Moderation required: yes/no Tutor Page | 1 Final Grade Assign meet 2 Individual Report Written by: Kristin Ivan Course: Principles & Practice of Marketing (MARKS 1 07) University of Greenwich March 2014 Page | 2 Table of contents: Page Eng 4 5 6 Positioning – concept 9 Executive Summary Introduction Segmentation, Targeting and Positioning used by Leeds Castle 10 11 13 14 Page | 3 The role of Branding Alternative promotional campaign Conclusion References This report analyses the segmentation, targeting and positioning techniques, states how are they used in the marketing program of Leeds castle, explains what he role of branding is and gives recommendations on how visitor numbers could be increased.
Key findings in the report: C] Main target group of Leeds castle: C] Families with children C] Living within 60-90 miles away from the Castle C] Likely to spend a day in the weekend away from home 0 The marketing department of Leeds castle has used various promotional techniques to create brand awareness C] The castle has loyal return visitors Recommendations to the marketing and PR team: C] Create different target groups and organize events, attracting more visitors, other than families C] Create a new advertising campaign Include special tickets such as queue jump tickets and second ticket at half price in winter season The report pays attention to the importance of branding in three major companies.
The all have created brilliant brand awareness and image, have loyal customers and are highly profitable. C] Mike – the most preferred sport equipment brand 0 Apple – the most valuable brand for 2013 C] Coca-Cola – the only Nan-technical-orientated company in the top 5 most valuable brands for 2013 Page | 4 Marketing, more than any other business function, deals with customers. (Kettle & Armstrong, 2014) Managing a tourist attraction is hard.
Having to target the right audience, having to attract their attention, having to promote the place the best way possible – those are only a few of all the duties of a marketer. Segmenting the market is a tricky task, but by using the right technique the product will be targeted to the right audience. This report will look at a popular tourist attraction – Leeds Castle. The aim of the report is to explain the concept of segmentation, targeting and positioning, using as an example the methods used by Leeds castle marketers, discuss the important role of branding in any business and give alternative ideas or the promotional campaign of the Castle. Leeds castle is situated in Kent. A castle has been on the site since 1119.
It has been Kind Edward stet’s favorite place, and King Henry 8th used it as a residence of one of his wives. The castle we can see today dates mostly from the 19th century and is built on islands in a lake formed by the River Len to the east of the village of Leeds. It opened its doors for visitors in 1976 and since then a lots of people enjoy its beauty and its spacious landscapes. The managers of the castle want to increase the number of visitors, especially in the winter season. In order to achieve that, several commendations would be made. Page | 5 Segmentation, Targeting and Positioning – CONCEPT 1. What is a Market? The term “market” is understood differently by different people.
But it means one thing – people or organizations with needs or wants and with the ability and the willingness to buy. A group of people or an organization that lacks any one of these characteristics is not a market. (Lamb, et al. , 2004) In order to have a successful product on the market, companies need to go through a threes process. 2. What is Market Segmentation? Buyers in any market differ in their wants, resources, locations, buying attitudes, ND buying practices. Through market segmentation, companies divide large markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Kettle & Armstrong, 2014) The purpose of market segmentation is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments. (Lamb, et al. , 2004) 2. 1 Why is market segmentation important? In order to achieve SUccess, every business, product or organization has to be aimed to the correct audience. Market segmentation helps marketers to define customer needs and wants. (Lamb, et al. , 2004) If a certain product is aimed at the wrong audience, no matter how good it is, there’s higher possibility for it to fail than if it is aimed at the people who actually need it. 2. 2 How does it work? There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Kettle & Armstrong, 2014) The segmentation variables are listed below. Page | 6 Segmentation Variables: Geographic segmentation looks at nations, countries, cities, neighborhoods, population density, etc. Demographic segmentation is one of the most popular ways to segment the potential customers. When using this way of segmentation, marketers look at age, gender, income, occupation, religion, ethnicity, etc. Cryptographic segmentation looks at the lifestyle of the customers, as well as their personality and social class. Behavioral segmentation looks at the benefits the consumer seeks from the product. Also, it looks at the user status, usage rate and buying occasions. 3. What is Targeting? Targeting attractive market segments and developing marketing strategies pacifically tailored to serve the chosen segments is what good marketers do. ” (Walker & Mullions, 2011) After segmenting the market and the organization’s segment opportunities are revealed, it is time for the segments to be evaluated and a decision should be made – which segments could the business serve best. Target marketing is the process of selecting one or more market segments and then developing a product to offer which is aimed specifically at those segments. Once the target market segments have been identified, the key attitudes of those customers towards the product category should be determined.
The very basis of target marketing is dependent on a link between the customers and the segment defined. (Dock, et al. , 2001) Selecting target markets is a major decision that influences and often determines the firm’s marketing mix. (Lamb, et al. , 2004) In order to select the right target market, marketers use different strategies. Three general strategies are listed below: – Undifferentiated Targeting is an approach that views the market as one big market with no individual segments, requiring a single marketing mix. When using this strategy, companies could save on production or marketing costs. (Lamb, et al. 2004) Concentrated Targeting is a strategy used to select one segment of a market for targeting marketing efforts. (Lamb, et al. 2004) When using this strategy, a company is focused on only one segment and it is able to concentrate on the needs of this exact group of people, making it easier to satisfy its customers. Enlistment Targeting is used when a company decides to choose two or more wilderness segments and create separate marketing mix for each of them. Sometimes firms choose to change just one part of the marketing mix for each segment, for example the promotional appeals. Page | 7 4. What is Positioning? Positioning is not what you do to a product, positioning is what you do to the mind of the prospect” (Trout, 1981) Product positioning refers to consumers’ perceptions of a product’s attributes, uses, quality, and advantages and disadvantages relative to competing brands.
Marketers often conduct marketing research studies to analyses consumer preferences and to construct product position maps that plot their products’ positions in relation to those of competitors’ offerings. (Boone & Kurt, 2006) Competitive positioning demands that an organization considers what it is offering compared to competitors for the same target customer segment. Dock, et al. , 2001) A company has to develop a product positioning strategy for each segment it chooses to serve. This relates to the task of ensuring that its products occupy a planned-for place in chosen target markets, pertinent to opposing competition in the marketplace. Reynolds & Lancaster, 1988) Page | 8 Market Segmentation, Targeting and Positioning – USED BY LEEDS CASTLE Segmentation variables are the dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments. Companies must make choices about the most appropriate variables to use. In consumer markets, background characteristics like age, sex and occupation are widely used. (Dib & Siskin, 2009) There’s a specific customer profile of the visitors of Leeds castle, which is set by using a combination between demographic, cryptographic and geographic variables. The variables used to segment the market are marital status, family lifestyle and region of living.
Leeds castle visitors Families with children Like to spend weekends together away form home Live within 60 – 90 minutes’ drive away form the castle This is a good customer profile for this type of tourist attraction, as a lot of kids re interested in visiting castles and their parents might enjoy a dive in the past in the castle premises. There are a lot of events, organized in the castle, mainly targeting children, such as wildlife walks, Easter egg hunts, Christmas celebrations with Santa, etc. Of course, there are a lot of different people, who visit the castle, but the main target group is defined as families. This allows marketers to use a concentrated targeting strategy. This means that the organization focuses on a single market segment. The better decision though, is to target more than one specific type of customers, in order to increase the visits even more.
If two or more customer profiles are created, such as ‘Young couples” and “elderly visitors” gives more possibilities for increasing visitor numbers. In case this is done, marketers could use the differentiated strategy. That means that there should be different marketing mixes for all the customer profiles, but as stated previously in the report, a change could be done in only one of the parts of the mix. The best part to be changed in this case is the Promotion. For example, when positioning the castle’s benefits to younger couples without hillier, leaflets could provide more information about evening tours and dine and sleep events, organized in the castle.
When targeting older people, more attention could be paid to the architecture and gardens of the castle. The best way to position a product, or in this case a venue, is to choose the right type of people who are most likely to visit it and inform them about it. Not only should they know that the place exists, they should be attracted by its beauty, events, attractions, and one very important feature – price. One of the great marketing decisions made by the team managing Leeds castle is “The key to the castle” hen a visitor buys a ticket, it is valid for one year and this way the number of return visitor is increased. Positioning is based on customers’ perceptions and is therefore only partly within the control of marketers.
Positioning are essentially selected by customers, based on variables and within parameters that are important to them. (Dib & Siskin, 2009) Page | 9 men essence of a strong brand is that it is sufficiently differentiated to the extent that it cannot be easily replicated by its competitors. ” (Fill, 2013) A brand is a name, design, symbol or any other feature that identifies one seller’s good or arrive as distinct from those of other sellers. A brand name is the part of the brand that can be spoken. It is often a product’s distinguishing characteristic. Without a name, a company could not identify its products. To consumers, brand names are as fundamental as the product itself. (Dib & Siskin, 2009) Brands are everything in today’s world.
Style is created by brands, people are judged by the brands they use and brands compete for customers. Some people try to fit in the society by buying the most common brands, others try to stand out by using new or unknown brands, but the truth is that most of the mimes, people care more about the brand than the product itself. 10 of the most valuable brands in the world are who they are now because of good advertising, quality and perfectly-built brand image. Branding provides benefits for both buyers and sellers. Brands help buyers to identify specific products that they do and do not like. Without brands, product selection would be quite random, because buyers could have no assurance what they were purchasing what they preferred.
Brands also help buyers evaluate the quality of the product, especially when they are unable to judge by characteristics. Dib & Siskin, 2009) For example, when you think of sports apparel, equipment and accessories, the first name that strikes the heart and mind is Mike. Its famous slogan “Just Do It” is probably the highest brand recall that any brand has around the world. (Anon. , 201 2) Apple Inc. , as expected, is number one in the list created by “Forbes” magazine. Forbes’ study of the top brands illustrates that the Apple name is as strong as ever. Apple is the most valuable brand in the world. It is worth nearly twice as much as any other brand on the planet. Badness’s, 2013) And this is all hanks to the brilliant brand image, created by the company through the years. They have millions of loyal customers all over the world and many potential ones. Coca-Cola is the only non-technological product in the top 5 of Forbes’ list. In 2007 it was on top of the list of the most valuable brands in the world. This is the most loved bottled drink. The company has used advertising consistently since its launch in 1886. The goal is brand awareness, to help audiences make brand associations and to position the brand as an accompaniment to or a catalyst for a joyous life. Coca-Cola’s ads draw associations with happiness, lifestyle and lath.
The target for these ads has been consumers, pulling them into the brand and touch points where the brand is available. (Fill, 201 3) Brand recognition is important for every business, it is essential that people know you exist and will provide high quality product or service. One of the initial objectives of a marketer, introducing a brand, is to create widespread awareness of the brand, leading to brand loyalty. (Dib & Siskin, 2009) Because when loyalty is in the picture, it means customers are satisfied and will come back to the organization as well as might recommend it to others. Page | 10 Leeds castle has a well-thought promotional campaign.
Various media channels are used to advertise and promote the place, such as radio, television, internet, leaflets and brochures. Various events and attractions are provided to the visitors and with the Key to the castle a lot of people return to the place for another visit. Leeds Castle is a popular tourist place, it was visited by more than half a million people in 2013(Alva. Org. UK, 2014) , so that means that the promotional campaign is working well, but visitor numbers need to be increase and that will bring more profit to the organization, and those money could be seed to maintain the castle and organize more events. Firstly, new target markets could be chosen, such as children in school, university students and couples without children and single people.
Different events, discounts and opportunities could be provided for each target group, some of which will be included in the table below: School children School trips with discounted prices Camping weekends “Life in the castle” experience Knight shows University students Historical tours for History students Ball rooms for graduation parties Special student discount – 30% off on week days ND 20% off on weekends Couples without children / Single people Ballroom dance for couples Art classes Traditional English food preparation classes School trips might be organized during holidays, providing something exciting for the children and some free time for the parents. These trips COUld be either one-day experience or in the form of a camping weekend inside the castle. For the camping holidays, children will be asked to bring sleeping bags and a limited amount of personal items. Different activities could be organized, such as ghost hunting in the evenings, book clubs and art classes in the days. Of course, all the activities would be in the spirit of the castle and old times. University students could be given the opportunity to visit the castle for learning purposes or just for fun, for a discounted price.
Also, the ballrooms in the castle could be rented for graduation parties or other special scallion. Couples and Singles could attend special Ballroom dancing events once a month, with a special dress code and champagne provided. Each month a different theme could be introduced to the public, so that they would know what to wear this time. Art classes could take place in the spacious gardens in summer and inside the castle in winter. Another possible activity might be cooking classes – attendants will learn how to prepare traditional English food while enjoying the spirit of the castle. Another change that could be made is introducing QUeUe jump tickets – with a slightly higher price but providing visitors quicker access to the castle.
This approach works successfully in many different attractions all over the world, so why not introduce it to Leeds castle? The last proposition for an innovation in the marketing of the castle is introducing half-price tickets in the winter period, if a sister brings a friend, for example if a couple wants to visit Page | 11 the castle, they get one ticket for the full price and the second one is 50% off. This way visits in winter would be increased, which is one of the things Shone Guy, head of publicity at Leeds Castle wanted to improve. These innovations could be presented to the public by promoters, dressed as knights and royals in town centers and universities nearby.
Another way of promoting the new events in the castle is to send promotional materials to loyal visitors, who might recommend the place to people they know in the newly selected target groups. Advertising is a very important part of the marketing of an organization, so it should be well-thought and executed. Advertising has been considered to be a significant means of communicating with target audiences, based on its potential to influence the way people thin or how they feel and behave. (Fill, 2013) page | 12 “The key to superior performance is to gain and hold a competitive advantage” (Jobber & Ellis-Chadwick, 201 3) Having in mind all that’s said above, it could be concluded that Leeds castle has applied segmentation and targeting techniques very well but some improvements could be made.
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