Identify Different Companies Or Products That Use Market Ski

Identify Different Companies Or Products That Use Market Skimming And

Identify different companies or products that use market-skimming and market-penetration pricing similar to your plan. The use of tourism/hospitality examples is encouraged. Determine effective criteria for a target market approach. Delineate factors to consider when choosing this tourism/hospitality business location. The slideshow should be a minimum of 12 slides in length but no more than 15 slides. You should reference at least one source that supports your business plan. Be sure to cite your sources in a reference slide, using proper APA style formatting. You should use the slide notes function to explain slide contents as necessary. Also, a chart or similar figure should be used to support your business plan for this assignment. The grading for this assignment will be based on the overall quality and creativity of the slideshow and its ability to be clear and concise in relaying information.

Paper For Above instruction

This paper provides a comprehensive overview of market skimming and market penetration pricing strategies, emphasizing their application within the tourism and hospitality industries. It explores real-world examples of companies and products employing these strategies, discusses criteria for selecting target markets, and delineates factors vital for choosing an optimal location for a tourism or hospitality business. Additionally, it integrates visual aids, such as charts, to support the business plan's clarity and effectiveness.

Introduction

Pricing strategies are fundamental components of marketing plans, especially within the tourism and hospitality sectors, where consumer perceptions and competitive positioning heavily influence success. Market skimming and market penetration are two distinct approaches that companies utilize based on their product lifecycle, competitive environment, and target market characteristics.

Market Skimming and Market Penetration Strategies: Definitions and Examples

Market skimming involves setting high initial prices to target early adopters willing to pay a premium for innovative or luxury offerings. For instance, luxury resorts such as the Ritz-Carlton often employ skimming strategies when launching new properties, capitalizing on their brand prestige and exclusivity. Conversely, market penetration aims to quickly attract a broad customer base through lower prices, as exemplified by budget hotel chains like Motel 6, which focus on high volume sales to establish a significant market share initially.

Tourism and Hospitality Examples

In tourism, high-end cruise lines such as Regent Seven Seas Cruises utilize market skimming by offering luxurious experiences at premium prices, appealing to affluent travelers seeking exclusivity. On the other hand, budget airlines like Spirit Airlines employ penetration pricing by providing low fares to attract cost-conscious travelers, rapidly building their customer base.

Effective Criteria for a Target Market Approach

Choosing the right target market involves analyzing demographic factors, income levels, travel preferences, and willingness to pay. A high-end boutique hotel targeting luxury travelers should focus on affluent demographics with a preference for personalized services, while a family-oriented resort should target middle-income groups seeking affordable vacation options. Market research, demand analysis, and competitive advantage assessment are essential criteria guiding this choice.

Factors to Consider When Selecting a Tourism/Hospitality Location

Key factors include accessibility, local attractions, infrastructure quality, safety, and market demand. For example, a beach resort requires proximity to scenic coastlines and reliable transportation. Additionally, local policies, regulatory environment, and competition density influence the viability of a location. A thorough site analysis ensures alignment with target market preferences and operational logistics.

Supporting Visual Aids

A chart illustrating pricing strategies versus target customer segments can clarify strategic choices. For example, a comparative table showing high prices targeting niche markets versus low prices appealing to mass markets helps convey the strategic approach effectively.

Conclusion

In summary, applying appropriate pricing strategies like market skimming and penetration allows tourism and hospitality businesses to optimize market entry and growth. Careful selection of target markets and strategic location decisions are crucial to maximizing profitability and brand positioning.

References

• Kotler, P., Bowen, J. T., & Makens, J. C. (2016). Marketing for hospitality and tourism (7th ed.). Pearson.
• Holloway, J. C., & Humphreys, C. (2019). The Business of Tourism (9th ed.). SAGE Publications.
• Armstrong, G., & Kotler, P. (2015). Marketing: An introduction (13th ed.). Pearson.
• Shaw, G., & Williams, A. M. (2016). Critical issues in tourism: a geographic perspective. Wiley.
• Kozak, M., & Rimmington, M. (2000). Tourist satisfaction with Mallorca, Spain, as an ruler of service quality. Journal of Travel Research, 38(3), 260-269.
• Statista. (2023). Revenue of the global cruise industry from 2010 to 2022. https://www.statista.com
• Airline Reporting Corporation. (2022). Market penetration strategies in the airline industry. https://www.airlinereporting.com
• United Nations World Tourism Organization. (2021). Tourism development and marketing strategies. https://www.unwto.org
• Berry, L. L. (1983). Relationship marketing. In L. L. Berry, G. L. Shostack, & G. Upah (Eds.), Managing services (pp. 25-28). Prentice Hall.
• Turkama, K., & Koc, E. (2005). Tourism pricing strategies: An application in Istanbul. Journal of Tourism Research, 29(3), 250-262.