Transcript Ch. 2 hft 2750

Chapter 2
Developing Your Marketing Plan
Convention Management and Service
Eighth Edition
(478TXT or 478CIN)
Courtesy of MGM - Mirage
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Competencies for
Developing Your Marketing Plan
1. Distinguish sales from marketing and describe the
"four Ps" of marketing.
2. Explain the importance of a marketing plan, list the
four steps of a marketing plan, and describe how
marketers conduct market research.
3. 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.
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Differences Between
Marketing and Sales Activities
Marketing
Sales
•
Market analysis, planning,
and control
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Field work and desk work
to sell to customers
•
Long-term trends, and how
to translate problems and
opportunities into new
products, markets, and
strategies for long-term
growth
•
Short-term considerations,
such as today’s products,
markets, consumers,
and strategies
•
Profit planning, such as
determining the appropriate
mix of business from
individual market segments
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Volumes and quotas,
current sales, bonuses, and
commissions
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The Four Ps of the Marketing Mix
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Product
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Place
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Promotion
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Price
Marketing mix—the combination of the Four Ps used to
develop action plans and achieve marketing objectives
for a target market.
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Benefits of a Marketing Plan
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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
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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.
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Price as
an Element
of the
Marketing
Mix
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Step 1—Conducting Market Research
The 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.
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Property Analysis
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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
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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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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?
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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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Marketplace Analysis
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Research on the market environment and the
property’s position in that environment
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Also known as “situation analysis”
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Identifies factors in the marketplace that can
affect the operation
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Could include population growth, economy, and
attractions
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Identifies both opportunities and problems
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Step 2—Selecting Target Markets
and Positioning the Property
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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.
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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.
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Sections of an Action Plan
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Description of market segments/types of business
to be solicited
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Description of target customers
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Rates and special
promotions
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Specific objectives
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Action steps
•
Budget
Courtesy of Mandarin Oriental, Las Vegas
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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
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Putting a Marketing Plan
into 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
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