Chapter 4 Marketing Plan 00478cin08enge-Pp02
Transcript of Chapter 4 Marketing Plan 00478cin08enge-Pp02
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Chapter 4
Developing YourMarketing Plan
Reference: Convention Management and Service
Eighth Edition
Courtesy of MGM - Mirage
Prepared by: Renato B. Hechanova, Jr.
HMR 034 Instructor
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Differences Between
Marketing and Sales Activities
Marketing
1. Market analysis, planning, and control
2. Long-term trends, and how to
translate problems and opportunities into
new products, markets, and strategies for
long-term growth
3. Profit planning, such as determining the
appropriate mix of business from
individual market segments
Sales1. Field work and desk work tosell to customers
2. Short-term considerations,such as todays products,markets, consumers,and strategies
3. Volumes and quotas, currentsales, bonuses, and commissions
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The Four Ps of the Marketing Mix
Product
Place
Promotion
Price
Marketing mixthe combination of the Four Ps used to
develop action plans and achieve marketing objectivesfor a target market.
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Benefits of a Marketing Plan
1. Forces managers to think ahead
2. Coordinates and unifies sales efforts
3. Makes best use of resources
4. Helps managers set responsibilities5. Helps to avoid misdirected advertising and fruitless sales
calls
6. Creates an awareness of opportunities and problems
faced by the facility
7. 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 propertys roadmap. Should be in writing and
describe objectives and action steps in detail, not in broadterms.
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 1Conducting Market Research
The Three Types of Market Research:
1. Property analysisan evaluation of the propertys facilities and services to
determine strengths and weaknesses.
2. Competition analysisan evaluation of competitors strengths and weaknesses in
comparison with your own so you can emphasize your strengths in areas where thecompetition is weak.
3. Marketplace analysisan evaluation of the environment in which the property
operates; assesses
the uncontrollable variables in the marketplace.
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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 propertys current market position; look into its sales history,guest files, and operating statistics
Includes an analysis of the propertys 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 andbeverage 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?
(continued)
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Competition Analysis
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 bymarket segment verses your property; the key is to
find a difference that makes a difference to each
targeted segment
(continued)
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Marketplace Analysis
Research on the market environment and the propertysposition in that environment
Also known as situation analysis
Identifies factors in the marketplace that can affect the
operation
Could include population growth, economy, andattractions
Identifies both opportunities and problems
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Step 2Selecting 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.
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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.
Step 2Selecting Target Markets and
Positioning the Property
(continued)
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Step 3 Establishing Objectives and Action
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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 segments 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
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
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Step 4Reviewing 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 hotels employees