For organization with a range

operations in different countries

There might be a need to devise a
strategy taking into account not only
central HQ issues but also local
cultural styles, values and
expectations
For example : mission statement
might have to be adapted and the
rate of strategic change adjusted to
local circumstances

Tourism, Hospitality, and Event Organizations

The products and market context

Strategic marketing for

competitive advantage
Market is rarely completely
homogenous. Within markets there
are groups of customers with
requirements are similiar, and it is
this similarity of needs and wants
that distinguishes one market
segment from another


Ways of defining and understanding market

Market attractiveness
Market size
In general terms the larger the size of
a market the more attractiveness it will
be in that it will offer wider
opportunities for a larger number of
organizations.

 Market growth rate

A growing market is normally more
attractive than a static or declining
market since growing markets allow
opportunities for businesses to expand in
line with the growth of the market.
Supplier Concentration
Concentration refers to the extent to
which a market is dominated by its
largest suppliers and is usually measured
by the percentage markets share of the
top four or five.

 Defining Markets
Define a market in different ways, it is not
surprising that the sum of their claimed
market share market may add to more or less
than one hundred per cent
Market share is a measure of an
organizations perfomance with regard to its
ability to win and retain customers relative to
other organizations. It can be measured
either by volume or by value.
Volume measures concern the organizations
share of unit sold to the market
Value measures concern the sales turnover
of one company in proportion to the total
value of the market

There are three ways in which market

are commonly defined :
Market definition based on product
If the product definition is wide, this
type of definition is close to describing
an industry. A drawback of this
approach is that it sometimes fails to
take into account that a product may
provide a range of different benefits,
and diffrent products, often derived
from completely differently sources,
might meet the same need.

 Market definition based on need

satisfaction or function perfomed
The reason why consumer purchase a
good or srvics is to gain utility. The
concept of utility infers that whenever
a consumer makes a purchases, they
make a cost-benefit calculation,
making the judgement that the benefit
they will get from the product is worth
more than the price is paid

 Market definition based on

customer identity
Groups of customers have
requirements in ccommon and differ
from other groups of customers. In
this way, the identity of customers
can be used to define markets