Product Positioning – Overview

Now that we have identified tourist types, travel motivations, examined various tourism products and their marketing communications which appeal to specific traveler types (segmented demographics), analyzed pricing of tourism offerings, we now turn our attention to positioning the product/service.

Positioning strategies are designed from the answers of two basic questions:

1. Against whom should you position? These are usually other brands in the same competitive group – ones which whom you can demonstrate competitive advantage.
2. How should you position? This provides the basis for your competitive marketing efforts. For example, is the product of higher quality? Is the service above and beyond? Are the offered amenities unavailable elsewhere? These are some of the basis for which positioning strategies are developed.

The following positioning strategies in tourism and hospitality companies have been identified:

1. Product feature or special attribute
2. Price/Quality
3. Customer Benefit
4. Use or Usage
5. User

In a new tourism or hospitality venture there is likely to be a much greater focus on the positioning strategy, in part because financial backers will expect the marketing plan to be well formulated before advancing any loans. A new venture provides the hospitality company with the opportunity to plan the new concept using marketing research methods and then to position the offer more effectively.

When positioning existing properties, there are key differences as a number of factors are fixed. These include the location, geo-demographics, the property’s current facilities, size, customer mix, and the property’s historic image. These fixed factors are not easily changed and, therefore, the positioning strategy must take into account which strategy best fits the needs of the business and potential markets.

Re-positioning: It is not unusual for hospitality operations to reexamine their current position in the marketplace and decide to reposition their property. The reason for repositioning may be due to any of the following factors:

Falling Sales (often a symptom of customer dissatisfaction)

An opportunity to service an emerging market segment

The threat of competition eroding market share

Product Positioning – Assignment 1

Write a 4-6 page APA formatted paper which addresses the following elements:

1. Identify five hotels in your local area or an area in which the chosen hotels compete for business. Be sure to represent luxury, upscale, mid-market, and budget hotels.
2. State each hotel’s prices for accommodations for an upcoming busy travel season.
3. Describe product quality in regards to offered accommodations and amenities/services.
4. Define each property’s current positioning strategy (identify one of the strategies above as indicated in items A – E above). A brief synopsis in this section will suffice.
5. Choose one of the properties that you believe is in need of repositioning. Assume you are the new Director of Marketing for the chosen establishment. Define a repositioning strategy. Repositioning can require alteration of physical products, changes to personnel, alterations to service culture. Again, keep the positioning strategies in mind (indicated in items A – E above). Support your reasons for why the specific repositioning strategy is chosen.

Remember the following: Repositioning can be dangerous with regard to sending out confusing signals to existing and potential target markets which can damage the customer loyalties for those who do not like change. You may want to consider how you will ensure your current clienteles’ loyalties are considered as part of the repositioning strategy.

***Optional: Feel free to insert a Positioning Map (Also termed “Perceptual Map”) as described in the assigned readings.