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Marketing for hospitality and tourism chapter 3 marketing and stratigic planning
1.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3
2.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 “Would you tell me, please, which way I ought to go from here?” said Alice. “That depends a good deal on where you want to get to,” said Cheshire Cat. — LEWIS CARROLL (ALICE IN WONDERLAND) After reading this chapter, you should be able to: OBJECTIVES II 3
3.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Explain company-wide strategic planning. After reading this chapter, you should be able to: OBJECTIVES • Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high- performing business. • Explain the four planning activities of corporate strategic planning. • Understand the processes involved in defining a company’s mission and setting goals and objectives. • Discuss how to design business portfolios and growth strategies and explain the steps involved in the business strategy planning process.
4.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • A major challenge facing hospitality companies is building & maintaining healthy businesses in a rapidly changing marketplace & environment. • The consulting firm of Arthur D. Little proposed a model of the characteristics of a high-performance business which pointed to four factors: – stakeholders, processes, resources, and organization. Nature of High-Performance Business tab
5.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • The starting point for any business is to define the stakeholders and their needs. • A business must at strive to satisfy the minimum expectations of each stakeholder group. – including customers, employees, suppliers, and the communities where their businesses are located Stakeholders tab
6.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Departmental organization poses some problems, as departments typically operate to maximize their own objectives, not necessarily the company’s. – walls go up between departments – there is usually less than ideal cooperation – work is slowed & plans often are altered • Companies are increasingly refocusing attention on the need to manage processes more than departments. Processes tab
7.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • To carry out processes, a company needs resources like personnel, materials, machines, and information. – traditionally, companies sought to own & control most of the resources that entered the business • Companies are finding some resources under their control are not performing as well as those they could obtain from outside. – more companies today outsource less critical sources Resources tab
8.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • The organizational side of a company consists of its structure, policies, and culture. – all of which tend to become dysfunctional in a rapidly changing company • Although structure and policies can be changed, the company is the hardest to change. Organization tab
9.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 Figure 3-1 Steps in Strategic Planning. • The company starts strategic planning by defining its overall purpose & mission at the corporate level. – this mission is turned into detailed supporting objectives. Strategic Planning: Defining Marketing’s Role tab
10.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • At first, it has a clear mission or purpose, but over time, its mission may become unclear. – as the organization grows, adds new products & markets, or faces new conditions in the environment • Missions are at their best when they are guided by a vision, an almost impossible dream. Defining the Corporate Mission tab
11.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • The company needs to turn its mission into detailed supporting objectives for each level of management. – each manager should have objectives and be responsible for reaching them Setting Company Objectives and Goals tab
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Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Most companies operate several businesses, however, they often fail to define them carefully. – businesses are too often defined in terms of products Designing The Business Portfolio tab
13.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Companies need growth if they are to compete and attract top talent. – at the same time, a firm must be careful not to make growth itself an objective – the company’s objective must be “profitable growth” Developing Growth Strategies tab
14.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Management first considers whether it could gain more market share with its current products in their current markets – market concentration strategy • Then it considers whether it can find or develop new markets for its current products – market development strategy • Next, management should consider product development: – offering modified or new products to current markets Developing Growth Strategies tab
15.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Diversification growth makes sense when good opportunities are found outside present businesses. Three types of diversification can be considered: • The company could seek new products with technological or marketing synergies with existing product lines, even though the products may appeal to a new class of customers – concentric diversification strategy Diversification Growth tab
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Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • The company might search for new products that could appeal to its current customers, although technologically unrelated to its current product line. – horizontal diversification strategy • The company might seek new businesses that have no relationship to the company’s current technology, products, or markets. – conglomerate diversification strategy Diversification Growth tab
17.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Since markets consists of many types of customers, products, and needs, the marketer must determine which segments offer the best opportunities. – consumers can be grouped & served based on geographic, demographic, psychographic, and behavioral factors • Dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior, who might require separate products or marketing programs is called market segmentation. Market Segmentation tab
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Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market Targeting tab
19.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • 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. • Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Market Differentiation and Positioning Customer-Driven Marketing Strategy tab
20.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Where marketers see themselves as selling products, customers see themselves as buying value or solutions to their problems. Developing an Integrated Marketing Mix • Marketers would do well to think through the four Cs first and then build the four Ps on that platform. tab
21.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • The marketer should conduct a SWOT analysis, which evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Marketing Analysis Figure 3-5 SWOT analysis. tab
22.
Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Strengths include internal capabilities, resources, and positive situational factors that help the company to serve its customers and achieve its objectives. • Weaknesses include internal limitations & negative situational factors that may interfere with the company’s performance. • Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. • Threats are unfavorable external factors or trends that may present challenges to performance. Marketing Analysis tab
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Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 • Marketing planning involves deciding on marketing strategies that will help the company attain its overall strategic objectives. – a detailed marketing plan is needed for each business, product, or brand • The plan begins with an executive summary of major assessments, goals and recommendations. Marketing Planning tab
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Marketing for Hospitality
and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 II 3 END CHAPTER END
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