HRTM 1201 Ms. Cherise Davis February 6, 2016 Questions for Review and Discussion: Chapter 5 1. What is the difference between strategic and tactical marketing plans? Strategic marketing plans: These plans result from a careful examination of a firm's core business strategy and primary marketing objectives. Tactical marketing plans: These plans focus on implementing the broad strategies that are established in the strategic plan. 2. Provide examples of the types of questions tactical marketing plans seek to answer. What is our market share? Is it increasing or decreasing? How have the strengths and weakness of our firm changed in the last year? How has our mix of guests changed in the last year? What advertising and promotions were the most and least successful during the last year? What types of promotions and sales efforts should we use to build business during our slow periods? What specific promotion and advertising schedules will lead to success? What in-house promotions should we schedule? 3. What are the advantages and disadvantages associated with planning? Advantages: Formulating an organized and well-conceived marketing plan can have a tremendously positive impact on a hospitality firm. There are five main advantages of marketing planning. It helps the firm cope with change more effectively. If the competitive environment changes rapidly, a firm that has developed strategic plans with several contingency options is in a better position to effectively deal with the change. Developing marketing plans ensure that the firm's objectives are achieved. The plans serve as guides to help the firm achieve the objectives. If, in some unforeseen circumstances, the objectives are not attainable, objectives plans can be modified. This is done after a very careful analysis of the situation, investigating why the original objectives could not be achieved. Establishing a marketing plan aids management in decision making. The established plans can easily serve as a point of reference for management to consult when confronted with a difficult decision. Given the alternatives, managers can decide which ones will contribute the most to the achievement of their objectives. Planning forces managers to examine the firm's operations. Marketing plans make it necessary for managers to relate employee tasks and resource allocation to the firm's objectives. There must be a clear delineation of how the use of resources and employee time will help the firm achieve its objectives. Developing both strategic and tactical marketing plans helps management when evaluating the marketing efforts. Results of marketing efforts are compared with projected results, giving management a control process for the marketing function. Disadvantages: Although establishing a marketing plan has many advantages, there are also some disadvantages associated with marketing planning. Five main disadvantages of marketing planning follow: Establishing objectives and formulating a marketing plan are very time consuming. The time that management invests in planning can be expensive, and the results of planning must be cost-effective. The over-all benefits of these efforts, however, normally far exceed the cost to the firm. If planning is to be successful and have the desired impact on an organization, it must have the support and commitment of the top management. If those involved in the planning process perceive that they are merely going through the motions and that their activities will not have any impact, they will have a negative opinion about planning. Under these circumstances, managers perceive the planning process as an extra duty. Therefore, they give it a low priority, resulting in an inferior plan. If managers develop poorly conceived plans or plans based on false assumptions, the plans may be inaccurate or ineffective. For this reason, some managers feel that planning is of little value. Additionally, unplanned scenarios can develop rapidly, rendering marketing plans much less effective. Since plans often need to be prepared within a short period, it may not be possible to conduct as much background work as necessary for a high-quality plan. In addition, the planning task is often assigned to a manager who has other duties and responsibilities, limiting the amount of time the manager has for planning. Managers must view the development of a plan as a means to an end, such as increased sales and profits, not as an end unto itself. Many firms do not have the personnel with the required knowledge and expertise in planning. Many aspects are involved in marketing planning (discussed later in this chapter); hence, the employee responsible for planning should have some level of formal training. Often, managers are focused on day-today operations and do not have the time or ability to step back and view the business from a strategic perspective. If plans are to be successful, it is important to adopt a longer-term, strategic perspective. 4. Why do marketing plans fail? Despite the best efforts of marketing planners and all those involved in the planning process, some plans fail to fully achieve the desired results because of tactical shortcomings. The following are the most common reasons that some plan fail, based on the finding of several research studies: Managers do not integrate strategic planning into the day-to-day activities of the firm. In these cases, managers view the plan as an end in itself, rather than a means to achieve a desired result. Those responsible for planning do not understand the planning process. When managers develop a marketing plan, they must take time to work through all steps of the planning, they must take time to work through all steps of the planning process. Lack of input from line managers. For a marketing plan to succeed, managers who have major responsibilities in areas other than marketing must implement the plan. Financial projections are not marketing plans. Some hospitality and tourism firms make revenue projections or sales forecasts and call this activity \"marketing planning.\" Projections by themselves are not plans. Inadequate input and insufficient consideration of all environmental variables. Although it remains impossible to consider every single variable, the real danger is basing decisions and plans on an insufficient amount of information. Manager's planning focuses too heavily on short-term results. Manager's must emphasize formulating plans that will allow the firm to move toward the achievement of long-term goals. No procedures established to monitor and control the planning process. It is important to establish procedures to monitor the planning process from beginning to end. What steps might a marketing manager take to increase the probability of success? Successful planning is a key element in the financial success of all firms. Hospitality and tourism firms that allocate human and monetary resources for planning are much more likely to reach their financial goals than firms that do not engage in planning. 5. Illustrate and discuss the steps in the marketing planning process. 6. What is a SWOT analysis? SWOTs are the basis on which strategic marketing plans are developed. Strengths and opportunities are leverage items on which firms develop competitive advantages. Conversely, weaknesses and threats are problem areas that must be minimized if the firm is to achieve maximum success. How can SWOTs be leverage or problem items? 7. Conduct a SWOT analysis for a restaurant located in your area. How might this restaurant leverage elements of its SWOTs? 8. What are the criteria for well-written objectives? 9. What are the four product development strategy options? Provide examples and justification of hospitality and tourism firms that you believe use each of the four options. 10. What are the types of control data that are used to evaluate performance? 11. What is sales forecasting? The process for determining current sales and estimating future sales for a product or service. Why is it important? 12. Explain the difference between qualitative and quantitative forecasting techniques