1. Chapter 3 The Role of Marketing in Strategic Planning

2. “Would you tell me, please, which way I ought to go from here
“Would you tell me, please, which way I ought to go from here?” -Alice (from Lewis Carroll’s Alice in Wonderland)
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

3. Chapter Objectives Explain company-wide strategic planning
Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business
Explain the four planning activities of corporate strategic planning
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

4. Chapter Objectives
Understand the processes involved in defining a company’s mission and setting goals and objectives
Discuss how to design business portfolios and growth strategies
Explain the steps involved in the business strategy planning process
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

5. 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
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

6. Key Ideas Defining Strategic Planning
Manage companies businesses as an investment portfolio
Assess future profit potential
Develop the strategy itself
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

7. Nature of High-Performance Business
Stakeholders
Processes
Resources
Organization
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

8. The Relationship Between Analysis, Planning, Implementation, and Control
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

9. 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.)
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

10. 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.)
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

11. 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
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

12. Defining the Corporate Mission
Mission is shaped by History
Resources determine possibilities
Mission should be based on distinctive competencies
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

13. 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
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

14. Competitive Scopes
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
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

15. 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
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens

16. Assigning Resources to Each SBU
Analytical tools, such as the Boston Consulting Group (BCG) model, are used to classify businesses by profit potential
©2006 Pearson Education, Inc Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ Kotler, Bowen, and Makens