chapter 3...objectives. 4.discuss how to design business portfolios and growth strategies. hmgt 2405...
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HMGT 2405 Hospitality Marketing
1
Marketing for Hospitality and Tourism
CHAPTER
Seventh Edition
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Role of Marketing in Strategic Planning
3
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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Learning Objectives
1. Explain company-wide strategic planning.2. Explain the four planning activities of corporate
strategic planning.3. Understand the processes involved in defining a
company's mission and setting goals and objectives.
4. Discuss how to design business portfolios and growth strategies.
HMGT 2405 Hospitality Marketing
2
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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• Full Service Lodging– Marriott Hotels & Resorts– JW Marriott Hotels & Resorts– Renaissance Hotels & Resorts
• Marriott Conference Centers– Ritz-Carlton– BVLGARI Hotels & Resorts– Renaissance ClubSport Hotel &
Fitness• Select Service Lodging
– Courtyard by Marriott– Fairfield Inn by Marriott– SpringHill Suites by Marriott
• Extended Stay Lodging– Residence Inn by Marriott– TownePlace Suites by Marriott– Marriott ExecuStay– Marriott Executive Apartments
• Timeshare– Marriott Vacation Club International
(MVCI)– Horizons by Marriott Vacation Club– Marriott Grand Residence Club– The Ritz-Carlton Club
• Full service lodging– Hilton Hotels– Doubletree– Embassy Suites– Conrad Hotels– The Waldorf-Astoria
Collection– Hilton Garden Inn– Hampton Inn– Homewood Suites by Hilton
• Select service lodging– Hilton Garden Inn– Denizen Hotels
• Limited service lodging– Hampton Inn & Suites
• Extended stay suites– Homewood Suites by Hilton– Home2 Suites by Hilton
• Timeshare– Hilton Grand Vacations
Company
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
4
HMGT 2405 Hospitality Marketing
3
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Company-wide Strategic Planning
• Managing business as an investment portfolio.
• Assessing the future profit potential for each business segment.
• Developing a game plan to achieve long-term objectives.
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Characteristics of a High-Performance Business
Stakeholders
Resources
Processes
Organization
HMGT 2405 Hospitality Marketing
4
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Strategic Planning Process
Defining a corporate mission
statement
Establishing strategic
business units (SBUs)
Assigning resources to
each SBU
Developing growth
strategies
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Defining the Corporate Mission
• Mission: present-based statements designed to convey a sense of why the company exists to the company and the external community.
– What is our business?– Who is the customer?– What do customers value?– What should our business be?
HMGT 2405 Hospitality Marketing
5
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
The Vision of the Walt Disney Company is “To make people happy”
The Mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.
(Walt Disney Archives, 2012)
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Mission Statement
"We will ensure a stress-free car rental experience by providing superior services that cater to
our customers' individual needs… always conveying the
'We Try Harder' spirit with knowledge, caring and a passion
for excellence."
vs.
HMGT 2405 Hospitality Marketing
6
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
SWOT Analysis
Strengths Weaknesses
Opportunities Threats
Internal Environmental Analysis
External Environmental Analysis
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Chipotle SWOT AnalysisCompany maintains ownership over all restaurants.
Expanding into markets with a diversified tastes
Strong supplier relationships with organic producers.
Rising labor costs
Extremely strong financials Seasonality of sales
Minimal expenses accrued for Marketing.
Strong customer loyalty
Commitment to providing healthy menu items
Growing health trends among consumers
Growth of organic foodIngredients
Rising food prices
Technological advances forordering food
Ease of entry into the market
Sustainable restaurant design isincreasingly popular
Impact of economic downturnfrom recovering economy
Diversification of food concepts Changes in consumer tastes andpreferences
S W
O T
HMGT 2405 Hospitality Marketing
7
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Resources Allocation -Boston Consulting Group (BCG) Matrix
Relative market share
Market growth
rate
Low
Hig
h
LowHigh
Star Question mark
Cash cow Dog
Build
Hold Divest
Harvest
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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Resources Allocation: BCG Matrix
• Question marks (high growth + low market share)• To increase market share
• Stars (high growth + high market share)• To preserve market share• Heavy investment required to finance rapid growth
• Cash cows (low growth + high market share)• To increase short-term cash flow
• Dogs (low growth + low market share)• To sell/liquidate
• Ideal flow is anti-clockwise from question marks to stars to cash cows
HMGT 2405 Hospitality Marketing
8
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Sales Mix Analysis Mix
Number Sold
Item
Con
trib
utio
n M
argi
n ($
)Star Question mark
Cash cow Dog
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
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Business Growth Strategies
1. IntensiveGrowth Strategy
3. Diversification GrowthStrategy
2. IntegrativeGrowthStrategy
HMGT 2405 Hospitality Marketing
9
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Intensive Growth Strategy
Product & Market Growth Matrix (Ansoff Matrix)
Unrelated Diversification
Related Diversification
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Coca-Cola Ansoff Matrix
HMGT 2405 Hospitality Marketing
10
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Integrative Growth Strategy
Manufacturer
Consumer
Wholesaler
Retailer Retailer RetailerRetailerRetailerRetailerRetailerRetailerRetailerRetailer
RetailerRetailerRetailerRetailerRetailerRetailerRetailerRetailer
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Integrative Growth Strategy
• Horizontal integration: acquiring competitors
• Vertical integration–Backward integration: acquiring a
supplier–Forward integration: acquiring
distribution outlets
HMGT 2405 Hospitality Marketing
11
ICD-10-CM/PCS Coding: A Map to SuccessLorraine M. Papazian-BoyceMarketing for Hospitality and Tourism, 7eKotler, Bowen, Makens, Baloglu
Copyright © 2017, 2014, 2010, 2006by Pearson Education, Inc.
All Rights Reserved
Diversification Growth Strategy
• When good opportunities can be found outside the present business
Starbucks Store Starbucks at Home