marketing hospitality, 3rd ed., hsu/powers chapter 6 marketing strategy

Marketing Hospitality, 3rd ed., Hsu/Powers

Chapter 6

Marketing Strategy

Concept of Strategy

A course of action aimed at ensuring that the firm will achieve its objectives by matching its internal resources and skills with the environmental opportunities and risks it faces

The Marketing Strategy Triangle

Corporation Competitors

Customers

Value Value

Product/Service

Differentiation

Target segments

Other market

segments

Technological Environment

Social Environment

Economic Environment

Eco

logi

cal E

nvi

ron

men

t Political E

nviron

men

t

Strategic vs. Functional Marketing

Strategic Long range Strategic perspective Broad resource

allocation Less formalized Proactive Broad issues Senior managers

Functional One year Marketing programs Short-term trade-offs More formalized Reactive Specific issues Operating managers

Corporate Headquarters

Strategic Business Unit 1

(e.g., Travel Services)

StrategicBusiness Unit 2

(e.g., Lodging and Foodservice)

StrategicBusiness Unit 3

(e.g., Real Estate)

Marketing OperationsHuman

ResourcesAccounting

Unit Level

Unit Level

Unit Level

Unit Level

Unit Level

Unit Level

Unit Level

Unit Level

Corporate Mission

Identification of SBUs

SWOT

SBU Missionand Strategies

Positioning

Functional Strategies and Plans

Portfolio Analysis

Hilton Hotels Mission Statement

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. Among our 250 hotels are some of the most well-known properties to be found anywhere, including The Waldorf-Astoria, Hilton Hawaiian Village and Palmer House Hilton. Our hotels offer guests and customers the finest accommodations and amenities for business or leisure. For 80 years, the Hilton brand name has been synonymous with excellence in the hospitality industry.

High Low

High

Low

Market Share (Cash Generation)

Cash flo

w

Gro

wth

(Cas

h U

se)

BCG Growth-Share Matrix

CRITERIA

SizeMarket shareProfitabilityCostsDifferentiationFinancial strengthsHuman assetsImageTechnological positionFlexibilityMarketing effectiveness

CRITERIA

SizeMarket growthCompetitive structureProfitabilityPricing practicesSocial changesEnvironmental concernsTechnological stabilityPolitical considerationsGovernment regulations

= build/grow= hold/milk= harvest/divest

High Medium Low

Market AttractivenessB

usin

ess

Str

engt

h

Hig

hM

ediu

mL

ow

GE Model

Numerousenvironmentalopportunities

Majorenvironmental

threats

Criticalinternal

weaknesses

Substantialinternal

strengths

Cell 1:Aggressive

strategy

Cell 2:Diversification

strategy

Cell 3:Turnaround

strategy

Cell 4:Defensivestrategy

SBU Mission

Carlson Hotels Worldwide, a division of Carlson Hospitality Worldwide, provides a brand management structure upon which the hotel brands of Carlson Hospitality Worldwide continue to grow as leaders in the luxury, upscale and mid-tier segments of the lodging industry

Uniqueness Low Cost

Competitive Advantage

Industry-wide

Particular Segment

Cost Leadership

McDonald’s Red Lobster

Differentiation

Wendy’s

Differentiation Focus

Four Seasons

Cost Focus

Motel 6

Str

ateg

ic T

arge

t

Generic Strategies

New products/services

Existing products/services

Existing markets

New markets

Market penetration

Product development

Market development Diversification

Grand Strategies

Positioning

The process of establishing and maintaining a distinctive place in the market for an organization and/or its individual product offerings.

Repositioning

Customer analysis

Market segmentation

Targetmarket

selectionMarketing program

and operations:

Product Price Place

Promotion

Corporate objectives

Competitive analysis

Corporate capabilities

Product/service

differentiation

“Position”

Package of benefits selection

Positioning Statement

Differentiate the property Communicate the benefits Create an image