Strategic Marketing for Hotels and RestaurantsStowe ShoemakerforandStow.ppt

Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,1,Strategic Marketing for Hotels and Restaurants,Stowe Shoemaker,PhDCornell University Executive Education FacultyUniversity of Houstonsshoemakeruh.edu,Strategic Marketing GM Program(c)Stowe Shoemaker,Ph.D,Objectives,Introduce Strategic Marketing System Model the Framework for the classReview definition of marketing and discuss the future of marketingReview the buyer purchase modelDiscuss how to calculate the life time value of the customer and the value of WOM and why this is important,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,3,Objectives,Discuss market positioningDiscuss a framework for developing a marketing planReview communication strategies,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,4,How to Reach Goals,LectureCase studiesDiscussionGroup 3 day project:Develop a marketing strategy for Carvel Ice Cream,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,5,Carvel Ice Cream,Case to be presented the last day of classAward for best group presentation:Cornell Marketing Strategy ContestParticipants will vote:Incorporates class material(negates 5 forces model,SWOT,presents measures to show success,etc.)OriginalityLikelihood of success,6,not at all 1 2 3 4 5 6 7 does extremely well,Strategic Marketing GM Program(c)Stowe Shoemaker,Ph.D,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,8,The Marketing Plan,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,9,Some Possible Marketing Plan Objectives,Changes in marketing direction(defined by competitive set or business mix or both)Defensive or offensive marketing movesNew opportunities(new market segments)Other specific product line objectives(e.g.,increase food,beverage,spa or other revenues),Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,10,Some Possible Marketing Plan Objectives,Market share objectivesoverall and by market segment,such as geographic,demographic,psychographic,group,FIT,package,etc.Pricing objectives(defined as an indexed value against other properties in the competitive set)Sales and promotion objectives,11,Some Possible Marketing Plan Objectives,Advertising objectives(in terms of awareness and/or intention)Channel,distribution and intermediary objectives,such as the percentage of business from travel agents Research objectives,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,Handout on Template for a Marketing Plan,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,12,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,13,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,14,Review Basics of Marketing,15,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,16,The Concept of Marketing,Definition of Marketing:identifying evolving consumer preferences,then capitalizing on them through the creation,promotion and delivery of products and services that satisfy the corresponding demand.This is done by solving the right customers problems,giving them what they want or need at the time and place of their choosing,and at the price they are willing to pay.,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,17,4 P of Marketing,PPPP,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,18,Services versus Goods,Differences between goods versus services:HeterogeneitySimultaneous production and consumptionPerishability,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,19,Types of Products/Services,Search qualitiesExperience qualitiesCredence qualities,20,Continuum of Evaluation for Different Types of Products,ClothingJewelryFurnitureHousesAutomobilesRestaurant mealsVacationsHaircutsChild careTelevision repairLegal servicesRoot canalsAuto repairMedical diagnosis,Difficult to evaluate,Easy to evaluate,High in searchqualities,High in experiencequalities,High in credencequalities,MostGoods,MostServices,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,21,Tangibility Spectrum,TangibleDominant,IntangibleDominant,Salt,Soft Drinks,Detergents,Automobiles,Cosmetics,AdvertisingAgencies,Airlines,InvestmentManagement,Consulting,Teaching,Fast-foodOutlets,Fast-foodOutlets,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,22,7 P of Marketing,PPPPPPP,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,23,Fourteen Cs of Marketing,CustomerCategories of offeringsCapabilities of firmCost,profitability and valueControl of processCollaboration within firm,CustomizationCommunicationsCustomer measurementCustomer careChain of relationshipsCapacity managementCompetitorsCost to the customer,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,24,Carvel Ice Creamand the 14 Cs,Identify as many of the 14Cs in the case.,25,The Evolution of Marketing,Sales,TargetedPromotions,FrequencyPrograms,Push traffic,no targeting,discounts,littlemeasurement.,Still push,discounts,somemeasurement.,“Price”driven,segmented,transactionbased.,Added value toproduct,support price,customized,strengthen brand.,BrandRelationships,Profitability,Strategic,KnowledgeRelationships,Knowledge,Help support VAR inloyalty,Tactic,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,26,Interactive Marketing,Refers to any activity that uses the Internet to advertise and sell goods and services to consumers,business,or nonprofit organizations and governmentMarketers Toolkit by Harvard Business School,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,27,Contextual Marketing,Give the customer what she wants and make it useful and accessible so she can take action when it matters to herWidget:widgets are basically little websites that display directly on the Dashboard,rather than in a web browser.,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,28,Examples of Contextual Marketing:Widgets,Movable mini-applications used by consumers to craft custom experienceshttp:/,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,29,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,30,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,31,Ultimate Travel Widget,Ultimate Travel Widget Travel Widgets presents the Ultimate Travel Widget.Now you can book your Hotels,Air,Cruises,Hotel and Air Packages all in one widget.No more clutter of 3 or 4 widgets to fill up your Dashboard.The Ultimate Travel widget utilizes World Choice Travel,a Travelocity company,so you can book with confidence.Air fares are compared with 28 sites.Hotels from over 20,000 locations and every cruise line can be searched for reservations.The 4 tab interfaces allows you to toggle quickly from section to section.World wide travel and many currencies supported.Download the Ultimate Travel Widgets today and start traveling right from your dashboard.http:/,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,32,http:/,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,33,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,34,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,35,Awareness/Search/Evoked Set,BarriersSwitching costsPerceived risksLack of information,Trial(Initial Purchase),Satisfaction,Dissatisfaction,Switch,Complain,Repeat Purchase,Brand Advocate,The Purchase Cycle,Why Switch?,Need Recognition,WOM,LoyaltyCircle,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,36,Marketing Myopia,Management defines an industry,or a product,or a cluster of know-how so narrowly as to guarantee its premature senescence.Examples:railroads,should be transportation;oil business,should be defined as?;buggy whip manufacturer should be defined as?Hotel business defined as?,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,37,Sales versus Marketing,SellingFocuses on the needs of seller;Preoccupied with need to convert the product to cash“you get rid of it,we will worry about the profits”,MarketingFocuses on the needs of the buyer;Satisfying the needs of the customers by means of the product and the whole cluster of things associated with creating,delivering,and finally consuming it.,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,38,Sales versus Marketing,SellingWhat is offered for sale is determined by the firm,MarketingMarketing minded firms try to create value-satisfying goods and services that consumers want to buyWhat is offered for sale is determined by the buyer,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,39,Reasons for Marketing Myopia,The belief that growth is assured by an expanding and more affluent populationThe belief that there is no competitive substitute for the industrys major productToo much faith in mass production and in the advantages of rapidly declining unit costs as output rises,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,40,Reasons for Marketing Myopia,Too much faith in mass production and in the advantages of rapidly declining unit costs as output risesPreoccupation with a product that lends itself to carefully controlled scientific experimentation,improvement,and manufacturing cost reduction.,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,41,Reasons Examined by Looking at Three Industries,PetroleumAutomobilesElectronics,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,42,Overview of Strategy and Competitive Advantage,43,“Alice:Will you tell me please,which way I ought to go from here?Cheshire Cat:That depends a good deal on where you want to get to.Alice:I dont much careCheshire Cat:Then it doesnt matter which wayyou go.”,Lewis Carroll,Alice in Wonderland,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,44,Strategy,“The science and art of military command as applied to overall planning and conduct of largescale combat operations”“The determination of basic longterm goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals”,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,45,Strategy versus Tactics,Objective:Increase revenues by being perceived as hotel of choiceStrategy:Provide greater valueTactic:Always have their reservation and room ready;call them by name;make sure they receive their wake-up call;focus on dimensions of service quality,46,Levels of Strategic Planning,Corporate-level strategy Focus on long-term viabilityBusiness-level strategyFocus on overall theme of the company and its positionFunctional-level strategyFocus on improving day-to-day operations,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,47,Strategy Checklist,Is it identifiable and clear in words and practice?Does it fully exploit opportunity?Is it consistent with competence and resources?Is it internally consistent,synergistic?Is it a feasible risk in economic and personal terms?Is it appropriate to personal values and aspirations?,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,48,Strategy Checklist,Does it provide stimulus to organizational effort and commitment?Are there indications of responsiveness of the market?Is it based on reality to the customer?Is it workable?,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,49,Why Strategic Plans Fail,Inadequate preparation of line managersPoorly defined business unitsVague goalsInadequate databases for action planningSubstandard linking of strategy with other control systems,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,50,Competitive Advantage,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,51,Definition,Something that a firm has or does that allows the firm to earn higher than average profits,capture higher than average market share,and create a non level playing field;Gained by offering consumers something that they value that is currently not being given to them,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,52,Competitive Advantage,Distinctive competencies that lead to CA:Management knowledge CultureLocationAccess to resourcesExceptional employeesSpecial patentsAccess to capitalBrand name,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,53,Value Chain,Primary Activities that enable creation of the projectManufacturingMarketingSecondary Activities that enable primary activities to take placeInfrastructure R&DMaterials ManagementHuman Resources,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,54,Building Blocks of CA,EfficiencyQualityInnovationCustomer ResponsivenessSizeValue,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,55,Building Blocks Not Independent,Very often a firm focuses on two or three at the same time.For instance,consider Harrahs Entertainmentsizemarketing efficiencycustomer responsiveness,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,56,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,57,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,58,Mission Statements,articulates its main philosophical valuesaccording to Peter Drucker,mission-statement development is the time to ask:who are our markets(customers)what is the value to customer(value of product)what will our business bewhat should our business be,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,59,Vision Statements,A road map showing the route a company intends to take in developing and strengthening its business.It paints a picture of a companys destination and provides a rationale for going there.,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,60,Strategic Vision versus Mission Statement,Strategic vision portrays a companys future business scope(“where are we going”)Mission statement typically describes its present business scope and purpose(“who are we,what do we do,and why we are here.”),Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,61,Intercontinental Hotel Group,Corporate Information/,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,62,Starwood Hotels and Resorts,Company Values,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,63,McDonalds,Company Values,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,Ph.D,64,Measuring Success of Strategy,Strategic Marketing for Hotels and Restaurants(c)Stowe Shoemaker,