SAMPLE. SITXMPR005A Develop and manage marketing strategies. Learner guide. SIT07 Tourism and Hospitality Training Package.

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1 SIT07 Tourism and Hospitality Training Package SITXMPR005A Develop and manage marketing strategies Learner guide Version 1 Training and Education Support Industry Skills Unit Meadowbank Product Code: 4006

2 Acknowledgments The TAFE NSW Training and Education Support Industry Skills Unit, Meadowbank would like to acknowledge the support and assistance of the following people in the production of this learner resource guide: Project Manager: Reg Edwards Program Manager Travel and Tourism Programs TAFE NSW Training and Education Support Industry Skills Unit, Meadowbank TAFE NSW Enquiries Enquiries about this and other publications can be made to: Training and Education Support Industry Skills Unit, Meadowbank Meadowbank TAFE Level 3, Building J, See Street, MEADOWBANK NSW 2114 Tel: Fax: The State of New South Wales, Department of Education and Training, TAFE NSW, Training and Education Support Industry Skills Unit, Meadowbank, Copyright of this material is reserved to TAFE NSW Training and Education Support Industry Skills Unit, Meadowbank. Reproduction or transmittal in whole or in part, other than for the purposes of private study or research, and subject to the provisions of the Copyright Act, is prohibited without the written authority of, TAFE NSW. Training and Education Support Industry Skills Unit, Meadowbank. ISBN Developed by Training & Education Support Industry Skills Unit, Meadowbank TAFE NSW 2009

3 Table of contents Introduction General introduction Using this learner guide Prior knowledge and experience Unit of competency overview Assessment Section 1 Collect and analyse information on the internal business environment Section 2 Collect and analyse information on the external business environment Section 3 Develop marketing strategies Section 4 Prepare a marketing plan Section 5 Implement and monitor marketing activities Section 6 Conduct ongoing evaluation Reference list Glossary of terms used in this module Resource Evaluation Form Developed by Training & Education Support Industry Skills Unit, Meadowbank TAFE NSW 2009

4 Section 1 Collect and analyse information on the internal business environment At the end of this topic you should be able to: Identify and confirm core activities, customer base, business values and current business direction. Identify and analyse information on current and past marketing and its effectiveness. Review performance information from all areas of the business to identify strengths, weaknesses and critical success factors. Identify and record current capabilities and resources, including the need for specialist assistance. Identify any under-performing products and services and analyse and report on reasons for under-performance. Record and report information according to organisation requirements. Introduction This topic introduces the theory relating to assessing the marketing environment within your organisation. Together we will work through the type information that must be gathered on current marketing strategies and activities, your company s products, and the resources within the business, in order to determine the marketing capabilities of the organisation. In order to become competent in the subject matter of this topic you will be required to demonstrate the literacy skills required to collect and analyse market and business information, a knowledge of data collection tools and research methodologies, and knowledge and understanding of the internal factors that impact on marketing planning in the tourism, hospitality and events industry. Before we begin let us take a few minutes to learn some of the terminology associated with developing and managing marketing strategies. The strategic objectives (goals) that an organisation sets for itself and pursues are the most important decisions it makes because these determine the survival, prosperity and all subsequent operational decisions of the organisation. It is necessary to deal with objectives at two levels: The first level is a strategic level covering the whole of a business over the long term; the second is a tactical level covering specific markets and products in the short term. Strategy: This is a game plan for getting there i.e. the how the planning, intelligence and resource application. As you would map out a route to follow on a road journey so you map out the way to achieve organisational goals. Page 19 of 82

5 Tactics: The day to day operational activities (tactics) that are undertaken to fulfil the strategic plan. The strategic objective may be to fill a large percentage of empty seats on an airline for, let us say, the month of November. Undertaking impact advertising of specials is the tactic used to fulfil this objective. It is therefore, a detailed course of action by which a strategy is to be implemented and activated. Corporate objectives the specific, measurable and desired outcomes that an organisation plans to achieve in a given period. Corporate vision is a long term expression of the direction for the company and what the ethos of the company is. This is used to create a mission statement for the organisation. Market the consumers who exist as potential customers for your product(s) and or service. When we, for example, speak of distributing a product to the market we are referring to how that product will be made available for travellers and tourists to buy e.g. via the internet, from a travel agency or direct from the product owner, Market Research - The process of gathering information that can provide you with current information that assists you in making decisions that will drive your business and marketing decisions and activities. Marketing objectives to find the best way(s) to fulfil the customers needs and wants and make a profit for the organisation. They relate specifically to the marketing activities undertaken. What do you hope to achieve? Marketing Strategy the big picture strategies to be used to achieve the stated goals and objectives Marketing audit a systematic, objective, comprehensive review of all aspects of an organisation s marketing function.-an evaluation of its objectives, policies, results, organisation, personnel and practices. It could be seen as a diagnosis of the current company situation. SWOT analysis - Strengths, weaknesses, opportunities and threats. A SWOT analysis examines the internal environment of the organisation in terms of its strengths and weaknesses, and the external environment in terms of the opportunities and threats that exist outside of the organisation. PESTEL Analysis is an additional analysis tool that enables you to assess the external environment to see how this may impact your business. It involves assessing political, economic, social, technological, environmental and legal factors. This can be used in conjunction with a SWOT Analysis. Market segmentation the process of dividing the total market (or customers) into one or more parts, each of which tends to be homogeneous in all significant aspects. A market segment, therefore, is a group of customers with similar characteristics who share similar needs. Page 20 of 82

6 Target marketing the process of concentrating on serving one or more sets of buyers sharing common needs or characteristics. This makes reaching your target market more efficient and the organisation can focus its efforts and money more specifically. Marketing mix a combination of product, pricing structure, distribution system and promotional activities which constitute the core of an organisation s marketing system. The marketing mix is commonly known as the four P s. For each core product or service you have, you need to assess the marketing mix for each. Positioning activities to develop an intended image by the customer for a product or service in relation to competitive products or services. For example, what image do you have in your mind of Qantas? Now think of the image that you hold in your mind of Virgin? Are they different? Remember, positioning is how the customer sees your organisation not how you see it! Broader explanations of these terms can be found in all the major texts. Before you can start any worthwhile planning you do have to have a comprehensive idea of what your organisation is capable of producing in terms of product and or service. Many a grand plan has failed because an organisation did not have the capability of delivering the product or service to the market. In order to gain a clear idea of tourism marketing strategies, you may find the Tourism NSW Strategic Plan a useful illustrative example. Situational Analysis SWOT Why do you need to understand the environment your department or business is operating in? By conducting a SWOT Analysis, this helps you to understand what it is that you do well and what needs improving. A SWOT Analysis is a snapshot of that moment in time. It does not look forward or backwards, simply at that moment. A SWOT is used to identify the strengths and weaknesses, opportunities and threats of our business / event. Strengths and Weaknesses are INTERNAL to the organisation, and Opportunities and Threats are EXTERNAL to the organisation Page 21 of 82

7 SWOT analysis things to consider Production Plant and equipment Quality control Research & development Production methods Marketing Finance Cash flow Debt/equity Level of assets Profitability Capital available Personnel Customer base Price structure Distribution Location Promotion Product range Competition New competitors Aggressive competitors Staff size Key personnel Morale Leadership Communication Economic Inflation Interest rates Credit availability unemployment REMEMBER: MINIMISE threats and weaknesses and MAXIMISE strengths and opportunities Basic example Local RSL Club STRENGTHS Existing client base (corporate & recreational) Experienced mgmt Financial position is strong Variety of facilities Location & access Affordable WEAKNESESS Renovations (taking long time) High level of casual staff Lack of relationships with other organisations? i.e. referrals to and from corporate venues etc Lack of skilled staff (casual) Limited small business ownership OPPORTUNITIES Renovations updating style Market perception of other venues in area Continual development & growth in local govt area Affordability within a changing economic environment THREATS Other clubs re-inventing themselves Changing economic environment people with less disposable income Perception The RSL (cheap option) Page 22 of 82

8 Activity 1: Complete a SWOT for your chosen case study. (You may need to make some assumptions to create the full picture!) STRENGTHS OPPORTUNITIES WEAKNESSES THREATS Page 23 of 82