DIP0003 Introduction to Tourism and Hospitality Marketing Marketing plan Session 2

The Marketing Plan Answers to questions- What situation are we dealing with? Who are our customers? What do they want What do we want?

Purpose of Marketing Plan Provides a road map for all marketing Ensures that marketing activities are in agreement with the corporate strategic plan Forces marketing manager to review and think through objectively all steps in marketing process Assist in budgeting process Creates a process to monitor actual against expected results

Content of Marketing Plan I. Executive Summary II. Corporate Connection III. Positioning Statement IV. Environmental Analysis and Forecasting V. Segmentation and Targeting VI. Next Year’s Objectives

“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

Section I: 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

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

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

Section II: Corporate Connection Relationship to Other Plans Corporate goals with respect to profit, growth, etc. Desired market share Positioning of the company or of its product lines

Section II: Corporate Connection Marketing Related Plans Sales Advertising and promotion Public relations and publicity Marketing research Pricing Customer service

Section II: Corporate Connection Corporate Direction Mission Statement Corporate Philosophy Corporate Goals

Section III: Environmental Analysis and Forecasting A marketing plan should provide a positioning statement of how the enterprise intends to differentiate – position itself in the marketplace

Section III: Environmental Analysis and Forecasting Major Environmental Factors Social Political Economic

Section III: Environmental Analysis and Forecasting Competitive Analysis Market Trends Visitor Trends Competitive Trends Related Industry Trends

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

Section III: Environmental Analysis and Forecasting Market Research Macromarket information Industry trends, social-economic political trends, competitive information, industry wide customer data

Section III: Environmental Analysis and Forecasting 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

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

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

Activity Identify the concepts of marketing based on the following customer segments: Children – ages 7 – 12 Middle aged – 25 – 35 Seniors –

Section V: Next Year’s Objectives and Quotas Objectives Must be quantitative, time and profit/margin specific 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 Realistic and obtainable Broken down to small units Understandable and measurable

Section VI: Action Plans: Strategies and Tactics Marketing strategies and tactics employ advertising and promotion, sales and distribution, pricing and product to meet the specific needs of a company or to meet or exceed objectives

Marketing strategies - are designed as vehicle to achieve marketing objectives. Marketing tactics – are tools that support strategies

Cause of poor strategies and tactics Desire to maintain status quo Lazy, incompetent, or unsure management Failure to engage in marketing planning or to view the processes as being serious and meaningful to decision making Undue heavy influence of outside vendors Failure to understand the relationship between objectives, strategies and tactics Myopic thinking that things are going well and one does not fix something that is broken.

Section VI: Action Plans: Strategies and Tactics Sales Strategies Prevent erosion of 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

Sales tactics Outside the company: Sales blitz of all targeted accounts and projects Telephone, direct mail, and personal sales calls to selected decision makers Trade booths at selected travel shows Sales calls and working with travel intermediaries Luncheon of key customers, prospects, or decision-influencers Travel mission and other tactics

Sales strategies Inside the company Training of sales staff Involvement and support of non-sles personnel Motivational and control programs Involvement and support of management

Section VI: Action Plans: Strategies and Tactics Advertising and Promotion Strategies

Section VI: Action Plans: Strategies and Tactics Pricing Strategies

Section VII: Resources Needed to Support Strategies & Meet Objectives Personnel Other Monetary Support Research, Consulting, and Training Miscellaneous Costs Budgets

Section VIII: Marketing Control Sales Objectives Sales Forecast and Quotas Expenditures against Budget Periodic Evaluation of All Marketing Objectives Marketing Activity Timetable Readjustments to Marketing Plan

Section IX: Presenting and Selling the Plan Members of marketing/sales departments Vendor/ad agencies and others Top management

Section X: Preparing for the Future Data Collection and Analysis Marketing as a Tool for Growth

Marketing Mix There are 4 P’s in a marketing mix Product Place Promotion Price

Exchanging Value Value = Benefit – Investment/cost

Marketing trends Relationship and loyalty marketing Value marketing Globalisation Quality management

Activity Develop the following for ASTHM International Buffet Objectives Market segmentation Sales strategies Sales tactics