2. CREATION OF BRAND IMAGE

1. 2. CREATION OF BRAND IMAGE Brand image – is an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitor’s brands. Branding is a way of clearly highlighting what makes one product or service different from, and more attractive than, the competitor’s products and services. Creation of brand image is an important concept, which helps organizations to gain competitive advantage.

2. Travel and Tourism organizations can create a brand image through following means : 1. The name of the organization that is selected for itself may become its brand identity. 2. USP (Unique Selling Point) associated with the brand image of an organization creates the image through actual product features. 3. Slogan used with a destination. 4. Use of packaging 5. Price (such as low cost airlines) 6.Promotion (by use of Advertising in media, use of billboards, brochures etc.) 7. Specific target market segment

3. 3. Development of a product/service mix and a product portfolio : In travel and tourism industry, the organization offers a product/service range. For ex. A hotel group may provide a differentiated product/service mix to various market segments. Sometimes it may offer additional products/services to match expectations of different market segments.

4. Following are reasons why organization decide to develop product/service mix : 1. Develop/stimulate market in a specific destination 2. To extend operations in new regions 3. To gain recognition as an innovator 4. To imitate success of a more successful competitor 5. To implement technological advances 6. To gain market share and re-position themselves in market

5. B. PRICE AS A PART OF MARKET MIX Price plays a significant role in gaining customer’s attention. Price is defined as how much a customer actually pays to receive the product/service upon purchase. Actual costs is considered before setting the final price for the product/service.

6. PRICING POLICIES/APPROACHES USED IN TRAVEL AND TOURISM INDUSTRY : 1. Market penetration – low price set to gain entry in market, but prices increase as customers gain loyalty to the product. 2. Market skimming – relatively high price charged to be one of the first to try the product as an innovator. Once competitors enter, price is lowered. 3. Discount pricing – if items are not selling, reduce the cost by a percentage 4. Variable pricing – different prices charged for the same product due to demand, season, market segment etc. 5. Loss leader pricing – sell items with little margin for profit so that customers buy other items at full price. 6. Special offers – used to attract customers to buy non-selling items. 7. Going rate/Competitive pricing – matching prices with that of competitors’ products/services. 8. Prestige pricing – high prices are set for exceptionally high quality products 9. Price bundling – pricing a few items of related products into a bundle.

7. FACTORS THAT DETERMINE PRICING POLICIES Fixed and variable costs Profitability Subsidies, taxes and subcharges Competitors Customers’ expectations / likely no. of customers Seasonality Economic factors

8. C. PLACE AS A PART OF MARKET MIX Place has 2 aspects of marketing mix for tourism products and services – Physical location of destinations or tourist facilities Chain of distribution used by tourism providers FACTORS AFFECTING SELECTION OF LOCATION FOR TRAVEL AND TOURISM (LOCATION FACTORS) : Costs Availability of suitable premises Character of area Local and transient population Adjacent facilities Access/transport links Availability of staff

9. GDSGALILEOMARKET REASEARCH It is a planned process of collecting, recording, analyzing and evaluating data about customers and market itself. Stages of Market Research: Stage 1 – Set the objectives Stage 2 – Design the research Stage 3 – Data Collection Stage 4 – Analyze the data Stage 5 – Report the results