Download Tourism Marketing Role of Marketing in Strategic

Tourism Marketing
Role of Marketing in Strategic
Planning
Spring 2015
Çağ Üniversitesi
4 Characterisitcs of High-Performing
Business
Stakeholders
Resources
Processes
Organization
Stakeholders
Stockholders
Customers
Employees
Suppliers
Communities
 Avoid development of “silos”
 Departments operating for the completion of their own goals
 Manage processes, not departments
Processes
 Las Vegas Hilton e.g.
 Profitability of each customer segment?
 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)?
 Personnel
 Materials
 Machines
 Information
 Traditionally all “in-house”  outsource some areas to
experts (HR, IT)
Resources
Structure
Policies
Culture
Organization
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
Corporate level
Business unit level
Defining
company
mission
Setting
company
objectives
and goals
Designing
business
portfolio
Planning
marketing
and other
functional
activities
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
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?
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….
http://www3.hilton.com/en/about/index.ht
ml
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
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
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…
Growth Strategies
 Ansoff productmarket
expansion grid
Existing
Products
New
Products
Existing
Markets
1. Market
Penetration
3. Product
Development
New
Markets
2. Market
Development
4.
Diversification
Growth Strategies
 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 new1.products
that
Market
appeal to company’s existing customers (branded logo
Penetration
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…)
2. Market
New
Development
Markets
3. Product
Development
New
Products
4.
Diversification
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?
Corporate level
Business unit level
Defining
company
mission
Setting
company
objectives
and goals
Designing
business
portfolio
Planning
marketing
and other
functional
activities
Marketing Strategy
 The logic and means by which the company hopes to create customer
value and achieve profitable relationships
Customer-Driven Marketing Strategy
Market
Segmentation
Market
Targeting
Market
Differentiation
Market
Positioning
Customer-driven Marketing Strategy
Market
Segmentation
 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
Values,
Attitudes,
and Lifestyles
Customer-driven marketing strategy
 After segmenting, choose most attractive options
Market
Targeting
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
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
Managing the Marketing Effort
 Another way to look at it
Analysis
Understand
the
company’s
situation
Planning
Implemen
-tation
Control
SWOT Analysis
Internal Environmental Analysis
Strengths
Weaknesses
External Environmental
Analysis
Opportunities
Threats
Porter’s Goal Strategies
Cost
Leadership
• Achieve lowest price amongst
competitors
• Difficult and can sacrifice customer
value
Differentiation
• 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
Focus
• Concetrate on narrow market
segments
• Boutique hotels, niche products
Managing the Marketing Effort
Analysis
Understand the
company’s
situation
Planning
Deciding on the
strategies that will
accomplish overall
objectives
Implemen
-tation
Ensure have the proper
resources, including
employees who
understand the goals and
have ability to carry out
plan
Control
Measure and
evaluate results.
Take corrective
action.
Marketing ROI
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?
Sources
 Kotler, Bowen, and Makens. Marketing for Hospitality and Tourism. 6e.
Pearson Higher Education. 2014.
 Euromonitor International. Marriott International Inc in Travel and Tourism –
World. Jun 2010.
 Strategic Business Insights. ‘US Framework and VALS™ Types.’ Mar 2014.
http://www.strategicbusinessinsights.com/vals/ustypes.shtml
 Nielsen. ‘Nielsen PRIZM Overview.’ Mar 2014. Web.
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