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Marketing Hospitality, 3rd ed., Hsu/Powers
Chapter 6
Marketing Strategy
Concept of Strategy
A course of action aimed at ensuring that the firm will achieve its objectives by matching its internal resources and skills with the environmental opportunities and risks it faces
The Marketing Strategy Triangle
Corporation Competitors
Customers
Value Value
Product/Service
Differentiation
Target segments
Other market
segments
Technological Environment
Social Environment
Economic Environment
Eco
logi
cal E
nvi
ron
men
t Political E
nviron
men
t
Strategic vs. Functional Marketing
Strategic Long range Strategic perspective Broad resource
allocation Less formalized Proactive Broad issues Senior managers
Functional One year Marketing programs Short-term trade-offs More formalized Reactive Specific issues Operating managers
Corporate Headquarters
Strategic Business Unit 1
(e.g., Travel Services)
StrategicBusiness Unit 2
(e.g., Lodging and Foodservice)
StrategicBusiness Unit 3
(e.g., Real Estate)
Marketing OperationsHuman
ResourcesAccounting
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Corporate Mission
Identification of SBUs
SWOT
SBU Missionand Strategies
Positioning
Functional Strategies and Plans
Portfolio Analysis
Hilton Hotels Mission Statement
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. Among our 250 hotels are some of the most well-known properties to be found anywhere, including The Waldorf-Astoria, Hilton Hawaiian Village and Palmer House Hilton. Our hotels offer guests and customers the finest accommodations and amenities for business or leisure. For 80 years, the Hilton brand name has been synonymous with excellence in the hospitality industry.
High Low
High
Low
Market Share (Cash Generation)
Cash flo
w
Gro
wth
(Cas
h U
se)
BCG Growth-Share Matrix
CRITERIA
SizeMarket shareProfitabilityCostsDifferentiationFinancial strengthsHuman assetsImageTechnological positionFlexibilityMarketing effectiveness
CRITERIA
SizeMarket growthCompetitive structureProfitabilityPricing practicesSocial changesEnvironmental concernsTechnological stabilityPolitical considerationsGovernment regulations
= build/grow= hold/milk= harvest/divest
High Medium Low
Market AttractivenessB
usin
ess
Str
engt
h
Hig
hM
ediu
mL
ow
GE Model
Numerousenvironmentalopportunities
Majorenvironmental
threats
Criticalinternal
weaknesses
Substantialinternal
strengths
Cell 1:Aggressive
strategy
Cell 2:Diversification
strategy
Cell 3:Turnaround
strategy
Cell 4:Defensivestrategy
SBU Mission
Carlson Hotels Worldwide, a division of Carlson Hospitality Worldwide, provides a brand management structure upon which the hotel brands of Carlson Hospitality Worldwide continue to grow as leaders in the luxury, upscale and mid-tier segments of the lodging industry
Uniqueness Low Cost
Competitive Advantage
Industry-wide
Particular Segment
Cost Leadership
McDonald’s Red Lobster
Differentiation
Wendy’s
Differentiation Focus
Four Seasons
Cost Focus
Motel 6
Str
ateg
ic T
arge
t
Generic Strategies
New products/services
Existing products/services
Existing markets
New markets
Market penetration
Product development
Market development Diversification
Grand Strategies
Positioning
The process of establishing and maintaining a distinctive place in the market for an organization and/or its individual product offerings.
Repositioning
Customer analysis
Market segmentation
Targetmarket
selectionMarketing program
and operations:
Product Price Place
Promotion
Corporate objectives
Competitive analysis
Corporate capabilities
Product/service
differentiation
“Position”
Package of benefits selection
Positioning Statement
Differentiate the property Communicate the benefits Create an image