1. Tourism Marketing Role of Marketing in Strategic Planning
Spring 2016
Çağ Üniversitesi

2. 4 Characteristics of High-Performing Business
Stakeholders
Processes
Resources
Organization
Challenge for today’s hospitality companies: building and maintaining healthy business in the face of rapidly changing environment

3. Stakeholders
Stockholders
Customers
Employees
Suppliers
Communities

4. Processes Avoid development of “silos”
Departments operating for the completion of their own goals
Manage processes, not departments
Las Vegas Hilton and Market Segment Accntg
Profitability of each customer segment/ type of guest?
How much inventory / nights can each fill?
How much to allocate towards getting each segment?
How to price rooms for each segment?
Who has priority during critical periods of year (seasonality)?
Processes
Finance, Mktg, Info Services contributed to the Market Segment Accounting Model

5. Resources Personnel Materials Machines Information
Traditionally all “in-house”  outsource some areas to experts (HR, IT)
Resources

6. Structure
Policies
Culture
Organization

7. Corporate Strategic Planning
Process of developing and maintaining a strategic fit between the company’s goals and capabilities and it’s changing marketing opportunities
Corporate level
Business unit level
Functional / departmental level

8. Corporate level Business unit level Defining company mission
Setting company objectives and goals
Designing business portfolio
Planning marketing and other functional activities

9. Defining Company Mission
A mission statement is a statement of the organization’s purpose—what it wants to accomplish in the larger environment
Not too narrow or too broad
Based on distinctive competencies
A clear mission statement acts like an “invisible hand” that guides people in the organization
Proven that companies with well-made MS’s perform better
But this definition needs to adapt if the company grows, offers more products, or encounters changes in its operating environment

10. Defining Company Mission
According to Peter Drucker, ask:
What is our business?
Who is the customer?
What do customers value?
What should our business be?

11. Product vs Market oriented Missions
We rent luxury hotel rooms and have fine restaurants VS
We create the RC experience – one that enlivens the senses, instill well-being, and exceptionally exceeds even the unexpressed wishes and needs of our guests….
Hilton Market / customer orientation and culture illustrated

12. Setting company objectives and goals
Company accomplishes its mission by achieving business and marketing objectives
General  Specific
Clear, quantifying measures
Ultimate goal is increasing profit
How? Raise sales or lower costs
So marketing goal becomes increasing sales
How? Increasing market share in current segments, or reach new segments
New international market
Hire more staff to contact business / corporate travelers

13. Raise market share in existing segments Define and reach new segments
Raise profit
Increase sales
Reduce cost
Raise market share in existing segments
Define and reach new segments
Hire more staff
İnternational guests
strategy
strategy
strategy
strategy

14. Designing the business portfolio
Since most companies operate more than one business, they segment them into Strategic Business Units (SBU’s)
1. Business or collection of related businesses that can be planned for separately from rest of company
2. has own set of competitors
3. has own manager responsible for strategic planning and profit performance and is in control of factors affecting profits
Hotels and cruise lines that operate several different brands
Company runs its own restaurants, tour companies, spas…

15. Growth Strategies 1. Market Penetration 3. Product Development
Existing Products
New Products
Ansoff product- market expansion grid
1. Market Penetration
3. Product Development
Existing Markets
2. Market Development
4. Diversification
EXAMPLES
Diversifiaction: Starbucks Evenings
New Markets

16. Growth Strategies 1. Market Penetration 3. Product Development
Concentric diversification strategy: seek new products that have technological or marketing synergies with existing product lines (hotel brand that appeals to different demographic)
Horizontal diversification strategy: seek new products that appeal to company’s existing customers (branded logo items, souvenirs, luggage…)
Conglomerate diversification strategy: seek new businesses that have no relation to company’s current technology, products, or markets (Steakhouse starts own cattle farm, Starbucks grows its own coffee beans…)
1. Market Penetration
3. Product Development
2. Market Development
4. Diversification
Existing Products
Existing Markets
New Products
EXAMPLES
New Markets

17. Growth Strategies Intregrative Growth
Backward: acquire supplier
Forward: acquire a distributor
Horizontal: acquire competitor
Do we have the competencies / ability to manage these new assets effectively and competitively?

18. Corporate level Business unit level Defining company mission
Setting company objectives and goals
Designing business portfolio
Planning marketing and other functional activities
Corporate level
Business unit level

19. Marketing Strategy
The logic and means by which the company hopes to create customer value and achieve profitable relationships

20. Customer-Driven Marketing Strategy
Market Segmentation
Market Targeting
Market Differentiation
Market Positioning

21. Customer-driven Marketing Strategy
Process of dividing market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing programs
Geographic, demographic, psychographic, behavioral…
Possibilities are endless, but goal is to find and go after ones with most opportunity
Nielsen PRIZM: demographic, geographic, and behavioral
66 market segments in the US
Market Segmentation

22. Values, Attitudes, and Lifestyles

23. Customer-driven marketing strategy
After segmenting, choose most attractive options
Market Targeting

24. Customer-driven marketing strategy
Market Differentiation
After a company has decided which market segments to enter, it must decide how it will differentiate its market offering for each targeted segment and what positions it wants to occupy in those segments
Market Positioning
A product’s position is the place the product occupies, relative to competitors’ products, in consumers’ minds
In positioning its product, the company first identifies possible customer value differences that provide competitive advantages on which to build the position
Market Differentiation
Market Positioning

25. Marketing Mix 4 Ps 4 Cs Product Customer Solution Price Customer Cost
Place
Convenience
Promotion
Communication
After deciding overall strategy, get down to the specifics
Consider both Seller and Buyer’s view of the market
For example, Price is more than just the $ on the sticker: total cost of obtaining, using, and disposing of the product
Place is not just the location you choose to sell the product, consider the convenience and availability

26. Managing the Marketing Effort
Another way to look at it
Analysis
Planning
Implemen-tation
Control
Understand the company’s situation

27. Internal Environmental Analysis External Environmental Analysis
SWOT Analysis
Strengths
Weaknesses
Internal Environmental Analysis
Opportunities
Threats
External Environmental Analysis
SWOT analysis evaluates the company’s overall strengths (S), weaknesses (W), opportunities (0), and threats (T)
Strengths
Internal capabilities, resources, and positive situational factors that may help the company to serve its customers and achieve its objectives
Weaknesses
Internal limitations and negative situational factors that may interfere with the company’s performance
Opportunities
Favorable factors or trends in the external environment that the company may be able to exploit to its advantage
Threats
Unfavorable external factors or trends that may present challenges to performance.
Internal Environmental Analysis (Strengths and Weaknesses Analysis)
Each business needs to evaluate its strengths and weaknesses periodically
Management or an outside consultant reviews the business’s marketing, financial, manufacturing, and organizational competencies
External Environmental Analysis (Opportunity and Threat Analysis)
The business manager now knows the parts of the environment to monitor if the business is to achieve its goals
Macroenvironmental forces
Demographic-economic
Technological
Political-legal
Social-cultural
Microenvironmental forces
Customers
Competitors
Distribution channels
Supplies

28. Euromonitor June 2010

29. Porter’s Goal Strategies
Achieve lowest price amongst competitors
Difficult and can sacrifice customer value
Cost Leadership
Achieve superior performance in a particular benefit area
e.g. this hotel has the most beautiful pool area, or this cruise line has the best children’s program
Differentiation
Concetrate on narrow market segments
Boutique hotels, niche products
Focus

30. Managing the Marketing Effort
Analysis
Planning
Implemen-tation
Control
Understand the company’s situation
Deciding on the strategies that will accomplish overall objectives
Ensure have the proper resources, including employees who understand the goals and have ability to carry out plan
Measure and evaluate results. Take corrective action.
Marketing ROI

31. Chapter Questions
Discussion question 5: Think about the shopping area nearest to you. Assume that you wish to start a business here and are looking for a promising opportunity for a restaurant.
A. Is there an opportunity to open a distinctive and promoising business? Describe your target market and how you would serve it differently than current businesses do.
B. What sort of marketing mix would you use for your business?

32. Sources
Kotler, Bowen, and Makens. Marketing for Hospitality and Tourism. 6e. Pearson Higher Education
Euromonitor International. Marriott International Inc in Travel and Tourism – World. Jun 2010.
Strategic Business Insights. ‘US Framework and VALS™ Types.’ Mar
Nielsen. ‘Nielsen PRIZM Overview.’ Mar Web. Learn%2BMore&menuOption=learnmore