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CHAPTER 16

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					                                  CHAPTER 17

       Electronic Marketing: Internet Marketing, Database
                Marketing, and Direct Marketing

CHAPTER OVERVIEW
Chapter 16 discusses Internet marketing, database marketing, and direct marketing. The
students will read about the reasons why Internet marketing, database marketing, and
direct marketing have increased in recent years, as well as the role Internet marketing,
database marketing, and direct marketing plays in relationship marketing.


CHAPTER OBJECTIVES
Students should be able to:
   1. Describe the relationship between Internet marketing, database marketing and
       direct marketing.
   2. Evaluate a company‟s web site and comment on its marketing potential.
   3. Describe how to set up an effective database.
   4. Discuss the growth e-mail marketing.
   5. Understand how databases can be used to develop direct marketing campaigns.

Supportive Power Point Slides: 17-1 to 17-4.


TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats. The
first format guides the instructor through the chapter objectives. The second format is a
chapter outline and provides more detail than the chapter objective format.


OBJECTIVES:

Objective: 1. Describe the relationship between Internet marketing, database marketing,
and direct marketing.
Recommended Ideas: Internet marketing is integrated with database marketing and
direct marketing. The rapid growth of the Internet and related technologies put
information at a manager‟s fingertips faster than ever before. Digitalization of data
converts text and images to allow dispatching at incredible speeds from one location to
another. For example, Internet marketing captures data which feeds into the firm‟s
database. The database is used to generate profiles and lists which enable the firm to
have effective direct marketing campaigns. This information can be sent to management
worldwide in seconds.
Examples: Papua New Guinea, a remote island off the northern coast of Australia. See
the opening of the chapter.



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Supportive Power Point Slides: 17-5 to 17-10.


Objective: 2. Evaluate a company‟s website and comment on its marketing potential.
Recommended Ideas:
 People purchase online for the following reasons:
     Convenience: Online purchases can be made from any place at any time.
     Information: Customers can gain information about travel and travel destinations
        over the Internet.
     Price: Consumers feel they get a better price on the Internet.
 Activities of the uses of a web-site are: selling (hotel, cruise, and airline companies
    are using the Internet to distribute their products directly to the customer),
    communication (the Internet is an excellent medium to communicate what products
    are offered and the benefits of those products), and providing content (the companies
    should design the content which will drive customers back to the web site).
Examples: Dunkin Donuts, eBay, Morton‟s Steak House, Cheeseburger in Paradise,
Hilton. See “Sales”. Hyatt, Courtyard, MeetingMatirx, Optimum Settings, Room
Viewer. See “Communication”. Hard Rock Cafe, Payard Patisseri & Bistro. See
“Providing Content”.

Supportive Power Point Slides: 17-11 to 17-18.


Objective: 3. Describe how to set up an effective database.
Recommended Ideas:
 Databases should be relational, talk to each other, and integrate with each other. The
   system should be user friendly and available to various departments.
 Databases should be clean and accurate with no entry errors or duplication.
 The information in the database should be more than names or addresses and should
   help managers to enhance customers‟ experiences and increase customer satisfaction.
Examples: Aruba, Hyatt Hotels, Hilton, R.L. Polk, National Demographics, Database
America, Infobase, Donnelley Marketing, Vail Associates, Brenna‟s, Ritz Carlton. See
“Developing a Marketing Database System”.

Supportive Power Point Slides: 17-19 to 17-22.


Objective: 4. Discuss the growth of e-mail marketing.
Recommended Ideas: Several reasons contributed to the growth of the e-mail
marketing, such as low cost, detailed, useful, even driven information, interaction, and
external linkage allowing the receiver to go directly to a web site.
Examples: Caribbean cruise. See “E-Mail”.

Supportive Power Point Slides: 17-23.




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Objective: 5. Understand how databases can be used to develop direct marketing
campaigns.
Recommended Ideas: Direct marketers use direct-response advertising media to make a
sale and learn about a customer whose name and profile are entered in a customer
database, which is used to build a continuing and enriching relationship. They are
approaching a stage where offers are sent only to those customers and prospects most
able, willing, and ready to buy the product.
Examples: Marriott, Continental Airlines, San Diego Convention and Visitors Bureau,
Ski Limited. See “Direct Marketing”.

Supportive Power Point Slides: 17-24, 17-25.


CHAPTER OUTLINE

I.     Major Forces Shaping the Internet Age
       A. Digitalization and Connectivity. Digitalization consists of converting text,
          data, sound, and image into a stream of bits that can be dispatched at
          incredible speeds from one location to another. Connectivity involves building
          networks and expresses the fact that much of the world‟s business is carried
          over networks connecting people and companies. These networks are called
          intranets when they connect people within a company; extranets when they
          connect a company with its suppliers and customers; and the Internet.
       B. The Internet Explosion. More and more people are gaining access to the
          Internet. It is estimated that 1.5 billion people will be using the Internet by
          2007.
       C. New Types of Intermediaries. The new forms of electronic distribution of
          travel products have changed how the travel industry does business.
       D. Customization. Many hospitality and travel companies have developed a
          competitive advantage by understanding their customers on an individual
          level and developing marketing offers that fit their wants.

       Supportive Power Point Slides: 17-5 to 17-10.


II.    Marketing Strategy in a Digital Age
       A. E-Business, E-Commerce, and E-Marketing. E-business involves the use of
          electronic platforms—intranets, extranets, and the Internet—to conduct a
          company„s business. E-commerce is more specific than e-business. E-business
          includes all electronics-based information exchanges within or between
          companies and customers. E-marketing is the marketing side of e-commerce.
          It consists of company efforts to communicate about, promote, and sell
          products and services over the Internet.
       B. Benefits to Buyers. Internet buying benefits both final buyers and business
          buyers in many ways. It ca n be convenient, it is easy and private, it offers
          greater product access and selection, it offers a wealth of comparative


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          information, it is immediate and it is interactive. Convenience: Online
          purchases can be made from any place at any time.
       C. Information: Customers can gain information about travel and travel
          destinations over the Internet. Price: Consumers feel they get a better price on
          the Internet.
       D. Benefits to Sellers. E-commerce can yield many benefits to sellers including;
          building customer relationships, reducing costs, being quick and efficient, and
          reducing communication costs.

       Supportive Power Point Slides: 17-11 to 17-13.


III.   E-Commerce Domains
       A. B2C (business to consumer) e-commerce. The online selling of goods and
          services to final consumers.
       B. B2B (business to business) e-commerce. Using B2B trading networks,
          auction sites, spot exchanges, online product catalogs, barter sites, and other
          online resources to reach new customers, serve current customers more
          effectively, and obtain buying effectiveness and better prices.
       C. C2B (consumer to business) e-commerce. Online and exchanges in which
          consumers search out sellers, learn about their offers, and initiate purchases,
          sometimes even driving transaction terms.
       D. C2C (consumer to consumer) e-commerce. Online exchanges of goods and
          information between final consumers.

       Supportive Power Point Slides: 17-14.


IV.    Setting Up An E-marketing Presence
       A. Creating a Web Site. A company‟s web site must project its brand image,
           convey whom the company is and what the company has to offer, be easy to
           navigate, quickly get the information, provide “contact us” access and respond
           quickly, provide online purchase availability, keep on the top of the search
           engines, and communicate with other devices.
       B. Types of Web Sites. The most basic type is a corporate Web site. These sites
           are designed to build customer goodwill and to supplement other sales
           channels, rather than to sell the company‟s products directly. Marketing Web
           sites engage consumers in an interaction that will move them closer to a direct
           purchase or other marketing outcome.
       C. Designing Attractive Web Sites. The key is to create enough value and
           excitement to get consumers to come to the site, stick around, and come back
           again.
           1. Content. It is important to give customers a reason to come back to your
               site by providing useful content. The site should also be organized so the
               users can quickly get to the information they need and project an image
               that supports the product or brand. See Table 16-2.


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         2. Legal and Ethical Issues. Companies have an obligation both legally and
            ethically to let customers know how their information will be used and
            respect a customer‟s privacy and adhere to privacy laws.

      Supportive Power Point Slides: 17-15 to 17-18.


V.    Developing a Marketing Database System. A marketing database is an
      organized collection of data about individual customers, prospects, or suspects
      that is accessible and actionable for such marketing purposes as lead generation,
      lead qualification, sale of a product or service, or maintenance of customer
      relationships.
      A. Why would a customer want to be on your database? If you were a
          customer, why would you want to be on your database? By answering this
          question, you find out whether your database has a strategic focus or is mainly
          used for tactical purposes.

      Supportive Power Point Slides: 17-19 to 17-20.


VI.   Direct Marketing. Direct marketing is an interactive system of marketing that
      uses one or more advertising media to affect a measurable response and/or
      transaction at any location.
      A. Reasons for the growth of direct marketing
          1. Precision marketing.
          2. Personalization. Personalizing offers to fit the target market, and timing
              offers to fit the needs of the consumer, such as offers associated with a
              birthday.
          3. Privacy. The offer is not visible to competitors.
          4. Immediate results.
          5. Measurability.
      B. E-mail. E-mail marketing brochures as a marketing communication.
      C. Relationship marketing. Direct marketing can be used to develop a
          relationship with customers. It costs four to seven times as much to create a
          customer as it does to maintain a customer.
      D. Integrated direct marketing. Integrated direct marketing is a more powerful
          approach to direct marketing through a multiple-vehicle, multiple-stage
          campaign can be both low cost and effective.

      Supportive Power Point Slides: 17-21 to 17-25.


DISCUSSION QUESTIONS

1.    There are several ways an Internet site can collect information from its visitors.
      For example, a hotel‟s web site can ask the visitors to sign the guest books, so the


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       hotel can have the customers‟ names and address. A restaurant can collect
       customers‟ data from the Internet orders. An Internet casino can provide free
       demo to customers who sign in for the free plays. Once the company has the
       visitors‟ basic information, it can send the relevant information to these visitors.

2.     The data warehouse stores the information the company receives in a central
       repository of customer data. Once a company has a data warehouse, it can do the
       data mining. Data mining is the exploration and analysis of a database by
       automatic or semiautomatic means to discover patterns or rules. Managers can
       utilize the results from the data mining to reach the customers who are most likely
       to respond to an offer, to segment a market and to identify a company‟s most
       loyal customers.

3.     A restaurant is promoting a special event pairing wine and food, and it sends an
       invitation to the customers who spent over $ 50 on a bottle of wine.

4.     Internet marketing captures data which feeds into the firm‟s database, then the
       database is used to generate profiles and lists which enable the firm to have
       effective direct marketing campaigns.


EXPERIENTIAL EXERCISE

An example is given as follows. A casino‟s player‟s club sign-up form request: name,
address, phone number, birthday, anniversary, favorite games, and types of information
desired to receive from the casino.


INTERNET EXERCISE

The instructor can recommend students look at the following criteria: whether the
company‟s web site projects its brand image, conveys who the company is and what the
company has to offer. Whether the website is easy to navigate, responds quickly,
provides online purchase availability, keeps on the top of the search engines, and
communicates with other devices.




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                                  CHAPTER 18
                              Destination Marketing

CHAPTER OVERVIEW
The chapter opens with a discussion of the importance of tourism to the world‟s
economy. This introduction is followed by a discussion of the benefits of tourism to the
local economies. Next, the chapter discusses tourism strategies and investments. This is
followed by a section on the segmenting and monitoring the tourist market. The chapter
discusses the importance of image management and communication. The chapter ends
with a discussion on organizing and managing tourism.


CHAPTER OBJECTIVES
Students should be able to:
   1. Discuss the benefits of tourism.
   2. Explain tourism strategies and different options for creating and investing in
       tourism attractions.
   3. Understand how to segment and identify visitor segments.
   4. Explain how central tourist agencies are organized.


TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats. The
first format guides the instructor through the chapter objectives. The second format is a
chapter outline and provides more detail than the chapter objective format.


OBJECTIVES:

Objective: 1. Discuss the benefits of tourism.
Recommended Ideas: (1) Employment - These are jobs directly related to tourism. Jobs
in hotels, restaurants, retail establishments, and transportation. (2) Support Industries and
professions- Jobs in related areas such as yield management, university tourism
professors, etc. (3) Multiplier Effect - This is money that is spent by the tourist that is
spent over again in the local economy. A dollar spent in the hotel pays the front desk
clerk which buys vegetables in the local market which pays the farmer‟s doctor bill. (4)
State and local revenue derived from taxes on tourism.
Examples: Bermuda, New York, Dallas, Los Angeles, Houston, Hawaii. See “Benefits
of Tourism”.

Supportive Power Point Slides: 18-4 to 18-7.


Objective: 2. Explain tourism strategies and different options for creating and investing
in tourism attractions.
Recommended Ideas:

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   Tourist competition is fierce amid a growing and constantly changing tourist market.
   Places are increasingly developing events as a vital component in attracting tourists.
   Countless examples exist of places rediscovering their past, capitalizing on the
    birthplace of a famous person, an event, a battle, or other “hidden gems”.
 With the current U.S. trend toward shorter but more frequent vacations, many places
    within 200 miles or so of major metropolitan areas have found new opportunities to
    access the tourist market.
 To attract tourists, destinations must respond to the travel basics of cost, convenience,
    and timeliness. Like other consumers, tourists weigh costs against the benefits of
    specific destinations and investment of time, effort, and resources against a
    reasonable return in education, experience, fun, relaxation, and memories.
 Tourism investment ranges from relatively low cost market entry for festivals or
    events, to multimillion-dollar infrastructure costs of stadiums, transit systems,
    airports, and convention centers.
Examples: Places rely on various monikers for identification: Sheboygan, Wisconsin, as
City of Cheese, Choirs, Children, and Churches; Crystal City, Texas, as the Spinach
Capital of the World; Lexington, Kentucky, as the Athens of the West; New Haven,
Connecticut, as the City of Elms. Many places still bear nicknames of their economic
heritage: Hartford, Connecticut, as Insurance City; Holyoke, Massachusetts, as Paper
City; Westfield, New York, as Buggy Whip City; and Paterson, New Jersey, as Silk City.
See “Tourism Strategies and Investments”. City‟s revitalization: Boston‟s Quincy
Market, New York‟s Lincoln Center, and San Francisco‟s Fisherman‟s Wharf. See
“Investment in Tourist Attractions”.

Supportive Power Point Slides: 18-8 to 18-12.


Objective: 3. Understand how to segment and identify visitor segments.
Recommended Ideas: (1) Collect information about current visitors: Where do they
originate from? What is their purpose while visiting? What are their demographic
characteristics? How many are repeat visitors? How much do they spend? (2) Audit the
destination‟s attractions and select segments that might logically have an interest in them.
Tourist segments are attracted by different features. (3) Conduct research to determine
where these tourists are found.
Examples: Kenya promoted safari, native culture, flora, and bird species. See
“Identifying Target Markets”.

Supportive Power Point Slides: 18-13 to 18-24.


Objective: 4. Explain how central tourist agencies are organized.
Recommended Ideas: Making a destination tourist friendly is the task of a central tourist
agency, which may be public, quasi-public, nonprofit, or private. These agencies are
referred to as national tourist organizations (NTOs) (see Marketing Highlight 18.4).
Outside the United States, this agency is often run by the central government, state, or
province, together with local government officials.


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Examples: European Travel Commission. See “Organizing and Marketing Tourism
Marketing”.

Supportive Power Point Slides: 18-25.


CHAPTER OUTLINE

I.    The Globalization of the Tourist Industry
      A. We define tourism with the British Tourist Authority‟s definition: A stay of
         one or more nights away from home for holidays, visits to friends or relatives,
         business conferences or any other purpose except such things as boarding
         education or semi permanent employment.
      B. Travel now affects every continent, country, and city by the influx or outflow
         of tourists. Furthermore, it is subject to cycles, fashions, and intense
         competition. The top ten destinations accounted for less than half of the
         tourism market in 2002.

      Supportive Power Point Slides: 18-4, 18-5.


II.   Impact of Tourism on a Destination’s Economy
      A. The Tourism Destination:
         1. Destinations are places with some form of actual or perceived boundary,
            such as the physical boundary of an island, political boundaries or even
            market-created boundaries.
         2. Macro destinations contain thousands of micro destinations, including
            regions, states, cities, towns, and specific attractions.
      B. Benefits of Tourism:
         1. Employment - These are jobs directly related to tourism. Jobs in hotels,
            restaurants, retail establishments, and transportation.
         2. Support Industries and professions- Jobs in related areas such as yield
            management, university tourism professors, etc.
         3. Multiplier Effect - This is money that is spent by the tourist that is spent
            over again in the local economy. A dollar spent in the hotel pays the front
            desk clerk which buys vegetables in the local market which pays the
            farmer‟s doctor bill.
         4. State and local revenue derived from taxes on tourism. These include sales
            taxes as well as “bed taxes”.
      C. Management of the Tourism Destination:
         1. Infrastructure is a key element in the success or failure of a destination.
            Destinations that fail to maintain or upgrade their infrastructure run risks
            of poor visitor perception, negative word of mouth, and declining or
            nonexistent business.
         2. The attractiveness of a destination can be adversely affected by violence,
            political instability, natural catastrophe, adverse environmental factors,


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              and overcrowding. For example, Florida‟s violence against tourists, San
              Francisco‟s reputation for earthquakes, and Mexico‟s political instability.
          3. Destination development must be managed to ensure that a balance is met
              between the temptation to maximize tourist dollars with preservation of
              the natural tourist attractions and the quality of life for local residents.
              a. A destination life cycle can be used to prolong the maturity stage and
                  divert the decline of a destination. Hawaii, for example, is considering
                  options of a convention center to increase its target segments from
                  simply tourism to convention destination.
              b. Destinations that do not manage their product may have a short life-
                  cycle. Those, however, who build solid infrastructures and wise
                  marketing strategies can look forward to a steady increase.
       D. Sustainable Tourism: Sustainable tourism is a concept of tourism management
          that anticipates and prevents problems that occur when carrying capacity is
          exceeded.
          1. Environmental Impact Assessment (EIA): (1) Inventory the social,
              political, physical, and economic environment. (2) Project trends. (3) Set
              goals and objectives. (4) Examine alternatives to reach goals. (5) Select
              preferred alternatives. (6) Develop implementation strategy. (7)
              Implement. (8) Evaluate.

       Supportive Power Point Slides: 18-6 to 18-12.


III.   Tourism Strategies and Investments
       A. Fierce Competition:
          1. Declining places upgrade and invest and new places appear. This
              increases competition.
          2. Rediscovery of a destination‟s past also increases competition as it
              revitalizes. History is used to promote the area. Countless examples exist
              of places rediscovering their past, capitalizing on the birthplace of a
              famous person, an event, a battle, or other “hidden gems”. These
              destinations are using this as a “hook” to snag potential tourists.
          3. With the increase of shorter vacations, or long weekends, the local
              marketers implement strategies to increase visitation by nearby residents.
              “Nearby” being a term relative to the destination.
       B. Investment in Tourist Attractions: Tourism investment ranges from relatively
          low cost market entry for festivals or events, to multimillion-dollar
          infrastructure costs of stadiums, transit systems, airports, and convention
          centers.
          1. Destinations must respond to travel basics of cost, convenience, and
              timeliness. Tourists, like most consumers, weigh costs such as time,
              effort, and resources, against benefits. Trends must be identified and
              evaluated for potential.
          2. Places are increasingly developing events as a vital component in
              attracting tourists. Special events are an upcoming trend that attract


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              tourists and promote destinations. Shakespeare/Renaissance festivals and
              sports events are examples that help raise awareness and promotion
              campaigns.
         3.   Urban renewal, or gentrification, is an alternative that can aide in
              concentration of attractions, facilities, and services in a convenient,
              accessible location. Often non-profit development corporations with
              private funding invest in these improvement projects.
         4.   Joint public-private partnerships aide in development in planning
              financing and implementation of tourist attractions. The destination will
              often subsidize or provide tax incentives for private investors in
              infrastructure.
         5.   A critical key to the success of a destination is the internal marketing that
              must accompany any strategy. Promoting tourism internally to the
              affected business and citizens who invest in recruiting and training, as well
              as any other skills that are necessary for the success of the destination.
         6.   Stopover tourism destinations are visitor destinations that have a high
              percentage of visitors staying for a short time while on their way to
              somewhere else.

      Supportive Power Point Slides: 18-13 to 18-15.


IV.   Segmenting and Monitoring the Tourist Market -Tourism planners must
      consider how many tourists are desired, which segments to attract and how to
      balance tourism with other industries.
      A. Identify Target Markets:
          1. Collect information about current visitors: Where do they originate from?
             What is their purpose while visiting? What are their demographic
             characteristics? How many are repeat visitors? How much do they
             spend?
          2. Audit the destination‟s attractions and select segments that might logically
             have an interest in them. Tourist segments are attracted by different
             features.
          3. Conduct research to determine where these tourists are found.
             a. This evaluation may yield many natural target markets. If so, the
                 relative potential profit from each should be evaluated against the costs
                 to the destination.
             b. The evaluation may yield few natural target markets. If so,
                 investments may be needed in infrastructure and visitor attractions.
      B. Self-Contained Attraction and Event Destinations
          1. The real destination is the vehicle of travel such as a cruise ship, river
             paddle ship or special railroad such as the Orient Express.
          2. Moving Destinations offer a variety of events for passengers such as
             games, gambling, theatre, shows, seminars, and a wide variety of other on-
             board events.
      C. Classification of Visitor Segments:


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        1. Organized mass tourists: GIT. These people have little or no influence
            over their travel experience other than to purchase one package or another.
        2. Individual mass tourist: similar to the previous category but exercise
            slightly more control over their vacation. They may be with a tour group,
            but choose to explore on their own.
        3. Explorers: IT. These tourists plan their own itineraries and make their
            own reservations.
        4. Drifters: They are even more adventurous than explorers and generally use
            alternative forms of travel and lodging, such as youth hostels.
            a. Another well-known tourist classification system is Plog‟s
                 categorization: it ranks the tourist in a range from psychocentric to
                 allocentric. Allocentric travelers like to be the first to visit a
                 destination. They prefer the pristine environment of the new area,
                 unspoiled and natural. Allocentrics might enjoy trips to the rain forest,
                 parts of Australia and Africa for examples. Psychocentric travelers
                 choose destinations that are more mature in their life cycle, well
                 established and familiar to visitors. Hawaii, Miami and Monaco in the
                 French Riviera might be destinations that are comfortable for
                 psychocentric travelers.
     D. Monitoring Tourist Markets: Marketing information systems will be a part of
        any organized tourist organization. Flying by the seat of one‟s pants will not
        work well in the harshly competitive world of tourism. Hard facts and
        statistics will be much more reliable.

     Supportive Power Point Slides: 18-16 to 18-19.


V.   Communicating with the Tourist Market
     A. Competition for visitors involves image making:
        1. Place images are heavily influenced by pictorial creations of the
           destination in movies or television, by music, and in some cases by
           popular entertainers and celebrities, such as how Atlanta revived its Gone
           with the Wind image in 1996 Olympics.
        2. A very important concept is the difficulty in changing an image. The
           range of customers will vary. The more positive experiences a customer
           has with a provider, the more loyal the customer generally will be, and the
           harder it will be to change that customer‟s perception of the provider‟s
           image. Nevertheless, a negative image requires time and energy to
           change, assuming the image perception can eventually be changed. Note,
           it is always the preferred method to take care of a problem quickly and
           completely, retaining the loyalty of the guest. Complaints should be
           thought of as opportunities to increase customer loyalty.
        3. Joint marketing efforts are becoming popular with travel, recreational, and
           communication businesses partnering in marketing and advertising efforts.
           This may sometimes enhance the image of either partner, or perhaps, even
           create a synergistic effect.


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         4. Congruence between advertising and the place will also help produce
            effective destination images. Truth in advertising and congruence in
            materials and destination image necessarily must be present to produce the
            essential goodwill.
      B. Developing packages of attractions and amenities is an effective way of
         communicating with potential travelers:
         1. A destination may promote one, a few, or many of its attractions. San
            Diego, for example, may promote the zoo, Sea World, and sports
            attractions in one brochure, or three. They may promote attractions,
            culture, or restaurants in lieu of the specific destination like the zoo.
         2. Attractions alone do not attract visitors. It is often the “experience” that
            finally provides the value to the traveler.
         3. Despite the best offers of a destination to portray a positive image through
            public relations and advertising, image building is affected by reports of
            disturbing societal problems, including human rights abuse. For example,
            in 1996, the nation of Myanmar (Burma) established a goal of attracting
            500,000 tourists. Compared to neighboring Thailand with 6,000,000
            tourists, this goal seemed low.

      Supportive Power Point Slides: 18-24.


VI.   Organizing and Managing Tourism Marketing
      A. It is the responsibility of the central tourist agencies to work together and
         make the destination tourist friendly. The San Diego Sports Arena may
         partner with the CVB and promote an upcoming event. These agencies
         referred to as NTOs or National Tourist Organizations may be public, quasi-
         public, nonprofit, or private.
      B. Gnoth and Anwar provide an event planning framework, including what
         strategic factors relate to this event? What is the profile of visitor? What is
         the expenditure profile? What are the economic and social costs and benefits
         of the vent? What is event‟s profile?

      Supportive Power Point Slides: 18-25, 18-26.


DISCUSSION QUESTIONS

1.*   This question draws on the business strategy planning section in Chapter 3. It can
      be used to show students how to integrate material used in the course. It is useful
      for a destination to conduct an analysis of its strengths and weaknesses and
      opportunities and threats. Using this analysis the destination can build on the
      opportunities in the marketplace promoting the strengths of the destination.

2.*   Students will discuss topics that follow from the events in their area. Each area
      will provide different benefits for tourism. A sample answer is provided below.


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     In Cedar City, Utah, there is a Shakespeare Festival that takes place in the
     summer. Numerous benefits come from this event. Positive word of mouth is a
     benefit for the community. Those who attend the festival can use their experience
     to promote the festival and destination. Campers are frequent visitors to the
     festival and the camp grounds also benefit. Partnership advertising is beneficial.
     The brochure contains local hotels and restaurants that visitors might enjoy.

     Economic benefits are also available. Cedar City brings in a tremendous influx
     of tourist dollars for the event. These dollars are spent over and over in the
     community. The tourists bring in tax dollars to the area, but then leave, benefiting
     the community by lower sales taxes and increased revenue.

3.   This answer will be unique to the area. A sample answer follows.

     To continue the above example, this Utah Shakespeare Festival is effectively
     promoted throughout the Utah area and even into the Nevada region of Las
     Vegas. They have diversified their advertising mix and use television
     commercials, radio spots on various stations, and provided ticket sales at
     numerous venues--including jewelry stores. An 800 number for information is
     also available. Directions are readily available for those traveling to the festival.
     Camping information is similarly available upon request. This provides an
     example of a well-promoted event. Students may come up individual suggestions
     on how to improve promotions of events in their immediate area.

4.   Any number of examples of psychological determinants of demand could be used
     here. Some examples that may stimulate discussion follow: Demand is
     stimulated by:

     Prestige includes flights on the Concord airplane, or first class seating on a
     regular flight; executive floors or cabanas in hotels and resorts; luxury rental cars.

     Escape would include cruise lines and Caribbean resorts that suggest “getting
     away from it all”. In the New York City area, many people do not own cars. Car
     rental agencies might advertise special rates to the residents as an “escape the
     city” tactic.

     Sexual opportunity is a common marketing theme for the sun and sand
     destinations. Romance is a variation of this theme. Most can readily delineate
     these ads.

     Education is a common, and growing, theme. Anywhere that has an environment
     that is rich in cultural or historic attractions can often use this method.
     Allocentric locations can promote on the basis of expanding the visitors
     experiences and horizons.



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       Social interaction overlaps somewhat with previous determinants. Meeting new
       and different people— those one travels with and those one travels to see— is a
       natural byproduct of traveling.

       Family bonding results when participation by all members is enjoyed.

       Relaxation determinants will be common on cruises and places off the beaten
       path; bed and breakfasts, for example.

       Self-discovery will often determine the vacation destination or objective. This
       would be entirely individual.

5.* A couple of promotions come to mind. “Virginia is for lovers” and “I love New
    York,” are two ad slogans that promote cities. Jamaica promotes a very relaxed
    atmosphere where the service providers cater to your every desire. In this
    example, it is a good promotion because it capitalizes on the cultural atmosphere,
    targets tourism markets seeking resort location, with romance, escape, social
    interaction and self-discovery as determinants if so desired. The sources of
    media are numerous. Pamphlets and brochures, television and print media of all
    kinds target travel agents and tourists. The benefits that this destination offers are
    those features that address the wants and needs of its tourists. They seek fun and
    sun, romance, escape and relaxation. . . Jamaica promotes these attributes.
EXPERIENITAL EXERCISE

See Discussion Question # 2.

INTERNET EXERCISE

The instructor can recommend students look at whether organization conveys a clear
theme of the destination: A romantic getaway? A rejuvenate nature trip? A sun & beach
resort? A culture trip? Which kind of image of the destination does this web site promote
to visitors? Does the web site alleviate visitors‟ worry of inappropriate infrastructure,
pollution, violence, political instability, natural catastrophe, overcrowding?

*Questions that are useful for in-class discussions. They require the student to think, but
require little outside preparation.




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208
                                    CHAPTER 19

                          Next Year’s Marketing Plan

CHAPTER OVERVIEW
This chapter outlines the purpose of a marketing plan, the steps necessary to prepare one,
and the ingredients necessary for a good one. The Marketing plan gives the overall
picture of the company‟s marketing activities and therefore, is critical to the success of its
future goals. Without the direction and feedback a marketing plan provides, a company
may sometimes not see the forest for the trees.

The Chapter Outline section below lists the ten steps involved in preparing, writing,
presenting and planning for next year‟s plan. Also covered within these sections are the
various persons involved in the process and their responsibilities to and extent of
participation in the plan‟s success.


CHAPTER OBJECTIVES
Students should be able to:
   1. Know why it is important to have a marketing plan and be able to explain the
       purpose of a marketing plan.
   2. Prepare a marketing plan following the process described in this chapter.

Supportive Power Point Slides: 19-1 to 19-3.


TEACHING SUGGESTIONS: Teaching suggestions are provided in two formats. The
first format guides the instructor through the chapter objectives. The second format is a
chapter outline and provides more detail than the chapter objective format.

OBJECTIVES:

Objective: 1. Know why it is important to have a marketing plan and be able to explain
the purpose of a marketing plan.
Recommended Ideas:
 The marketing department should operate with direction and be proactive. Thus, a
    new marketing plan must be written each year.
 A marketing plan serves several purposes within any hospitality company:
    (a) Provides a road map for all marketing activities of the firm for the next year.
    (b) Ensures that marketing activities are in agreement with the corporate strategic
        plan.
    (c) Forces marketing managers to review and think through objectively all steps in
        the marketing process.
    (d) Assists in the budgeting process to match resources with marketing objectives.


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     (e) Creates a process to monitor actual against expected results.

Supportive Power Point Slides: 19-4, 19-5.

Objective: 2. Prepare a marketing plan following the process described in this chapter.
Recommended Ideas:
   I.     Executive summary
   II.    Corporate connection
   III.   Environmental analysis and forecasting
   IV.    Segmentation and targeting
   V.     Next year‟s objectives and quotas
   VI.    Action plans: strategies and tactics
   VII. Resources needed to support strategies and meet objectives
   VIII. Marketing control
   IX.    Presenting and selling the plan
   X.     Preparing for the future.

Supportive Power Point Slides: 19-6 to 19-34.


CHAPTER OUTLINE

I.      Purpose of a Marketing Plan: The marketing department should operate with
        direction and be proactive. Thus, a new marketing plan must be written each
        year.
        A. A marketing plan serves several purposes within any hospitality company:
            1. Provides a road map for all marketing activities of the firm for the next
                year
            2. Ensures that marketing activities are in agreement with the corporate
                strategic plan
            3. Forces marketing managers to review and think through objectively all
                steps in the marketing process
            4. Assists in the budgeting process to match resources with marketing
                objectives
            5. Creates a process to monitor actual against expected results
        B. A marketing plan should contain the following sections:
            1. Executive summary
            2. Corporate connection
            3. Environmental analysis and forecasting
            4. Segmentation and targeting
            5. Next year‟s objectives and quotas
            6. Action plans: strategies and tactics
            7. Resources needed to support strategies and meet objectives
            8. Marketing control
            9. Presenting and selling the plan
            10. Preparing for the future


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       We will examine the role played by each section of the marketing plan.

       Supportive Power Point Slides: 19-1 to 19-7.


II.    The Executive Summary
       A. Written with the top management in mind.
       B. Should be relatively short and succinct - two to four pages with pertinent
          graphs or charts for illustration.
       C. Organized as follows: Describe next year‟s objectives in quantitative terms;
          briefly describe marketing strategies to meet goals and objectives, including a
          description of target markets; describe expected results by quarter; identify
          the dollar costs necessary as well as key resources needed.
       D. Read and re-read the executive summary modifying and changing it until it
          flows well and is representative of the plan. It is the central message and must
          exemplify the comprehensive nature of the whole document.

       Supportive Power Point Slides: 19-8 to 19-10.


III.   The Corporate Connection
       A. Relationship to other plans. The marketing plan must be supportive of the
          firm‟s long-term strategic decisions. These might include:
          1. Corporate goals with respect to profit, growth, market share, etc.
          2. Desired market share
          3. Positioning
          4. Vertical or horizontal integration
          5. Strategic alliances
          6. Product line breadth and depth
       B. Marketing-related plans.
          1. Often there will be companies with different departments which may not
              report to the marketing department, but are nonetheless related. These
              might include sales, advertising and promotion, public relations/publicity,
              marketing research, pricing or customer service.
          2. If these departments are not reporting directly to the marketing
              department, a cooperative effort must be made in order to produce an
              integrated and comprehensive marketing plan.
       C. Corporate direction. A good marketing plan must recognize the corporate
          directional elements and should acknowledge to top management the
          relevance that these played in the development of next year‟s plan. By
          incorporating the mission statement, the corporate philosophy and the
          corporate goals will reinforce their importance as well as recognize the efforts
          of top management.

       Supportive Power Point Slides: 19-11 to 19-14.



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III.   Environmental Analysis and Forecasting. It is reasonable to assume that the
       tracking of major environmental factors and trends likely to affect the industry
       and the company—and the impacts of these —would be expected of marketers.
       This theme is reiterated throughout the book and the students should be aware of
       the need to keep abreast of these influences and include them in the annual
       marketing plan. They might include:
       A. Major environmental factors:
           1. Social factors such as crime, changing demographics and AIDS will vary
              in their intensity and their geographical incidence. The marketer who
              keeps abreast of these trends can often capitalize on them if recognized
              and exploited before the competition.
           2. Political factors such as legislation affecting international politics and
              trade may be capitalized on as well.
           3. Economic trends. Unemployment levels and income and investment
              trends should be considered in the company‟s strategic planning process.
       B. Competitive Analysis:
           1. Should be accomplished by exploring two levels
              a) Observable physical properties of the competition
              b) Intangibles such as service levels, cleanliness, staff knowledge and
                   sales department effectiveness.
           2. True competitive advantages are factors that are recognized by guests and
              influence their purchase decisions. Strategies to improve weaknesses and
              enhance strengths will ultimately provide benefits for customers and be
              reflected on the bottom line of the company.
       C. Market Trends:
           1. The impact of market trends is particularly critical for marketers and can
              be found free of charge from several sources including chambers of
              commerce, visitor‟s bureaus, universities, and trade associations.
           2. Three broad trends that might be included in the marketing plan text are
              listed. They include visitor trends, competitive trends, and related
              industry trends.
       D. Market Potential:
           1. A definition might be the total available demand for hospitality product
              within a particular geographic market at a given price. Note a definite
              distinction between different hospitality products into any estimates of
              market potential.
           2. The purpose of such estimates is to balance capacity with demand and be
              able to capitalize on opportunities created by high demand periods.
           3. The process of estimating a property‟s market demand normally begins by
              examining the market for all hotels, but should then shift to the specific
              markets of the hotel and directly competing properties. Furthermore,
              estimates should be expressed as demand estimates at various price points.
           4. Never assume market potential is static.
       E. Marketing Research:
           1. Macro-market information addresses the big-picture trends and might


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            include industry trends, social/economic/political trends, competitive
            information, and industry-wide customer data.
         2. Micro-market information is retrieved from sources directly connected
            with the product or service. Examples include guest history information,
            product or service information, new product analysis and testing,
            intermediary buyer data, pricing studies, key account information and
            advertising/promotion effectiveness.
         3. Yield Marketing will eventually link customer responses with a hotel‟s
            advertising and promotional efforts. This enables a hotel to accurately
            measure and anticipate the effects of potential marketing efforts. In the
            near future, negative impressions and perceptions of marketing efforts
            may be more easily diverted.
         4. It is imperative that marketing managers keep abreast of developments
            such as this and provide an appropriate marketing research budget to
            include advancing technology.

      Supportive Power Point Slides: 19-15 to 19-20.


IV.   Segmentation and Targeting
      A. Segmentation Analysis: The heart of any marketing plan is careful analysis of
         available market segments and the selection of appropriate target markets. Of
         the available total market, which potential segments are most appropriate and
         profitable to this property or company? This is accomplished by:
         1. A clear and thorough understanding of who the company is and what it
             wishes to be. What are the goals of the company? What are the most
             effective means necessary to get there?
         2. A thorough comprehension of who the segments are. Of the available
             segments, what is the capacity of the property to satisfy them? Are they
             an appropriate means to the goals of the company?
      B. Targeting is the careful selection of segments, both existing and potential.
         Examples of target markets include the mature market (55+ years), women,
         international markets, and families.

      Supportive Power Point Slides: 19-21, 19-22.


V.    Next Year’s Objectives and Quotas
      A. Objectives are the goals the company would like to attain during the plan‟s
         term. Strategies and tactics (the next section) will support objectives.
         1. Objectives should be:
             a. Quantitative [expressed in monetary terms (dollars, pesos) or unit
                measurements such as room-nights, passenger-miles, number of cars to
                rent, or occupancy
             b. Time specific (one year, six months)
             c. Profit/margin specific (such as an average margin of 22%)


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         2. Objectives incorporate the previous sections of the marketing plan. These
             include:
             a. Corporate Goals
             b. Corporate Resources
             c. Environmental Factors
             d. Competition
             e. Market Trends
             f. Market Potential
             g. Available Market Segments and Possible Target Markets
         3. Sub-Objectives are specific goals that support an objective and enable it to
             be met.
      B. Quotas are specific but realistic goals imposed on salespeople. They must be
         supportive of next year‟s objectives, obtainable and measurable. Most often
         they are broken down into small units such as each salesperson‟s quota for the
         month or week. Aggregated, they must meet or exceed the company‟s annual
         objectives.

      C. The Board of Directors or groups of investors may wish to be informed of the
         major goals of the plan. Their inquiries will likely be more general in nature.
      D. Subordinates: Members of the marketing and sales departments should be
         considered with a team mentality which will support and accomplish the
         plan‟s goals and objectives.
      E. Vendors who participate in strategic alliances with the company may need to
         know certain parts of the plan in order to correlate tactics.
      F. Other departments within the property or company should be apprised of the
         key elements of the plan. As stated before, marketing is an integrated process
         throughout the company and pertinent departments should be informed.

      Supportive Power Point Slides: 19-23, 19-24.


VI.   Action Plans - Strategies & Tactics
      A. Strategies and tactics, as stated before, are supportive of objectives. This is
         where the specific strategies for achieving the company‟s goals are. These
         might include target markets, positioning, the marketing mix, and any
         budgetary expectations. Tactics flow from strategies and may incorporate
         agencies and persons inside and outside of the company. The marketing plan
         should detail specific strategies and tactics for each target market, any new
         products or services, advertising campaigns, and pricing structure changes.
         Accordingly, each of the objectives and sub-objectives will need to be
         addressed with such detail.
         1. Sales force strategies begin with six key points which should be supported
             by specific sales tactics.
             a. Sales strategies:
                 (1) Prevent erosion of key accounts.
                 (2) Grow key accounts.


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     (3) Grow selected marginal accounts.
     (4) Eliminate selected marginal accounts.
     (5) Retain selected marginal accounts but provide lower-cost sales
         support.
     (6) Obtain new business from selected prospects.
b.   Each general strategy is supported by specific sales tactics:
     (1) Outside the Company: Sales blitz of all or targeted accounts and
         projects, telephone, direct mail, and personal sales calls to selected
         decision makers and decision influencers, trade booths at selected
         travel shows, sales calls and working with travel intermediaries:
         tour wholesalers, travel agencies, incentive houses, international
         sales reps, others. Luncheon for key customers, prospects, or
         decision influencers, travel missions and other tactics.
     (2) Inside the Company: Training of sales staff, involvement and
         support of non-sales personnel, motivational and control programs,
         involvement and support of management
2.   Advertising/Promotion strategies should be established by individuals
     within the company responsible for these strategies in conjunction
     with supporting groups. The director of advertising must work with
     the advertising agencies; the director of marketing might work directly
     with consultants to develop the most appropriate strategies.
      Caution is required in this area to retain the authority in deriving
         and implementing the advertising and promotion strategies.
         Outside groups like advertising agencies may not view the
         objectives the same way as the client does. This often creates
         differences in opinion. As mentioned in the text, award winning
         promotional campaigns may fail miserably at the primary
         objectives. Therefore, friction between such parties is not
         uncommon. The resolution to this problem is to work as a team to
         develop an advertising/promotion mix that is acceptable and
         productive.
3.   Pricing strategies remain a function of marketing in spite of a trend to
     create separate internal pricing departments such as revenue
     management or yield management. If it does, indeed, fall under the
     authority of another department, it is necessary that the marketing
     department continuously interface with an internal pricing department
     in order to develop mutually profitable strategies.
     a. Reservations departments should be consulted during price
         planning; they often have considerable latitude to adjust prices and
         may account for a significant percentage of sales.
     b. Sales promotions and advertising to target markets must support
         pricing decisions.
     c. Pricing affects every facet of marketing and sales; therefore they
         should be reviewed and revised frequently.
4.   Product strategies: New product and existing product strategies are
     another function of the marketing department and should also be


                              215
                  addressed in the marketing plan. Marketers can be expected to have
                  considerable input when planning dramatic new additions to product
                  lines. Likewise, it is also their responsibility to enhance revenue from
                  existing products and services.

       Supportive Power Point Slides: 19-25 to 19-30.


VII.   Resources Needed to Support Strategies and Meet Objectives
       A. Personnel is usually the most costly and difficult resource needed to ensure
          the success of marketing/sales strategies.
          1. Recognize that any additional personnel may require some justification to
              senior management.
          2. Furthermore, marketers must realize that these new team members may
              not be instantly productive, but may require some time to get up to speed.
          3. Training and recruiting costs must be considered in addition to the time
              investments.
          4. The type of individuals required for a position may also be specified in the
              marketing plan if this is not addressed elsewhere.
       B. Equipment and space may also be required to achieve marketing objectives.
       C. Other monetary support such as travel expenses and incentive rewards should
          also be included in the marketing plan‟s budget.
       D. Research, consulting and training costs should be budgeted in the plan as well.
       E. Miscellaneous costs may be an area that will cover extraneous items such as
          magazine subscriptions and professional association memberships.
       F. Budgets should be established to reflect projected costs on a weekly, monthly,
          quarterly, and annual basis to guide the department in its resources and their
          allocation.

       Supportive Power Point Slides: 19-31.


VIII. Marketing Control
      Sometimes the sales plan is part of the marketing plan. If this is the case, the
      sales plan will not have need for all parts that a marketing plan would, such as
      advertising or research, since these may be included in reports from other
      departments. A sales plan will pay particular attention to the Sales force, its
      objectives, and strategies to insure that sales quotas are met.
      A. Sales objectives must be established for each sales area, division, region,
          salesperson and time period. The sum of the individual objectives and quotas
          must equal or exceed annual objectives.
          1. Individual sales people should be expected to develop a list of all sales
              accounts currently served by that person plus prospects for the coming
              year, in order to estimate potential sales for the next year.
          2. Each level of management, beginning with the sales manager and ending
              with the General Manager should then assume the responsibility for


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               reviewing these forecasts-often amending them upwards. There are
               different reasons that these forecasts may be amended. It is the
               responsibility of all persons involved to guard against improper and
               unrealistic goals to be imposed on the sales staff. Likewise, it is the
               responsibility of the staff to challenge their abilities and their team to
               exceed the expectations placed on them. Listed in the text are several
               reasons that might account for such discrepancies in quota expectations.
      B.   Sales forecast and quotas must be continuously evaluated against actual
           results. This helps to aid in developing corrective tactics to adjust for trends.
           Failure to keep abreast of them may result in missing opportunities to adjust
           the tactics or enhance the sales goals.
      C.   Expenditures against budget: Similarly, actual expenditures must be
           continuously compared against budget projections set in the marketing plan.
      D.   Periodic evaluation of all marketing objectives by sales and marketing
           managers is a necessary measure—a critical role is to ensure that all
           objectives are met or exceeded in a timely manner. A marketing activity
           timetable is a device often used by sales departments that lists major activities,
           completion dates, individuals responsible and a space for checking off the task
           when completed.
      E.   Marketing Activity Timetable: One method commonly used by
           marketing/sales managers to ensure that tasks are completed on time is the use
           of a marketing activity timetable. This simple device lists major activities, the
           dates they must be completed, the person responsible, and a space for
           checking whether the task has been accomplished.
      F.   Readjustments to the marketing plan: Market conditions change, disasters
           occur, and many other reasons create a need to refine marketing plans.
           Generally, refinements should be made in the area of tactics, budgets, and
           timing of events rather than in major objectives or strategies.

      Supportive Power Point Slides: 19-32.


IX.   Presenting and Selling the Plan
      A. Members of the marketing/sales department: Often this group is unaware of
         the benefits that a marketing plan will produce. Managers of these
         departments need the support of these team members in the planning process;
         it is, therefore, best to sell the benefits of the process rather than forcing
         acquiescence.
      B. Vendors/advertising agencies and other distribution intermediaries: Their
         participation is necessary for the success of the plan and should be included in
         the planning process.
      C. Top management: This group must approve the annual marketing plan. Often
         this is done at a luncheon or formal presentation generating great excitement
         within the sales/marketing department. The presentation should be
         professional, planned, and rehearsed. It is recommended that various media
         be used; color charts and computerized presentations are examples of


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         impressive materials. This step should not be underemphasized.

      Supportive Power Point Slides: 19-33.


X.    Preparing for the Future
      A. Data collection and analysis from internal and external sources should be a
         daily routine. Marketing/sales managers must always be alert for areas and
         opportunities of improvement.
      B. Marketing planning should be a tool for growth not only of the department or
         company, but also of the individuals involved. The sales/marketing
         personnel should be considered as investments in the company. Fostering
         their growth should be a priority of the department. Participating in the
         marketing plan process will:
         1. Allow individuals to understand the management process.
         2. Foster teamwork and a team-like atmosphere.
         3. Aid in the ability to establish objectives, set timetables, and ensure they
             are met.
         4. Aid in the process of establishing realistic strategies and tactics to meet
             objectives.
         5. Generally, find enrichment in the management process that will enhance
             the career of an ambitious professional.
      C. The marketing plan, if approached with a positive attitude, is a critical process
         that will focus the sales/marketing team while enhancing the effectiveness and
         participatory skills of the members. It is the management that will define the
         prosperity of the plan—both monetarily and professionally.

      Supportive Power Point Slides: 19-34.


DISCUSSION QUESTIONS

1.*   A marketing plan serves several purposes within any hospitality company. One
      of the most important benefits is the learning that takes place during the process.
      It also provides a short-term (one-year) game plan for the marketing activities of
      the firm, guiding them with objectives and subsequent strategies. It ensures
      agreement with corporate objectives. It also forces marketing managers to review
      and assess objectively all the steps of the marketing process. It aids in the
      budgeting function by matching resources with marketing objectives. And it
      creates a device by which controls can be measured and actual results can be
      compared.


2.    Environmental analysis is a very important part of the marketing plan. Simply by
      reviewing the competition, the economic environment, social trends, political
      implications, and any other area that affects the business, the manager is creating


                                          218
     a comprehensive view of the business positioning. This gives perspective to the
     plan and updates the manager‟s perception of the environment in which s/he
     works. An assessment of major environmental factors should assist planners to
     modify strategies and possibly consider new market segments.

3.   Market potential should be viewed as the total available demand for a hospitality
     product within a particular geographic market at a given price. Recognizing that
     each property has individual considerations, the process of assessing market
     potential can often reveal market trends or conditions that can be averted or used
     to advantage. Measuring market potential helps to quantify the positioning of the
     property as well at its fair market share. Is the company attaining more than its
     market share, or less? In the analysis of the competition, the company can assess
     the progress of the company‟s efforts.

4.   After an analysis of both internal and external data, marketing managers can
     assess their positioning based on the segments that have been targeted in the past
     and the response that has been generated. Segments and target markets should be
     described in the marketing plan in view of how they fit with the strategies and
     objective of the company. A successful market plan will require that a company
     blend strong strategies with reality. While the objectives may be far-reaching or
     easily achievable, the analysis of segments and targets must be written in view of
     their relevance to the goals and objectives.

5.   Marketing objectives need to be described in specific quantitative terms in order
     to measure success or failure in the business. Outside of quantifiable results,
     intuition is the other alternative. While it may be easier, it is clearly less factual
     and gives less information for future planning. Management will likely want to
     know in specific terms what the dollar return was for the time frame, and what the
     percentage return on investment was over the course of the year.

6.   Marketing strategies are designed as the vehicle to achieve marketing objectives.
     They are, in essence, subordinate and supportive of the objectives. Marketing
     tactics in turn, support strategies. Because they are custom designed, strategies
     are company-specific and allow it to meet or exceed objectives.

7.   Marketing control is absolutely vital to the marketing plan. Without assessing the
     measurability of the objectives, the feasibility of the timetable, and the market
     conditions of the company, there is no comparison basis from which management
     may be guided into the future. In the control process, the management has the
     opportunity and ability to appraise the company‟s overall production and
     progress. It is vitally important to follow-up on the marketing plan strategies and
     correct or adjust the direction if such actions become necessary. Without
     controls, the company merely floats along on the merits of individuals,
     exchanging the synergistic approach of a unified, directed, and successful
     company.



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EXPERIENTIAL EXERCISE

The instructor can recommend students to ask the director the following questions: the
purposes of his or her company‟s marketing plan. For example: (a) Provides a road map
for all marketing activities of the firm for the next year; (b) Ensures that marketing
activities are in agreement with the corporate strategic plan; (c) Forces marketing
managers to review and think through objectively all steps in the marketing process;
(d) Assists in the budgeting process to match resources with marketing objectives; (e)
Creates a process to monitor actual against expected results. Additionally, students can
ask the director to explain how does his or her company develop the following sections in
a greater detail. They are: I. Executive summary, II. Corporate connection,
III. Environmental analysis and forecasting, IV. Segmentation and targeting, V. Next
year‟s objectives and quotas, VI. Action plans: strategies and tactics, VII. Resources
needed to support strategies and meet objectives, VIII. Marketing control, IX. Presenting
and selling the plan, X. Preparing for the future.


INTERNET EXERCISE

The instructor can recommend students search for the information which will help
students in developing the ten necessary elements of a marketing plan: I. Executive
summary, II. Corporate connection, III. Environmental analysis and forecasting,
IV. Segmentation and targeting, V. Next year‟s objectives and quotas, VI. Action plans:
strategies and tactics, VII. Resources needed to support strategies and meet objectives,
VIII. Marketing control, IX. Presenting and selling the plan, X. Preparing for the future.

*Questions that are useful for in-class discussions. They require the student to think, but
require little outside preparation.




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