2) In what ways is product strategy linked to product decisions? 3) Today’s hote

Question

2) In what ways is product strategy linked to product decisions? 3) Today’s hotel and cruise customers are more aware of their requirements and personal needs. Therefore, they expect hotel owners and cruise companies or managers to acknowledge their individual needs, and expectations. Hospitality/cruise marketing is one of the most segmented. There is a wide spectrum of different accommodations from motels to luxury hotels and spas and cruise lines. How and what are some of the ways these specific companies use segmentation to position and differentiate themselves to gain customers and market share? Give at least one example of a hotel or cruise line’s positioning.

Explanation / Answer

Answer

2) Product strategy is a roadmap for product planning and marketing decision. They govern the important decision related to the product in order to increase its value and sales so that maximum profitability can be gained and product will enhance the competitive strength of the company. Product strategy may involve improvement in product design, it's expansion, it's alterations etc, which is beneficial to improve the competitive strength and these strategies helps in making decisions regarding those all improvement, as how to approach it and how successful the product will be.

3) hotels an cruise uses different segmentation and positioning strategies to satisfy all the customers group, to gain large Market share and differentiate themselves from other competitors. They use segmentation based on demographic and psychographic. Grouping the customers based on their family size, individuality, there income level and spending capabilities. They also segment customers based on psychographic characteristics such as there interest and willingness to pay high or low for leisure activities. These organisations also targets corporate people to provide them facilities when they ask for an event or client meetings.

They position themselves with different strategies like establishing certain levels in their restaurant or cruise, which differentiate customers based on there income, family size, corporate need etc. They position themselves in a way which could meet all the needs of the prospective customers.

For example: in UAE dubai, marina : show cruise owners use Various segmentation and positioning strategies to cater all groups of customers. There are cruises in Dubai Marina, which are meant for low spending people, with a limited entertainment and some sort of food not as good as that served in a costlier cruise. Other cruises which targets high income rich customers, provide them better ambience, better quality food and quality entertainment.

These differentiation and positioning is made in a systematic way so that no customer is left unsatisfied, and to gain competitive edge over other through differentiation.

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