Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Strategies Chapter 7

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J HMS - Marketing Strategy Marketing Strategy Marketing Environment Positioning Marketing Discipline/Strategy Applications

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Strategy Focal Points The Target Market The Core Positioning The Price Positioning The Total Value Proposition The Distribution Strategy The Communications Strategy

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Transition Then Manage from the top Operate in the marketplace Now Manage up and down and across Operate also in the marketplace

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Ten Major Marketing Issues 1. Shrinking margins 2. Rising sales and promotional costs 3. Growing retail power and shrinking shelf space 4. Competition from store brands and generics 5. Increased niche attacks

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Issues (continued) 6. More competition 7. Labor, availability, and competency 8. Technological incompetence 9. Declining brand/customer loyalty 10. Media selectivity/segment fragmentation

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Current and Near Future Marketing Technology embracing Global and local Electronic and personal Customized and flexible Diversity recognizing Perception driven

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Three Levels of Marketing Performance Responsive Marketing Anticipative Marketing Need-shaping Marketing

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Approaches Mass Marketing Target Marketing Segments Niches Market Cells

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Management Process Marketing Management Process R  STP  MM  I  C R= Research (i.e., market research) STP= Segmentation, targeting, and positioning MM= Marketing mix (popularly know as the four P’s, i.e., product, price, place and promotion) I= Implementation C= Control (getting feedback, evaluating results, and revising or improving STP strategy, and MM tactics)

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Ten Winning Marketing Strategies 1. Win through higher quality 2. Win through better service 3. Win through high market share 4. Win through lower prices 5. Win through adaptation and customization

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Ten Winning Marketing Strategies (continued) 6. Win through continuous product improvement 7. Win through product innovation 8. Win through entering high growth markets 9. Win through exceeding customer expectations 10. Win through creating A better perception

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Ten Winning Marketing Tactics 1. Win through ego appeal 2. Win through discounting 3. Win through couponing 4. Win through value added offers 5. Win through speed of delivery

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Ten Winning Marketing Tactics (continued) 6. Win through abundance of availability 7. Win through convenience of purchase 8. Win through the targeted awareness 9. Win through the “Points of Encounter” 10. Win through doing more for your customer

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J The art of finding, developing, and profiting from opportunities. Marketing

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J An area of buyer need and interest in which there is a high probability that a company can perform profitably by satisfying that need. number of buyers purchasing power desire to buy Marketing Opportunity

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Main Sources of Opportunity 1. Supplying something in short supply 2. Supplying an existing product or service in a new or superior way 3. Supplying a new product or service

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Breakthrough Marketing 1. Finds new customers and segments 2. Finds new sales strategies 3. Finds new pricing and financing solutions 4. Finds new product features “Executes any or all of the above with the best ‘perception’.”

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Strategic Gap Model Strategic gap New products New markets for existing products Increased Market share Years Sales } } } }

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Building New Demand Matrix PRODUCTS

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J New Product Launch Probability of Success

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Establish credibility and build trust Create lifestyle associations Establish awareness and create images Stimulate repeat purchases PR Advertising, Events Advertising Sales promotion Strategy ApplicationMarketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Simulate trade participation Reward frequency and loyalty Create a sense of involvement Reach a tightly targeted audience Trade promotion Frequency program Events Addressable media Strategy ApplicationMarketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Leverage social responsibility Stimulate referrals Stimulate trial Make a news announcement Mission marketing Club or affinity group Sales promotion PR Strategy ApplicationMarketing Discipline

Hospitality Management Strategies ©2005 Pearson Education, Inc. By R.A. Nykiel Upper Saddle River, N.J Marketing Scorecard Market Share Customer Retention Customer Satisfaction Relative Product Quality Relative Service Quality