Customer relation

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Chapter 19Next Year’s Marketing

Plan


“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


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


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


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


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



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


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.




• 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




• 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.



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




• Relationship to Other Plans• Vertical or horizontal integration• Strategic alliances• Product line breadth and depth• Customer relationship management

(CRM)




• 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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens



• 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



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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens



• 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




• 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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens



• 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




• Market Research– Macromarket information

• Industry trends, social-economic political trends, competitive information, industry wide customer data, etc,.



• 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.



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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


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



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



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



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



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




• 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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens



• 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




• 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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens



• Advertising and Promotion Strategies

- Carefully transmit this information to management

- Supervise the development and implementation of advertising/promotion programs

- Assume responsibility for the outcome




• 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



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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


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 editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens


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”



Key Terms

• Competitive analysis

• Environmental factors

• Executive summary

• Market potential



Best Practices

• Preferred Hotels and Resorts Worldwide

• Rittenhouse Hotel, Philadelphia

• Seabourn/Windstar Cruises



Key Terms

• Market trends

• Marketing objectives

• Quotas

• Segmentation analysis

• Timetable


Customer relation

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