Next Year’s Marketing Plan

2. Next Year’s Marketing Plan Foreword: “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

3. OBJECTIVES After reading this chapter, you should be able to: • Understand why it is important to have a marketing plan and be able to explain the purpose of a marketing plan. • Prepare a marketing plan following the process described in this chapter.

4. Next Year’s Marketing Plan Preferred Hotels & Resorts Worldwide • Hospitality companies know that planning and research go hand-in-glove, particularly true of companies who serve the affluent guest • such as Preferred Hotels & Resorts Worldwide • The rationale is that the experience of the truly discerning traveler is shaped by the “little things,” beyond guaranteeing merely a clean, comfortable room and a desirable package of amenities. • In-depth guest input will also be used to shape the criteria that go into defining the on-property guest experience. tab

5. Next Year’s Marketing Plan Preferred Hotels & Resorts Worldwide • Through a proprietary customer satisfaction program currently under development, Preferred will refine still further fine points of detail that create a truly memorable and complete “luxury experience.” • No other worldwide lodging brand has built intoits core mission the complete & total fulfillmentof the guests’ individual tastes, requirements, and predilections. • although “comment cards” and guest preference sheets remain commonplace at many luxury hotels tab

6. Next Year’s Marketing Plan Preferred Hotels & Resorts Worldwide • Complete attention to detail providing completely personalized and individual service, and creates the experience of “intellectual surprise” is what drives repeat business among the affluent. • Using a prospect identification and lifestyle data collection system, detailed and segmented data are gathered not only about the preferences of luxury travelers but also about unperceived “micromarkets” that make up the luxury travel segment. tab

7. Next Year’s Marketing Plan Preferred Hotels & Resorts Worldwide • At the individual property level, the expectation of property managers is to learn not only guest room preference, but also their favorite leisure activities, the wine they like to drink, even favorite books. • At the macrolevel, Preferred targets programs, promotions & partnerships tailored to the micro-market segments making up their customer bases. • West Coast lawyers who golf or company CEOs who travel with children • The data collected enables Preferred to provide the ultimate in guest service. tab

8. Next Year’s Marketing Plan Experiential Associations & New Marketing Programs • Although affluent guests value individuality and attention to detail, Preferred has begun to identify certain distinct attributes or expectations that define the affluent as a group. • they associate themselves into groups, around commonsymbols, expectations & experiences, where membership comes to define participation in the affluent experience • Association is built into the concept of the affluent experience so Preferred’s creation of programs that target the affluent can be understood as a universal affinity program for the discerning consumer. tab

9. Next Year’s Marketing Plan Successful marketing • It is easy to become so involved in the day-to-day problems of running a marketing department that little or no time is devoted to planning. • successful marketing takes planning & careful execution • When this occurs, the marketing department is probably operating without purpose and is being reactive rather than proactive. • even experienced managers sometimes fail to see thisis occurring until it is too late • This may be one of the root causes for high turnover within hospitality, marketing, and sales departments. tab

10. Purpose of a Marketing Plan Introduction • provides a road map for all marketing activities of thefirm for the next year • ensures that marketing activities are in agreement withthe corporate strategic plan • forces marketing managers to review and think through objectively all steps in the marketing process • assists in the budgeting process to match resourceswith marketing objectives • it creates a process to monitoractual against expectedresults • A marketing plan serves several purposes: tab

11. Purpose of a Marketing Plan Development • The development of a marketing plan is a rigorous process & cannot be accomplished in a few hours. • it is best to set aside one or more days to develop next year’s plan • Many marketing managers find it best to leave the office along with their staff and all necessary data while writing the plan. – Brain Storming • constant interruptions are detrimental to the process • To be effective, a new marketing plan must be written each year. • plans for periods longer than a year are not as effective tab

12. Purpose of a Marketing Plan Development • The annual marketing plan must be written againsta longer term strategic plan that states what the company hopes to achieve in three to five years. • process of writing a plan forces those writing it to question, think, and strategize • A plan should be developed with input & assistance of key members of the marketing department. • the discussion & thought process required is stimulating and very helpful in team building • it is also an excellent training device for younger staff members who wish to be managers tab

13. Purpose of a Marketing Plan Development • To develop successful strategies & action programs, marketers need up-to-date information about the environment, competition & market segments. • As the plan is put into effect, marketers use a variety of research techniques to measure progress toward objectives and identify areas for improvement if results fall short of projections. • Marketing research helps marketers learn more about their customers’ requirements, expectations, perceptions, and satisfaction levels. tab

14. Purpose of a Marketing Plan Development • it affects how marketing personnel work with each other& other departments to deliver value & satisfy customers • it affects how the company works to achieve objectives, with suppliers, distributors & strategic alliance partners • it influences the company’s dealings with stakeholders, including government regulators, media & community • The marketing plan shows how to establish & maintain profitable customer relationships, and shapes a number of internal & external relationships. • Important to success, these relationships should be considered when a marketing plan is developed. tab

15. Purpose of a Marketing Plan Development • Although the exact length and layout varies from company to company, a marketing plan usually contains the sections described here. • to guide implementation effectively, every part of theplan must be described in considerable detail • Sometimes a company posts its marketing plan on an internal web site, which allows managers and employees in different locations to consult specific sections and collaborate on additions or changes. tab

16. Purpose of a Marketing Plan Sections of the Plan, and their Role • Section I: Executive Summary • Section II: Corporate Connection • Section III: Positioning Statement, and Environmental Analysis and Forecasting • Section IV: Segmentation and Targeting • Section V: Next Year’s Objectives and Quotas • Section VI: Action Plans: Strategies and Tactics • Section VII: Resources Needed to Support Strategies and Meet Objectives • Section VIII: Marketing Control • Section IX: Presenting and Selling the Plan • Section X: Preparing for the Future tab

17. Purpose of a Marketing Plan Section I: Executive Summary • may be the only parts ever read by top management, so it is of great importance to write this section carefully. ☞ A few tips in writing the 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. tab

18. Purpose of a Marketing Plan 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 • 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. tab

19. Purpose of a Marketing Plan Section II: Corporate Connection ☞ next year’s marketing strategies & tactics must support strategic decisions. ◈ Relationship to Other Plans • Corporate goals with respect to profit, growth, and so on. • Desired market share • Positioning of the company or of its product lines • Vertical or horizontal integration • Strategic alliances • Product line breadth and depth • Customer relationship management (CRM) tab

20. Purpose of a Marketing Plan Section II: Corporate Connection ◈ Marketing Related Plans Marketing – related areas in which plans are sometimes written independently of marketing: • Sales • Advertising and promotion • Public relations and publicity • Marketing research • Pricing • Customer service ☞ Cooperate each dep’t being developed plan tab

21. Purpose of a Marketing Plan Section II: Corporate Connection ◈ Corporate Direction to guide the development of next year’s plan: • Mission Statement: purpose and definition of business • Corporate Philosophy: Customer value, high quality and satisfaction • Corporate Goals: quantitatively ☞ Hospitality companies are highly sensitive to changes in their social, political, and economic environments. tab

22. Purpose of a Marketing Plan Section III: Environmental Analysis and Forecasting • hospitality marketers are expected to be aware of major environmental factors likely to affect the industry and the company. ◈ Positioning Statement: - A marketing plan should provide a positioning statement of how the enterprise intends to differentiate – position itself in the marketplace ☞ Due to confused array of strategy and tactics, the desired position let’s them know stakeholders and publics - American Air vs Southwest Air tab

23. Purpose of a Marketing Plan Section III: Environmental Analysis and Forecasting ◈ Major Environmental Factors • Social:crime, demographics, geographic ☞ Hotel market in India vs America • Political:legislation, taxes ☞ local policies and international policies ☞ No tax, Exchange Policy • Economic:lodging and cruising sectors are highly sensitive to business-cycle movement tab

24. Purpose of a Marketing Plan Section III: Environmental Analysis and Forecasting ◈ Competitive Analysis: Scales and contents, guests, sales force and their abilities. Service level, cleanliness, staff knowledge ◈Market Trends: • Visitor Trends: Business sources • Competitive Trends: all concerned • Related Industry Trends: Opportunities ☞ Select only those trends that are useful in developing the plan. tab

25. Purpose of a Marketing Plan 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. ☞ Search from All suite hotels to budget motels • Never assume that market potential is static or that it is unimportant to marketing success. • “Guesstimates” ← meet competitors tab

26. Purpose of a Marketing Plan Section III: Environmental Analysis and Forecasting ◈ Market Research • Marketing research needs very considerably by type and size of the hospitality company. • Marketing research needs can usually be divided in to macromarkets and micromarkets • Macromarket information • Industry trends • social-economic, political trends • competitive information • industry wide customer data tab

27. Purpose of a Marketing Plan Section III: Environmental Analysis and Forecasting • Micromarket Information • Guest information • product/service information • new product analysis and testing • intermediary buyer data • pricing studies • key account information • advertising/promotion effectiveness • Marketing/Advertising/Sales managers need a continuous flow of reliable informations (through PMS)→ essential for the coming year. tab

28. Purpose of a Marketing Plan Section IV: Segmentation and Targeting • - the heart of any marketing plan is careful analysis of available market segments and the selection of appropriate target markets. • Segmentation Analysisis 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 ☞ Refer to Embassy Suite in Dallas tab

29. Purpose of a Marketing Plan Section IV: Segmentation and Targeting ◈ Segmentation Analysis - A marketing plan tells you; Who is using your hotel? Who might be using your hotel? Where you can look to expand your business? - Marketers must look to both internal and external data sources for information concerning market segments. ☞ refer to P547, Analysis of Internal & External Data tab

30. Purpose of a Marketing Plan Section IV: Segmentation and Targeting ◈ MSPA –MarketSegmentation-Profitability Analysis • Identifies each of the company’s existing customer segments by revenue, cost, and profitability • Hotel marketers usually focus on customer segments. On the other hand, accountantsrecord and report the operational results by department, not market segments. tab

31. Purpose of a Marketing Plan Section IV: Segmentation and Targeting ◈ Targeting • If inappropriate markets are selected, marketing resources will be wasted. • 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 ☞ Majority of target market will remain the same and new one appear, and the order of importance can change between years. tab

32. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Objectives: • the establishment of objectives provides directionfor the rest of the marketing plan. • The purpose of marketing strategies and tactics is to support objectives • Must be quantitative, time specific and profit/marginspecific ← support it by the Stakeholders • Established after considering corporate goals, corporate resources, environmental factors, competition, market trends, market potential, available market segments and possible target markets tab

33. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Rating System Objectives • Some hotels are obsessed with ratings as those by AAA, Mobile, and Michelin. • To help the hotel achieve another star or diamond or other symbol rating. tab

34. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Quotas • Based on next year’s objectives • Individualized – subobjectives may be established (by departments or sections) • Realistic and obtainable • Broken down to small units – Sales person’s quota per week ☞ Refer to Table 18-1, P550 • Understandable and measurable ☞ Avoid slogans or mottos: “ to be the best in our industry or to provide excellent guest service” tab

35. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Communicating the Plan • A sophisticated and brilliantly developed plan is of no use if it is not understand, believed, or used. ◈ Top Management • Top management demonstrates acceptance or denial by their level of monetary support. • If top management buys in and demonstrates visible support, morale within the marketing department will increase. tab

36. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Board of Directors or Group of Investors • This group generally does not seek details but instead wants to know the answers to these questions: - Does the plan support corporate goals? - What are the dollars and unit objectives? - What are the major strategies to achieve these objectives? - What is the cost? - When can we expect to see results? - Does the plan support revenue management objectives? tab

37. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Subordinates • Members of the marketing and sales departments must understand and support the marketing plan. ◈ Vendors • This is particularly true as strategic alliances develpe. ☞ Suppliers, Ads agencies, Marketing research firm, Computer dealers, consultants ◈ Other Department • They have a right to know key elements of the plan. tab

38. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics • strategies are designed as the vehicle to achieve marketing objectives, and marketing tactics are tools that support strategies. • Marketing strategies and tactics employ advertising and promotion, sales and distribution, pricing and product • Must be custom designed to meet the specific needs of a company and must allow companies to meet or exceed objectives tab

39. Purpose of a Marketing Plan Section V: Next Year’s Objectives and Quotas ◈ Nonqualified Audience Cluster Marketing • Marketing and sales plans are not to be shared with competitors. Before honoring a request by a cluster marketing group to share any confidential data, receive a written, dated, and signed statement from the general manager granting permission to do so. tab

40. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics ◈ Sales Strategies • The sales force must develop and use sales strategies to support objectives: - Prevent erosion of key 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 tab

41. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics ◈ Distribution Strategies • The selection of appropriate channels of distribution is basic to the development of successful sales strategies. • Recently, Internet reservation ↑, Travel Agent ↓ • Direct or Indirect distribution used by hotels ☞ Refer to Table 18-2, P555 tab

42. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics ◈ Advertising and Promotion Strategies • Advertising and promotion strategies should be established by people within the company responsible for these strategies – DOSM, DOPR, SM. - select a blend or mix of media ☞ Mass media, DM, Trade show, billboards, special ads and much more. • select or approve the message(graphics, colors, size, copy, and other format decisions) tab

43. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics • design a media schedule showing when each medium will be employed • design a schedule of events(public events and FAM tours) • Carefully transmit this information to management • Supervise the development and implementation of advertising/promotion programs • Assume responsibility for the outcome • Another area of the advertising/promotion mix that needs consideration in a marketing plan is cooperative advertising/promotion tab

44. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics ◈ Pricing Strategies • Pricing is a function of marketing, pricing objectives and strategies affect every facet of marketing and sales. ☞ revenue Management Department • Fencingisplacing restrictions on customer segments selected due to their perceived level of price elasticity – Marriott • Sales promotions and advertising must support pricing decisions tab

45. Purpose of a Marketing Plan Section VI: Action Plans: Strategies and Tactics ◈ Product Strategies • Marketing has an important role to play in the improvement of existing products and the development of new ones. • Unfortunately, most hotel marketing plans do not list or break down product categories in a marketing plan other than by type of room, catering/banquets, food and beverage. • Revenue boosting opportunities abound for the create operator who is willing to offer facilities, services, and events. → Cross-selling and up-selling tab

46. Purpose of a Marketing Plan Section VII: Resources Needed to Support • Strategies and Meet Objectives -a common error in writing a marketing plan is to develop strategies that are probably highly workable but for which there is insufficient support. • Marketing plans can be sold to top management • Personnel – most costly and difficult resources • Other Monetary Support – travel expenses, motivational costs • Research, Consulting, and Training • Miscellaneous Costs – many small expenses • Budgets – established to reflect projected cost on periodically tab

47. Purpose of a Marketing Plan Section VIII: Marketing Control • The sales plan is part of the marketing plan, but not always, some hospitality organizations separate the two functions • Sales Objectives – must be established for each sales area, division, region, salesperson, and time period. • Sales Forecast and Quotas– refer to table18-3 • Expenditures against Budget – to monitor actual • Periodic Evaluation of All Marketing Objectives • Marketing Activity Timetable – on time • Readjustments to Marketing Plan - conditions change tab

48. Purpose of a Marketing Plan Section VIII: Marketing Control • Changes in major objectives such as annual sales volume and in major strategies always require approval by top management. • Marketing/sales managers are advised to refrainfrom considering changes in major objectives and strategies unless absolutely necessary. • Top management will almost certainly view the necessity for change as a reflection of poor management by marketing/sales managers unlessthe cause was a disaster, such as a major hotel fire. tab

49. Purpose of a Marketing Plan Section IX: Presenting and Selling the Plan • Never assume that a marketing plan is so logical that it will sell itself. A marketing plan must be sold to many people. - Members of marketing/sales departments - Vendor/Ads agencies and others - Top management • Ready a power point presentation for all concerned tab

50. Purpose of a Marketing Plan Section X: Preparing for the Future • the process of marketing planning is a continuum, and the task is never ending. • Marketing/sales managers must always be planning, as the development of next year’s marketing plan begins the day this year’s plan is approved. ◈ Data Collection and Analysis - Marketing plan development depends on the availability of reliable information ◈ Marketing as a Tool for Growth - Marketing plan is a reflection of a corporate culture and top management support tab