Learning Outcomes:0 Define Marketing Planning0 Explain the role of marketing planning in tourism marketing0 Explain the differences between tactical and strategic planning0 Explain what the mission statement of an organisation is0 Explain the steps involved in strategic marketing planning0 Identify the components of the SPENT analysis0 Explain the BCG, GEC and Ansoff matrix0 Describe Porter’s generic strategies0 Explain the contents of a marketing plan
New Words:0 Vision – What we can be.. might do..0 Goal – achieve something- money, service, products0 Objective – moving a motive to action – help to get to end results. WHAT to achieve. SMART0 Strategies – HOW to get something done0 Mission statement – there is an end result. (usually just one mission) Where the company is going towards0 Strategic planning – long term meet objectives0 Tactical Planning – short term meet strategies
Marketing planning0 We have 3 things that explain the concept of marketing planning: 0 Vision, goal and objectives 0 Strategies (chosen routes to achieve our goals) 0 Plans (taking action on how we will move along this “route” to achieve goals or targets. What does your textbook say about Marketing Planning??
What is Marketing Planning then?0 Middleton & Clarke (2001:190) “analysing strengths and weaknesses in current AND prospective markets; identifying aims and opportunities; defining strategies0 George, R…. “a tourism company that attempts to analyse its existing resources + environment so they can use it for future decision-making..”
why do Marketers do marketing planning?For the Marketer:0 Get the right targets!!! (thus, the right markets and segments)0 Cost effective marketing0 Look at individual offerings
Why do companies need marketing planning?0 Companies identify objectives – What do they need to do, in the market, to achieve goals…0 Marketing can have an influence on the corporate mission statement (it might change if it does not say what the market wants to hear)0 Let the company focus on internal strengths/weaknesses - What can internal strengths do to better marketing…0 Forces organization to plan for the future (they now more or less know what trends/decisions are taken)0 Help the company carry out marketing on a day-to-day basis – depending on the need in the market0 Make the company aware of competitors
Strategic vs Tactical strategies:0 They form different parts of the marketing planning process0 They are more or less the same….but…tacticals will show how strategics will work..
Tactical marketing planning0 Over a shorter timescale (2 – 3 years)0 How they will achieve their strategy0 What is going to happen0 Who will make it happen0 By WHEN will it happen0 Tactical marketing plans include the 7 P’s; budgets and timetables
Strategic planning:0 How will they meet their objectives – how to eventually reach goals/aims0 How things will happen in the next couple of years (usually 3 – 5 years)0 Analyse the external marketing environment0 Opportunities or challenges that may arise in the medium and long term
The mission statement0 It is the benefit or DEAL that the company offers to the client0 It provides a purpose to company staff – why are they here… to do what…0 What the business want to achieve0 It is BROAD0 FOCUS on markets0 Provide INSPIRATION 0 Remember….The mission statement can change after marketing planning…when the company realise that their current mission falls on death ears in the marketWhat can be the MISSION of a tourism organisation?Mission Statements: Page 86
Marketing MyopiaThis is when managers fail to recognise the scope of thebusiness0 What can happen if you think your business has LOTS of potential when it is not THAT BIG.. And you start doing marketing??0 What can happen if you think you have a medium business, but actually you have a HUGE business potential, and you start doing marketing?
Marketing Planning process0 1.Analyse your business.0 2. Analyse your current market situation, where are your business in the market?0 3. What do the company want to achieve by doing marketing planning?0 4. How will the company get there (how can we implement our findings)0 5. Check effectiveness
Marketing Planning Process0 Step 1: What is this business about?The mission statement – setting the goalStep 2: Where are the business now?Analysis – analyse market, organization and influencesHow do we analyse strong and weaker points andthreats or opportunities in the organization?
Analysis: Analyse Market0 BCG growth-share matrix: Based on the idea that there are a variety of offerings0GEC analysis0Porter0Ansoff0SPENT – the Macro environment
BCG GROWTH MATRIX (Boston consultancy group)M =A M High Market Share A Low Market ShareR + R +K High Market Growth K High is were there is This Market GrowthE This is were there is market market ET Share x 10 T Share x 0.1G X(market share) S 5(0.1)=R High Market Share H 0.5 Low Market ShareO + A +W Low Market Growth R Low Market GrowthT EH MARKET SHARE
ICE: BSC GROWTH MATRIX4 GROUPS:0 Stars: Market leader offering. Most likely a new product/offering. High growth rate and high market share0 Cash Cows: Leaders in mature market so they have great market share; growth rates are slow but support other groups0 Dogs: Weak market share and low growth – so rather sell or let go of these offerings0 Problem Children: High growth markets but low market share. Need lot of investments – spend more money or let go…
Limitations of BCG matrix:0 Overall market-share is not known0 Organization still need to find data of each particular business unit0 It does not take in account the ever changing market0 Less meaningful in other industries0 Does not take in account the inter-relationship of some offerings (pool + gym…)
ICE: SPENT analysis:0 S – socio cultural0 P - political0 E - economic0 N - natural0 T – technology
GEC analysis:(General Electric Company)0 Takes in account more factors that the BSC0 Market attractiveness: Market growth; shares; competition; profit;0 Competitive strengths ( brand, technology; distribution)0 Products/offerings are measured according to Market Growth, Shares, Competitiveness and Profit and divided into the GEC GRID.0 A = attractive; I= “in-attractive”
CEG GRIDA A= B CTT attractiveRACTI D E FVEMA G H IRKE COMPETITIVE STRENGHTT
CEG GRID0A, D, B = STRONG STRATEGIC AND ATTRACTIVE BUSINESS0G, E, C = MEDIUM ATTRACTIVE BUSINESS0H, I, F = LOW IN OVERALL ATTRACTIVENESS AND WEAKS COMPETITIVE ADVANTAGE
ICE activity:0 Market looks very attractive, Competition is Medium0 Market is not very attractive, Competition is Medium0 Market is not attractive, Competition is Medium
Porter’s generic strategies0 Porter found that once the marketer has evaluated its marketing situation, it can choose from one of 3 alternatives: 0 Cost leadership; differentiation; Focus
Cost leadership: Reduce costs0 Undercut competition Customers go for budget, low cost product0 Benefits: Increase sales + market share Profitable in a price-sensitive market Earn high profits from high sales
Differentiation: “superior” perceptionCreate a consumer perception that product/offering issuperior to competitionAchieved in the following way:A product that stands out from the rest (cruise liners)High standard of service – Sabi Sabi Sands 5* lodgeStrong Brand name – good advertising; customer loyaltyprograms
Focus Strategy:More on segment less on wholemarketFocus more on a segment in the market than the wholemarket, then choose differentiation or cost-leadershipstrategyLess resources and more knowledge of marketBenefit:Specialization + knowledge of segments that are served
Ansoff Matrix 0 Where generic strategies can be deployed – related to risk that marketers are prepared to take 0 4 broad options: market penetration; market development; offering development; diversification Existing NewExisting Market penetration Offerings developmentMarket Market Development DiversificationNew Tourism Offering
Market Penetration:0 Sell more of a product in an existing market0 Lowest risk option0 Try and sell more products and hope to “catch” another market
Market Development0 Look for new markets0 Sell products in new geographical region
Offering Development0 New offering in existing market0 Hotel sells accommodation – now also sells leisure facilities
Diversification:0 New offering + new market0 Most risky0 This is ideal to “rejuvenate” a deal that is not growing anymore
Executive Summary:0 Gives a summary of what the person will find inside the marketing plat0 Only key points or most important points are listed
Introduction0 Describe the company0 Market0 Product/ service0 Offering or brand and0 Problems.
Situation Analysis:0 Internal analysis0 Customer analysis (who is the customer)0 Overview (analysis) of company and industry. This will include intermediaries and suppliers
SWOT analysis0 Looking at the environments (SPENT) and you micro environment0 This provides the starting point for strategies
Marketing Objectives:0 What results you want, when you implement the plan0 What turnover or market share you will have0 There can be long term and short term objectives
Marketing Strategies0 Product offering plan – what is the product/offering0 Pricing plan – strategies to get things sold0 Communication plan – how to inform people about the product0 Distribution – how to get the product to the person0 Physical evidence plan – design of the organisation0 Internal marketing plan – communicate with employers0 Relationship marketing plan – How to retain and keep customers
Implementation0 Decision, finance and control0 What is going to happen0 Who will do it0 When to do it0 How much will it costSet the budget using a specific strategy, like:Affordable method: based on previous year’s budget% of sales: Based on sales madeCompetitive parity: based on competition’s budgetObjective task and method: Marketing tasks are determinedand charged accordingly
Appendices:0 This include all extra information like data sheets0 Time tables0 References