Marketing Strategy

1
Chapter 6

• Marketing Strategy

2
Concept of Strategy

• A course of action aimed at ensuring that the
  firm will achieve its objectives by matching its
  internal resources and skills with the
  environmental opportunities and risks it faces

3
The Marketing Strategy Triangle
Technological Environment
Customers
Other market segments
Target segments
Value
Value
Political Environment
Ecological Environment
Competitors
Corporation
Product/Service Differentiation
Social Environment
Economic Environment
4
Strategic vs. Functional Marketing

• Strategic
• Long range
• Strategic perspective
• Broad resource allocation
• Less formalized
• Proactive
• Broad issues
• Senior managers

• Functional
• One year
• Marketing programs
• Short-term trade-offs
• More formalized
• Reactive
• Specific issues
• Operating managers

5
Corporate Headquarters
Strategic Business Unit 1 (e.g., Travel Services)
Strategic Business Unit 2 (e.g., Lodging and
Foodservice)
Strategic Business Unit 3 (e.g., Real Estate)
Marketing
Operations
Human Resources
Accounting
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
Unit Level
6
Corporate Mission
Identification of SBUs
Portfolio Analysis
SWOT
SBU Mission and Strategies
Positioning
Functional Strategies and Plans
7
Hilton Hotels Mission Statement

• Hilton Hotels Corporation is recognized
  internationally as a preeminent hospitality
  company. Among our 250 hotels are some of the
  most well-known properties to be found anywhere,
  including The Waldorf-Astoria, Hilton Hawaiian
  Village and Palmer House Hilton. Our hotels
  offer guests and customers the finest
  accommodations and amenities for business or
  leisure. For 80 years, the Hilton brand name has
  been synonymous with excellence in the
  hospitality industry.

8
BCG Growth-Share Matrix
Market Share (Cash Generation)
High
Low
High
Growth (Cash Use)
Cash flow
Low
9
GE Model
CRITERIA Size Market growth Competitive
structure Profitability Pricing practices Social
changes Environmental concerns Technological
stability Political
considerations Government regulations
CRITERIA Size Market share Profitability Costs Di
fferentiation Financial strengths Human
assets Image Technological
position Flexibility Marketing effectiveness
Market Attractiveness
High
Medium
Low
High
Business Strength
Medium
build/grow hold/milk harvest/divest
Low
10
Numerous environmental opportunities
Cell 3 Turnaround strategy
Cell 1 Aggressive strategy
Critical internal weaknesses
Substantial internal strengths
Cell 2 Diversification strategy
Cell 4 Defensive strategy
Major environmental threats
11
SBU Mission

• Carlson Hotels Worldwide, a division of Carlson
  Hospitality Worldwide, provides a brand
  management structure upon which the hotel brands
  of Carlson Hospitality Worldwide continue to grow
  as leaders in the luxury, upscale and mid-tier
  segments of the lodging industry

12
Generic Strategies
Competitive Advantage
Uniqueness
Low Cost
Industry-wide
Strategic Target
Particular Segment
13
Grand Strategies
New products/services
Existing products/services
Existing markets
Market penetration
Product development
New markets
Market development
Diversification
14
Positioning

• The process of establishing and maintaining a
  distinctive place in the market for an
  organization and/or its individual product
  offerings.
• Repositioning

15
Customer analysis
Market segmentation
Target market selection
Marketing program and operations Product
Price Place Promotion
Corporate objectives
Corporate capabilities
Position
Competitive analysis
Product/ service differentiation
Package of benefits selection
16
Positioning Statement

• Differentiate the property
• Communicate the benefits
• Create an image