Presentation is loading. Please wait.

Presentation is loading. Please wait.

Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 1 Strategic Marketing for Hotels and Restaurants Stowe Shoemaker, PhD Cornell.

Similar presentations


Presentation on theme: "Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 1 Strategic Marketing for Hotels and Restaurants Stowe Shoemaker, PhD Cornell."— Presentation transcript:

1 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 1 Strategic Marketing for Hotels and Restaurants Stowe Shoemaker, PhD Cornell University Executive Education Faculty University of Houston

2 Strategic Marketing GM Program (c) Stowe Shoemaker, Ph.D Objectives 1.Introduce Strategic Marketing System Model – the Framework for the class 2.Review definition of marketing and discuss the future of marketing 3.Review the buyer purchase model 4.Discuss how to calculate the life time value of the customer and the value of WOM and why this is important

3 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 3 Objectives 5.Discuss market positioning 6.Discuss a framework for developing a marketing plan 7.Review communication strategies

4 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 4 How to Reach Goals Lecture Case studies Discussion Group 3 day project: Develop a marketing strategy for Carvel Ice Cream

5 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 5 Carvel Ice Cream Case to be presented the last day of class Award for best group presentation: Cornell Marketing Strategy Contest Participants will vote: –Incorporates class material (negates 5 forces model, SWOT, presents measures to show success, etc.) –Originality –Likelihood of success

6 6 #1#2#3#4#5 Creativity Originality Incorporates class information This group had fun Will build a CA Presents measures to monitor success TOTAL not at all does extremely well

7 Strategic Marketing GM Program (c) Stowe Shoemaker, Ph.D

8 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 8 The Marketing Plan

9 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 9 Some Possible Marketing Plan Objectives Changes in marketing direction (defined by competitive set or business mix or both) Defensive or offensive marketing moves New opportunities (new market segments) Other specific product line objectives (e.g., increase food, beverage, spa or other revenues)

10 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 10 Some Possible Marketing Plan Objectives Market share objectivesoverall and by market segment, such as geographic, demographic, psychographic, group, FIT, package, etc. Pricing objectives (defined as an indexed value against other properties in the competitive set) Sales and promotion objectives

11 11 Some Possible Marketing Plan Objectives Advertising objectives (in terms of awareness and/or intention) Channel, distribution and intermediary objectives, such as the percentage of business from travel agents Research objectives Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

12 Handout on Template for a Marketing Plan Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 12

13 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 13

14 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 14 Review Basics of Marketing

15 15 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

16 16 The Concept of Marketing Definition of Marketing: –identifying evolving consumer preferences, then capitalizing on them through the creation, promotion and delivery of products and services that satisfy the corresponding demand. This is done by solving the right customers problems, giving them what they want or need at the time and place of their choosing, and at the price they are willing to pay.

17 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 17 4 P of Marketing P

18 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 18 Services versus Goods Differences between goods versus services: –Heterogeneity –Simultaneous production and consumption –Perishability

19 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 19 Types of Products/Services Search qualities Experience qualities Credence qualities

20 20 Continuum of Evaluation for Different Types of Products Clothing Jewelry Furniture Houses Automobiles Restaurant meals Vacations Haircuts Child care Television repair Legal services Root canals Auto repair Medical diagnosis Difficult to evaluate Easy to evaluate { High in search qualities High in experience qualities High in credence qualities { { Most Goods Most Services

21 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 21 Tangibility Spectrum Tangible Dominant Intangible Dominant Salt Soft Drinks Detergents Automobiles Cosmetics Advertising Agencies Airlines Investment Management Consulting Teaching Fast-food Outlets Fast-food Outlets

22 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 22 7 P of Marketing P

23 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 23 Fourteen Cs of Marketing Customer Categories of offerings Capabilities of firm Cost, profitability and value Control of process Collaboration within firm Customization Communications Customer measurement Customer care Chain of relationships Capacity management Competitors Cost to the customer

24 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 24 Carvel Ice Cream and the 14 Cs Identify as many of the 14Cs in the case.

25 25 The Evolution of Marketing Sales Targeted Promotions Frequency Programs Push traffic, no targeting, discounts, little measurement. Still push, discounts, some measurement. Price driven, segmented, transaction based. Added value to product, support price, customized, strengthen brand. Brand Relationships Profitability Strategic Knowledge Relationships Knowledge, Help support VAR in loyalty Tactic Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

26 26 Interactive Marketing Refers to any activity that uses the Internet to advertise and sell goods and services to consumers, business, or nonprofit organizations and government –Marketers Toolkit by Harvard Business School Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

27 27 Contextual Marketing Give the customer what she wants and make it useful and accessible so she can take action when it matters to her Widget: widgets are basically little websites that display directly on the Dashboard, rather than in a web browser. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

28 28 Examples of Contextual Marketing: Widgets Movable mini-applications used by consumers to craft custom experiences Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

29 29 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

30 30 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

31 31 Ultimate Travel Widget Ultimate Travel Widget Travel Widgets presents the "Ultimate Travel Widget". Now you can book your Hotels, Air, Cruises, Hotel and Air Packages all in one widget. No more clutter of 3 or 4 widgets to fill up your Dashboard. The Ultimate Travel widget utilizes World Choice Travel, a Travelocity company, so you can book with confidence. Air fares are compared with 28 sites. Hotels from over 20,000 locations and every cruise line can be searched for reservations. The 4 tab interfaces allows you to toggle quickly from section to section. World wide travel and many currencies supported. Download the Ultimate Travel Widgets today and start traveling right from your dashboard. Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

32 32 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

33 33 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

34 34 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

35 35 Awareness/ Search/Evoked Set Barriers a.Switching costs b.Perceived risks c.Lack of information Trial (Initial Purchase) Satisfaction Dissatisfaction Switch Complain Repeat Purchase Brand Advocate The Purchase Cycle Why Switch? Need Recognition WOM Loyalty Circle

36 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 36 Marketing Myopia Management defines an industry, or a product, or a cluster of know-how so narrowly as to guarantee its premature senescence. Examples: railroads, should be transportation; oil business, should be defined as ?; buggy whip manufacturer should be defined as? Hotel business defined as ?

37 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 37 Sales versus Marketing Selling –Focuses on the needs of seller; –Preoccupied with need to convert the product to cash –you get rid of it, we will worry about the profits Marketing –Focuses on the needs of the buyer; –Satisfying the needs of the customers by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it.

38 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 38 Sales versus Marketing Selling –What is offered for sale is determined by the firm Marketing –Marketing minded firms try to create value- satisfying goods and services that consumers want to buy –What is offered for sale is determined by the buyer

39 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 39 Reasons for Marketing Myopia 1.The belief that growth is assured by an expanding and more affluent population 2.The belief that there is no competitive substitute for the industrys major product 3.Too much faith in mass production and in the advantages of rapidly declining unit costs as output rises

40 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 40 Reasons for Marketing Myopia 4.Too much faith in mass production and in the advantages of rapidly declining unit costs as output rises 5.Preoccupation with a product that lends itself to carefully controlled scientific experimentation, improvement, and manufacturing cost reduction.

41 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 41 Reasons Examined by Looking at Three Industries Petroleum Automobiles Electronics

42 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 42 Overview of Strategy and Competitive Advantage

43 43 Alice: Will you tell me please, which way I ought to go from here? Cheshire Cat: That depends a good deal on where you want to get to. Alice: I dont much care Cheshire Cat: Then it doesnt matter which way you go. Lewis Carroll, Alice in Wonderland

44 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 44 Strategy –The science and art of military command as applied to overall planning and conduct of large scale combat operations –The determination of basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals

45 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 45 Strategy versus Tactics Objective:Increase revenues by being perceived as hotel of choice Strategy:Provide greater value Tactic:Always have their reservation and room ready; call them by name; make sure they receive their wake-up call; focus on dimensions of service quality

46 46 Levels of Strategic Planning Corporate-level strategy –Focus on long-term viability Business-level strategy –Focus on overall theme of the company and its position Functional-level strategy –Focus on improving day-to-day operations Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D

47 47 Strategy Checklist 1.Is it identifiable and clear in words and practice? 2.Does it fully exploit opportunity? 3.Is it consistent with competence and resources? 4.Is it internally consistent, synergistic? 5.Is it a feasible risk in economic and personal terms? 6.Is it appropriate to personal values and aspirations?

48 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 48 Strategy Checklist 7.Does it provide stimulus to organizational effort and commitment? 8.Are there indications of responsiveness of the market? 9.Is it based on reality to the customer? 10.Is it workable?

49 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 49 Why Strategic Plans Fail Inadequate preparation of line managers Poorly defined business units Vague goals Inadequate databases for action planning Substandard linking of strategy with other control systems

50 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 50 Competitive Advantage

51 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 51 Definition Something that a firm has or does that allows the firm to earn higher than average profits, capture higher than average market share, and create a non level playing field; Gained by offering consumers something that they value that is currently not being given to them

52 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 52 Competitive Advantage Distinctive competencies that lead to CA: –Management knowledge –Culture –Location –Access to resources –Exceptional employees –Special patents –Access to capital –Brand name

53 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 53 Value Chain Primary Activities that enable creation of the project –Manufacturing –Marketing Secondary Activities that enable primary activities to take place –Infrastructure –R&D –Materials Management –Human Resources

54 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 54 Building Blocks of CA Efficiency Quality Innovation Customer Responsiveness Size Value

55 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 55 Building Blocks Not Independent Very often a firm focuses on two or three at the same time. For instance, consider Harrahs Entertainment –size –marketing efficiency –customer responsiveness

56 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 56 ValueEfficiencyQualityInnovationCustomer Responsive Size Infrastructure Manufacturing R&D Marketing How to create customer loyalty; life- time value Components of a product; GAP model Taco BellThe components of the loyalty circle Franchise Materials Management Human Resources

57 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 57

58 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 58 Mission Statements articulates its main philosophical values according to Peter Drucker, mission-statement development is the time to ask: who are our markets (customers) what is the value to customer (value of product) what will our business be what should our business be

59 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 59 Vision Statements A road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a companys destination and provides a rationale for going there.

60 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 60 Strategic Vision versus Mission Statement Strategic vision portrays a companys future business scope (where are we going) Mission statement typically describes its present business scope and purpose (who are we, what do we do, and why we are here.)

61 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 61 Intercontinental Hotel Group Corporate Information/Corporate Information

62 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 62 Starwood Hotels and Resorts Company Values

63 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 63 McDonalds Company Values

64 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 64 Measuring Success of Strategy

65 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 65 Five Principles of the Strategy-Focused Organization 1.Mobilize Change through Executive Leadership 2.Translate the strategy into operational terms Use language that everyone understands 3.Align the Organization to the Strategy Scorecard cascades the strategy to all parts of the organization and align resources needed to accomplish the strategy

66 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 66 Five Principles of the Strategy-Focused Organization 4.Motivate to Make Strategy Everyones Job The reward and recognition system is used to align individual behavior with performance objectives called for by the strategy 5.Govern to Make Strategy a Continual Process Strategy execution is linked to the budget and a reporting system based on scoreboard measures is used to provide feedback on strategic performance

67 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 67 Balanced Scorecard Stems from the recognition that exclusive reliance on financial performance measures induce company managers to take actions that make the companys near-term financial performance look good and to neglect the lead indicators.

68 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 68 Balanced Scorecard The solution: measure the performance of a companys strategy and make strategic objectives an integral part of a companys set of performance targets.

69 69 Objectives to Measure Strategy Financial ObjectivesStrategic Objectives An x % increase in annual revenue Winning a x % of market share Annual increases in after-tax profits of x percent Achieving lower costs Annual increases in earnings per share of x percent Overtake keep competitors on product performance or quality or customer service Profit margins of x percentAchieve technological leadership An x percent of return on investment Strengthen the firms brand name

70 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 70 Hilton – Only the Customer Can: Tell us whats working and can choose us over other hotels. Answer the tough questions: –Are we doing things right? –Are we doing the right things? –Are we doing the right things right?

71 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 71 Hilton - continued Huckestein defined two broad, new strategies 1.Pursue an aggressive growth plan to ensure that a Hilton was always nearby 2.Install a new performance management system to help standardize processes and deliver consistent quality across every Hilton property

72 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 72 Hilton – Value Drivers Operational effectiveness Efficiently Hilton hotels convert revenue into profit through hotel operations, processes, and procedures Revenue maximization REVPAR targets Value proposition How well managers create a service environment that increases repeat visits among guests and retention of key staff members

73 73 Hilton - continued Operational EffectivenessEBITDA Revenue MaximizationRevPAR; RevPAR Index Value PropositionOverall guest satisfaction scores; overall guest loyalty score; overall staff satisfaction score; average quality score through mystery shopping Brand ManagementScore on compliance with brand standards from on-site inspections Learning and growth of staffOrientation training, skills training, diversity plan performance

74 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 74 Exercise Develop mission statement for CIC Develop vision statement for CIC? How do employees know about the vision and mission? How are employee/corporate rewards tied to these statements? How do you know if you are meeting the mission and vision statements?

75 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 75

76 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 76 Need to Understand Environment as Part of Strategic Planning Process

77 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 77

78 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 78 SWOT Strengths –Internal to the organization –Things the firm is good at Weaknesses –Internal to the organization –Things the firm is not good it

79 Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 79 SWOT Opportunities –External to the firm –Examine the different environments Threats –External to the firm –Examine the different environments


Download ppt "Strategic Marketing for Hotels and Restaurants (c) Stowe Shoemaker, Ph.D 1 Strategic Marketing for Hotels and Restaurants Stowe Shoemaker, PhD Cornell."

Similar presentations


Ads by Google