on the coffee drinking experience as a whole and not just coffee drinking at its outlets that is a part of its success story.
A differentiating factor of Starbucks from other FMCG firms is its minimal advertising strategy. Starbucks banks on its high quality products and customer service to do the talking on behalf of the firm and word of mouth publicity is what brings a bulk of the customers to its outlets. Customer service is also top notch with their baristas specially trained towards offering superlative customer service. The firm also has an extremely streamlined distribution system that culls out best quality raw materials from various countries ensuring quality products at economical rates.

Task 1

1.1 SWOT analysis of the organization and the importance of using SWOT analysis as a marketing tool

On the strengths front; it is the leading roaster and retailer in the world of brand speciality coffee as pointed out by Manize (2011). It possesses a strong brand image with a potent tagline ‘The Starbucks Experience.’ It is worldwide organisation having more than 16,000 outlets spread across 48 nations. Starbucks is famous for offering superior services and products. Customer loyalty is high as is quality control. The feel of the stores is upmarket resembling Italian coffee houses with apt interior design, artwork and ambient music. Strong competitors are few for Starbucks and market share and growth is really high.
Coming over to the weaknesses front; the coffee giant is too focused on the U.S. domestic market. High pricing is also an issue with all markets not taking kindly to it. The brand also carries a tag of being ‘American global’ which poses sentimental issues for people belonging to certain countries. This retailer also does not give a guarantee that the products sold through its various outlets are devoid of genetically modified ingredients.
Moving over to opportunities front: today’s customers are much less price sensitive than before which augurs well for the brand. Starbucks is able to change coffee’s negative image into a positive one. The group has robust financial support. There are also future opportunities to diverse into product areas other than coffee. Starbucks banks well on the aspect of fulfilment of self-esteem and the need to be loved and belonging to the community making it an attractive proposition for people and thus in turn enabling it to penetrate markets easier.
Rolling over to the threats arena; the global financial meltdown has brought down the spending tendency among people thus affecting Starbucks adversely. The retail giant also faces threats from alternate products such as colas, juices and teas. Coffee drinking is also increasingly being viewed as not auguring well for the health of people.
A SWOT analysis is a real potent marketing tool as it helps a firm and also its competitors to identify the differentiators that matter in effective marketing of services and goods as noted by Silva (2013).

1.2 Marketing objectives of Starbucks and how defining marketing objectives can help a business to develop marketing strategies. How does this contribute to the benefits of costs

The marketing objective of Starbucks is to fulfil its customer’s needs and requirements in the gourmet coffee niche as pointed out in the researchomatic website (n.d.). This leads to increased profitability for the firm as they are able to charge higher being in such a niche where the customers are willing to shell out that extra bit of money. Its marketing objective is also to provide its customers with the Starbucks experience that would make them enter the Starbucks cafes for the coffee, stay and linger due to the ambience and come back owing to the customer connection created as pointed out by Salehi (2011). Starbucks also aims to cultivate an image distinct from smaller coffee chains. The coffee retail giant also wants to lucidly communicate the commitments and values of their business to their customers and don’t want to rely on only their growth plans published in the media.
A marketing strategy is the game plan in achieving the marketing objectives as noted by Seltzer (2010). A clearly defined list of marketing objectives only can lead to such a game plan.  A marketing objective can be defined as a purpose or mission on which the entire marketing plan will be based upon. Marketing objectives are really wider in scope than goals. The marketing objectives should possess a clearly laid down completion timeframe. For every year, a new marketing plan should list down desired achievements for that particular year. The marketing objectives should be consistent with and also note the priorities of the business as pointed out in the SmallBizConnect website (n.d.). The objectives should pour forward from the business’ mission statement, onto the financial objectives and to the remainder of the marketing plan.
Starbucks marketing strategy is built around cultivating lasting customer relationships by way of commitment and trust with its stakeholders. The coffee giant also develops a connection with customers by treating them like family amidst a friendly and inviting environment. Referrals work a lot for promotion of Starbucks by way of word of mouth as the firm invests little on traditional marketing methods and utilizes its stores as their promotional bandwagons.

Task 2

2.1 Micro and three macro environmental factors influencing marketing decisions in Starbucks

The biggest macro environmental factor that has affected marketing strategies at Starbucks off late is the global financial meltdown. Recession has meant more and more people are reducing non-essential spending meaning reduced footfalls in Starbucks outlets that in turn have affected its bottom line adversely. This has forced Starbucks marketing decisions to make its brand look deliberately attractive as opposed to the earlier scenarios where the brand itself was a magnet for the customers.
Another macro environmental factor influencing marketing decisions at the coffee giant is competition. Competitors like McDonald’s and Dunkin Donuts were more cost efficient offering much better economical pricing and as a result had eaten away business from Starbucks as pointed out by Middleton (2009). In response, Starbucks took cue from such competitors and introduced breakfast and coffee combos for $3.95.
Yet another macro environmental factor affecting marketing at the coffee giant is the increased health consciousness leading to fast food outlets being branded as no go zones for the health savvy. Starbucks took a good PR initiative of publicizing the nutritional facts of all its beverages on their website to counter this trend to some extent.
On the micro environmental front, Starbucks has stepped back from its unhindered store expansion spree and instead is concentrating on further enhancing its already entrenched stores. Price is yet another micro environmental component that Starbucks is seriously looking into. Starbucks which until recently followed pricing that was much higher than other coffee outlets has made reduction in prices that makes it prices more closer to its competitors.

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2.2 Segmentation criteria most applicable for Starbucks to use for their products in different markets.

The most vital segmentation criteria which Starbucks has to put it focus on, in my opinion, is the coffee and non-coffee segmentation. Although Starbucks currently offers teas and children’s beverages at it outlets, it has to further leverage on the demand for non-coffee beverages without offsetting its prime emphasis on coffee. This would help Starbucks leverage its market position in primarily tea drinking geographies like China and India. Since Starbucks does not indulge in much of traditional advertising, the emphasis on coffee is present mostly in its outlets only. Thus there is no harm in populating its menus further with more non coffee beverages that would convert more sections of population into the Starbucks fold.
Starbucks can also get over some of the health stigma associated with coffee drinking especially the outlet variety among the health conscious. Although Starbucks is offering more health oriented menu items it has to definitely introduce more such items, as on coffee it cannot go beyond a point in reducing the health risks. I would recommend Starbucks to introduce really healthy products like ones peppered with herbal ingredients. Starbucks can also educate its customers on daily calorie intake required and such basic and vital health information so as to offset the unhealthy stigma associated with coffee drinking.  But one caveat here is the coffee giant should never indulge in false propaganda of advocating the health benefits of drinking coffee. Such a move would only backfire especially in this age of activism and super awareness.

2.3 Targeting strategy and positioning strategy

Starbucks is quite innovative when it comes to its product mix. The most striking product mix that appealed to me was its seasonal one. To cite an example, when it is Christmas time, red cups and ginger bread latte are put on menu as pointed out by Berman (2014) keeping in tune with the seasonal spirit. This kind of a targeted marketing works wonders. Starbucks should leverage more on this as a sense of urgency is created among the customers to pick up a seasonal product. To cite an example, a customer would most probably pick up a gingerbread latte knowing fully well that it will be months before the product will reappear on the Starbucks menu. This is a magnetic attraction for customers and Starbucks should really widen such product base. For example, Starbucks in my opinion could introduce latte Easter eggs during Easter season, so that again during Easter season it results in a buying spree from the customers thus ringing loud the cash registers. Starbucks can also widen such seasonal offerings by diversifying into non-religious celebrations too. For example, on Valentine’s Day the coffee giant could offer special beverages encapsulating the spirit of the celebration complete with cups that give out a message of romance.

2.4 How buyer behaviour affects marketing activities in different buying situations.

Today’s consumers are health conscious and coffee drinking especially in specialty chains has acquired a certain level of notoriety. This could severely affect Starbucks sales. Marketing managers should be wary of this trend. Buyers are thus ever more health conscious and the description of nutritional facts of different beverages offered by Starbucks put up on its site is a good start. I personally feel though there should be more done on this aspect. Sign boards could be kept at vantage points especially in flagship stores where there is a lot of space available as to how Starbucks cares for the health of its customers. Also the menu cards should incorporate vital health messages that are linked to coffee and other offerings from Starbucks.
Also it is time for Starbucks to reduce its ominous dependence on coffee and veer more towards other non-coffee beverages like tea. Although at present there are teas like tazo teas and other non-coffee beverages available, not much emphasis is laid on them. Perhaps, Starbucks is overly worried that it will take away the shine of their coffee emphasis which is their bread and butter. But with well though tactical marketing strategy, this can be very well achieved. Such an emphasis on non-coffee drinks will serve to increase further the market share of Starbucks and also help it gain a foothold and entrench in territories where coffee drinking is not much in vogue.

2.5 New positioning for a selected product or service

What I am proposing is a seasonal offering that can be introduced on Valentine’s Day. This product should be positioned for the youngster segment comprising of late teenage and early youth age brackets or the 16 to 25 age group. But for this positioning Starbucks should break free of its traditional anathema towards conventional advertising and should give coverage especially among media targeted at this age bracket like music television channels. Once this gains traction with sufficient popularity, Starbucks can again abandon traditional advertising. With a successful campaign such traction can be achieved in the first year itself. The positioning should give out messages relevant to the ethos of the Valentine’s Day celebrations. To cite an example, the message could be driven home that coffee can bring about intimacy that is a vital ingredient in romantic relationships. But this positioning is also a tricky one as some youngsters might find Starbucks too formally upright for a romantic tete-a-tete. On the other hand Starbucks cannot also afford to cater to this segment too much so as to upset the applecart of its usual clientele that is more family and corporate crowd oriented. So Starbucks should not push too far on this agenda but at the same time should subtly drive home the message that its outlets are good enough for romantic couples.

Task 4

4.1 Marketing mix for two different segments of market in Starbucks.

One segment of market that I am proposing for Starbucks is the tea segment which I feel Starbucks can further develop on. On the product front here, Starbucks needs to look beyond its existing range of Tazo teas alone and concentrate on much higher quality tea of which there is no dearth. Starbucks can also market geographically specific teas onto certain countries and then tweak them to suit the palates of the instant coffee or drinks generation. To cite an example, Starbucks can tweak in such a way, the Darjeeling tea in its Indian outlets that takes care of the place aspect of the marketing mix. Pricing can be even more premium compared with Starbucks standards at select flagship stores for ultra-premium range of teas. For example, highest quality twinning’s tea of London cannot be dished out at even above average prices. Promotion for the tea range should be done subtly so as not to upset the apple cart of the bread and butter offering, coffee. More visibility should be accorded within menus and Starbucks official website for the tea offerings. The message should be subtly and gradually driven across that Starbucks is not only a coffee destination but also a tea one.
Starbucks can go even more upmarket with premium offerings at select locations like London’s West End. This addresses the product and place aspects of the marketing mix. But the product should be clearly segregated from the rest. Starbucks can even adopt a new moniker for these higher end offerings like Starwood hotel group has its luxury collection of hotels. This would shake off any apprehension on part of the discerning customer as to links with the lower end segment. Promotion for such stores should be done really discreetly and in high end circles like magazines targeted at the real upper segment. Pricing can be much higher than the normal Starbucks ones but care should be taken to grant the accompanying quality and exclusivity to match with it.

4.2 Differences in marketing products and services to business rather than consumers.

The biggest difference in marketing to business and consumers is that a buyer in business wants to buy as noted by Bly (n.d.). All businesses must often buy services and products that aid them in staying profitable, successful and competitive. A business buyer is well informed as opposed to a consumer on the particular product or service. Business buying is a multi-step buying process. Business products or services are much more complex than consumer ones. A business buyer purchases for his firm’s benefit and not for his own benefit.
Starbucks places overt emphasis on people as exemplified by the famous quote by its CEO, Howard Schultz “We aren’t in the coffee business, serving people. We are in the people business, serving coffee.” People form the crux of the business for Starbucks and this is the reason why all products and services at Starbucks are tailor made to suit customer tastes and interests. When Starbucks realizes any of its products are overpriced above its usual norm as evinced by the cold response from the customers or is not received well by its customers it either pulls them off the shelf or alters them suitably. The focus of the coffee major on sprucing up the ambience of all its outlets is also reflective of the emphasis put on the customer. In contrast, a product based organisation like Ford Motor Corporation does not have the same focus on the customer, rather it is the product per se that is the object of focus. In fact, in certain scenarios Ford has even totally neglected customer interests as evinced by the famous Ford Pinto debacle from the 1970’s. In this fiasco, Ford put emphasis on earning some quick money over even its customer’s lives. Although this might be an extreme example, it draws the extreme contrasts between a really service oriented organisation like Starbucks and a product driven organisation like Ford Motor Corporation. Although bottomlines are important for both firms, the way they are achieved are drastically different. The mode of Starbucks is a people centric approach while that of Ford is a product centric one.

Heritage Culture Tourism Assignment

Heritage Culture Tourism Assignment
Heritage Culture Tourism Assignment

Introduction

The travel and tourism sector is a pivotal one among industries and marketing effectively the products and services in it, is maturing on a daily basis. In the past decade or so, a lot of studies have been carried out on how to effectively market in this sphere that comes in handy for savvy marketers in the field. This study aims to be an addition to such literature.
The study takes a close look at the concepts of marketing and marketing mix, the importance of marketing information, market segmentation, strategic marketing planning and promotional mix relevant to the travel and tourism industry. Case studies of Gatwick airport and Sheraton Hotel are analyzed to provide specific inputs into effective marketing in the industry

Task 1

P1.1 Discuss the core concepts of marketing for the travel and tourism sector

Tourism marketing refers to the application of marketing concepts to the Travel and Tourism industry. It can become a complex exercise owing to the product is a mix of varied industries like transportation and hospitality as pointed out by Kongalla (2013). The markets involved in the industry vary widely and deciding on the customer’s preferences could become cumbersome. The products involved are pertaining to the history, climate, culture, and amenities. A tourism product is the total of the entire factors in a region that can lead to customer satisfaction. A travel agent or his tourist amalgamates the various components to garner his or her own tourist product.
There are several characteristics of the tourism industry that decides its marketing like it being intangible, seasonal demand, consumption happening at once and widely varying consumer motivations. Also, the intermediaries like travel agents possess strong control on the product distribution, design, pricing and promotion and high fixed expenditures are often involved leading to the utilization of short-run marketing. The customer also depends on pre-purchase information for making their decisions as they have no option of viewing first-hand.
There are several features of tourism marketing like involving several steps and the product development aiming to meet the customer’s needs. The marketing strategy strives to reach the target markets utilizing advertising, promotion, distribution, and pricing. Market research endeavors to understand the customer. Analysis followed by a selection of target markets referred to as segmentation implies researching potential customer groups and choosing only certain groups whose wants and needs can be best satisfied by a specific producer’s product.

P1.2 Assess the impact of the marketing environment on individual travel and tourism businesses and tourist destinations

The needs, anticipated benefits, and expectations from tourism sites vary widely among the tourists as noted in the Job trust website (n.d.). The differences among various tourist groups’ perceptions on destinations will benefit Thomson Holidays while strategizing on promotional and marketing activities of the products being showcased in the destinations of the cultural tour package. For example, the perception on a museum in Amsterdam might be vastly different among various groups taking the cultural tour package organized by Thomson Holidays. Depending on this perception, the intended location can be deleted or altered on its longevity or how long the guests spend there or on the importance accorded to it.
Images of destinations are really important for customers of the cultural tour package and as such, they ought to be shown in the right light. Individual destinations have strong attributes that differentiate them and they have to be highlighted to make the destination look attractive. There also exist preliminary perceptions on particular destinations. Thomson Holidays should strive to identify and then change such perceptions effectively that would get the customers enthused on the destinations.
From the view point of tourism marketing, the environment is a vital element for decision making since its assessment and valuation will potently condition the market activities selected and the manner in which they will be implemented as pointed out by Nicolau (2009). The need for managers in the travel and tourism business in gauging the factors that affect the future stability and financial health of their companies has aroused considerable interest in environmental evaluation. But today for decision makers in the industry this is proving to be a tricky affair owing to the ever-increasing complexity of the Business Environment. Tourism industry by its very nature is a very environmentally sensitive one.

P1.3 discuss the factors affecting consumer motivation and demand in the travel and tourism sector

The consumer motivation and demand in the travel and tourism sector depends a lot on individual decision making and attitudes, perceptions, travel motivators and images shape them as noted by Cooper et al and as described in the slideshare website (2008). A person’s perception of the world shapes their attitudes, and perceptions are made up of mental impressions on a travel firm or destination. Travel motivators are the inner urges that set forth travel demand. Images are groups of ideas, beliefs and impressions with regard to destinations and products.
Cohen in 1972 divided tourists into several categories. One is the organised mass tourist who is low on the adventure factor and the person is desperate to maintain their own self on the trip. This person buys a tour package off the shelf and is guided along the destination with little interaction with local people or culture.  Another is the individual mass tourist who is like the organised mass tourist except that more scope and flexibility on personal choice is in built. But the tour is still conducted by the tourism industry. The environmental bubble puts away the person from the pristine experience of the destination. Another type of tourist is the explorer who organizes the trip independently and is on the look out to stay off the beaten track. But, reliable transport and comfortable accommodation are sought, the environmental bubble is set aside on occasions, but it steps in when the going gets tough. Another variety is the drifter who does away with all relations with the tourism industry and the trip strives to be as far from familiarity and home as possible. There is no fixed itinerary, and the person habitats among the local people, immersing in their culture and paying for his or her own travel.
The first two types of tourists make use of institutionalized tourism and are handled by the players in the tourism industry like travel agents, tour operators, transport operators and hoteliers regularly. The last two types are of the non-institutionalized type who make use of individual travel avoiding contact with the tourism and travel industry except when absolutely necessary. The demand and motivation of tourists visiting a particular destination or a tourist region as a whole needs to be well understood by the relevant players in the tourism industry to reap better monetary benefits. The six day cultural package of Thomson Holidays fall here into the first category of tourists and the promotion has to done keeping in tune with the motivation and demand of such tourists.

P1.4 Analyse the principles of market segmentation and its uses in marketing planning

Market segmentation is the process of segregating the market into different portions depending on the differences among customers as pointed out in the principles of marketing website (n.d.). The main aim of market segmentation is to understand better the wants or requirements of the customers. A seven step approach can be adopted for achieving effective market segmentation. First step identifies the type of market in which the firm will be dealing. Second step analyses the regions of satisfaction that one is striving to provide to a particular market or what needs or wants one intends to satisfy. In step three one selects dimensions by which to segment the market. Under step four, one identifies the segments in the market being studied based on the chosen dimensions. In step five, one has to assess whether the segment where one’s interest lies satisfies the four qualifiers for effective segmentation. Under step six, a profile of the consumer zeroed in, is created including expectations on purchasing behaviour. In step seven, one has to bring together market, product and business strategy analyses to the segmentation analysis.
Marketing Planning is a logical sequence that enables one to assign strategic planning objectives for the chosen segments and concoct the relevant marketing and sales activities so as to attain these objectives as pointed out in the marketsegmentation website (2014). In short this is a process for determining what one’s firm can become and how the company can achieve that goal. Under the process of strategic marketing planning, segmentation is a key component of marketing audit.
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Task 2

P2.1- Analyse the importance of strategic marketing planning for a selected travel and tourism business or tourist destination

One core element of the strategic marketing planning for Thomson Holidays will be differentiating itself from its competitors as pointed out in the bplans website (n.d.). Thomson Holidays should strive to establish itself as a speciality provider of cultural tour packages. The firm should also strive to provide unparalleled service to customers. This involves dishing out superior service during all stages of the transaction and includes timely follow ups. The firm should aggressively promote different cultural tour packages as eye opening and exciting for the culturally discerning tourist. Thomson should also strive to build its image and create awareness by being consistent and being distinctive in the service provision.
In order to perform well, the following SWOT analysis is proposed for Thomson Holidays:
Strengths:
Diversified client base that will reduce the dependency on any specific market.
Extensive marketing and advertising to promote its services and products and to enhance the firm’s image.
Weaknesses:
Lack of reputation as a specialized provider of cultural tour packages.
Lack finances to move up higher in the ladder on the value chain.
Opportunities:
Mushrooming of a dedicated cultural tour space among tourists.
Not enough competitors in the cultural tour segment especially in the home city of Thomson Holidays.
Threats:
Much bigger tour operators eyeing the cultural tour space.
Perceived higher value among big brand competitors.
The preliminary marketing expenses will be quite high as Thomson Holidays has to get differentiated in the market of cultural tours. Enough awareness has to be cultivated among the public on the competency of Thomson Holidays in the cultural tour sphere. Pricing is also a significant factor while indulging in the strategic marketing planning exercise. The pricing has to be just right, neither low nor high. If it is low, prospective customers will tarnish the offerings as one of low quality and if it is high, being a relatively new entrant, they will flock to better established names.
There are some great ideas in strategic marketing planning for destinations as noted by Martin (2013). One is providing the customer with a virtual city guide. With increased usage of smart phones and breakthrough technology like augmented reality coming to the fore this is a great way to promote a destination. Minute details of the itinerary can be informed to the tourists to make it convenient for them while visiting a destination. For example they could be informed on the best times of the day in visiting certain attractions. Providing such information will actually save a lot of time on their valuable vacation time.

P2.2- Discuss the relevance of marketing research and market information to managers in the travel and tourism sector

Marketing research provides several benefits to managers in the travel and tourism sector. By retrieving relevant information on customers, they are able to arrive at well planned plans and decisions to satisfy consumers and offer a better service as detailed in the website more business and as noted in the eHow website (n.d.). Such decisions might include entertainment activities, improvement of facilities and customer service. If the customers are satisfied this can lead to repetitive visits. These customers don the role of an advertising medium as they divulge on their experiences to others. Through marketing research, one can formulate deals and packages and communicate them in a relevant manner to the target market. Moving sure footedly towards innovation mirrors well for the reputation of the business.
The method employed for market research must be carefully deliberated upon. Adequate time should be provided for the responding customers in surveys and they must be selected randomly so that there exists no bias among the results. As noted in the website stayinginwales and as pointed out in the eHow website (n.d.), to be effective, tourism research must be repeated. Tourism trends may alter rapidly or over some time. Factors influencing such changes might be economic or political situations.
For managers in the travel and tourism sector, vital and apt questions asked during market research can help them in making strategic, practical and tactical decisions on the markets to pursue, what messages to add to marketing materials, the various product development strategies that need to be pursued and other sticky points that require information in supporting a sound decision as noted in the Government of Canada website (2013).
Vital questions that can be answered by market research for managers in the travel and tourism sector include on who are the visitors for the particular business, where do they arrive from, what activities they indulge in while at the tourist destination, are the services provided meeting the expectations of the customers, is the price, quality, the range of activities and options meeting customer needs and more. The satisfactory answers to these questions are vital for managers in the sector for planning their business activities in an efficient manner and achieving the desired results.

P2.3 – Assess the influence of marketing on society

  • Marketing helps the society by helping people learn about location of stores, clearly indicated prices, favourite brands and modes of payments as noted in the Canyon Crest Academy website (n.d.). Thus, in an overall sense, it helps in satisfying needs of customers. This higher level of customer satisfaction leads to a reduction in the prices of products and services. Marketing provides better goods at lowered prices. The needs or wants and dislikes and likes pave way for improvement in products and also gives rise to development of new products. The products also meet consumer wants. A higher sales volume is achieved and this rise in sales enables firms to make goods in a more efficient mode. Prices are brought down with effective marketing.
    Marketing also helps to manage consumer expectations as pointed out by Hartman (n.d.). Customers bank on reliable brands and on the persistence arising out of brand loyalty. It also bolsters a consumer driven economy by promoting goods and services. It also targets customers most probable in turning purchasers. A business having higher sales resulting from effective marketing strategies turns into better job creation, expansion and better tax revenue for the ruling establishment thus ensuring all round economic growth. The marketing machinery creates jobs and wealth with companies seeking innovative and new manners in promoting themselves as well as their products. Marketing informs and educates customers. It often begins when a firm identifies a need of the customer and strives to delve on how its services or products satisfy that need. For those with clearly specified needs, marketing offers a way of learning on new goods and their functions.

Heritage Culture Tourism Assignment

Task 3

P3.1 Discuss issues in the product, price and place elements of the marketing mix

Gatwick airport as a product in the words of its chief executive Stewart Wingate endeavours to build genuine competition in the market by offering lower fares with its impending expansion for which it is waiting for approval from the Airports Commission as noted in the Argus website (2014). Without the much needed expansion at the airport, monopoly by Heathrow would mean higher airfares are passed on to the next generation. As principles of good economics dictates, an absence of monopoly augurs well for the customers with the increased competition from Gatwick driving down the prices. Common sense also dictates as it has done long ago that as a product, Gatwick being a second airport is a must for a bustling metropolis like London. On the place front, Gatwick’s location, South of London implies that far lesser will be affected by noise. The land is also earmarked already for expansion, thus avoiding the need for tunnelling part of M25 which is the busiest motorway in Europe leading to humongous traffic disruption. Increasing limitation on space in central urban areas for the future implies the need to look at lesser congested areas for airport development and Gatwick fits the bill here perfectly.
Gatwick is thus the sensible option for London’s burgeoning air traffic, as it can drive down considerably the airfares with its proposed expansion and as a marketing executive of this airport, I would definitely accost to the Airports Commission to take up the cause of its expansion.

P3.2-Assess the importance of service sector mix elements to the travel sector

The service sector mix incorporates three more P’s to the conventional four P’s of the product marketing mix of product, pricing, promotions and placement. These three P’s are that of process, people and physical evidence.
In the travel sector since the product is an aggregation of services, the people behind the services are vital for the success of the transaction as noted by Markgraf (n.d.). Providers in this sector should possess top level service capabilities for initially completing the sale and in encouraging repeat customers. People are vital for the travel sector as they don the role of ambassadors of service provided to the customers. Those who are employed in the travel sector should have characteristics such as competence, initiative, caring attitude, goodwill, reliability, responsiveness, problem solving ability as pointed out by Chauhan (2013). The process mix in Gatwick airport consists of flight information, reservation, delivering quality service, facilities at the airport and baggage handling. The physical evidence at Gatwick airport would consist of ticket counters or booking offices, brand logo, ticketing and paperwork. The provision of physical evidence experienced by the customer while partaking the specific tourism product can aid sales as pointed out by Markgraf (n.d.). Supplying branded products and giving out professionally taken photographs of the consumers during key events are effective methods in promoting specific tourism products that can be followed by Gatwick airport.
An eighth P namely programming is also added to the Marketing Mix in the travel sector. One method of adding value to the standard product or service in the travel sphere is to distinguish a specific product or service from competitors by way of exclusive programming as noted by Markgraf (n.d.). Consumers in this space will buy a service or product that appeal to their specific interests. Such preferences can be addressed through special programming and bring in additional customers.

P3.3 Apply the concept of the total tourism product to an individual tourism business – London Gatwick airport

Increasing airport capacity at Gatwick is important for boosting the number of visitors to the UK as pointed out by Phillips (2014). London Gatwick airport is also a major contributor to the UK tourism industry and ensures that the UK tourism industry remain a world leader. On the price front, Gatwick will be able to offer airlines with lower price structures over a longer period of time with lower regulation, speeding up investment and improving incentives as laid down in the press release from Gatwick airport cited in the airportwatch website (2013). Gatwick has to move ahead with the new deal that would free it from regulation thus enabling it to maintain prices that are more competitive.
Gatwick has to continue aggressively promoting itself as the “airport of choice” for the city of London. The promotion machinery has to be geared to reflect this message amply across to the customers. Connectivity of London Gatwick with important airports across the globe has to be stressed throughout the campaign. There are a host of reasons why Gatwick makes more sense than Heathrow in handling higher capacities for the future and this has to be amply highlighted.
Under the process mix, Gatwick airport has to stress on the facilities at the airport to gain an advantage over the competition. It has been noted that half or 50% of Britishers save so that they can spend at airports as noted by Gohel (2014). To tap into this tempting and humongous segment, the convenience and huge savings accruing from shopping at the airport have to be conveyed to the public. Towards this end, the airport has to stress on the existing shopping facilities it offers.

Task 4

P4.1 Assess the integrated nature and role of the promotional mix

Advertising, sales promotion and personal selling would be the main components of the promotional mix of the Piccadilly Sheraton. The promotional strategies have to be necessarily creative and innovative as pointed out by Parvathy (2013). A major aim of the marketing division of the hotel ought to be increasing the occupancy ratio at the Piccadilly Sheraton. Sales promotion ought to be through providing adequate discounts. The website of the hotel and other promotional material should be filled with natural and attractive photography of the various types of available accommodation with an accent placed on the comfort aspect.
Sales promotion will be carried out effectively by dishing out several incentives. Frequent corporate customers should be especially provided with oodles of such discounts as they form an integral part of the hotel’s loyal customer base. Discounts also apply to leisure visitors. Care should be taken not to push discounts too much as such a strategy would only backfire in the luxury space where value is placed more importance than outright value. Discounting strategy should only be pursued at times.
Advertising should be targeted more at the relevant customers and as such advertisement in traditional media like television would only be a futile exercise. Advertisements should be carried in up market publications that are read by the target population of the hotel.

P4.2 Plan and justify an integrated promotional campaign for the Sheraton hotel.

Prospective customers of the Piccadilly Sheraton have to be provided with information on the hotel through various modes like direct marketing, personal selling and advertising. The hotel has to be pitched as one that offers extremely high quality service and product offerings to the discerning business and leisure traveller. Service levels provided by the hotel have to be given a lot of importance and visibility in the promotional campaign. Service always is a cutting edge in the high end hospitality space and the hotel has to lay emphasis on how its service is distinct from other high end hotel properties in its vicinity.
Personal selling will enable the hotel to build long term corporate relationships especially in the city of London. This ensures that there are enough repeat customers from key corporate accounts for the hotel. Since the hotel is situated in an important business hub like London, important corporate accounts would be vital. The property has to be chalk out attractive corporate discount schemes. The promotional campaign has to lay stress on the fact that Piccadilly Sheraton is a relaxing and luxurious destination for business and leisure. Both sets of travellers require distinction in the promotion campaign. While targeting the business consumer, enough emphasis should be laid on the facilities at the hotel that enables smooth carrying out of business activities within the confines of the hotel itself.

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 Conclusion
This study is a pointer to the need for effective marketing in the tourism and travel sector. The right marketing and promotional mix with judicious usage of adequate components in it, is vital for the sector.  Marketing as evinced by the developments in the recent years in the sector has to be planned religiously and in tune with the defining characteristics associated with the industry. Effective market segmentation along with adequate market information is vital for success in this industry. The recommendations provided to the different firms put under the scanner in the study would definitely serve as a guide for marketing practitioners in this industry.

References

AIRPORTWATCH. (2013) The Gatwick Airport business plan to 2024.[Online] Available from: //www.airportwatch.org.uk/?p=595. [Accessed: 30th July 2014].
BPLANS. (n.d.) Travel tour agency business plan.[Online] Available from: //www.bplans.com/travel_tour_agency_business_plan/strategy_and_implementation_summary_fc.php. [Accessed: 30th July 2014].
Canyon Crest Academy website (n.d.) Marketing impacts society.[Online] Available from: teachers.sduhsd.net/bbaum/documents/Marketing-Lesson2_000.ppt. [Accessed: 30th July 2014].
Chauhan, P.V.S. (2013) Marketing mix in airlines industry.[Online] Available from: //www.slideshare.net/premvirchauhan/marketing-mix-of-airlines-industry. [Accessed: 30th July 2014].
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