• Developing the marketing environment
• Competitive marketing strategies
• New product development
• Customer satisfaction and related
• Interactive and relationship marketing
Competitive strategies are the method by
which you achieve a competitive advantage
in the market. There are typically three types
of competitive strategies that can be
implemented. A mixture of two or more of these
strategies is also possible depending on your
business' objectives and current market position.
The aim of this strategy is to be a low-cost producer
relative to your competitors and is particularly useful
in markets where price is a deciding factor.
Cost leadership is often achieved by carefully
selecting suppliers and production techniques to
minimise production, distribution and marketing
However you need to be aware of any serious loss in
quality that may render low cost ineffective.
A differentiation strategy seeks to develop a
competitive advantage through supplying and
marketing a product that is in some way
different to what the competition is doing.
If developed successfully this strategy can
potentially reduce price sensitivity and
improve brand loyalty from customers.
This strategy recognises that marketing to a
homogenous customer group may not be that
effective a strategy for the product the business
Instead the business focuses its marketing efforts
on a different selected market segments. That
is, identify the needs, wants and interests of the
particular market segments and customise
marketing techniques to reflect those
In a 1/4 sheet of yellow paper
Pick one competitive Strategy. Choose a tourism
destination or attraction in the Philippines or the
world that show this strategy point out the
New Product Development
Product development, whether it be the development of new
products or refreshment of existing products is the
cornerstone for the success of a tourism business.
Without appropriate products or services that are relevant to
visitor demand a business cannot survive.
Product development should be based on the findings of the
‘Planning’ process of business development, in particular the
situation analysis and strategic planning phases.
The planning process identifies the market potential and goals
for business development and growth, while the product
development phase is the implementation of specific actions
for the business.
A product development plan can be developed
as a guide for the successful management of
the product development and implementation
A product development plan looks at the
marketing mix including product, price, place,
promotion and packaging.
The type of product development will depend
on the stage of development of the business.
The Passages to Innovation Program developed by the
Canadian Tourism Commission identifies the four quadrants of
Q1 – Existing Customers / Existing Products: a low risk
strategy that aims to refresh existing products for the current
Q2 – New Customers / Existing Products: a medium risk
strategy that looks at repositioning existing products with a
new market segment;
Q3 – New Customers / New Products: a very high risk category
that all new businesses start in. Extensive research and a
unique selling point is required;
Q4 – Existing Customers / New Product: a high risk strategy
that presents new products to existing customers that are
stilled aligned with the markets needs.
Customer Satisfaction and Related Strategies
• Create touch points across various
phases of the customer experience.
If customers have recently
purchased a product or service, be
sure to follow up and give them an
opportunity to provide feedback on
• Reward loyalty. A little goes a long
• Keep in touch. By regularly reminding
customers “you’re there if they should
have any needs,” you’re likely to be the
first one they think of when a need
• Consistently deliver top-notch quality
• Stay educated. Be aware of what your
competition is doing, what the market is
doing, and new trends in your industry
•A good relationship is give and take. In order to go
that extra mile, consider holding a monthly or
quarterly giveaway to treat customers and give
thanks for their business.
•Be courteous. Treat employees and customers with
the utmost respect and courtesy. They deserve it
and are often your biggest cheerleaders.
•Listen. If asked, customers will be vocal about
their needs. Do more listening than talking and do
your best to offer them what they need.
• Be engaged. In a study by the American Society for
Quality, 68 percent of lost customers are turned away
because of an attitude of indifference on the part of a
• Establish sound processes for addressing customer issues.
Take care of issues as quickly and effectively as possible.
If a solution will take longer than anticipated, provide
frequent updates so customers know the status of the
Interactive marketing relies on customers
expressing their preferences so that
marketers can produce more relevant
marketing messages. Unlike the outbound
marketing of the past, interactive marketing
creates a two way dialogue between a
business and its customers
Marketing activities that are aimed at developing and
managing trusting and long-term relationships with larger
In relationship marketing, customer profile, buying
patterns, and history of contacts are maintained in a
sales database, and an account executive is assigned to
one or more major customers to fulfill their needs and
maintain the relationship.
Traditional Marketing focuses on single transactions with
customers, relationship marketing is oriented toward
continuous customer contact.
Relationship marketing continuous to involve and
integrate customers, suppliers, and other stakeholders
into a firms developmental and marketing activities
(McKenna 1992) resulting in interactive relationships.