The Role of Marketing in Strategic Planning Pertemuan 2 Matakuliah: V0222 - Penjualan dan Pemasaran Hotel Tahun: 2009 - 2010.

The Role of Marketing in Strategic Planning

Pertemuan 2

Matakuliah : V0222 - Penjualan dan Pemasaran HotelTahun : 2009 - 2010

“Would you tell me, please, which way I ought to go from here?”

-Alice-(from Lewis Carroll’s Alice in

Wonderland)

Market-Oriented Strategic Planning

Market-oriented strategic planning is the managerial process of developing and maintaining a feasible fit between the

organization’s objectives, skills and resources and its changing market

opportunities

Key Ideas Defining Strategic Planning

1. Manage companies businesses as an investment portfolio

2. Assess future profit potential3. Develop the strategy itself

Nature of High-Performance Business

• Stakeholders• Processes• Resources• Organization

The Relationship Between Analysis, Planning, Implementation, and Control

The High Performance Business

(Excerpted from the first quarter 1992 issue of Prism, the quarterly journal for senior managers, published by Arthur D. Little, Inc.)

Dynamic Relationships Among Stakeholder Groups in High Performance Businesses

(Excerpted from the fourth quarter 1992 issue of Prism, the quarterly journal for senior managers, published by Arthur D. Little, Inc.)

Corporate Strategic Planning

• Corporate headquarters sets planning process into motion

• Greater need for empowerment of employees• Hospitality and tourism industries are international and

multi-cultural

Defining the Corporate Mission

• Mission is shaped by History • Resources determine possibilities• Mission should be based on distinctive competencies

Competitive Scopes

• Industry scope – range of industries that the company will consider

• Products and applications scope – rang of products and applications in which the company will participate

• Competencies scope – range of technological and other core competencies the company will master and leverage

• Market-segment scope – the type of market or customers the company will serve

• Vertical scope – the number of channel levels from raw materials to final product and distribution in which the company will engage

• Geographic scope – the range of regions, countries or country groups where the corporation will operate

Establishing Strategic Business Units

• A single business or a collection of related businesses that can be planned for separately from the rest of the company

• It has its own set of competencies• It has a manager who is responsible for strategic planning

and profit performance

Assigning Resources to Each SBU

Analytical tools, such as the Boston Consulting Group (BCG) model, are used to classify businesses by profit

potential

BCG Growth-Share Matrix

Relative market share

Ma

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row

th r

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Low

Hig

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LowHigh

Star Question mark

Cash cow Dog

Developing Growth Strategies

Diversification Growth

• Concentric diversification strategy• Horizontal diversification strategy • Conglomerate diversification strategy

Integrative Growth

• Backward integration (acquiring a supplier)• Forward integration (acquiring distributor of

your product)• Horizontal integration (acquiring a

competitor)

Business Strategy Planning

• Business Mission• SWOT Analysis

- Strengths, Weaknesses, Opportunities, Threats

• Internal Environment Analysis– (Strengths and Weaknesses Analysis)

• External Environmental Analysis– (Opportunities and Threats Analysis)

• Goal Formulation– Arrange from most to least important– State quantitatively– Measurable and realistic– Consistent

Business Strategy Planning

• Strategy Formulation• Strategies are the paths to goals• 3 generic types

• Overall cost leadership• Differentiation• Focus

• Strategic Alliances – cooperative agreements between organizations that allow them to benefit from each other’s strengths

• What are some strategic alliances in the hospitality and tourism industry?

Business Strategy Planning

• Program formulation – Formulate programs that support the strategy

• Implementation – To implement strategy, required resources and employee buy-in are

necessary• Feedback and Control

– Track results and monitor new developments

• Unique Challenges of the hotel industry complicate the process of strategic planning – Major chains commonly do not own all properties that they manage– Owners of hotel-resorts often show little interest or knowledge of

their property (ego-capital concept)– Professional managers often are not trained in strategic planning– Global strategic alliances may further complicate the planning

process

Best Practices in Strategic Planning

• What did they do?– The Inn on Biltmore Estates– Tricon Global Restaurants (Yum Brands)– Jack in the Box– The Las Vegas Hilton– Hyatt Hotels– Boston Greater Convention and Visitors Bureau

• Howard Schultz brings the European coffee experience to America via Starbucks

• Focus on growth, new products, new retail channels to stave off competition

Key Terms• Anshoff product–market

expansion grid• Backward integration• Competencies scope• Concentric diversification

strategy • Conglomerate diversification

strategy• Corporate mission statement• Forward integration• Geographic scope • Growth–share matrix• Horizontal diversification

strategy

• Horizontal integration• Industry scope • Macroenvironmental

forces• Microenvironmental

forces• Marketing opportunity• Market-oriented

strategic planning• Market-segment scope• Products and

applications• Strategic alliances• Strategic business units

(SBUs)• Vertical scope