The Tourism Marketing System and Marketing Plan

1
The Tourism Marketing System and Marketing Plan
Chapter 3 9

• Dr. Ercan Sirakaya
• Homework Read Chapter 4

2
Learning Objectives Chapter 39 The Tourism
Marketing System and Plans

• Explain the hospitality and travel marketing
  system.
• List, and arrange in order, the five key
  questions in the hospitality and travel marketing
  system.
• Define the term marketing plan.
• Explain the difference between tactical and
  strategic planning.
• List eight requirements for an effective
  marketing plan.
• Describe the contents of a marketing plan.

3
Many Different Approaches to Defining Our
Industry

• 1. It is the hospitality industry!
• 2. It is the food service industry! (or
  foodservice!)
• 3. It is the lodging industry!
• 4. It is the food service and hospitality
  industry!
• 5. It is the travel and/or tourism industry!
• 6. It depends where you are!
• 7. It is not an industry at all!
• Theres no universally-accepted definition of our
  industry

4
The Systems Approach

• A system is a collection of interrelated parts
  that work together to achieve common objectives.
• Our industry is a macro-system set up to meet all
  types of customers away-from home needs.
• Each organization has a micro-system to market
  its services a tourism marketing system.

5
The Tourism Marketing System
1. Where are we now?

2. Where would we like to be?
3. How do we get there?
4. How do we make sure we get there?
5. How do we know if we got there?
6
Marketing Tasks

• Planning Research 1. Where are we now? Current
  Situation
• Analysis Strategy 2. Where would we like to be?
  Desired future situation
• Implementation 3. How do we get there? Marketing
  Plan
• Control 4. How do we make sure we get there?
  Monitoring and adjusting marketing plan
• Evaluation 5. How do we know if we got there?
• Evaluating and measuring results of
  marketing plan

7
Four Fundamentals of Tourism Marketing System

• 1. Strategic marketing planning
• 2. Marketing orientation
• 3. Services marketing different
• 4. Understanding customer behavior

8
Strategic Market Plan and Marketing Plan

• Strategic Market Plan
• A written plan for marketing a tourism
  organization covering a period of 5 or more years
  in the future.
• Marketing Plan
• A written, short-term plan for a period of a
  year or less which details how a tourism
  organization will use its marketing mix to
  achieve its marketing objectives.

9
Difference between Tactical and Strategic
Marketing Planning

• Tactical short-term marketing
• planning for one year or less.
• Strategic long-term marketing
• planning for up to three to five years
• in the future.

10
The Marketing Planning Process

• Diagnosis Analysis or audit of current markets,
  consumer behavior and satisfaction, product
  trends, and other selected aspects of internal
  and external environment
• Prognosis Forecasts of the same internal and
  external aspects noted under Diagnosis
• SWOT
• Marketing Objectives
• Marketing Budget
• Marketing-mix program Covering all the actions
  required to achieve the objectives
• Monitoring, evaluation and control Feeds back
  into the diagnosis

11
Contents of a Marketing Plan

• A written plan of action used to guide an
  organizations marketing activities for a period
  of a year or less.
• Three parts

• Executive Summary
• Marketing Plan Rationale
• Implementation Plan

12
Contents of a Marketing PlanMarketing Plan
Rationale

• Situation analysis highlights
• Where are we now?

• Selected marketing strategy
• Where would we like to be?

13
Contents of a Marketing PlanImplementation Plan

• Activities plan
• Marketing budget
• How do we get there?

• Control procedures
• How do we make sure we get there?
• Evaluation procedures
• How do we know if we got there?

14
Steps in Preparing a Marketing Plan

• 1. Prepare the Marketing Plan Rationale
• Review and summarize
• Situation analysis (SWOT)
• Marketing research studies
• Market segmentation
• Segmentation approach and bases
• Target-market selection
• Marketing strategy
• Positioning approaches
• Marketing mixes
• Marketing objectives

15
Steps in Preparing a Marketing Plan

• 2. Develop a Detailed Implementation Plan
• Design and specify
• Activities by marketing-mix element for target
  markets
• Responsibilities (internal and external)
• Timetable and activity schedule
• Budget and contingency fund
• Expected results
• Measurements
• Progress reporting procedures
• Performance standards
• Evaluation timetable
• 3. Write the Executive Summary

16
Marketing Plan Development Process
Situation Analysis Research Results
Example of an organization with three target
markets
Marketing Strategy Target Market Selection
Target Market 1 (Affluent, Outdoor Types)
Target Market 3 (Affluent, Tennis Lovers)
Target Market 2 (Affluent, Culture Enthusiasts)
Positioning
Positioning
Positioning
Objectives
Objectives
Objectives
Marketing Mix (8Ps)
Marketing Mix (8Ps)
Marketing Mix (8Ps)
Marketing Plan
17
Approaches to Developing Marketing Budgets

• Historical or arbitrary budgeting.
• Rule-of-thumb budgeting.
• Competitive budgeting.
• Objective-and-task budgeting (recommended
  approach).

18
Using the Tourism Marketing System and the PRICE
Model The Calgary CVB Case

• In your opinion, how well did the CCVB address
  each of the five questions in the tourism
  marketing system?
• How could CCVBs usage of this system be
  improved?
• What could other tourism organizations learn from
  this application of the tourism marketing system?