Post on 22-Oct-2014
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Tourism Marketing Planning
MO3 Provide an overview of planning and research in tourism marketing
Learning Outcomes:0Define Marketing Planning0Explain the role of marketing planning in tourism
marketing0Explain the differences between tactical and strategic
planning0Explain what the mission statement of an
organisation is0Explain the steps involved in strategic marketing
planning0 Identify the components of the SPENT analysis0Explain the BCG, GEC and Ansoff matrix0Describe Porter’s generic strategies0Explain the contents of a marketing plan
New Words:
0Vision – What we can be.. might do..0Goal – achieve something- money, service, products0Objective – moving a motive to action – help to get to end
results. WHAT to achieve. SMART0Strategies – HOW to get something done0Mission statement – there is an end result. (usually just
one mission) Where the company is going towards0Strategic planning – long term meet objectives0Tactical Planning – short term meet strategies
Marketing planning
0We have 3 things that explain the concept of marketing planning:0 Vision, goal and objectives0 Strategies (chosen routes to achieve our goals)0 Plans (taking action on how we will move along this
“route” to achieve goals or targets.
What does your textbook say about Marketing Planning??
What is Marketing Planning then?
0Middleton & Clarke (2001:190) “analysing strengths and weaknesses in current AND prospective markets; identifying aims and opportunities; defining strategies
0George, R…. “a tourism company that attempts to analyse its existing resources + environment so they can use it for future decision-making..”
why do Marketers do marketing planning?
For the Marketer:0Get the right targets!!! (thus, the right markets and
segments)0Cost effective marketing0Look at individual offerings
Why do companies need marketing planning?
0Companies identify objectives – What do they need to do, in the market, to achieve goals…
0Marketing can have an influence on the corporate mission statement (it might change if it does not say what the market wants to hear)
0Let the company focus on internal strengths/weaknesses - What can internal strengths do to better marketing…
0Forces organization to plan for the future (they now more or less know what trends/decisions are taken)
0Help the company carry out marketing on a day-to-day basis – depending on the need in the market
0Make the company aware of competitors
Strategic vs Tactical strategies:
0They form different parts of the marketing planning process
0They are more or less the same….but…tacticals will show how strategics will work..
Tactical marketing planning
0Over a shorter timescale (2 – 3 years)0How they will achieve their strategy0What is going to happen0Who will make it happen0By WHEN will it happen0Tactical marketing plans include the 7 P’s; budgets
and timetables
Strategic planning:
0How will they meet their objectives – how to eventually reach goals/aims
0How things will happen in the next couple of years (usually 3 – 5 years)
0Analyse the external marketing environment0Opportunities or challenges that may arise in the
medium and long term
The mission statement0 It is the benefit or DEAL that the company offers to the client0 It provides a purpose to company staff – why are they here… to
do what…0 What the business want to achieve0 It is BROAD0 FOCUS on markets0 Provide INSPIRATION
0 Remember….The mission statement can change after marketing planning…when the company realise that their current mission falls on death ears in the market
What can be the MISSION of a tourism organisation?Mission Statements: Page 86
Marketing Myopia
This is when managers fail to recognise the scope of the business0What can happen if you think your business has LOTS
of potential when it is not THAT BIG.. And you start doing marketing??
0What can happen if you think you have a medium business, but actually you have a HUGE business potential, and you start doing marketing?
Marketing Planning process
01.Analyse your business.02. Analyse your current market situation, where are
your business in the market?03. What do the company want to achieve by doing
marketing planning? 04. How will the company get there (how can we
implement our findings)05. Check effectiveness
Marketing Planning Process
0Step 1: What is this business about?The mission statement – setting the goal
Step 2: Where are the business now?Analysis – analyse market, organization and influencesHow do we analyse strong and weaker points and threats or opportunities in the organization?
Analysis: Analyse Market
0BCG growth-share matrix: Based on the idea that there are a variety of offerings
0GEC analysis0Porter0Ansoff 0SPENT – the Macro environment
BCG GROWTH MATRIX(Boston consultancy group)
MARKET SHARE
MARKET
GROWTH
X10X 0.1X
=MARKET
SHARE
This is were there is market
Share x 0.1
5(0.1)=0.5
This is were there is marketShare x 10
X(market share)
High Market Share+
High Market Growth
Low Market Share+
High Market Growth
High Market Share+
Low Market Growth
Low Market Share+
Low Market Growth
ICE: BSC GROWTH MATRIX
4 GROUPS:
0Stars: Market leader offering. Most likely a new product/offering. High growth rate and high market share
0Cash Cows: Leaders in mature market so they have great market share; growth rates are slow but support other groups
0Dogs: Weak market share and low growth – so rather sell or let go of these offerings
0Problem Children: High growth markets but low market share. Need lot of investments – spend more money or let go…
Limitations of BCG matrix:
0Overall market-share is not known0Organization still need to find data of each particular
business unit0 It does not take in account the ever changing market0Less meaningful in other industries0Does not take in account the inter-relationship of
some offerings (pool + gym…)
ICE: SPENT analysis:
0S – socio cultural0P - political0E - economic0N - natural0T – technology
GEC analysis:(General Electric Company)0Takes in account more factors that the BSC0Market attractiveness: Market growth; shares;
competition; profit; 0Competitive strengths ( brand, technology;
distribution)0Products/offerings are measured according to Market
Growth, Shares, Competitiveness and Profit and divided into the GEC GRID.
0A = attractive; I= “in-attractive”
CEG GRID
A=attractive B C
D E F
G H I
ATTRACTIVE
MARKET
COMPETITIVE STRENGHT
High
Low
Strong Medium Weak
CEG GRID0A, D, B = STRONG STRATEGIC
AND ATTRACTIVE BUSINESS
0G, E, C = MEDIUM ATTRACTIVE BUSINESS
0H, I, F = LOW IN OVERALL ATTRACTIVENESS AND WEAKS COMPETITIVE ADVANTAGE
ICE activity:
0Market looks very attractive, Competition is Medium
0Market is not very attractive, Competition is Medium
0Market is not attractive, Competition is Medium
Porter’s generic strategies
0Porter found that once the marketer has evaluated its marketing situation, it can choose from one of 3 alternatives:
0Cost leadership; differentiation; Focus
Cost leadership: Reduce costs
0Undercut competitionCustomers go for budget, low cost product
0Benefits: Increase sales + market shareProfitable in a price-sensitive marketEarn high profits from high sales
Differentiation: “superior” perception
Create a consumer perception that product/offering is superior to competitionAchieved in the following way:
A product that stands out from the rest (cruise liners)High standard of service – Sabi Sabi Sands 5* lodgeStrong Brand name – good advertising; customer loyalty programs
Focus more on a segment in the market than the whole market, then choose differentiation or cost-leadership strategy
Less resources and more knowledge of market
Benefit:Specialization + knowledge of segments that are served
Focus Strategy: More on segment less on whole market
Ansoff Matrix
0Where generic strategies can be deployed – related to risk that marketers are prepared to take
04 broad options: market penetration; market development; offering development; diversification
Market penetration Offerings development
Market Development Diversification
Existing
New
NewExisting
Market
Tourism Offering
Market Penetration:
0Sell more of a product in an existing market0Lowest risk option0Try and sell more products and hope to “catch”
another market
Market Development
0Look for new markets0Sell products in new geographical region
Offering Development
0New offering in existing market0Hotel sells accommodation – now also sells leisure
facilities
Diversification:
0New offering + new market0Most risky0This is ideal to “rejuvenate” a deal that is not growing
anymore
Marketing Plan:
0Executive summary0 Introduction0Situation analysis0SWOT analysis0Marketing Objectives0Marketing Strategies0 Implementation0Appendices
Executive Summary:
0Gives a summary of what the person will find inside the marketing plat
0Only key points or most important points are listed
Introduction
0Describe the company0Market0Product/ service0Offering or brand and 0Problems.
Situation Analysis:
0 Internal analysis0Customer analysis (who is the customer)0Overview (analysis) of company and industry. This
will include intermediaries and suppliers
SWOT analysis
0Looking at the environments (SPENT) and you micro environment
0This provides the starting point for strategies
Marketing Objectives:
0What results you want, when you implement the plan0What turnover or market share you will have0There can be long term and short term objectives
Marketing Strategies
0Product offering plan – what is the product/offering0Pricing plan – strategies to get things sold0Communication plan – how to inform people about the
product0Distribution – how to get the product to the person0Physical evidence plan – design of the organisation0 Internal marketing plan – communicate with employers0Relationship marketing plan – How to retain and keep
customers
Implementation0Decision, finance and control0What is going to happen0Who will do it0When to do it0How much will it cost
Set the budget using a specific strategy, like:Affordable method: based on previous year’s budget% of sales: Based on sales madeCompetitive parity: based on competition’s budgetObjective task and method: Marketing tasks are determined and charged accordingly
Appendices:
0This include all extra information like data sheets0Time tables0References