Fundamentals of Marketing

This report analyzes the current business condition of Scooby Tours and makes recommendations regarding target market and a suitable action plan to achieve the marketing and business target. The report includes strategies for promotion, people, price, and process, along with an action plan and cost estimation.

Running Head: FUNDAMENTALS OF MARKETING
Fundamentals of Marketing
Name of the Student
Name of the University

1FUNDAMENTALS OF MARKETING
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Targeted Domestic Market Segment.........................................................................................2
3.0 Marketing Mix Strategies..........................................................................................................3
4.0 Action Plan................................................................................................................................5
5.0 Justification of Each Strategy....................................................................................................6
6.0 Justification of Action Plan.......................................................................................................7
7.0 Expenditures and Cost Estimation.............................................................................................8
8.0 Key Performance Indicators....................................................................................................10
9.0 Conclusion...............................................................................................................................11
References......................................................................................................................................12

2FUNDAMENTALS OF MARKETING
1.0 Introduction
Scooby Tours is a day tour business established in December 2017 and takes tourists to
guided tours in Waitomo Glowworm Caves, Great Lake Taupo (for lunch by the lakeside) and
movie set of Hobbiton. The tour is offered in a single package and the adults are charged with
$370 and the children are charged with $175. The tour starts with a 45 minute boat tour /
kayaking / water rafting through the Glowworm Caves followed by barbeque lunch by the Great
Lake Taupo and then a detailed guided tour in the Hobbiton movie set (Shaw, 2016). In the
initial months of the business, it has been found that there are double the numbers of
international tourists than the numbers of national tourists who have participated in the tours.
Furthermore, as per the customers’ feedbacks, the average rating for the tours is only 6 out of 10
and hence, there is a significant space to improve the business by also increasing the tour
experience of the tourists. Furthermore, the high prices of the tour also need to be justified
through enhancing the user experiences in the tour.
In this report, the current business condition is analyzed in order to make a number of
recommendations regarding target market as well as a suitable action plan to achieve the
marketing and business target.
2.0 Targeted Domestic Market Segment
Generally a domestic market segment is divided into four main types as demographics,
psychographics, behavioral and geographics. The segmentations and their target areas are shown
in the following diagram.

3FUNDAMENTALS OF MARKETING
Figure 1: Market Segmentations
(Source: Area, 2017)
The current goal of Scooby Tours is to increase the domestic customer count at least 20%
more than the current count. Hence, the most suitable market segment for the company is
Geographics. This particular segment focuses on the geographical regions that are targeted by a
company (Wirtz & Lovelock, 2016). There are four sub-segments of this segment – Local,
National, International and Regional. The company already has sufficient customers from
regional (Australia-Oceania) and international (China and other countries) markets. Hence, the
focus of the company now is to earn more customers from the national and local markets.
3.0 Marketing Mix Strategies
The company needs some specific sets of marketing tools or marketing mix strategies
that will help it to achieve its goals by earning sufficient number of customers from the domestic
markets. The marketing mix strategy utilizes four P’s of marketing that are explained and aligned
with the proposed strategies in the following table.
1.Target segment The targeted segment within the domestic market is geographic, as the company is looking to

4FUNDAMENTALS OF MARKETING
within the domestic
market
attract more domestic and national tourists for the tour packages.
2. Marketing mix strategies for Scooby Tours
P1: Promotion
Objective The main objective of this marketing mix strategy is to promote the business in the domestic
market using digital media. The lack of sufficient domestic interest in the business is mainly
due to the lack of sufficient domestic promotion.
Strategy The main strategy is to promote the business in the domestic market and hence, digital media
should be extensively utilized. Digital media includes television advertisements, promotions
through social media, online app and others. Social media is a very effective tool for
promotion due to the presence of a huge pool of domestic population in it (Kotabe & Helsen,
2014). Social media promotion can be achieved by creating facebook pages, groups and
others that will promote the business by uploading tour pictures, packages, benefits and user
experiences. The social media can also be used as a platform for online promotional games
winning which will grant the participants with special discounts and pass for the tours.
P2: People
Objective The objective of this marketing mix strategy is to attract more people in the domestic sector to
have a tour with Scooby Tours to help them achieve their goals regarding the domestic
market. Many people in the country are not aware of their natural heritage and hence, very
few domestic people have shown interest in participating in the tours.
Strategy The strategy includes awareness among the domestic people regarding the natural heritages of
the country (for instance, the glowworm caves, Great Lake Taupo and others. This is to be
done by promotions through digital media. In addition to the promotion of the business,
promotions should also be done on the tour locations that will attract a great pool of domestic
population (Ding, Eliashberg & Stremersch, 2016). Furthermore, in order to attract an even
bigger customer base, the company can provide certain benefits and discounts for domestic
people that may be in the form of tour price discount, free souvenirs, discount for future
visits, referrals and others.
P3: Price
Objective Price is one of the main factors in the business of Scooby Tours. Since the current price chart
for adults and children is very high, the company needs to revise the chart so that it is
affordable for the domestic people.
Strategy Initially, the business was targeted towards a wide pool of customers in national as well as
international markets, the tour price structure was set at a very high level. As a result,
although the international customers were able to afford the tours, many of the national
customers were not able to afford the prices of the tour even though they were interested in

5FUNDAMENTALS OF MARKETING
the tours (Mullakhmetov et al., 2016). Hence, the strategy for the business should include
revising the price structure and reduce the prices for domestic customers or provide certain
benefits and discounts.
P4: Process
Objective The objective of this strategy is to revise the marketing and business processes in order to
make it more convenient for customers as well as transparency in the system.
Strategy This particular goal can be achieved by establishing a company website as well as dedicated
mobile app through which, the users will be able to view and book tours along with online
payments for selected tour as well (Wachowiak, 2016). From this app, several benefits can be
provided like instant cashback on bulk reservations, discounts for booking through app and
others. This will help to attract more domestic customers to avail Scooby Tours’ services for
the tours.
4.0 Action Plan
The recommended action plan for the above mentioned strategies is shown in the
following table.
Marketing
strategies
Task/s or actions
required
Person/s in
charge
Schedule/Timeline Place
Promotion Promotional
marketing through
digital media
including
advertisements,
social media
promotions and
others
Online
Marketing
Manager
August 2018 to
November 2018
Various
Media
Outlets
People Promote natural
heritage and post
pictures of the
tours in social and
Online
Marketing
Manager
May 2018 to
November 2018
Various
Media
Outlets

6FUNDAMENTALS OF MARKETING
digital media
Price Survey on the
affordability of
tour among
domestic people,
revise price
structure for the
domestic
population
Chief
Financial
Officer
May 2018 to July
2018
Finance
Departme
nt Office
Process Develop company
website and
mobile app for
booking tours,
view information
on the company
and the tour
packages, etc.
Chief IT
Officer
June 2018 to
September 2018
IT Project
Office
5.0 Justification of Each Strategy
Since four specific strategies have been chosen for Scooby Tours, there must be suitable
justifications for choosing each one of them. The justifications are accordingly listed as follows.
Strategy 1: Promotion – This strategy has been mainly chosen since it has been found
that there has not been sufficient promotion of the tours within the domestic pool of population.
While the promotions have been done through tour brochures for international visitors, the
domestic population has been more or less ignored (Kotler, 2015). As a result, there has been a
significant different between domestic and international customers in the tours. In order to bridge
this gap and increase interest among domestic customers, sufficient promotions are needed that
can be done through digital media platforms.

7FUNDAMENTALS OF MARKETING
Strategy 2: People – This strategy has been chosen to focus the marketing process on the
domestic people. It has been determined that sufficient marketing must be done for raising
awareness among domestic people regarding natural heritage and other places that can be visited
in guided tours. Furthermore, it is also important to bring in more domestic population than
international people as the domestic market will always be much more stable than the
international market.
Strategy 3: Price – This strategy has been chosen specifically because the price structure
has been deemed as too expensive, especially for the domestic population. Moreover, in each of
the competing companies, there are two different price structures for domestic and international
tourists that are also set within affordable ranges (Cohen, 2018). In order to maintain business
feasibility and competitive advantage, Scooby Tours also need to reduce prices but within a
certain limit. Another technique that can be used is to provide discounts or instant cashbacks to
the customers based on certain offers or conditions that need to be fulfilled.
Strategy 4: Process – This strategy has been chosen to reap the benefits of technology for
enhancing the current business processes. In the current system, technology can provide
significant benefits to the business process of the company. The development of mobile app will
make the company a strong contender to gain a huge share in the domestic market. Furthermore,
a company website and a mobile app will help the company reach a bigger pool of domestic
population than any other marketing means. However, the contents of the website and the app
must be updated regularly in order to maintain interest of customers in it.
6.0 Justification of Action Plan
The justifications of the action plan are explained as follows.
Strategy 1: Aug 2018 to Nov 2018 – The next summer tour season starts in December
2018 and hence, it is important to implement marketing activities much prior to the season. This
will grow interest among the people and many will decide to preregister for tours on specific
dates. In this way, the company will start earning revenue much earlier the season starts.
Furthermore, early marketing will allow the company to have sufficient amount of time to make
some changes and modifications in the marketing process.

8FUNDAMENTALS OF MARKETING
Strategy 2: May 2018 to Nov 2018 – The domestic people awareness campaign is
proposed to be started in May 2018 so that it can be ended before the start of the next summer
season. Similar to the previous strategy, the main objective of this strategy is to raise awareness
among the people before the season start so that customers start gathering early in the season.
Strategy 3: May 2018 to July 2018 – This strategy implementation is to be finished
before the previous two strategies because it is most vital in attracting more and more domestic
customers. As per initial estimations, it is expected that due to the marketing campaigns, many
people will pre-book tours for summer season (Kladou & Mavragani, 2015). Hence, it is
important to revise the price structure so that the customers book the tours based on the revised
price structure only.
Strategy 4: June 2018 to September 2018 – The app development and website launching
processes will have to be done before the start of the season so that the customers can book
services using the app and website. Furthermore, if the development is completed early, there
will be sufficient time to detect issues and bugs so that they can be addressed easily.
7.0 Expenditures and Cost Estimation
The possible areas of expenditures are shown in the following table.
Marketing Campaigns $ 25,000.00
Hire Agents $ 20,000.00
Promotions through Digital Media $ 25,000.00
App Development $ 30,000.00
Total Implementation Cost $ 100,000.00
Agent Fees $ 20,000.00
Application Maintenance $ 5,000.00
Tour Expenses $ 15,000.00
Total Operational Cost $ 40,000.00
Increase in Profit $ 100,000.00
Revenue Benefits from Promotions $ 50,000.00
Total Benefit $ 150,000.00
Discount Rate Used 5.00%

9FUNDAMENTALS OF MARKETING
For the cost estimation purpose and determination of cost benefit, the following table is
used.
Analysis
Variables:
Discount Rate
Used
5.00%
Annual Benefits $
150,000
.00
Annual
Operational
Costs
$
40,000.
00
One-Time
Development
Cost
$
100,000
.00
Year of
Project
0 1 2 3 4 5 TOTAL
S
Economic Benefit $0.00 $
150,000.0
0
$
150,000.0
0
$
150,000.0
0
$
150,000.0
0
$
150,000.
00
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Benefits $0.00 $142,857.
14
$136,054.
42
$129,575.
64
$123,405.
37
$117,528
.92
NPV of all
BENEFITS
$0.00 $
142,857.1
4
$
278,911.5
6
$
408,487.2
0
$
531,892.5
8
$
649,421.
50
$
649,421.
50
One-Time
COSTS
$(100,
000.00

10FUNDAMENTALS OF MARKETING
)
Recurring Costs $0.00 $
(40,000.0
0)
$
(40,000.0
0)
$
(40,000.00
)
$
(40,000.0
0)
$
(40,000.
00)
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Recurring
Costs
$0.00 $
(38,095.2
4)
$
(36,281.1
8)
$
(34,553.50
)
$
(32,908.1
0)
$
(31,341.
05)
NPV of all
COSTS
$(100,
000.00
)
$
(138,095.
24)
$
(174,376.
42)
$
(208,929.9
2)
$
(241,838.
02)
$
(273,179
.07)
$
(273,17
9.07)
Overall NPV $
376,242.
43
Overall ROI
1.3773
8.0 Key Performance Indicators
Since a number of different strategies are to be implemented, there should be some key
performance indicators that should set the standard against which, the outcome of the
implementations will be judged. Hence, the key performance indicators for this particular
strategic implementation at Scooby Tours are as follows.
 The number of domestic customers should increase by at least 20% than the
number in the current season.
 There are at least 6000 pre-bookings of the tour services.
 Ten new agents are hired for managing the bookings and the marketing processes.
 The developed mobile app is downloaded by at least 25,000 people of the
country.

11FUNDAMENTALS OF MARKETING
 The profit at the end of the next season should be at least 25% more than the
current season’s collections.
9.0 Conclusion
This report discusses in detail regarding the possible marketing mix strategies and steps
that are to be implemented by Scooby Tours in order gain a better hold on the domestic market.
While the company already enjoys a lot of popularity among the international visitors, it is yet to
get hold of the domestic market due to a number of reasons. The company has set the prices of
the tour too high for the most of the domestic population to afford whereas other competitors
charge much lesser prices for the tours. Again, there are not sufficient marketing promotions
within the country and hence, very few people know about the tour packages in the selected
locations. In order to address these issues, some recommendations have been provided regarding
new marketing strategies that should be implemented by Scooby Tours.

12FUNDAMENTALS OF MARKETING
References
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Cohen, I. K. (2018). Social Media and Marketing: The Evolution of Tottenham Hotspur Football
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Ding, M., Eliashberg, J., & Stremersch, S. (2016). INNOVATION AND MARKETING IN THE
PHARMACEUTICAL INDUSTRY. SPRINGER-VERLAG NEW YORK.
Kladou, S., & Mavragani, E. (2015). Assessing destination image: An online marketing approach
and the case of TripAdvisor. Journal of Destination Marketing & Management, 4(3),
187-193.
Kotabe, M., & Helsen, K. (2014). Global marketing management.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Mullakhmetov, K. S., Sadriev, R. D., Gabidinova, G. S., & Akhmetshin, E. M. (2016). Control in
marketing-based management. Academy of Marketing Studies Journal, 20(2), 13.
Shaw, S. (2016). Airline marketing and management. Routledge.
Wachowiak, H. (Ed.). (2016). Tourism and borders: contemporary issues, policies and
international research. Routledge.
Wirtz, J., & Lovelock, C. (2016). Services marketing: people, technology, strategy.