Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Chapter 5 Analyzing Market Opportunities

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Situation Analysis A study of the marketing strengths, weaknesses, opportunities, and threats of an existing business or other type of organization

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G A study of the potential demand for a new or expanding hospitality or travel business or other organizational type. It determines whether market demand is large enough Market Analysis

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G A study of the potential demand for and economic feasibility of a business or other organizational type; it includes a market analysis plus four additional steps Feasibility Analysis

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 5.1 Relationship of market, feasibility, and situation analyses.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Relationship of the Three Analyses The relationship among these three techniques is chronological (time) The situation analysis should build upon the findings of the market or feasibility analysis Each situation analysis should build upon the previous year’s situation analysis

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Difference between a Situation and a Market or Feasibility Analysis 1. A situation analysis determines the strengths and weaknesses of an existing organization or business. 2. Situation and market analyses have the same steps, but in a different order.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G 3. A market or feasibility analysis investigates a proposed new business and its market potential and economic feasibility. 4. Market and feasibility analyses have the same first six steps, but the feasibility analysis involves four additional steps. Difference between a Situation and a Market or Feasibility Analysis (continued)

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 5.2 Situation and market analyses steps.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Steps in a Situation Analysis 1. Marketing environment analysis 2. Location and community analysis 3. Primary competitor analysis 4. Market potential analysis 5. Services analysis 6. Marketing position and plan analysis

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Steps in a Market Analysis 1. Marketing environment analysis 2. Market potential analysis 3. Primary competitor analysis 4. Location and community analysis 5. Services analysis 6. Marketing position and plan analysis

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 5.3 The hospitality and travel marketing environment.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Four Additional Steps in a Feasibility Analysis Pricing analysis Income and expense analysis Development cost analysis Analysis of return on investment and economic feasibility

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 5.14 Relationship of market and feasibility analyses.