Chapter 4 tourism marketing planning

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