Market Planning - Analyzing Customers and Markets in the Tourism and Hospitality - Term Paper Example

Marketing planning Introduction to market planning and the tourism and hospitality Marketing is the process of formulating and later implementing a plan that will create awareness of a product that meets the customers need and requirements satisfactorily. Marketing entails the development of strategies which aim to ensure that customers are aware of the existence of products that will meet or surpass their needs (Luther 2001). The tourism and hospitality industry like all other business engagements require that appropriate marketing be undertaken. Tourism and hospitality industry is a very sensitive industry as far as marketing is concern. This is due to the fact the, the tourism and hospitality industry greatly relies on aggressive marketing to ensure that the products offered in the industry are well known by the potential clients. For marketing to be efficient like all other endeavors in the business fraternity, planning is essential. Planning is a fundamental step in any initiative as it equips the participants with means within which any eventuality may be combated. It is vital that the tourism and hospitality industry clearly formulate a marketing plan. The clear marketing plan will ensure that the tourism and hospitality industry will target the right clients and ensure that their needs are sufficiently met. Market planning also ensures that the right target market is well approached and their needs are well met by the relevant tourism and hospitality industry. The marketing philosophy should be as concise as possible as it ensure that the entire tourism and hospitality industry are directed towards the right goals. It is through efficient planning that the appropriate marketing philosophy is developed. The marketing philosophy is the guiding force with which the tourism and hospitality industry engages in aggressive marketing strategies to create awareness of their products and services. The marketing philosophy by far and large encompasses the objectives of the marketing strategies. These aims and objectives are vital for the achievement of the marketing strategies that ensure the tourism and hospitality industry has a reliable client base that will foster its growth to higher heights. Analyzing the current situation; a marketing perspective In all undertakings that involve planning, analysis is vital as it will ensure that the planners have a good base of the current state of affairs. Planning generally entails a preparation for the future and as such it is very important that the planner is well endowed with the prevailing facts and current issues. There are various factors that come into play when formulating a marketing plan. This is because, as earlier highlighted planning should incorporate the current state of affairs. In the business fraternity, the current state of affairs would entail the positioning of the tourism and hospitality institution among the rival competitors, and its interaction with the external environment. In a broader perspective, the marketing plan should be analyzed to fit the internal and external environment where the business is operating (MCDonald 2008). The external environment mainly necessitates evaluating how the business is performing amidst its rivals. Before engaging in formulation of a reliable marketing strategy or plan, it is essential that the antics of the competitors are evaluated. Competitors are evaluated as they determine the size of the market share that will be left for a particular institution in the whole industry. In the tourism and hospitality industry, it is important that institutions evaluate the competitors in the prevailing market. In addition, the internal environment is also important to the organization and hence it should be well analyzed. The internal environment mainly entails the employees and the management of the particular tourism and hospitality institution. While analyzing the current situation revolving over the market perspective, it is essential that the planners take into consideration of the human resource in the prevailing market. The tourism and hospitality industry is service intensive as the human capital interact with the potential clients and thus their services will be weighed against those of the competitors and the best will be picked. When planning for an appropriate marketing strategy, the management of an organization should also be put into consideration. Other internal factors like finances will also be evaluated and the market plan will entail improving the weak links to ensure that aggressive marketing will be enhanced. On the other hand, the analysis of the external environment will help ensure that the market plan inculcates the factors that would spearhead its success as well as necessitate its failure. The marketing plan will seek to ensure that the prevailing environment is well analyzed to increase the chances of success. Analyzing customers and markets Customers are vital to all businesses regardless of the industry in question. This is because, customers ensure that the business thrive and grow to foster attainment of the laid down objectives. The marketing plan will first inculcate the prevailing customers. The marketing plan will seek to ensure that the current customers have been maintained and hence emphasize on netting new clients in the market. Analysis on how new clients will be obtained will be quite beneficial to the planning exercise as it will ensure that the marketing team covers the emerging needs in the market (MCDonald, 2011). Additionally, it will be prudent for the planning team to inculcate any changes that are desired by the current clients in the tourism and hospitality industry. In the analysis phase, it will be prudent to evaluate the existing market share that has been allocated to the particular and hospitality institution. In the analysis of the market share, it is vital that the prevailing competitors be evaluated as well as their marketing strategies for the particular tourism and hospitality institution to be able to align itself in a position that is suitable. In addition, it is prudent that the tourism and hospitality institution be aware of the prevailing market trends. The market trends could be recurrent on a given time frame and this would help ensure that the institution is well aware of the events likely to happen during a given period. Tourism and hospitality being the seasonal industry that it is only affirms the need to ensure that market is well analyzed in all aspects for the particular tourism and hospitality industry to be well prepared for any eventuality. Planning, segmentation, targeting and positioning While in theory there exists ideal market segments, in reality, each business has to establish its own market share through various mechanisms. Market segmentation entails different policies depending on the tourism and hospitality institution. Tenets like product differentiation are meant to create, expand and maintain respective business segments as they ensure that the institution will get customers consumer markets are wide. It is hence prudent that the particular tourism and hospitality institution has its market segment well laid out. In the planning process, it is vital that the products of the tourism and hospitality institution are intended for the right target or potential clients. Market segmentation has various bases under which it can be undertaken (MCDonald & Dunbar 2012). For instance, geographical segmentation is practiced by certain institutions in the tourism and hospitality industry. In this respective industry, sight seeing for instance is a very lucrative venture that would really benefit an institution that is located in a certain geographical position. For instance, an institution located near a lake that supports a variety of water life would have an upper hand amidst the stiff competition from rival firms in the industry. It will only be prudent for the tourism institution to maximize on the geographical segment. While making the marketing plan, such segmentation should be considered as it awards competitive advantage to the institution that will harness its abilities. Positive market segmentation on the hand involves dividing the market according to needs and wants. A market segment is identified as all the members therein have similar wants and needs. In all aspects, when market segmentation is well planned and implemented, the respective tourism and hospitality institution will thrive. In addition, the market plan is meant to position the particular tourism and hospitality institution in an advantageous state that will ensure maximum benefits are reaped. The positioning of the particular institution will be fostered by the market plan and ensure that the target population or market is well focused. The marketing plan will also seek to emphasize on various niches in the market. Identifying a market niche is vital as it implies that there is a certain need in the market that is yet to be fulfilled. When the tourism and hospitality institution is aware of this niche, the institution will strive to ensure that the niche is well resolved by producing products that meet the market requirements in a satisfactory manner. Once such a need has been met, the tourism and hospitality institution will have attained a certain market segment. The marketing plan should thus seek to explore all options in the prevailing market that would eventually increase the market share of the respective tourism and hospitality industry. Planning direction, objectives and strategy In any initiative whatsoever, it is crucial that a clear direction or aim is identified and communicated to all relevant stakeholders. The marketing plan should thus have a clear and concise direction where the entire tourism institution should be headed. Direction is vital in all undertakings and in the marketing plan it plays a fundamental role in ensuring success of the plan (Ferrell & Hartline 2011). Direction however is only formulated once a tourism and hospitality institution has identified the current or prevailing state of affairs. Basically, it is only when an institution identifies its location in the market that it can be in a position to further point out the future expectations. The marketing plan clearly discusses the current state of affairs and the interactions of the particular tourism and hospitality institution with the market. The objectives of the marketing plan should be clear as they communicate the directions of the particular tourism and hospitality institution to the key stakeholders. The objectives and the strategy laid out should be well communicated to the relevant individuals to ensure that they are achieved. In many instance, strategies are long term objectives that institutions yearn to implement and achieve as they would enhance growth as well as development. Planning for Products & Brands Every institution that indulges in business share one common goal with the rest that mainly revolves around issuing a product that would meet the customer’s requirements and at times surpass them. Marketing plan essentially entails releasing a product into the market that will baffle the competitors and meet the expectations of the client (Indiana 1990). Planning for products is only achievable if prior market research has been thoroughly undertaken in the target market. Through this market research, the needs of the client are well identified and thus when undertaking the product planning phase, the product is designed in such a way that the needs identified in the previous stages are well met. In addition, similar products can be differentiated from the competitor’s products through branding. Branding entails packaging the products using lucrative and innovative methods that would attract potential clients. Given that there would be a number of similar products in the market that meet same needs of consumers, a particular tourism and hospitality institution may deem it fit to brand its products differently. Through branding, there will be an increased market share that will be lured to the products. The tourism and hospitality institutions will have to maximize on the product and branding opportunity that will be ensure a particular institution attains a larger market share than its stern competitors in the tourism and hospitality industry. Planning for Pricing For many clients in the respective industries, it is evident that price is a determinant of how well the sales level will be. This implies that the pricing strategy is a key determinant to the success or failure of an enterprise. Pricing strategy depends on many factors. For instance, the time a particular tourism and hospitality institution has been in the industry is a key determinant of the pricing strategy that will be adopted (Westwood, 2002). A new institution will adopt a lenient pricing strategy while an institution that has been in the industry for a while will price its products at a higher price. This is due to the basic fact that, the tourism and hospitality institution that seeks to penetrate the market will price its products lowly to attract as many clients as possible and its sole objective is not profit making rather than market penetration. On the other hand, an already established tourism and hospitality institution will price its products highly as it aims at maintaining the already established clientele hence among profit maximization is a priority. In addition, pricing will also be given priority in the marketing plan as it will not only lure the potential clients but also determine the profitability of the particular tourism and hospitality institution. Planning for Service & Distribution The marketing plan also covers how the products will reach the prospective clients in a timely manner. Delivery of products to the client is a vital issue as it provides a base within which the products of the supplier company will be weighed. Planning for effective and efficient service and distribution will entail training of staff and creating a reliable infrastructure system that will be relied upon by particular institution (Stapleton, 1997). The tourism and hospitality industry is service provision intensive and the services cannot be separated from the provider. The human resource has to be well endowed with the required techniques and skills to ensure that the services provided meet the requirements of the client. When service provision is maintained at a high level, the reputation of the institution will grow and these will enhance the performance of such an institution in the tourism and hospitality industry. The marketing plan will ensure that training is undertaken in the vital areas that may cause an increase in the prevailing market share. In case of products for instance curios in the tourism and hospitality industry, a reliable distribution system will have to be formulated to ensure that the products get to the required clients in time. Delivery systems are vital as they display the institutions capability to have the products reach the desired clients in a timely manner. Distribution directly affect the level of sales that will be attained by an institution as clients can only buy what is available at the time of the intended purchase. In the marketing plan, the tourism and hospitality institution should average on the current market need and formulate a reliable strategy that will ensure that delivery is done in a timely manner as and when the clients require the products. Planning for Communication & Influences Communication mechanisms should be well instilled in tourism and hospitality institutions as this will ensure that information is delivered to the required party in due time. Communication is vital for the well being of an organization and the market plan should clearly inculcate communication in its strategy. Communication is the responsibility of the management of the particular institution as information should flow in terms of hierarchy when instructions are being dispatched. Information should be communicated to all stakeholders in a timely and efficient manner. Communication avails information that enhances decision making capabilities hence an institution should ensure that reliable mechanisms are in place to source for information as well as to dispatch the relevant information to the required parties. Information is important and it greatly aids either party to make vital and reliable decisions. In addition, information creates certain influence that at times waives the current trend in the market. For instance, in the event that information is a particular tourism and hospitality institution has dropped its prices and this information is communicated instantaneously to the potential clients or target group, the level of sales will increase (Smith Pulford & Berry, 1999). This is due to the fact the, there will be a certain influence that will be created in the market and facilitate the increase in sales level. Essentially, the marketing plan revolves around communicating the relevant information to the right client. This implies that the media adopted to direct the message home should be reliable as well as efficient. The communication media should be able to reach as many clients as possible as this will increase the influence and impact it will have on the target market. In the tourism and hospitality industry, communication is vital and all the stakeholders in the industry are in dire need of information that will help them make a conclusive decision. It is through information that certain influences crop up and they can be relied upon in future occurrences. Planning for the Marketing Mix Marketing mix as a business tool encompasses the vital elements together that determine the success or failure of a given enterprise. This is due to the fact that, the marketing mix takes into consideration the commonly referred to as four p’s in business. Marketing mix inculcates the product, place, price and promotion. The product element seeks to address the need and want of the consumers. On the other hand, place entails ensuring that the products will be availed to the consumers in a reliable manner. This is ensured through the formulation of a reliable service and distribution channel. Place ensure that the products and services are well located in a place they can get to the potential clients without much effort. Price means that the products are not exorbitant given the potential clients (Richter, 2012). The price strategy should be well considerate of the target market. Finally, promotion which entails that aggressive marketing will be undertaken to create awareness of the product. The marketing plan will have to mix all the above requirements in an appropriate manner and hence ensure that none is overdone. The marketing mix greatly depends on the prevailing conditions in the market and hence the crucial element will be fine tuned to accustom to the pressing need. For instance, if the market requires lower prices, the market mix will seek to emphasize on lower prices as this element will ensure reliable sales are attained. The marketing mix is explained under various models which include the producer oriented model, the consumer oriented model and a model that encompasses both perspectives. However, the three models revolve around the highlighted elements. Planning Implementation & Control The final stage under the marketing planning process is the implementation and control. It is inevitable that the marketing plan will eventually be implemented so as its impact may be felt by the particular institution and yield results (MCDonald & Keegan, 2002). The market planning implementation stage is vital and it has to be undertaken precisely to ensure that all essential elements are well implemented. The implementation stage will see to it that th e aggressive marketing campaign is undertaken and results are obtained forthwith. Once implementation has been undertaken with the right precision, control is later inculcated in the marketing system. Control ensures that any error in the system will be corrected before any damage is obtained. Control further ensures that the system will avail feedback to the planners and highlight on any weaknesses observed in the system. Changes are inherent business community and once they take place, the systems adopted by the business practitioners should be aligned to assimilate to the changes. The marketing plan once in the control stage should have a mechanism that ensures that changes are well handled. This will imply having a flexible system that can be changed without creating a major disruption to the entire system. The final stage of implementation and control will also provide an allowance for the management team to observe the new marketing plan and try to detect any error. It is at this stage that any misleading element will be removed or modified to fit the real market. This stage thus mainly entails checking for errors in the new adopted system and developing ways that would see to it that the system is well diagnosed. This stage will also ensure that the marketing plan is functional and hence, better results will be expected into the future. Reference list Ferrell, O & Hartline, M, 2011, marketing strategy, South-Western Cengage Learning, Australia. Indiana, 1990, Marketing plan, The Division, [Indianapolis]. Luther, W, 2001, The marketing plan: How to prepare and implement it.: Amacom, New York. MCDonald, M & Keegan, W, 2002, marketing plans that work: targeting growth and profitability, Butterworth-Heinemann, Boston. MCDonald, M, & Dunbar, I, 2012, Market segmentation how to do it, how to profit from it, John Wiley & Sons, Chichester. MCDonald, M, 2008, Malcolm McDonald on marketing planning understanding marketing plans and strategy, Kogan Page, London, England. MCDonald, M, 2011, Marketing plans: how to prepare them, how to use them. Chichester, Wiley. Richter, T, 2012, International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets, Logos, Berlin. Smith, P, Pulford, A., & Berry, C, 1999, Strategic marketing communications: new ways to build and integrate communications, Kogan Page, London. Stapleton, J, 1997, How to prepare a marketing plan: a guide to researching the consumer market, Gower, Hampshire. Westwood, J, 2002, The marketing plan: a step-by-step guide, Kogan Page, London. Read More