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An old saying that still holds true notes that there are three types of companies:

1. Companies that make things happen

2. Companies that watch things happen

3. Companies that wonder what happened

Companies that make things happen are generally engaged in planning. They have established a mission statement as well as goals that lead to the formation of overall strategies that result in success. Becoming overly concerned with day-to-day operations causes the downfall of many hospitality organizations. The result is that managers become so engrossed in meeting the daily demands of their positions that they fail to see the big picture—they cannot see the forest for the trees.

Because of this myopic perspective, they are not aware of trends, and when the competitive environment does change, they are not prepared for it. 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.

THE MARKETING PLANNING PROCESS

Successful marketing begins with careful assessment of the competitive environment, followed by the development of a marketing plan. The sections that follow provide a framework for this process.

Framework for Marketing Plans

Marketing plans are normally developed for both short-term and long-term time frames. Short-term plans are normally for a period of up to one year, while long-term plans for a period of greater than one year, often for two or more years.

One-year plans are fairly tactical in nature. The plans are specific in terms of the action plans and the activities that will be undertaken to

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achieve the stated objectives. Budgets are included, and the allocations of resources to each action plans is normally stated. The metrics that will be used to access the success attained for each objective. These performance metrics are normally monitored monthly, or at least quarterly. If the performance targets are not being achieved, changes in the action plans and tactics will be necessary to increase the likelihood of achieving the stated objectives.

Long-term plans, normally for a period of longer than one-year are developed with a more strategic focus. These plans normally follow a framework similar to the following.

I. Executive Summary. This is a summary that provides an overview of the entire plan.

II. Situation Analysis

A. Market Summary

1. Target markets. What specific markets are targeted? Why are these specific segments the best targets? How have the target markets changed over time?

2. Market analysis. Where does current business come from? How has this changed in the past one to two years?

3. Market demographics. Describe the customers demographically. Where do they come from geographically? What travel or consumption behavior do they exhibit?

4. Market needs. What needs are customers trying to satisfy? How have these needs changed in the past one to two years? When customers are asked why they buy from your organization, what would they say?

5. Market trends. How has the market or competitive behavior changed? Have there been changes in either supply or demand?

6. Market growth. What has been the annual growth in the market in the past one to two years? How does this growth compare to other similar situations?

B. SWOT (Strengths, weaknesses, opportunities, or threats) analysis

1. Strengths. What are the internal strengths of the operation? What does the organization do well? In what ways in the organization stronger than competitors?

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2. Weaknesses. What are the internal weaknesses of the operation? What does the organization need to improve? In what ways is the organization weaker than, or at a competitive disadvantage to competitors?

3. Opportunities. In what ways is the organization positioned to gain a competitive advantage?

4. Threats. In what ways is the organization at a competitive disadvantage when external factors are examined?

C. Competition. Who are the major competitors? How has this competitive set changed in the past one to two years? Have competitors taken actions which create challenges or opportunities?

D. Service offerings. What is the primary product-service mix of the organization? Has this changed in the past one to two years?

III. Marketing Strategy

A. Mission. What is the mission statement of the organization? Does the mission statement need to be reviewed or modified?

B. Objectives. What is the overall strategy of the organization? How is this strategy operationalized? What specific objectives will execute the strategy? How will performance against the objectives be measured? Are the objectives reasonable? Are time parameters to accomplish the objectives stated? What resources will be required to achieve the objectives?

1. Marketing. What are the specific objectives related to the marketing strategy?

2. Financial. What are the specific financial performance objectives? These are normally associated with each of the marketing objectives? What level of performance is desired?

C. Target marketing. What strategies and tactics are associated with each targeted market segment?

D. Positioning. How is the organization positioned? How will this positioning strategy be implemented?

E. Marketing mix. How will each of the marketing mix elements be implemented?

F. Marketing research. Is any marketing research necessary to prepare for future marketing plans?

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G.

IV. Financials, Budgets, and Forecasts

A. Sales forecast. What is the monthly sales forecast for each target market?

B. Expense forecast. What is the monthly budget for each item in the marketing budget?

V. Controls

A. Implementation milestones and metrics. What are the monthly milestones? How will these be monitored? What action(s) will be taken if performance falls below the milestones?

B. Contingency planning. What action(s) will be taken if performance falls below the milestones? How will decisions regarding changes in the marketing plan be made? Who will be involved in this review and analysis?

Students often find it useful to review marketing plans as a means to learn more about how they are developed, the type of strategies and tactics that successful firms use. Companies normally do not widely distribute marketing plans, or very apparent reasons. However, Convention and Visitors Bureaus also develop marketing plans. These are normally public documents. Below are links to sample plans.

Ft. Lauderdale, Florida -

http://www.sunny.org/static/index.cfm ? contentID=411 Austin, Texas -

http://www.ci.austin.tx.us/vision/downloads/cvb_plan.pdf Spokane, Washington -

http://www.visitspokane.com/upload_content/31_5_orig.pdf

No magic formula will guarantee success for a firm in the hospitality and tourism industry. Even well-managed firms may fail to achieve the desired level of success. However, managers can take steps that will increase the probability of success. Figure 5.1 illustrates the basic steps in the marketing planning process. If managers focus on these elements, they are more likely to lead the firm in a direction that will accomplish its goals.

Before actually beginning the marketing planning process, each firm should establish a mission statement. A firm's mission statement defines its purpose and how to differentiate it from its competitors. It should provide managers with the general guidelines for decision making. Typically, mission statements are brief, often only a sentence or two and always less than two paragraphs; they define the scope of business for the corporation, and they

Mission statement

A firm's mission statement defines its purpose and how to differentiate it from its competitors. It should provide managers with the general guidelines for decision making.

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( 1 r Define the firm's goals and objectives Formulate marketing strategies and action plans Implement action plans and monitor performance Conduct a situation analysis )

Position statement

Position statement describes the mission to the firm's external stakeholders (i.e., customers, suppliers, and the general community) in terms of the public's perceptions of the benefits offered.

figure 5.1 • The marketing planning process.

answer the question, "What business are we in?" For example, if a corporation defined its mission as providing outstanding hospitality services in the budget-priced segment of the market, this would be its primary focus. This is the message that is conveyed to the firm's internal stakeholders: owners/ investors, managers, and employees. Second, those involved in the planning process often create a series of value statements, which describe what the firm believes in and how it will attempt to execute the mission statement. Finally, managers create a position statement, which describes this mission to the firm's external stakeholders (customers, suppliers, and the general community) in terms of the public's perceptions of the benefits offered.

This idea of focus, or purpose, is important when proceeding with the marketing planning process. A firm's mission is a function of its available resources and capabilities. It is difficult to operate outside these parameters and still remain successful. For example, the budget hotel mentioned earlier would not be able to compete for customers with full-service hotels that offer a wide array of amenities and services that are not available at budget properties. Budget hotels know that they appeal to price-sensitive customers who want a nice room that is clean and safe. If the hotel adheres to its mission, there will be no confusion among the stakeholders, and there is a better chance for success. Once the mission statement is established, the firm can begin the planning process.

It is often easier to develop mission statements after reviewing samples. Excellent samples can be found at http://www.missionstatements.com, http://www.mystrategicplan.com/strategic-planning-topics/mission-state-ments.shtml, and http://www.workstar.net/library/mission.htm.