1. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Strategies Chapter 7

2. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 HMS - Marketing Strategy Marketing Strategy Marketing Environment Positioning Marketing Discipline/Strategy Applications

3. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Strategy Focal Points The Target Market The Core Positioning The Price Positioning The Total Value Proposition The Distribution Strategy The Communications Strategy

4. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Transition Then Manage from the top Operate in the marketplace Now Manage up and down and across Operate also in the marketplace

5. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Ten Major Marketing Issues 1. Shrinking margins 2. Rising sales and promotional costs 3. Growing retail power and shrinking shelf space 4. Competition from store brands and generics 5. Increased niche attacks

6. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Issues (continued) 6. More competition 7. Labor, availability, and competency 8. Technological incompetence 9. Declining brand/customer loyalty 10. Media selectivity/segment fragmentation

7. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Current and Near Future Marketing Technology embracing Global and local Electronic and personal Customized and flexible Diversity recognizing Perception driven

8. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Three Levels of Marketing Performance Responsive Marketing Anticipative Marketing Need-shaping Marketing

9. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Approaches Mass Marketing Target Marketing Segments Niches Market Cells

10. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Management Process Marketing Management Process R  STP  MM  I  C R= Research (i.e., market research) STP= Segmentation, targeting, and positioning MM= Marketing mix (popularly know as the four P’s, i.e., product, price, place and promotion) I= Implementation C= Control (getting feedback, evaluating results, and revising or improving STP strategy, and MM tactics)

11. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Ten Winning Marketing Strategies 1. Win through higher quality 2. Win through better service 3. Win through high market share 4. Win through lower prices 5. Win through adaptation and customization

12. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Ten Winning Marketing Strategies (continued) 6. Win through continuous product improvement 7. Win through product innovation 8. Win through entering high growth markets 9. Win through exceeding customer expectations 10. Win through creating A better perception

13. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Ten Winning Marketing Tactics 1. Win through ego appeal 2. Win through discounting 3. Win through couponing 4. Win through value added offers 5. Win through speed of delivery

14. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Ten Winning Marketing Tactics (continued) 6. Win through abundance of availability 7. Win through convenience of purchase 8. Win through the targeted awareness 9. Win through the “Points of Encounter” 10. Win through doing more for your customer

15. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 The art of finding, developing, and profiting from opportunities. Marketing

16. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 An area of buyer need and interest in which there is a high probability that a company can perform profitably by satisfying that need. number of buyers purchasing power desire to buy Marketing Opportunity

17. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Main Sources of Opportunity 1. Supplying something in short supply 2. Supplying an existing product or service in a new or superior way 3. Supplying a new product or service

18. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Breakthrough Marketing 1. Finds new customers and segments 2. Finds new sales strategies 3. Finds new pricing and financing solutions 4. Finds new product features “Executes any or all of the above with the best ‘perception’.”

19. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Strategic Gap Model Strategic gap New products New markets for existing products Increased Market share Years Sales 0 1 2 3 4 5 } } } }

20. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Building New Demand Matrix PRODUCTS

21. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 New Product Launch Probability of Success

22. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Establish credibility and build trust Create lifestyle associations Establish awareness and create images Stimulate repeat purchases PR Advertising, Events Advertising Sales promotion Strategy ApplicationMarketing Discipline

23. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Simulate trade participation Reward frequency and loyalty Create a sense of involvement Reach a tightly targeted audience Trade promotion Frequency program Events Addressable media Strategy ApplicationMarketing Discipline

24. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Leverage social responsibility Stimulate referrals Stimulate trial Make a news announcement Mission marketing Club or affinity group Sales promotion PR Strategy ApplicationMarketing Discipline

25. Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J. 07458 Marketing Scorecard Market Share Customer Retention Customer Satisfaction Relative Product Quality Relative Service Quality