Chapter 4 Marketing Plan 00478cin08enge-Pp02

8/4/2019 Chapter 4 Marketing Plan 00478cin08enge-Pp02

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2011, Educational Institute

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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2011, Educational Institute 2

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



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.



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



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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2011, Educational Institute 17(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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2011, Educational Institute 20(continued)


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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

Documents

Chapter 4 Marketing Plan 00478cin08enge-Pp02