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Chapter 3 The Role of Marketing in Strategic Planning ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Hospitality and Tourism, 4th edition Kotler, Bowen, and Makens “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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens Key Ideas Defining Strategic Planning 1. Manage companies businesses as an investment portfolio 2. Assess future profit potential 3. Develop the strategy itself ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens Nature of High-Performance Business • • • • ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Stakeholders Processes Resources Organization Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens The Relationship Between Analysis, Planning, Implementation, and Control ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens Defining the Corporate Mission • Mission is shaped by History • Resources determine possibilities • Mission should be based on distinctive competencies ©2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens 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. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism,and 4thTourism, edition 4th edition Kotler, Kotler,Bowen, Bowen,and andMakens Makens