Transcript Chapter Five

Chapter Five
Strategic Marketing
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Marketing Management and
Strategic Marketing
 Marketing
management should
encompass strategic marketing
 Strategic marketing should not be
left to just the strategic business
unit of the organization
 Both are needed to be successful
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Management
Effectiveness


Allows the company
to operate smoothly
and achieve better
results
SWA as an
example: locked in
fuel prices to lower
costs
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
Strategic
Effectiveness


Allows the company to
perform activities that
are different or more
meaningful than the
competition
SWA as an example:
flies to secondary
airports instead of the
traditional “hub and
spoke” system
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Examples of Strategic
Leadership
 Michael
School
Porter of Harvard Business
 Marriott
 McDonald’s
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Strategy and Strategic Planning
Strategy is “the way to gain and keep
customers; tactics are the step-by-step”
processes
 Strategic planning tells us how to go from
where we are now to where we want to be
 Strategic planning is known as
environmental scanning
 In most firms, strategy usually does not
filter down to all levels of management

Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Strategic Planning
 Used
to help the firm focus on
the building blocks of
competitive advantage…
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Building Blocks of Competitive Advantage
Value Chain
EFFICIENCY
QUALITY
INNOVATION
CUSTOMER
RESPONSIVENESS
SIZE
INFRASTRUCTURE
1. Provide company-wide
commitment
2. Facilitate cooperation
between functions
1. Provide leadership and
commitment to quality
2. Find ways to measure quality
3. Set goals and create incentives
4. Get input from employees
5. Encourage cooperation between
functions
1. Overall project
management
2. Facilitate crossfunctional cooperation
1. Through leadership by
example, build a company
wide commitment to customer
responsiveness
Hire more
managers
MANUFACTURING
1. Pursue experience curvebased cost economics
2. Implement flexible
manufacturing systems
1. Shorten production runs
2. Trace defects to source
1. Cooperate with R&D in
designing products that
are easy to manufacture
2. Work with R&D on
developing process
innovations
1. Achieve customization by
implementing flexible
manufacturing
2. Achieve rapid response
through flexible manufacturing
Experience
curve
MARKETING
1. Adapt aggressive
marketing to ride down
experience curve
2. Limit defections by
building brand loyalty
1. Focus on the customer
2. Provide customer feedback on
quality
1. Provide market
information to R&D
2. Work with R&D on
developing new products
1. Know the customer
2. Communicate customer
feedback to appropriate
functions
Expanded
database
R&D
1. Design products for ease
of manufacture/use
2. Seek process innovations
1. Design products/services for ease
of manufacture/use
1. Develop new products/
processes
1. Bring customers to the
product development process
MATERIALS
MANAGEMENT
1. Implement JIT systems
1. Reduce number of suppliers
2. Help suppliers implement TQM
3. Race defects to area
responsible
1. Develop logistics systems
capable of responding quickly
to unanticipated customer
demands
HUMAN
RESOURCES
1. Training to build skills
2. Self-managing teams
3. Pay for performance
1. Institute TQM training programs
2. Organize employees into quality
teams
1. Develop training programs
that make employees think of
themselves as customers
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Levels of Strategic Planning

Corporate-level strategy
– Focus on long-term viability

Business-level strategy
– Focus on overall theme of the company and its
position

Functional-level strategy
– Focus on improving day-to-day operations

Emergent strategies
– Were previously unforeseen
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.