Chapter 19

Next Year’s
Marketing
Plan

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 “If you don’t have a competitive advantage, don’t
compete.”
- Jack Welch
 
“At Preferred Hotels & Resorts, we believe that the
product preferences of affluent customers are as
diverse as the consumers themselves.”
- Peter Cass

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Chapter Objectives
• Know why it is important to have a
marketing plan and be able to
explain the purpose of a marketing
plan
• Prepare a marketing plan following
the process described in this chapter

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Purpose of a Marketing Plan
• Provides a road map for all marketing
activities of the firm for the next year
• Ensures that marketing activities are in
agreement with the corporate strategic
plan
• Forces marketing managers to review
and think through objectively all steps in
the marketing process

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Purpose of a Marketing Plan
• Assist in the budgeting process to match
resources with marketing objectives
• Creates a process to monitor actual against
expected results
☞ It is also an excellent training device for
younger staff members who wish to be
manager

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Marketing Plan Sections
I. Executive Summary
II. Corporate Connection
III. Environmental Analysis and
Forecasting (Positioning Statement)
IV. Segmentation and Targeting
V. Next Year’s Objectives and Quotas

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

VI. Action Plans: Strategies and Tactics

VII. Resources Needed to Support
Strategies and Meet Objectives
VIII. Marketing Control
IX. Presenting and Selling the Plan
X. Preparing for the Future

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Section I:
Executive Summary
☞ A few tips in writing the executive
summary
• Write it for top executives
• Limit the pages to between two and four
• Use short sentences and paragraphs
• 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
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Section I:
Executive Summary
• Organize the summary as follows:
describe next year’s objectives in
quantitative terms; briefly describe
marketing strategies to meet goals and
objectives, including a description of 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
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Section I:
Executive Summary
• Read and reread the executive
summary several times.
• Modify and change the summary until it
flows well, is easily read, and conveys
the central message of the marketing
plan.

©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
 Section II:
Corporate Connection
• Relationship to Other Plans
• Corporate goals with respect to profit,
growth, and so on.
• Desired market share
• Positioning of the company or of its
product lines

©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
 Section II:
Corporate Connection

• Relationship to Other Plans

• Vertical or horizontal integration
• Strategic alliances
• Product line breadth and depth
• Customer relationship management
(CRM)

©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
 Section II:
Corporate Connection
• Marketing Related Plans
• Sales
• Advertising and promotion
• Public relations and publicity
• Marketing research
• Pricing
• Customer service
☞ Cooperate each dep’t being developed plan
©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
 Section II:
Corporate Connection
• Corporate Direction: to guide the development
of next year’s plan.
• Mission Statement: purpose and definition
of business
• Corporate Philosophy: Customer value, high
quality and satisfaction
• Corporate Goals: quantitatively
©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
 Section III: Environmental
Analysis and Forecasting
• Positioning Statement:
- A marketing plan should provide a positioning
statement of how the enterprise intends to
differentiate – position itself in the marketplace ☜
Advertising Sources
☞ Due to confused array of strategy and tactics, the
desired position let’s them know stakeholders and
publics.
☞ American Air vs Southwest Air

©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,and
andMakens
Makens
 Section III: Environmental
Analysis and Forecasting
• Major Environmental Factors
– Social: crime, demographics, geographic
☞ Hotel market in India vs America
– Political: legislation, taxes
☞ local policies and international policies.
☞ No tax, Exchange Policy
– Economic: lodging and cruising sectors are
highly sensitive to business-cycle movement
©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
 Section III: Environmental
Analysis and Forecasting
• Competitive Analysis: Scales and contents,
guests, sales force and their abilities.
• Market Trends
– Visitor Trends: Business sources
– Competitive Trends: all concerned
– Related Industry Trends: Opportunities
☞ Select only those trends that are
useful in developing the plan.
©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
 Section III: Environmental
Analysis and Forecasting
• Market Potential: should be viewed as the total
available demand for a hospitality product within
a particular geographic market at a given price.
☞ Search from All suite hotel to budget motel
- Never assume that market potential is static or
that it is unimportant to marketing success.
- “Guesstimates” ← meet competitors

©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,and
andMakens
Makens
 Section III: Environmental
Analysis and Forecasting
• Market Research
– Macromarket information
• Industry trends, social-economic
political trends, competitive
information, industry wide customer
data, etc,.

©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
• Market Research
– Micromarket Information
• Guest information, product/service
information, new product analysis and
testing, intermediary buyer data, pricing
studies, key account information,
advertising/promotion effectiveness
• Marketing/Advertising/Sales managers
need a continuous flow of reliable
informations(through PMS) → essential
for the coming year.
©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
 Section IV:
Segmentation and Targeting
• Segmentation Analysis is the
selection of segments as the result of
– Understanding what the company is
and what it wishes to be
– Studying available segments and
determining if they fit the capabilities
and desires of the company to obtain
and secure them
☞ Refer to Embassy Suite in Dallas
©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
 Section IV:
Segmentation and Targeting
• Segmentation Analysis
- A marketing plan tells you;
☞ Who is using your hotel?
☞ Who might be using your hotel?
☞ Where you can look to expand your
business?
- Marketers must look to both internal and
external data sources for information
concerning market segments–refer to 776

©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
 Section IV:
Segmentation and Targeting
• Targeting
- Begins by defining the mix of desired guests
• support the positioning strategy of the
company
• support revenue management
- Selected from the list of available segments
☞ Majority of target market will remain the
same and new one appear
©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
 Section V:
Next Year’s Objectives and Quotas
• Objectives: The purpose of marketing
strategies and tactics is to
support objectives
– Must be quantitative, time and profit/margin
specific ← support it by the Stakeholders
– Established after considering corporate goals,
corporate resources, environmental factors,
competition, market trends, market potential,
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
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens
 Section V:
Next Year’s Objectives and Quotas
• Quotas must be:
– Based on next year’s objectives
– Individualized – subobjectives may be
established(by departments or sections)
– Realistic and obtainable
– Broken down to small units – Sales
person’s quota per week
☞ Refer to Table 19-1, P780
– Understandable and measurable
©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
 Section VI:
Action Plans: Strategies and Tactics
• Marketing strategies and tactics employ
advertising and promotion, sales and
distribution, pricing and product
• Must be custom designed to meet the specific
needs of a company
• Must allow companies to meet or exceed
objectives
☞ Myopic thinking that things are going well
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
©2006 Pearson
Upper Education,
Saddle Inc.
River, NJ 07458 Marketing for Hospitality and Tourism,
Kotler,4th edition
Bowen, and Makens
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
 Section VI:
Action Plans: Strategies and Tactics
• Sales Strategies
- Prevent erosion of key accounts
- Grow key accounts
- Grow selected marginal accounts
- Eliminate selected marginal accounts
- Retain selected marginal accounts but provide
lower-cost sales support
- Obtain new business from selected prospects
©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,and
andMakens
Makens
 Section VI:
Action Plans: Strategies and Tactics
• Sales Tactics – P784
- Refer to Outside the Company(Examples)
- Refer to Inside the Company(Examples)
• Distribution Strategies
- Internet reservation ↑, Travel Agent ↓
- Direct or Indirect distribution used by hotels
☞ Refer to Table 19-2, P785

©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,and
andMakens
Makens
 Section VI:
Action Plans: Strategies and Tactics
• Advertising and Promotion Strategies
– Select a blend or mix of media
☞ Mass media, DM, Trade show,
billboards, special ads and much more.
– Select or approve the message
– Design a media schedule showing when
each medium will be employed
– Design a schedule of events
©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
 Section VI:
Action Plans: Strategies and Tactics
• Advertising and Promotion Strategies
- Carefully transmit this information to
management
- Supervise the development and
implementation of advertising/promotion
programs
- Assume responsibility for the outcome
©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
 Section VI:
Action Plans: Strategies and Tactics
• Pricing Strategies
– Pricing is a function of marketing
☞ revenue Management Department
– Fencing is placing restrictions on customer
segments selected due to their perceived
level of price elasticity - Marriott
– Sales promotions and advertising must
support pricing decisions
→ Cross-selling and up-selling
©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
 Section VII:
Resources Needed to Support
Strategies & Meet Objectives
☞ Marketing Plan can and must be sold to top
management
• Personnel – most costly and difficult resources
• Other Monetary Support
• Research, Consulting, and Training
• Miscellaneous Costs
• Budgets – established to reflect projected cost.
©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
 Section VIII:
Marketing Control
• Sales Objectives – must be established for
each sales area, division, region, salesperson,
and time period.
• Sales Forecast and Quotas–refer to table19-3
• Expenditures against Budget
• Periodic Evaluation of All Marketing Objectives
• Marketing Activity Timetable
• Readjustments to Marketing Plan
©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
 Section IX:
Presenting and Selling the Plan
☞ Never assume that a marketing plan is so
logical that it will sell itself. A marketing
plan must be sold to many people.

• Members of marketing/sales departments

• Vendor/ad agencies and others
• Top management
©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
 Section X:
Preparing for the Future
• Data Collection and Analysis
- Marketing plan development depends on the
availability of reliable information
• Marketing as a Tool for Growth
- Marketing plan is a reflection of a corporate
culture and top management support
☞ “Just say YES, just do something”

©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
 Key Terms
• Competitive analysis

• Environmental factors

• Executive summary

• Market potential
©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
 Best Practices
• Preferred Hotels and Resorts
Worldwide

• Rittenhouse Hotel, Philadelphia

• Seabourn/Windstar Cruises

©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
 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
4th edition
Upper Saddle River, NJ 07458 Kotler,
Kotler,Bowen,
Bowen,andandMakens
Makens