Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Strategies

Chapter 7

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Marketing Strategy

Marketing Strategy Marketing Environment Positioning Marketing Discipline/Strategy

Applications

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Strategy Focal Points

The Target Market The Core Positioning The Price Positioning The Total Value Proposition The Distribution Strategy The Communications Strategy

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Transition

Then Manage from

the top Operate in the

marketplace

Now Manage up and

down and across

Operate also in the marketplace

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Ten Major Marketing Issues

1. Shrinking margins2. Rising sales and promotional costs3. Growing retail power and shrinking shelf space4. Competition from store brands and generics5. Increased niche attacks

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Issues (continued)

6. More competition7. Labor, availability, and

competency8. Technological incompetence9. Declining brand/customer loyalty10. Media selectivity/segment fragmentation

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Current and Near Future Marketing

Technology embracing Global and local Electronic and personal Customized and flexible Diversity recognizing Perception driven

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Three Levels of Marketing Performance

Responsive Marketing Anticipative Marketing Need-shaping Marketing

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Approaches

Mass Marketing Target Marketing

Segments Niches Market Cells

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Management Marketing Management ProcessProcess

R STP MM I C

R = Research (i.e., market research)STP = Segmentation, targeting, and

positioningMM = Marketing mix (popularly know as the

four P’s, i.e., product, price, place and promotion)I = ImplementationC = Control (getting feedback, evaluating

results, and revising or improving STP strategy, and MM tactics)

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Ten Winning Marketing Strategies

1. Win through higher quality2. Win through better service3. Win through high market share4. Win through lower prices5. Win through adaptation and customization

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Ten Winning Marketing Strategies (continued)

6. Win through continuous product improvement7. Win through product innovation8. Win through entering high growth

markets9. Win through exceeding customer expectations10. Win through creating A better

perception

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Ten Winning Marketing Tactics

1. Win through ego appeal2. Win through discounting3. Win through couponing4. Win through value added offers5. Win through speed of delivery

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Ten Winning Marketing Tactics (continued)

6. Win through abundance of availability7. Win through convenience of purchase8. Win through the targeted awareness9. Win through the “Points of Encounter”10. Win through doing more for your

customer

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

The art of finding, developing, and profiting from opportunities.

Marketing

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

An area of buyer need and interest in which there is a high probability that a company can perform profitably by satisfying that need. number of buyers purchasing power desire to buy

Marketing Opportunity

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Main Sources of Opportunity

1. Supplying something in short supply

2. Supplying an existing product or service in a new or superior way3. Supplying a new product or

service

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Breakthrough Marketing

1. Finds new customers and segments

2. Finds new sales strategies3. Finds new pricing and financing solutions4. Finds new product features

“Executes any or all of the above with the best ‘perception’.”

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Strategic Gap ModelStrategic gap

New products

New markets for existing productsIncreased Market share

Years

Sales

0 1 2 3 4 5

}}}}

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

EXISTING MODIFIED NEW

MarketPenetration

ProductModification

New ProductDevelopment

GeographicExpansion

Modified ProductsTo New Markets

New ProductsFor New Markets

Segment Invasion Modified ProductsTo New Customer

Diversification

Markets

Building New Demand Matrix PRODUCTS

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Overallprobabilityof success

=Probabilityof technicalcompletion

XProbability of

commercializationgiven technical

completion

XProbability of

economicsuccess given

commercialization

(.24) = (.50) X (.65) X (.75)

New Product Launch Probability of Success

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Establish credibility and build trust

Create lifestyle associations

Establish awareness and create images

Stimulate repeat purchases

PR

Advertising, Events

Advertising

Sales promotion

Strategy Application Marketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Simulate trade participation

Reward frequency and loyalty

Create a sense of involvement

Reach a tightly targeted audience

Trade promotion Frequency

program

Events

Addressable media

Strategy Application Marketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Leverage social responsibility

Stimulate referrals Stimulate trial Make a news

announcement

Mission marketing

Club or affinity group

Sales promotion PR

Strategy Application Marketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Marketing Scorecard

Market Share Customer Retention Customer Satisfaction Relative Product Quality Relative Service Quality