“If you don’t have a competitive advantage, don’t

compete.”
- Jack Welch

Chapter 19 “At Preferred Hotels & Resorts, we believe that the

product preferences of affluent customers are as
Next Year’s diverse as the consumers themselves.”
- Peter Cass
Marketing
Plan

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Chapter Objectives Purpose of a Marketing Plan

• Know why it is important to have a • Provides a road map for all marketing
marketing plan and be able to activities of the firm for the next year
explain the purpose of a marketing • Ensures that marketing activities are in
plan agreement with the corporate strategic
plan
• Prepare a marketing plan following
• Forces marketing managers to review
the process described in this chapter and think through objectively all steps in
the marketing process

©2006 Pearson Education, Inc. Marketing

Marketing
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for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
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4th edition
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1
 Purpose of a Marketing Plan Marketing Plan Sections
• Assist in the budgeting process to I. Executive Summary
match resources with marketing II. Corporate Connection
objectives III.Positioning Statement
• Creates a process to monitor actual IV. Environmental Analysis and
against expected results Forecasting
V. Segmentation and Targeting
VI. Next Year’s Objectives

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
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Makens

Marketing Plan Sections Section I:

Executive Summary
I. Resources Needed to Support
Strategies and Meet Objectives • Write it for top executives
II. Marketing Control • Limit the pages to between two and four
III. Presenting and Selling the Plan • Use short sentences and paragraphs.
IV. Preparing for the Future Avoid using words that are unlikely to
be understood

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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2
 Section I: Section I:
Executive Summary Executive Summary
• Organize the summary as follows: • Read and reread the executive
describe next year’s objectives in summary several times. Modify and
quantitative terms; briefly describe change the summary until it flows well,
marketing strategies to meet goals and is easily read, and conveys the central
objectives, including a description of message of the marketing plan
target markets; describe expected
results by quarter; identify the dollar
costs necessary, as well as key
resources needed
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Section II: Section II:

Corporate Connection Corporate Connection
• Relationship to Other Plans • Relationship to Other Plans
• Corporate goals with respect to profit, • Vertical or horizontal integration
growth, etc.
• Strategic alliances
• Desired market share
• Product line breadth and depth
• Positioning of the company or of its
product lines • Customer relationship management
(CRM)

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
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3
 Section II:
Section II:
Corporate Connection
Corporate Connection
• Marketing Related Plans
• Corporate Direction
• Sales
• Mission Statement
• Advertising and promotion
• Corporate Philosophy
• Public relations and publicity
• Corporate Goals
• Marketing research
• Pricing
• Customer service

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Section III: Section III:

Environmental Analysis and Environmental Analysis and
Forecasting Forecasting
• A marketing plan should provide a • Major Environmental Factors
positioning statement of how the – Social
enterprise intends to differentiate – – Political
position itself in the marketplace
– Economic

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
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4
 Section III: Section III:
Environmental Analysis and Environmental Analysis and
Forecasting Forecasting
• Competitive Analysis
• Market Trends • Market Potential should be viewed as
– Visitor Trends the total available demand for a
– Competitive Trends hospitality product within a particular
– Related Industry Trends geographic market at a given price

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

Section III: Section III:

Environmental Analysis and Environmental Analysis and
Forecasting Forecasting
• Market Research
• Market Research
– Macromarket information
– Micromarket Information
• Industry trends, social-economic
• Guest information, product/service
political trends, competitive
information, new product analysis
information, industry wide customer
and testing, intermediary buyer
data
data, pricing studies, key account
information, advertising/promotion
effectiveness
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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5
 Section IV: Section IV:
Segmentation and Targeting Segmentation and Targeting
• Segmentation Analysis is the • Targeting
selection of segments as the result of – Begins by defining the mix of desired
– Understanding what the company is guests
and what it wishes to be
• support the positioning strategy of
– Studying available segments and
determining if they fit the capabilities the company
and desires of the company to obtain • support revenue management
and secure them – Selected from the list of available
segments
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Section V: Section V:
Next Year’s Objectives and Next Year’s Objectives and
Quotas Quotas
• Objectives
• Quotas must be:
– Must be quantitative, time and
profit/margin specific – Based on next year’s objectives
– Established after considering – Individualized
corporate goals, corporate resources, – Realistic and obtainable
environmental factors, competition, – Broken down to small units
market trends, market potential, – Understandable and measurable
available market segments and
possible target markets
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Upper Saddle River, NJ 07458 Kotler,
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Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
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6
 Section VI: Section VI:
Action Plans: Strategies and Action Plans: Strategies and
Tactics Tactics
• Sales Strategies
• Marketing strategies and tactics employ – Prevent erosion of key accounts
advertising and promotion, sales and distribution,
pricing and product – Grow key accounts
• Must be custom designed to meet the specific – Grow selected marginal accounts
needs of a company – Eliminate selected marginal accounts
• Must allow companies to meet or exceed
objectives
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
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Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Section VI: Section VI:

Action Plans: Strategies and Action Plans: Strategies and
Tactics Tactics
• Sales Strategies • Advertising and Promotion Strategies
– Retain selected marginal accounts – Select a blend or mix of media
but provide lower-cost sales support – Select or approve the message
– Obtain new business from selected – Design a media schedule showing
prospects when each medium will be employed
– Design a schedule of events

©2006 Pearson Education, Inc. Marketing

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for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
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7
 Section VI: Action Plans: Section VI:
Strategies and Tactics Action Plans: Strategies and
Tactics
• Advertising and Promotion Strategies
– Carefully transmit this information to • Pricing Strategies
management – Pricing is a function of marketing
– Supervise the development and – Fencing is placing restrictions on
implementation of customer segments selected due to
advertising/promotion programs their perceived level of price elasticity
– Assume responsibility for the
outcome
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Section VII: Section VIII:

Resources Needed to Support Marketing Control
Strategies & Meet Objectives
• Sales Objectives
• Personnel
• Sales Forecast and Quotas
• Other Monetary Support
• Expenditures against Budget
• Research, Consulting, and Training
• Periodic Evaluation of All Marketing
• Miscellaneous Costs
Objectives
• Budgets
• Marketing Activity Timetable
• Readjustments to Marketing Plan
©2006 Pearson Education, Inc. Marketing
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for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
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8
 Section IX:
Section X:
Presenting and Selling the
Preparing for the Future
Plan
• Data Collection and Analysis
• Members of marketing/sales
departments
• Vendor/ad agencies and others • Marketing as a Tool for Growth
• Top management

©2006 Pearson Education, Inc. Marketing

Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
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Key Terms Best Practices

• Competitive analysis • Preferred Hotels and Resorts
Worldwide
• Environmental factors
• Rittenhouse Hotel, Philadelphia
• Executive summary
• Seabourn/Windstar Cruises
• Market potential
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition ©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens Upper Saddle River, NJ 07458 Kotler,
Kotler, Bowen,
Bowen,andandMakens
Makens

9
 Key Terms
• Market trends

• Marketing objectives

• Quotas

• Segmentation analysis

• Timetable
©2006 Pearson Education, Inc. Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Bowen,andandMakens
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10