Unit 6: Marketing Plan and the 8 Ps

Fifth Semester Hospitality marketing and sales Notes
Definition:

A marketing plan is a comprehensive document that outlines a company’s marketing strategy, including its target audience, marketing goals, and tactics to achieve those goals. The marketing plan is an important tool for businesses because it helps to ensure that their marketing efforts are aligned with their overall business goals and objectives.

The 8 Ps of marketing, also known as the marketing mix, are key components of a marketing plan. They are as follows:

  1. Product: This refers to the goods or services that the company is offering to customers. It is important to consider the product’s features, benefits, and unique selling points (USPs).

  2. Price: This refers to the pricing strategy for the product or service. Pricing should be competitive and reflect the product’s value to the customer.

  3. Promotion: This refers to the tactics used to promote the product or service, such as advertising, public relations, and sales promotions.

  4. Place: This refers to the distribution channels used to get the product or service to the customer. This can include online sales channels, brick-and-mortar stores, or both.

  5. People: This refers to the people who will be involved in the marketing and sales process, such as salespeople, customer service representatives, and other employees.

  6. Process: This refers to the processes and procedures used to deliver the product or service to the customer, such as order processing, delivery, and customer service.

  7. Physical evidence: This refers to the physical aspects of the product or service, such as packaging, branding, and signage.

  8. Partnerships: This refers to the partnerships and collaborations that the company has with other businesses or organizations to help promote and sell the product or service.

Differences between Tactical and Strategic Planning

 

Tactical planning and strategic planning are both important components of business planning, but they serve different purposes and have different focuses.

Strategic planning is a long-term planning process that focuses on the overall direction of the company. The purpose of strategic planning is to set goals and objectives for the company, and to identify the resources and actions required to achieve those goals. Strategic planning typically involves a high-level review of the company’s mission, vision, and values, as well as an analysis of the external environment and competition. Strategic planning is typically done at the executive level of the company, and covers a time horizon of three to five years or longer.

Tactical planning, on the other hand, is a short-term planning process that focuses on the day-to-day operations of the company. The purpose of tactical planning is to identify the specific actions and resources required to achieve the goals and objectives set in the strategic plan. Tactical planning typically involves a review of the company’s current operations, including sales, marketing, production, and logistics. Tactical planning is typically done at the department or functional level of the company, and covers a time horizon of one year or less.

Some of the key differences between tactical and strategic planning include:

  1. Time horizon: Strategic planning focuses on the long-term direction of the company, while tactical planning focuses on short-term operations.

  2. Scope: Strategic planning covers the entire company and its overall goals and objectives, while tactical planning focuses on specific departments or functions.

  3. Focus: Strategic planning focuses on the big picture and external factors, while tactical planning focuses on day-to-day operations and internal factors.

  4. Level of detail: Strategic planning is less detailed than tactical planning, as it focuses on high-level goals and objectives, while tactical planning is more detailed, as it focuses on specific actions and resources.

 

 

Requirements for an Effective marketing Plan

An effective marketing plan should be comprehensive, actionable, and aligned with the overall business objectives of the company. Here are some key requirements for an effective marketing plan:

  1. Clear goals and objectives: The marketing plan should clearly state the goals and objectives that the company wants to achieve through its marketing efforts. These goals should be specific, measurable, attainable, relevant, and time-bound (SMART).

  2. Comprehensive situation analysis: The marketing plan should include a thorough analysis of the company’s internal and external environment, including market trends, competitors, customer needs and preferences, and the company’s strengths, weaknesses, opportunities, and threats (SWOT analysis).

  3. Target audience definition: The marketing plan should clearly define the target audience for the product or service, including their demographics, psychographics, and buying behavior. This will help the company develop a marketing strategy that is tailored to the needs and preferences of its target customers.

  4. Differentiation strategy: The marketing plan should identify the unique selling proposition (USP) of the product or service, and how it differentiates from competitors in the market.

  5. Marketing mix strategy: The marketing plan should include a comprehensive strategy for the 8 Ps of marketing (product, price, promotion, place, people, process, physical evidence, and partnerships). This strategy should be aligned with the company’s overall business objectives and the needs of the target audience.

  6. Budget and resources: The marketing plan should include a budget and resources required to implement the marketing strategy. This budget should be realistic and based on the goals and objectives set in the plan.

  7. Actionable tactics and timeline: The marketing plan should include specific tactics to achieve the marketing goals, including timelines and responsible parties for each action item. This will help ensure that the plan is actionable and can be effectively implemented.

  8. Evaluation and measurement: The marketing plan should include a system for evaluating and measuring the effectiveness of the marketing efforts. This will help the company identify areas of success and areas for improvement, and make adjustments to the plan as needed.

 

Benefits of Having a Marketing Plan

Having a marketing plan is essential for any business, regardless of its size or industry. Here are some key benefits of having a marketing plan:

  1. Clear direction: A marketing plan provides a clear direction for the company’s marketing efforts. It outlines the company’s goals and objectives, target audience, and the strategies and tactics that will be used to reach them. This clarity helps ensure that all marketing activities are focused and aligned with the company’s overall business objectives.

  2. Better resource allocation: A marketing plan helps the company allocate its resources more effectively. By having a clear plan, the company can identify the most important marketing activities and allocate its resources (time, money, and personnel) accordingly. This helps ensure that the company is making the most of its resources and achieving the greatest return on investment (ROI).

  3. Improved decision making: A marketing plan helps the company make better decisions by providing data and insights on the market, competitors, and target audience. This information helps the company understand the needs and preferences of its customers, and develop marketing strategies that are tailored to their needs. This helps the company make better-informed decisions and reduce the risk of making costly mistakes.

  4. Consistency: A marketing plan helps the company maintain consistency in its marketing efforts. By having a clear plan, the company can ensure that all marketing activities are consistent in terms of messaging, branding, and visual identity. This consistency helps build brand recognition and trust with customers, and makes it easier for them to identify and remember the company.

  5. Measurable results: A marketing plan helps the company measure the effectiveness of its marketing efforts. By setting clear goals and objectives, the company can track its progress and measure the ROI of its marketing activities. This helps the company identify areas of success and areas for improvement, and make adjustments to the plan as needed.

Steps involved in Preparing a Marketing Plan

Here are the typical steps involved in preparing a marketing plan:

  1. Define your business objectives: Start by defining your overall business objectives, such as increasing sales, growing market share, or launching a new product. These objectives will form the basis for your marketing plan.

  2. Conduct a situation analysis: Conduct a comprehensive analysis of your company’s internal and external environment. This includes analyzing the market trends, competitors, customer needs and preferences, and the company’s strengths, weaknesses, opportunities, and threats (SWOT analysis).

  3. Define your target audience: Identify and define your target audience based on their demographics, psychographics, and buying behavior. This will help you understand their needs and preferences and develop a marketing strategy that resonates with them.

  4. Establish your unique selling proposition (USP): Identify your unique selling proposition (USP) – what sets your product or service apart from your competitors. This will help you create a strong brand identity and messaging that resonates with your target audience.

  5. Develop a marketing strategy: Based on your objectives, situation analysis, target audience, and USP, develop a comprehensive marketing strategy that addresses the 8 Ps of marketing (product, price, promotion, place, people, process, physical evidence, and partnerships).

  6. Create an action plan: Develop an action plan that outlines the specific tactics and activities needed to achieve your marketing goals. This should include a timeline and responsible parties for each activity.

  7. Set a budget: Set a budget for your marketing plan that is aligned with your business objectives and the tactics in your action plan.

  8. Measure and evaluate: Implement your marketing plan and measure and evaluate its effectiveness regularly. This will help you identify areas of success and areas for improvement, and make adjustments to your plan as needed.

The 8 Ps of Hospitality and Travel
Marketing

The 8 Ps of Hospitality and Travel Marketing are a specific set of marketing principles that are tailored to the hospitality and travel industry. They include:

  1. Product: The product in the hospitality and travel industry includes the hotel rooms, food and beverage, tours, transportation, and other offerings that meet the needs of travelers.

  2. Price: Pricing strategies in the hospitality and travel industry take into account seasonality, competition, and value proposition. It’s important to find a balance between pricing that is competitive and attractive to customers, while also being profitable for the business.

  3. Promotion: Promotion in the hospitality and travel industry includes all communication activities designed to attract and retain customers. This can include advertising, public relations, sales promotion, and personal selling.

  4. Place: Place in the hospitality and travel industry refers to the physical location and distribution channels that are used to sell products and services. This includes online channels, travel agents, and physical locations.

  5. People: People in the hospitality and travel industry refer to the staff, service providers, and customers. It’s important to ensure that staff and service providers are well-trained, customer-focused, and committed to providing a positive customer experience.

  6. Process: Process in the hospitality and travel industry includes the procedures and systems that are in place to deliver products and services. This includes check-in and check-out processes, room service, and other operational processes that impact the customer experience.

  7. Physical evidence: Physical evidence in the hospitality and travel industry includes the tangible elements that customers can see and experience, such as the decor, amenities, and facilities.

  8. Partnerships: Partnerships in the hospitality and travel industry include strategic alliances with other businesses to enhance the customer experience. This can include partnerships with airlines, tour operators, and other service providers to create packages and promote products and services.

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