TIỂU LUẬN KẾT THÚC HỌC PHẦN MÔN HỌC MARKETING CĂN BẢN

They purposely build up a large global community of lodging providers following their vision in order to maintain the service quality possible.. To enhance the unique customer value as w

UEH UNIVERSITY SCHOOL OF FOREIGN LANGUAGE

- TIỂU LUẬN KẾT THÚC HỌC PHẦN

-MÔN HỌC: MARKETING CĂN BẢN

Mã học phần: : 22C1MAR50316101

Giảng viên: : Đinh Tiên Minh

Người thực hiện: : Nguyễn Thị Kim Anh

MSSV: : 31201020003

TP Hồ Chí Minh, ngày 14 tháng 10 năm 2022

MỤC LỤC

I CASE STUDY SUMARY 3

II RELATED THEORIES 5

1 Customer value: 5

2 Level of product and services: 5

3 Adoption process: 6

4 Service: 7

5 Service marketing: 7

6 Four characteristics of services: 8

7 Brand Positioning 9

REFERENCE 16

I Case study Sumary.

In decades, the Hotel industry has sharpened its standardized offerings A typical room is about 13 by 25 feet including a bathroom, a closet and some typical furniture In that way, they could hide lots of negative experiences which typically results in an unsatisfied frame of mind for most guests However, keeping the same model as offering only one cookie-cutter option, that prevents the travel industry from keeping in touch with its customers

For this reason, a logging provider has broken new ground in these areas by providing completely opposite experiences with the hospitality world’s status quo, it’s called Airbnb The company is established by 2 founders Chesky and Gebbia, is an online community marketplace They do not own any real estate, they basically facilitate transactions between those who have available room in their homes with guests who are finding accommodations

Whereas other major hotel chains make efforts to follow a typical and strict model of industries, Airbnb enhances their list of property options as much as they can by providing services to both guests and hosts Firstly, The company gives owners the opportunity to rent out any real property which is available It could be a couch, a single bedroom, whole apartment, a moored yacht, even a castle as well They could also offer booking duration depending on price as well as some more detail information of their accommondations and listings with just a 3 percent booking fee returned to the website

On the other hand, Airbnb facilitates the booking process by online website providing attached photos, details and the owner’s contact Therefore, the guests find it easier to figure out the suitable room Moreover, about 6 to 12 percent of the buyer's payment is a service fee in order to ensure the security deposits

As applying the new technique in a certain stable model, Airbnb has to deal with a big question: When few users were willing to take risks with first experience How could they

push the adoption process? They go through these problems via 2 methods The first method is using a standard rating system which can measure both lodging provider and renters credibility through reviews and a clear booking process Secondly, Airbnb provides a verification process as well as some safe tips which makes users approach the website easier Thirdly, Hosts received further protection by an included insurance policy minimizing a variety of their risks Although these measures can not solve all damages, it becomes a strong competitive advantage setting them apart from other hotel chains

Airbnb broke the barrier of a certain hotel industry one more time by providing users with unique and more meaningful experiences which satisfy customer’s expectations They realized most customers who are traveling are delighted to engage with the locals Instead

of giving guests a list of convenient hotel rooms, Airbnb recommends them to live in a local house to approach practical cultures and experiences In Airbnb Open which is a motivational annual event established in Paris, the company conveyed a strong and clear message that: With those Airbnb experiences, guests are provided the feeling of being a piece of the new culture in a new city It was a successful positioning strategy defining stable characteristics for their brand in the consumer's mind Airbnb does not give you the best travel experience, they provide you with an authentic and unique living experience

Airbnb took up a line extension They extend existing brand names to new logo text, symbols and slogans The new logo and slogan communicate an idea of belonging to something that goes beyond cultural differences, slogan is: Belonging anywhere

Through the years, Airbnb's first priority remains the same They set their goal on providing authentic experiences to both guests and hosts The company gives a deep concentration on its community with hosts who are considered as their target customers They purposely build up a large global community of lodging providers following their vision in order to maintain the service quality possible Furthermore, Airbnb ambition is contributing to world peace via their services which create people engagement and provide them deeper cultural understanding Airbnb has impacted the hotel industry Some huge hotel chains were trying to expand their perception and innovate new

approaches However, it is impossible to duplicate Airbnb’s preemptive experience in a short period of time

In its brief eight-year-existence, Airbnb has proven their vision with magnificent success Their global network includes greater than 2 million options to sixty million guests throughout 34,000 cities in 191 countries which built a market value reaching $25 billion Airbnb defeats the accomplishments of the biggest hotel chain worldwide, 100-year-old Hilton with the number of 765,000 rooms, 4,660 properties, along with a market value of

$22 billion

Going along with their fast growth and magnificent success, Airbnb has to deal with a variety of difficulties Firstly, Some cities require the rental of personal real estates for duration greater than 30 days The other problem comes from the guest's hesitation when choosing a new way Airbnb goes through all those issues with their sustainable ideals

II Related Theories.

To enhance the unique customer value as well as build up a sustainable value for the company, Airbnb has applied a large number of marketing theories

1 Customer value:

Customer value includes all the practicality, advantages a customer receives when they

buy a product It could be measured as how it is worth for customers, especially when they compare it to a variety of alternative options in a competitive market

Having a deep understanding about customer value and how to apply this theory can assist service providers to price products fairly and reduce friction within the customer experience

2 Level of product and services:

In the beginning, Airbnb invested a lot of money on budget-minded customers, it provided some listings with competitive prices After that, Airbnb realised that customers, especially travellers, want more than just low prices Airbnb positioned its service like a unique and realistic experience The customer value improvement is a result of the level

of product and service they focus on

Level of product: Philip Kotler devised a model

which divides products and services into 3

levels This concept helps us actively estimate

the nature of a product further

The CORE product: Is the main benefit of a

good and service that consumer really receive

It’s the intangible product that we can see or

touch For Airbnb example, their core product is

not an available room, it is a unique and

realistic experience

The ACTUAL product includes tangible, physical

products You can get some use out of it Again with

Airbnb, it is their brand image, standard rating system,

website and the quality of the room guests receive

The AUGMENTED product consists of lots of additional

value So when you become an Airbnb user, augmented products would be the guidelines, protect policies, lodging provider community… They are a crucial part to tailor products

to what an individual customer is seeking

3 Adoption process:

Adoption process: Are plans, strategies of a company as they publish a new product It is

like a mental process to help a customer to pass from heristation of first learning The aim

of this process is to turn an individual from total unawareness into a regular user of this service

There are five stages in the adoption process:

Awareness When The consumer hears about a new product or service but they have very

little information related to it

In this stage, marketers should convey awareness of the product to emphasize their difference between their new method and the other They also need to clarify customer confusions or problems

Interest The potential consumer who is delighted, starts to find more information about

the product Depending on their purposes – along with suitable features, price and additional services

Evaluation: The consumer takes considerations about the pros and cons when they stop

using certain products and others try

During this phase, marketers start communicating the best use cases, emphasizing their strengths, setting their product apart from other suppliers

Trial The consumer decides to try the new good or service to compare and estimate its

value to the previous one They will choose the new one when it fit their specific needs

Adoption The consumer is willing to buy the new product regularly Marketers have to

show them they will always receive the best value and forego whatever other companies can give

Each segment of consumer has different techniques to approach Marketers often attract their attention and seek their primary consumers There are several features influencing the rate of adoption: relative advantages, compatibility, complexity, divisibility, and communicability

4 Service:

According to Philip Kotler’s definition, service is defined as an activity, advantage, or satisfaction a company offers to their customers They are intangible “products” and unable to be owned

5 Service marketing:

Service marketing is strategy based on relationships to improve customer value Service providers apply it to market their segment of product Service becomes more and more crucial in the international economy the company should pay the hard attention on this market aspect to differentiate with their competitors, especially in an emerging market Marketing services are not similar methods to marketing products because of 4 significant elements of services including intangibility, perishability and inseparability and variability

When the company tries to extend their product and services internationally, developers have to deal with some challenges Firstly, they must find out the suitable offer for different customer segmentation The second challenge is measuring appropriate standardisation to the adaptation process in the world markets Thirdly, companies need

to carry out the way to maintain their service quality and convey a succinct message which enhances a company's consistent international image Last but not least, It also minimises marketing costs but still keeps productivity and quality of a number of service’s aspects With those methods, Companies can control these differences by adapting their product offerings

6 Four characteristics of services:

Intangible: Service intangibility tells the story that customers can not see, taste and feel

the service before purchasing

so they find it hard to measure

this “product” and make a

decision to buy it Developers

need to push the adoption

process by making their service

more tangible They need to

create the right “signals” to

communicate quality

differences, especially their platform security

Inseparable: Service inseparability shows that services cannot be separated into

independent parts Service outcome depend much on people Both staff and customer contribute to service process, customers don’t just buy and experience a service; they play

an important role in its delivery Both the provider and the customer affect the service outcome In Airbnb’s case study, lodging providers are people who engage with guests and decide the service quality they receive In returrn, the customer resource is the core factor that hosts can value Airbnb’s service Creating provider–customer interaction is primary mission of developers

Variability: refers to the customer service is flexible, it depends on providers, time, place

and how they are provided For instance, Airbnb has to struggle with keeping a sustainable service qualilty when connect lodging providers community have reputations for providing better service than others Therefore, quality varies relying on hosts feeling and frame of mind during booking process

Perishability: is a service features that prevent the product or service to be stored for sale

at a future date It brings no problem as demanding of the market is stable Thus, when demand become flexible, service provider have to struggle with some complicated issues For instance in some hotel service providers as Airbnb, it’s too difficult for their

customers to provide the best option because they have fewer choices in when the demand

of travelling turns so high, especially during the travel season, In contrast, Hosts have more vacancies in some months Thus, service firms have to deal with the pressure controlling a better match between demand and supply

7 Brand Positioning

Brand Positioning: is defined as “the action of designing the company’s offering and image to occupy a distinctive place in the mind of the target market” by Kotler.To rephrase it, Brand positioning clarifies what is the brand difference which can set them apart from its competitors and which features that sit in customers’ thinking A company needs to plan a positioning strategy involving conveying their image in customers’ minds, Communicate a clear message to get their good perception

The company should go beyond attribute or benefit positioning They create strict and sustainable visions and values, and have a deep engagement with consumers For instance, Airbnb research showed that booking an accommodation service is more than just providing a convenient room to customers They create a better connection with the value by giving their customer a chance to know more about culture, meet locals and become “a locals” during their journey

Applying this strategy, the company should build a clear mission as well as a vision that all staff and employees can follow easily It is their promise to maintain a stable set of characteristics, benefits, services, and experiences to consumers It must be a clear message

Airbnb, for example, was a successful positioning strategy defining stable characteristics for their brand in the consumer's mind Airbnb does not give you the best travel