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1.
Chapter 19
Next Year’s Marketing Plan ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
2.
“If you don’t
have a competitive advantage, don’t compete.” - Jack Welch “At Preferred Hotels & Resorts, we believe that the product preferences of affluent customers are as diverse as the consumers themselves.” - Peter Cass ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
3.
Chapter Objectives
• Know why it is important to have a marketing plan and be able to explain the purpose of a marketing plan • Prepare a marketing plan following the process described in this chapter ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
4.
Purpose of a
Marketing Plan • Provides a road map for all marketing activities of the firm for the next year • Ensures that marketing activities are in agreement with the corporate strategic plan • Forces marketing managers to review and think through objectively all steps in the marketing process ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
5.
Purpose of a
Marketing Plan • Assist in the budgeting process to match resources with marketing objectives • Creates a process to monitor actual against expected results ☞ It is also an excellent training device for younger staff members who wish to be manager ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
6.
Marketing Plan Sections
I. Executive Summary II. Corporate Connection III. Environmental Analysis and Forecasting (Positioning Statement) IV. Segmentation and Targeting V. Next Year’s Objectives and Quotas ©2006 Pearson Education, Inc. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
7.
Marketing Plan Sections
VI. Action Plans: Strategies and Tactics VII. Resources Needed to Support Strategies and Meet Objectives VIII. Marketing Control IX. Presenting and Selling the Plan X. Preparing for the Future ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
8.
Section I:
Executive Summary ☞ A few tips in writing the executive summary • Write it for top executives • Limit the pages to between two and four • Use short sentences and paragraphs • Avoid using words that are unlikely to be understood. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
9.
Section I:
Executive Summary • Organize the summary as follows: describe next year’s objectives in quantitative terms; briefly describe marketing strategies to meet goals and objectives, including a description of target markets; describe expected results by quarter; identify the dollar costs necessary, as well as key resources needed ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
10.
Section I:
Executive Summary • Read and reread the executive summary several times. • Modify and change the summary until it flows well, is easily read, and conveys the central message of the marketing plan. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
11.
Section II:
Corporate Connection • Relationship to Other Plans • Corporate goals with respect to profit, growth, and so on. • Desired market share • Positioning of the company or of its product lines ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
12.
Section II:
Corporate Connection • Relationship to Other Plans • Vertical or horizontal integration • Strategic alliances • Product line breadth and depth • Customer relationship management (CRM) ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
13.
Section II:
Corporate Connection • Marketing Related Plans • Sales • Advertising and promotion • Public relations and publicity • Marketing research • Pricing • Customer service ☞ Cooperate each dep’t being developed plan ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
14.
Section II:
Corporate Connection • Corporate Direction: to guide the development of next year’s plan. • Mission Statement: purpose and definition of business • Corporate Philosophy: Customer value, high quality and satisfaction • Corporate Goals: quantitatively ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
15.
Section III: Environmental
Analysis and Forecasting • Positioning Statement: - A marketing plan should provide a positioning statement of how the enterprise intends to differentiate – position itself in the marketplace ☜ Advertising Sources ☞ Due to confused array of strategy and tactics, the desired position let’s them know stakeholders and publics. ☞ American Air vs Southwest Air ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
16.
Section III: Environmental
Analysis and Forecasting • Major Environmental Factors – Social: crime, demographics, geographic ☞ Hotel market in India vs America – Political: legislation, taxes ☞ local policies and international policies. ☞ No tax, Exchange Policy – Economic: lodging and cruising sectors are highly sensitive to business-cycle movement ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
17.
Section III: Environmental
Analysis and Forecasting • Competitive Analysis: Scales and contents, guests, sales force and their abilities. • Market Trends – Visitor Trends: Business sources – Competitive Trends: all concerned – Related Industry Trends: Opportunities ☞ Select only those trends that are useful in developing the plan. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
18.
Section III: Environmental
Analysis and Forecasting • Market Potential: should be viewed as the total available demand for a hospitality product within a particular geographic market at a given price. ☞ Search from All suite hotel to budget motel - Never assume that market potential is static or that it is unimportant to marketing success. - “Guesstimates” ← meet competitors ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
19.
Section III: Environmental
Analysis and Forecasting • Market Research – Macromarket information • Industry trends, social-economic political trends, competitive information, industry wide customer data, etc,. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
20.
• Market Research
– Micromarket Information • Guest information, product/service information, new product analysis and testing, intermediary buyer data, pricing studies, key account information, advertising/promotion effectiveness • Marketing/Advertising/Sales managers need a continuous flow of reliable informations(through PMS) → essential for the coming year. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
21.
Section IV:
Segmentation and Targeting • Segmentation Analysis is the selection of segments as the result of – Understanding what the company is and what it wishes to be – Studying available segments and determining if they fit the capabilities and desires of the company to obtain and secure them ☞ Refer to Embassy Suite in Dallas ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
22.
Section IV:
Segmentation and Targeting • Segmentation Analysis - A marketing plan tells you; ☞ Who is using your hotel? ☞ Who might be using your hotel? ☞ Where you can look to expand your business? - Marketers must look to both internal and external data sources for information concerning market segments–refer to 776 ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
23.
Section IV:
Segmentation and Targeting • Targeting - Begins by defining the mix of desired guests • support the positioning strategy of the company • support revenue management - Selected from the list of available segments ☞ Majority of target market will remain the same and new one appear ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
24.
Section V:
Next Year’s Objectives and Quotas • Objectives: The purpose of marketing strategies and tactics is to support objectives – Must be quantitative, time and profit/margin specific ← support it by the Stakeholders – Established after considering corporate goals, corporate resources, environmental factors, competition, market trends, market potential, available market segments and possible target markets ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
25.
Section V:
Next Year’s Objectives and Quotas • Quotas must be: – Based on next year’s objectives – Individualized – subobjectives may be established(by departments or sections) – Realistic and obtainable – Broken down to small units – Sales person’s quota per week ☞ Refer to Table 19-1, P780 – Understandable and measurable ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
26.
Section VI: Action
Plans: Strategies and Tactics • Marketing strategies and tactics employ advertising and promotion, sales and distribution, pricing and product • Must be custom designed to meet the specific needs of a company • Must allow companies to meet or exceed objectives ☞ Myopic thinking that things are going well ©2006 Pearson Education, Inc. ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Marketing for Hospitality and Tourism, 4th edition Makens Kotler, Bowen, and Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
27.
Section VI:
Action Plans: Strategies and Tactics • Sales Strategies - Prevent erosion of key accounts - Grow key accounts - Grow selected marginal accounts - Eliminate selected marginal accounts - Retain selected marginal accounts but provide lower-cost sales support - Obtain new business from selected prospects ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
28.
Section VI:
Action Plans: Strategies and Tactics • Sales Tactics – P784 - Refer to Outside the Company(Examples) - Refer to Inside the Company(Examples) • Distribution Strategies - Internet reservation ↑, Travel Agent ↓ - Direct or Indirect distribution used by hotels ☞ Refer to Table 19-2, P785 ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
29.
Section VI:
Action Plans: Strategies and Tactics • Advertising and Promotion Strategies – Select a blend or mix of media ☞ Mass media, DM, Trade show, billboards, special ads and much more. – Select or approve the message – Design a media schedule showing when each medium will be employed – Design a schedule of events ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
30.
Section VI:
Action Plans: Strategies and Tactics • Advertising and Promotion Strategies - Carefully transmit this information to management - Supervise the development and implementation of advertising/promotion programs - Assume responsibility for the outcome ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
31.
Section VI:
Action Plans: Strategies and Tactics • Pricing Strategies – Pricing is a function of marketing ☞ revenue Management Department – Fencing is placing restrictions on customer segments selected due to their perceived level of price elasticity - Marriott – Sales promotions and advertising must support pricing decisions → Cross-selling and up-selling ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
32.
Section VII:
Resources Needed to Support Strategies & Meet Objectives ☞ Marketing Plan can and must be sold to top management • Personnel – most costly and difficult resources • Other Monetary Support • Research, Consulting, and Training • Miscellaneous Costs • Budgets – established to reflect projected cost. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
33.
Section VIII:
Marketing Control • Sales Objectives – must be established for each sales area, division, region, salesperson, and time period. • Sales Forecast and Quotas–refer to table19-3 • Expenditures against Budget • Periodic Evaluation of All Marketing Objectives • Marketing Activity Timetable • Readjustments to Marketing Plan ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
34.
Section IX:
Presenting and Selling the Plan ☞ Never assume that a marketing plan is so logical that it will sell itself. A marketing plan must be sold to many people. • Members of marketing/sales departments • Vendor/ad agencies and others • Top management ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
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Section X:
Preparing for the Future • Data Collection and Analysis - Marketing plan development depends on the availability of reliable information • Marketing as a Tool for Growth - Marketing plan is a reflection of a corporate culture and top management support ☞ “Just say YES, just do something” ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
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Key Terms
• Competitive analysis • Environmental factors • Executive summary • Market potential ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
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Best Practices
• Preferred Hotels and Resorts Worldwide • Rittenhouse Hotel, Philadelphia • Seabourn/Windstar Cruises ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
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Key Terms
• Market trends • Marketing objectives • Quotas • Segmentation analysis • Timetable ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition edition Marketing for Hospitality and Tourism, 4th Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Kotler, Bowen, and Makens
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