Chapter 2 Developing Your Marketing Plan

1. Chapter 2 Developing Your Marketing Plan Convention Management and ServiceEighth Edition (478TXT or 478CIN) Courtesy of MGM - Mirage

2. Competencies forDeveloping Your Marketing Plan • Distinguish sales from marketing and describe the "four Ps" of marketing. • Explain the importance of a marketing plan, list the four steps of a marketing plan, and describe how marketers conduct market research. • Describe how marketers select target markets, position their properties, establish objectives and action plans, review and monitor their marketing plans, and put their marketing plans into action.

3. Differences BetweenMarketing and Sales Activities • Sales • Field work and desk work to sell to customers • Short-term considerations, such as today’s products, markets, consumers, and strategies • Volumes and quotas, current sales, bonuses, and commissions Marketing • Market analysis, planning, and control • Long-term trends, and how to translate problems and opportunities into new products, markets, and strategies for long-term growth • Profit planning, such as determining the appropriate mix of business from individual market segments

4. The Four Ps of the Marketing Mix • Product • Place • Promotion • Price Marketing mix—the combination of the Four Ps used to develop action plans and achieve marketing objectives for a target market. 

5. Benefits of a Marketing Plan • Forces managers to think ahead • Coordinates and unifies sales efforts • Makes best use of resources • Helps managers set responsibilities • Helps to avoid misdirected advertising and fruitless sales calls • Creates an awareness of opportunities and problems faced by the facility • Helps evaluate the results of marketing efforts

6. Marketing Plan Overview • Ideally should cover a three-year period broken down into yearly segments. • Develop detailed objectives and action plans for year one, and broad objectives for years two and three. • It is the property’s roadmap. Should be in writing and describe objectives and action steps in detail, not in broad terms. • A marketing team or sales committee approach is recommended for preparation.

7. Price as an Element of the Marketing Mix

9. Step 1—Conducting Market ResearchThe Three Types of Market Research • Property analysis—an evaluation of the property’s facilities and services to determine strengths and weaknesses. • Competition analysis—an evaluation of competitors’ strengths and weaknesses in comparison with your own so you can emphasize your strengths in areas where the competition is weak. • Marketplace analysis—an evaluation of the environment in which the property operates; assesses the uncontrollable variables in the marketplace.

10. Property Analysis • Appraisal of what the property has to offer • Should be objective (use input from various sources) • Include both exterior and interior • Include location, reputation, and quality of service • Conduct analysis from the viewpoint of the meeting planner • Assess the property’s current market position; look into its sales history, guest files, and operating statistics • Includes an analysis of the property’s strengths and weaknesses, business status and trends summaries, and geographic origin study

12. Business Status and Trends Summaries Display trends in the following by month and year:  • Occupancy rates • Guestroom rates • Banquet food and beverage revenue • Restaurant food and beverage revenue • Function room food and beverage revenue Courtesy of Mandarin Oriental, Las Vegas

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15. Competition Analysis Answers three questions: • Who are your competitors (your competitive set)? • What are their strengths and weaknesses? • How do their strengths and weaknesses compare with those of your property? (continued)

16. Competition Analysis (continued) Other tips • Should be conducted quarterly • Can identify profitable markets your property does not currently serve • Competitive fact sheets should be prepared for each competitor • Analyze competition by how well they fill needs by market segment verses your property; the key is to find a difference that makes a difference to each targeted segment

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20. Marketplace Analysis • Research on the market environment and the property’s position in that environment • Also known as “situation analysis” • Identifies factors in the marketplace that can affect the operation • Could include population growth, economy, and attractions • Identifies both opportunities and problems

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24. Step 2—Selecting Target Markets and Positioning the Property • Target market selection is based on the three to five priority needs of your property. The property, competition, and marketplace analyses assist in identifying areas needing sales activity. • The key is to identify those market segments that are most profitable and where you have the least competition. • Defining and redefining market segments is a continual process. • Positioning is your strategy to develop your product and service as distinct in the minds of your target markets. Proper positioning distinguishes your property from the competition.

26. Step 3—Establishing Objectives and Action Plans • Marketing objectives should be specific, measurable, realistic, trackable, understandable, and in writing. • Should be developed for each market segment, revenue center, and revenue-producing service. • Action plans are the “meat” of the marketing plan. • Each segment’s action plan should specify a budget. • Zero-based budgeting requires action plans to be determined prior to allocating dollars.

27. Sections of an Action Plan • Description of market segments/types of business to be solicited • Description of target customers • Rates and special promotions • Specific objectives • Action steps • Budget Courtesy of Mandarin Oriental, Las Vegas

28. Step 4—Reviewing and Monitoring the Marketing Plan • Review should be ongoing to ensure marketing efforts are on track • Objectives, strategies, and market segments may need to be revised if sales goals are not being met

29. Putting a Marketing Planinto Action • A good marketing plan is not meant to sit on a shelf and collect dust • It is used daily by the marketing team • Each department should receive an abbreviated version of the marketing plan • The marketing department not only sells externally to target markets, but also internally to the hotel’s employees