Transcript Chapter 6
Chapter Six The Strategic Marketing System and Marketing Objectives 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. Mission Statement Defines the purpose of the business Includes financial, competitive, consumer, and company objectives Exists at corporate and strategic business unit (SBU) levels Driver of all other subsets of business Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Mission Statement Criteria States the business the company is in or will be in Identifies specific competencies of the firm and what makes it unique Defines who the competition will be Identifies the needs of its constituents 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. Situation Analysis Strengths – Internal to the organization – Things the firm is good at – Examples? Weaknesses – Internal to the organization – Things the firm is not good at – Examples? Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Situation Analysis (cont.) Opportunities – External to the firm – Examine the different environments Threats – External to the firm – Examine the different environments Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Business Strategies Target market strategy – Target opportunities and markets the firm can serve better than the competition – “Defining the right target market within the broader market segment” Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition Product strategy – Offering different products and services to meet the market needs – Design the product to fit the market © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Business Strategies (cont.) Competitive strategy – Find the market to compete in – Focus strategy – Differentiation strategy – Niche – Brands Market strategy – Meet the right market with the right product – McDonald’s – Hilton Positioning strategy – “Creation and/or enhancement of a specific brand in the customer’s mind” Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Functional Strategies Product/service sub-strategy – The combination of products and services that will meet the needs of the market – Must be consistent with higher-level strategies Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition Presentation substrategy – All elements that increase the consumer’s perception of the tangible product/service © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Functional Strategies (cont.) Pricing sub-strategy – The customer’s perceived value for what is paid Communication substrategy – What the firm wants to say to the customer to persuade them to purchase Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition Distribution substrategy – All channels that increase the likelihood that the target customer chooses our product – In hospitality, usually involves getting the right customer to our service © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Feedback Loops Risk/fit loop – What are the risks and the overall strategic fit? Synthesis loop – Putting the pieces back together after analysis in a clear, concise format Evaluation/fit – Does the strategy match the capabilities of the firm? Implementation Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Strategy Selection Complex process that requires answers to many questions No right/wrong choices Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Strategy Checklist Is it identifiable and clear in words and practice? Does it fully exploit opportunity? Is it consistent with competence and resources? Is it internally consistent, synergistic? Is it a feasible risk in economic and personal terms? Is it appropriate to personal values and aspirations? Does it provide stimulus to organizational effort and commitment? Are there indications of responsiveness of the market? Is it based on reality to the customer? Is it workable? Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Why Strategic Plans Fail Inadequate preparation of line managers Poorly defined business units Vague goals Inadequate databases for action planning Substandard linking of strategy with other control systems 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.