1

School of Business Management

and Finance

Module Name Marketing Management

Assignment For 1 organization in the industry of your choice write a

marketing plan to boost up profitability of the productservice

Submitted by Reshma Dobee - 140665

CohortMBAG14B-Part time

Date of Submission 17th May 2015

2

Acknowledgement

The accomplishment of this project would not have been possible without the help and support of a number of persons who have contributed in some way or another

to this Assignment

My warmest thanks go first to our Module Convener Mrs Shyam Seebun for his constructive criticisms and advice

Appreciation is also due to many people who have helped me throughout the pro-ject often without knowing they were doing so

Last but not the least our gratitude goes to my family and friends for their support and encouragement to the success of completing this assignment

Without help of the particulars mentioned above we would have faced many diffi-culties while doing this project

3

COMPANY DESCRIPTION

COMPETITIVE ADVANTAGE

STATEMENT OF MARKETING OBJECTIVES AND FINANCIAL OBJECTIVES

SWOT ANALYSIS

MARKET RESEARCH

SEGMENTATION

TARGETING

POSITIONING

MARKETING MIX

STRATEGIC PLANNING APPROACHES

CONTROLS AND EVALAUTION

REFERENCING

2

Acknowledgement

The accomplishment of this project would not have been possible without the help and support of a number of persons who have contributed in some way or another

to this Assignment

My warmest thanks go first to our Module Convener Mrs Shyam Seebun for his constructive criticisms and advice

Appreciation is also due to many people who have helped me throughout the pro-ject often without knowing they were doing so

Last but not the least our gratitude goes to my family and friends for their support and encouragement to the success of completing this assignment

Without help of the particulars mentioned above we would have faced many diffi-culties while doing this project

3

COMPANY DESCRIPTION

COMPETITIVE ADVANTAGE

STATEMENT OF MARKETING OBJECTIVES AND FINANCIAL OBJECTIVES

SWOT ANALYSIS

MARKET RESEARCH

SEGMENTATION

TARGETING

POSITIONING

MARKETING MIX

STRATEGIC PLANNING APPROACHES

CONTROLS AND EVALAUTION

REFERENCING

3

COMPANY DESCRIPTION

COMPETITIVE ADVANTAGE

STATEMENT OF MARKETING OBJECTIVES AND FINANCIAL OBJECTIVES

SWOT ANALYSIS

MARKET RESEARCH

SEGMENTATION

TARGETING

POSITIONING

MARKETING MIX

STRATEGIC PLANNING APPROACHES

CONTROLS AND EVALAUTION

REFERENCING

4

COMPANY DESCRIPTION

Raol Guest House (current situation)

Your Origins Can Never Be Replaced

Lying on the north east coast of Mauritius Raol Guest House is a luxurious guesthouse comprising of 50

rooms at Poste de Flacq It offers 247 guaranteed hospitality care and good time Its personnel are always

at the guests‟ disposal to make their time a memorable one during their stay at the Raol Guest House

Raol Guest House guesthouse was born in 2013 It was created under an eco-green program which aimed

at giving back to nature its importance in our customers‟ lives and makes them experience its surprising

benefits Its slogan ldquoYour Origins can Never be Replacedrdquo which means returning to our roots be closer

to who we are by being farther from what makes us who we are not describes best the way the guesthouse

is built and maintained You are sure to feel one with nature and be overwhelmed with the amount of ac-

tivities available at the guesthouse

The guestsrsquo areas

The layout of these areas must ensure a high level of personal safety and security for the guests and their

property and also enable to render effective service

Public guests areas

Public guests‟ areas are for the exclusive use for the guests and their visitors The following places are re-

garded as public areas which are available in the guest house

The entrance hall

The reception area or office also called the bdquofront desk‟

The guests waiting area close to the reception

Guests toilet

The dining room or breakfast room

Smoking areas and

Halls stairways landing and passages

The purpose of a guest house is to provide temporary accommodation for families while they are on travel

in Mauritius It also provides a safe comfortable and cost-effective alternative to hotels and other tempo-

rary residences when such facilities are non-existent limited unsafe or excessively overpriced There are

other facilities available in the guest house which are

-Breakfast Lunch amp Diner

-Car Rental

-Taxi on request

5

Raol Guest House offers Hospitality services like accommodation food and beverages business service

and leisure

ACCOMODATION

Each room is decorated in tropical pastel paints prints and handcrafted furniture equipped with cable

satellite TVair-conditioningceiling fans hair dryer direct dial telephone bath-tubshower and a balcony

Standard rooms are configured with either a King-Size bed or two twin beds in the sea and Mountain

View the road view has two double beds The guesthouse is built on two levels featuring a living room

with a bar area and a restaurant on the floor The 15 Junior Suites were fitted with a double bed or two

twin beds as well as a living room area with a sofa that converted to another bed

The meal plans are most flexible Bed amp Breakfast or accommodation only as all units is self-catering

with dedicated housemaids to prepare your meals according to the guests‟ wishes Creole European or In-

dian dishes are possible The maids also look after the washing and ironing and take care of any grocery

shopping if so required Fresh food gets delivered daily at current market prices

Moreover Raol Guest House carries a Full Fire Certificate which some guesthouses‟ do not provide

The Raol Guest House still thriving in 2013 after 1 year in business would like to boost up its image by

adding more services to attract more customers and thus expand its clientele In addition the restaurant

serving breakfasts and menu dinners upon request is open to outsiders and is very much appreciated by the

neighbourhood

Mission Statement

ldquoTo ensure that each guest receives prompt professional friendly and courteous service To maintain a

clean comfortable and well maintained premises for our guests and staff To provide our guests a memo-

rable time ndash that will make them smile every time they think about Raol Guest House To ensure that all

guests and staff are treated with the respect and dignity they deserve To thank each guest for the oppor-

tunity to serve them By maintaining these objectives we shall be assured of a fair profit that will allow us

to contribute to the community we serverdquo

Vision

ldquo To become Mauritiusrsquo leading guest house for the best service offered for the warmest welcome to our

residents to become the most renowned for event management and to offer the most delicious and healthy

food on the island and all that by staying as close and friendly to nature as possible

6

COMPETITIVE ADVANTAGE

Competitive advantage is defined as a strategic advantage one business entity has over its rival entities

within its competitive industry Achieving competitive advantage strengthens and positions a business bet-

ter within the business environment Competitive advantage of guest house focuses on the leisure of peo-

ple It is essential to produce new and innovative ideas to differentiate a service from others of the same

nature

Customer analysis

Customers are the reason for an organisation to be in business Raol Guest house offers a wide range of

services its present customers are mainly local residents and tourists who come for a family vacation of

about 15 days Now Raol Guest House wants to exploit the market further by providing customer satisfac-

tion

Market analysis

The market size of Raol Guest House has significantly increased due to the following factors

1 Customer Satisfaction

It has been observed that customers have been visiting them again and also to see that customers‟ feed-

backs are positive at all times This shows that the customers are satisfied with the way they are being

treated each time

2 Consistent staff training

Raol Guest House strategy is to provide consistent staff training so a training program was developed

which all key staff members staff members would undertake and was designed was an integrated multi-

faceted package that featured a mix of workshops videos training on new standards and included clearly

set-out objectives This unique approach to training facilitated the avoidance of bdquoone-size-fits-all‟ philoso-

phy which often proves ideal when creating a global brand but for the resort it was vital for each to pre-

serve elements of individuality The service delivery was overhauled and consistency was introduced

3 Increase turnover

Raol Guest House has been hiring employees who are competent and this reduces expenses associated

with incompetent employees the hotel also employs employees who are loyal and those who do not en-

gage in unethical behaviours that consume the expected profits The Raol Guest House has been making

profits all the time this indicates that the strategies put in place Human resource strategies have been ef-

fective and have assisted the guest house in increasing its sales and turnover and eventually higher profits

7

4 Innovated Services

Raol Guest House has excellent employees who have a keen eye to innovation they come up with strate-

gies that ensure that hotel stays on top and some of the innovations include furnishing the rooms in a mod-

ern way making sure that the customer‟s needs are achieve Innovative employees of the Raol Guest House

are rewarded or given opportunities to further their innovation through education in institutions that offer

hospitality course innovative means that employee are given opportunities to meet and exchange ideas

with other employees from resorts

5Low prices compared to hotels

It has been observed that Raol Guest House offers many services at a considerable low price

STATEMENT FOR MARKETING OBJECTIVES AND FINANCIAL OB-

JECTIVES

Marketing objectives

There is an idea of making the guesthouse more available to the Mauritians who until now could not really

access the guest house to the high charges The department also decided to make the guest house more re-

nowned in Mauritius They want to manage events on the left wing of the guesthouse where a big hall

kitchens and many big rooms will be constructed

The space the guest house already has but which is unused will thus become a source of income to the or-

ganisation The idea is to make the guest house into an event management company as well The marketing

department has already planned how to prevent noises from disturbing the guest house residents They plan

to make another entry and exit for the left wing and also protect the whole guest house with soundproof

walls

Despite the complexity of the whole plan the marketing department is sure that this will help boost up the

image of Raol Guest House and allow people to plan their marriage birthdays business meetings in a nat-

ural place where ecology and tranquillity is a priority to the direction of the guest house Also is it that

Raol Guest House will also offer various cuisines in its restaurant called ldquoDelices de la Naturerdquo where in-

stead of offering only traditional Mauritian food all kind of food will be available to the residents such as

Indian food Chinese food Italian food and European food To be able to offer only the best delicacies to

our customers four specialised chefs will be recruited

8

assistance An extended ndash stay resident wants an in-room kitchen Conventioneers want large meeting

rooms preplanned sightseeing and hospitality suites

Resolve consumer complaints more effectively because business travellers are quite concerned about one-

booking long waiting lines late check-in times Moreover Raol Guest House is dealing for alternative ac-

commodation in case that they are over-booked computerizing check-ins offering express checkouts

( bills are placed under room doors or mailed to guests‟ room doors or mailed to guest‟ businesses or

homes)serving free drinks and providing baggage handling if check-in times are late

All these objectives allow the clients of Raol Guest House to enjoy a memorable and amazing time

Financial Objectives

The financial objectives of the company are listed below

Achieve sales revenue of Rs 150000 in year 2015 and Rs 1 million in year 2018

Achieve 5 growth in sales in the niche market of guesthouses

Ensure a positive cash flow from operating investing and financing activities

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

5

Raol Guest House offers Hospitality services like accommodation food and beverages business service

and leisure

ACCOMODATION

Each room is decorated in tropical pastel paints prints and handcrafted furniture equipped with cable

satellite TVair-conditioningceiling fans hair dryer direct dial telephone bath-tubshower and a balcony

Standard rooms are configured with either a King-Size bed or two twin beds in the sea and Mountain

View the road view has two double beds The guesthouse is built on two levels featuring a living room

with a bar area and a restaurant on the floor The 15 Junior Suites were fitted with a double bed or two

twin beds as well as a living room area with a sofa that converted to another bed

The meal plans are most flexible Bed amp Breakfast or accommodation only as all units is self-catering

with dedicated housemaids to prepare your meals according to the guests‟ wishes Creole European or In-

dian dishes are possible The maids also look after the washing and ironing and take care of any grocery

shopping if so required Fresh food gets delivered daily at current market prices

Moreover Raol Guest House carries a Full Fire Certificate which some guesthouses‟ do not provide

The Raol Guest House still thriving in 2013 after 1 year in business would like to boost up its image by

adding more services to attract more customers and thus expand its clientele In addition the restaurant

serving breakfasts and menu dinners upon request is open to outsiders and is very much appreciated by the

neighbourhood

Mission Statement

ldquoTo ensure that each guest receives prompt professional friendly and courteous service To maintain a

clean comfortable and well maintained premises for our guests and staff To provide our guests a memo-

rable time ndash that will make them smile every time they think about Raol Guest House To ensure that all

guests and staff are treated with the respect and dignity they deserve To thank each guest for the oppor-

tunity to serve them By maintaining these objectives we shall be assured of a fair profit that will allow us

to contribute to the community we serverdquo

Vision

ldquo To become Mauritiusrsquo leading guest house for the best service offered for the warmest welcome to our

residents to become the most renowned for event management and to offer the most delicious and healthy

food on the island and all that by staying as close and friendly to nature as possible

6

COMPETITIVE ADVANTAGE

Competitive advantage is defined as a strategic advantage one business entity has over its rival entities

within its competitive industry Achieving competitive advantage strengthens and positions a business bet-

ter within the business environment Competitive advantage of guest house focuses on the leisure of peo-

ple It is essential to produce new and innovative ideas to differentiate a service from others of the same

nature

Customer analysis

Customers are the reason for an organisation to be in business Raol Guest house offers a wide range of

services its present customers are mainly local residents and tourists who come for a family vacation of

about 15 days Now Raol Guest House wants to exploit the market further by providing customer satisfac-

tion

Market analysis

The market size of Raol Guest House has significantly increased due to the following factors

1 Customer Satisfaction

It has been observed that customers have been visiting them again and also to see that customers‟ feed-

backs are positive at all times This shows that the customers are satisfied with the way they are being

treated each time

2 Consistent staff training

Raol Guest House strategy is to provide consistent staff training so a training program was developed

which all key staff members staff members would undertake and was designed was an integrated multi-

faceted package that featured a mix of workshops videos training on new standards and included clearly

set-out objectives This unique approach to training facilitated the avoidance of bdquoone-size-fits-all‟ philoso-

phy which often proves ideal when creating a global brand but for the resort it was vital for each to pre-

serve elements of individuality The service delivery was overhauled and consistency was introduced

3 Increase turnover

Raol Guest House has been hiring employees who are competent and this reduces expenses associated

with incompetent employees the hotel also employs employees who are loyal and those who do not en-

gage in unethical behaviours that consume the expected profits The Raol Guest House has been making

profits all the time this indicates that the strategies put in place Human resource strategies have been ef-

fective and have assisted the guest house in increasing its sales and turnover and eventually higher profits

7

4 Innovated Services

Raol Guest House has excellent employees who have a keen eye to innovation they come up with strate-

gies that ensure that hotel stays on top and some of the innovations include furnishing the rooms in a mod-

ern way making sure that the customer‟s needs are achieve Innovative employees of the Raol Guest House

are rewarded or given opportunities to further their innovation through education in institutions that offer

hospitality course innovative means that employee are given opportunities to meet and exchange ideas

with other employees from resorts

5Low prices compared to hotels

It has been observed that Raol Guest House offers many services at a considerable low price

STATEMENT FOR MARKETING OBJECTIVES AND FINANCIAL OB-

JECTIVES

Marketing objectives

There is an idea of making the guesthouse more available to the Mauritians who until now could not really

access the guest house to the high charges The department also decided to make the guest house more re-

nowned in Mauritius They want to manage events on the left wing of the guesthouse where a big hall

kitchens and many big rooms will be constructed

The space the guest house already has but which is unused will thus become a source of income to the or-

ganisation The idea is to make the guest house into an event management company as well The marketing

department has already planned how to prevent noises from disturbing the guest house residents They plan

to make another entry and exit for the left wing and also protect the whole guest house with soundproof

walls

Despite the complexity of the whole plan the marketing department is sure that this will help boost up the

image of Raol Guest House and allow people to plan their marriage birthdays business meetings in a nat-

ural place where ecology and tranquillity is a priority to the direction of the guest house Also is it that

Raol Guest House will also offer various cuisines in its restaurant called ldquoDelices de la Naturerdquo where in-

stead of offering only traditional Mauritian food all kind of food will be available to the residents such as

Indian food Chinese food Italian food and European food To be able to offer only the best delicacies to

our customers four specialised chefs will be recruited

8

assistance An extended ndash stay resident wants an in-room kitchen Conventioneers want large meeting

rooms preplanned sightseeing and hospitality suites

Resolve consumer complaints more effectively because business travellers are quite concerned about one-

booking long waiting lines late check-in times Moreover Raol Guest House is dealing for alternative ac-

commodation in case that they are over-booked computerizing check-ins offering express checkouts

( bills are placed under room doors or mailed to guests‟ room doors or mailed to guest‟ businesses or

homes)serving free drinks and providing baggage handling if check-in times are late

All these objectives allow the clients of Raol Guest House to enjoy a memorable and amazing time

Financial Objectives

The financial objectives of the company are listed below

Achieve sales revenue of Rs 150000 in year 2015 and Rs 1 million in year 2018

Achieve 5 growth in sales in the niche market of guesthouses

Ensure a positive cash flow from operating investing and financing activities

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

6

COMPETITIVE ADVANTAGE

Competitive advantage is defined as a strategic advantage one business entity has over its rival entities

within its competitive industry Achieving competitive advantage strengthens and positions a business bet-

ter within the business environment Competitive advantage of guest house focuses on the leisure of peo-

ple It is essential to produce new and innovative ideas to differentiate a service from others of the same

nature

Customer analysis

Customers are the reason for an organisation to be in business Raol Guest house offers a wide range of

services its present customers are mainly local residents and tourists who come for a family vacation of

about 15 days Now Raol Guest House wants to exploit the market further by providing customer satisfac-

tion

Market analysis

The market size of Raol Guest House has significantly increased due to the following factors

1 Customer Satisfaction

It has been observed that customers have been visiting them again and also to see that customers‟ feed-

backs are positive at all times This shows that the customers are satisfied with the way they are being

treated each time

2 Consistent staff training

Raol Guest House strategy is to provide consistent staff training so a training program was developed

which all key staff members staff members would undertake and was designed was an integrated multi-

faceted package that featured a mix of workshops videos training on new standards and included clearly

set-out objectives This unique approach to training facilitated the avoidance of bdquoone-size-fits-all‟ philoso-

phy which often proves ideal when creating a global brand but for the resort it was vital for each to pre-

serve elements of individuality The service delivery was overhauled and consistency was introduced

3 Increase turnover

Raol Guest House has been hiring employees who are competent and this reduces expenses associated

with incompetent employees the hotel also employs employees who are loyal and those who do not en-

gage in unethical behaviours that consume the expected profits The Raol Guest House has been making

profits all the time this indicates that the strategies put in place Human resource strategies have been ef-

fective and have assisted the guest house in increasing its sales and turnover and eventually higher profits

7

4 Innovated Services

Raol Guest House has excellent employees who have a keen eye to innovation they come up with strate-

gies that ensure that hotel stays on top and some of the innovations include furnishing the rooms in a mod-

ern way making sure that the customer‟s needs are achieve Innovative employees of the Raol Guest House

are rewarded or given opportunities to further their innovation through education in institutions that offer

hospitality course innovative means that employee are given opportunities to meet and exchange ideas

with other employees from resorts

5Low prices compared to hotels

It has been observed that Raol Guest House offers many services at a considerable low price

STATEMENT FOR MARKETING OBJECTIVES AND FINANCIAL OB-

JECTIVES

Marketing objectives

There is an idea of making the guesthouse more available to the Mauritians who until now could not really

access the guest house to the high charges The department also decided to make the guest house more re-

nowned in Mauritius They want to manage events on the left wing of the guesthouse where a big hall

kitchens and many big rooms will be constructed

The space the guest house already has but which is unused will thus become a source of income to the or-

ganisation The idea is to make the guest house into an event management company as well The marketing

department has already planned how to prevent noises from disturbing the guest house residents They plan

to make another entry and exit for the left wing and also protect the whole guest house with soundproof

walls

Despite the complexity of the whole plan the marketing department is sure that this will help boost up the

image of Raol Guest House and allow people to plan their marriage birthdays business meetings in a nat-

ural place where ecology and tranquillity is a priority to the direction of the guest house Also is it that

Raol Guest House will also offer various cuisines in its restaurant called ldquoDelices de la Naturerdquo where in-

stead of offering only traditional Mauritian food all kind of food will be available to the residents such as

Indian food Chinese food Italian food and European food To be able to offer only the best delicacies to

our customers four specialised chefs will be recruited

8

assistance An extended ndash stay resident wants an in-room kitchen Conventioneers want large meeting

rooms preplanned sightseeing and hospitality suites

Resolve consumer complaints more effectively because business travellers are quite concerned about one-

booking long waiting lines late check-in times Moreover Raol Guest House is dealing for alternative ac-

commodation in case that they are over-booked computerizing check-ins offering express checkouts

( bills are placed under room doors or mailed to guests‟ room doors or mailed to guest‟ businesses or

homes)serving free drinks and providing baggage handling if check-in times are late

All these objectives allow the clients of Raol Guest House to enjoy a memorable and amazing time

Financial Objectives

The financial objectives of the company are listed below

Achieve sales revenue of Rs 150000 in year 2015 and Rs 1 million in year 2018

Achieve 5 growth in sales in the niche market of guesthouses

Ensure a positive cash flow from operating investing and financing activities

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

7

4 Innovated Services

Raol Guest House has excellent employees who have a keen eye to innovation they come up with strate-

gies that ensure that hotel stays on top and some of the innovations include furnishing the rooms in a mod-

ern way making sure that the customer‟s needs are achieve Innovative employees of the Raol Guest House

are rewarded or given opportunities to further their innovation through education in institutions that offer

hospitality course innovative means that employee are given opportunities to meet and exchange ideas

with other employees from resorts

5Low prices compared to hotels

It has been observed that Raol Guest House offers many services at a considerable low price

STATEMENT FOR MARKETING OBJECTIVES AND FINANCIAL OB-

JECTIVES

Marketing objectives

There is an idea of making the guesthouse more available to the Mauritians who until now could not really

access the guest house to the high charges The department also decided to make the guest house more re-

nowned in Mauritius They want to manage events on the left wing of the guesthouse where a big hall

kitchens and many big rooms will be constructed

The space the guest house already has but which is unused will thus become a source of income to the or-

ganisation The idea is to make the guest house into an event management company as well The marketing

department has already planned how to prevent noises from disturbing the guest house residents They plan

to make another entry and exit for the left wing and also protect the whole guest house with soundproof

walls

Despite the complexity of the whole plan the marketing department is sure that this will help boost up the

image of Raol Guest House and allow people to plan their marriage birthdays business meetings in a nat-

ural place where ecology and tranquillity is a priority to the direction of the guest house Also is it that

Raol Guest House will also offer various cuisines in its restaurant called ldquoDelices de la Naturerdquo where in-

stead of offering only traditional Mauritian food all kind of food will be available to the residents such as

Indian food Chinese food Italian food and European food To be able to offer only the best delicacies to

our customers four specialised chefs will be recruited

8

assistance An extended ndash stay resident wants an in-room kitchen Conventioneers want large meeting

rooms preplanned sightseeing and hospitality suites

Resolve consumer complaints more effectively because business travellers are quite concerned about one-

booking long waiting lines late check-in times Moreover Raol Guest House is dealing for alternative ac-

commodation in case that they are over-booked computerizing check-ins offering express checkouts

( bills are placed under room doors or mailed to guests‟ room doors or mailed to guest‟ businesses or

homes)serving free drinks and providing baggage handling if check-in times are late

All these objectives allow the clients of Raol Guest House to enjoy a memorable and amazing time

Financial Objectives

The financial objectives of the company are listed below

Achieve sales revenue of Rs 150000 in year 2015 and Rs 1 million in year 2018

Achieve 5 growth in sales in the niche market of guesthouses

Ensure a positive cash flow from operating investing and financing activities

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

8

assistance An extended ndash stay resident wants an in-room kitchen Conventioneers want large meeting

rooms preplanned sightseeing and hospitality suites

Resolve consumer complaints more effectively because business travellers are quite concerned about one-

booking long waiting lines late check-in times Moreover Raol Guest House is dealing for alternative ac-

commodation in case that they are over-booked computerizing check-ins offering express checkouts

( bills are placed under room doors or mailed to guests‟ room doors or mailed to guest‟ businesses or

homes)serving free drinks and providing baggage handling if check-in times are late

All these objectives allow the clients of Raol Guest House to enjoy a memorable and amazing time

Financial Objectives

The financial objectives of the company are listed below

Achieve sales revenue of Rs 150000 in year 2015 and Rs 1 million in year 2018

Achieve 5 growth in sales in the niche market of guesthouses

Ensure a positive cash flow from operating investing and financing activities

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

9

SWOT ANALYSIS

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses and for identi-

fying both the Opportunities open to you and the Threats you face

Situation analysis in which internal strengths and weaknesses of an organization and exter-

nal opportunities and threats faced by it are closely examined to chart a strategy SWOT stands

for strengths weaknesses opportunities and threats Below is the SWOT Analysis of Raol Guest House

MARKET RESEARCH

Market research has been carried out Both primary and secondary data have been collected Primary

data has been collected by the customers while the secondary data has been gathered through internet

researches

10

SEGMENTATION

Hotel consumers are varied in a number of aspects Their respective differences often provide a challenge

for firms trying to meet and exceed consumer productservice expectations Smith (1956) defines market

segmentation as a competition defense mechanism in response to differing consumer demand It allows a

firm to divide a heterogeneous market of products and services into smaller homogenous units (Smith

1956) The segment identifies existing and potential consumers and aligns them with the products and ser-

vices that may satisfy a greater number of their specific needs (Smith 1956 amp Forsyth 2009) An industry

with a segmented market allows for the examination of the intrinsic and extrinsic factors that can influ-

ence the consumer‟s decision making in reference to the given product or service Implementing market

segmentation strategies are expected to allow the firm to better target their consumers The segmentation

that Raol Guest House will be using to launch its new product is divided into two groups namely

Geographic Segmentation

It is the division of the market into different geographic units including nations states regions or neigh-

borhoods (Belch amp Belch 2007) Raol Guest House will aim at different countries such as Comoros

Kenya Madagascar Mayotte Reunion Seychelles South Africa and Zimbabwe

Demographic Segmentation

It refers to the division of the market on the basis of demographic variables such as age gender family

size education income and social class Raol Guest House will also be sold in a low price allowing high

class middle class and low class family to purchase the service

TARGETING

Raol Guest House also aims at target one or more segments business travellers through tourists (who stay

one night) regular tourists (who stay 2 or more nights) extended stay residents (who stay up to several

months or longer and conventioneers

11

POSITIONING

To combat the effects of a competitive market environment and to position itself Treacy and Wiersema

suggests three value disciplines which firms should focus their operation (1995) The disciplines Opera-

tional Excellence ProductService Leadership and Customer Intimacy

Operational Excellence

Operational Excellence pertains to the firm‟s ability to provide ldquomiddle-of-the-market products at the best

price with the least inconveniencerdquo to the consumer (Treacy amp Wiersema 1995 p xii) Raol Guest House

focusing on this discipline will utilize a ldquocost reduction in operationsrdquo while still providing reliable prod-

ucts and services at a competitive price (Riemann amp et al 2009 p 4) The firm‟s managers must pay close

attention to cost controls if they seek to achieve an optimized business process (Riemann amp et al 2009

Porter 1980) Raol Guest House utilizing lower costing operational procedures will yield greater returns

when compared to their competitors (Porter 1980)

ProductService Leadership

ProductService Leadership references how the firm strives to offer the best available product or service

(Treacy amp Wiersema 1995) This value discipline relates to the differentiation strategies that the firm may

implement The offered product or service may exceed competing offerings by ldquodesign technology fea-

tures customer servicerdquo or other complex element (Porter 1980 p 36) Strategies focused around

productservice e leadership allow the firm to narrow their business focus to providing the best available

offerings to improve their leadership position (Treacy amp Wiersema 1995) A lodging firm utilizing en-

hanced products and services is further attempting to improve the consumer‟s quality of stay (Riemann amp

et al 2009) This value discipline is expected to yield ldquoabove-average returnsrdquo as it encourages consumer

ldquobrand loyaltyrdquo 30 and a lower threshold for price sensitivity (Porter 1980 p38) The firm develops a

competitive advantage by being at the forefront of product or service innovation (Treacy amp Wiersema

1995)

Customer Intimacy

Customer Intimacy references the firm‟s ability to provide customizable products and services that cater to

the needs and requests of their individual guests (Riemann amp et al 2009) This value discipline is focused

on ldquoserving a particular target [market] very wellrdquo (Porter 1980 p 38) The firm strategically works to-

wards providing a consumer solution oppose to a service (Treacy amp Wiersema 1995) Establishing and

maintaining intimate consumer relationships is important to this discipline (Treacy amp Wiersema 1995)

The firm recognizes the consumers‟ ldquolifetime valuerdquo and attempts to establish lasting consumer loyalty

(Treacy amp Wiersema 1995 p 41) The market strategies developed around this discipline aim to provide

products and services that meet or exceed the specific needs of the consumer McGuire suggests that firms

should strive towards these strategies as they aid the consumer in understanding and differentiating the

uniqueness between competing firms (2009)

12

MARKETING MIX

ldquoThe marketing mix concept is a well-established tool used as a structure by marketers It consists of the

various elements of a marketing programmed which need to be considered in order to successfully imple-

ment the marketing strategy and positioning in the company‟s market It is the important internal elements

or ingredients that make up an organization‟s marketing programmerdquo- Adrian Payne

Product

ldquoA product is anything that can be offered to a market for attention use or consumption that might satisfy a

want or a need It includes physical objects services places organisations and ideasrdquo KotlerBowen and

Makens

In the tourism industry there is no production of goods but rather this industry provides a myriad of ser-

vices and experiences The service that Raol Guest House procures has special characteristics

Intangibility

Services can be purchased but cannot be seen touched or tasted ndashthey are intangible The heart of a service

is the experience created for the customer In choosing Raol Guest House a customer might look to the ad-

ditional services that Raol Guest House offers to its customers

Inseparability

The service is created and consumed at the same time Therefore the client and employee are both in-

volved during this process During this process it is vital to keep the same standard of service when deliv-

ering to its customers

Heterogeneity

No 2 customers will demand exactly the same service they will have different de-

mandsexpectationstastesmoodsperceptions and emotions ( George200121)

Lack of ownership

In this conceptthe customer has nothing to take away except hisher experienceMost of the services are of

ldquo temporary use‟ and the memories arising from there Like for Raol Guest Housea room will only be

served to enhance or degrade their experience of the service being provided

Perishability

The hospitality offered by the Raol Guest House cannot be storedsaved or reuse-it is perishable

Some new services could be generated A babyndash sitting service a 24 hour room service car rental Fur-

thermore a fitness studio can be set up which will give more profit and a bit of modern touch to the Raol

Guest House Other services like organising transport facilities for their guests suggesting plans of inter-

ests in the area organising tours bookings can be offered Vacation packages also can be offered

13

Price

Price is the value that is placed on something Price is an indispensable element in the marketing mix since

it generated revenue and it is the only basis of recovering the costs and profitsZeithaml ( 1998 ) claimed

that the customers will think whether they received the value of money or before they decide to return the

purchase from the service provider Raol Guest House can adopt a seasonal pricing where the price paid for

a particular service can be during a certain time or period only or even price flexibility also can be em-

braced which is an unstable amount that can be paid for the same services by two different customers or it

can be adjustable price for different customers with the same service depending on the customer relation-

ship ( Keyes 2010104)

Physical Evidence

This factor refers to the ability and environment in which the service will be delivered For example the

interior and exterior decoration its furnishing lights Moreover Raol Guest House will have its own bro-

chures will be available for its customers This service scope includes three physical environment dimen-

sions that represent the relation between services and environment namely

1Environmental conditions such as temperaturesoundsmell

2Space and functions such as mapequipementdecoration

3Signssymbols and artefacts such as decoration style

The more intangible the service the more important it is to make the service around it tangible The physi-

cal evidence serves as a visual metaphor of what the company represents what services it facilitates and

the relations between customers and employees

People

All the staff being employed at Raol Guest House will be the locals since they are more acquainted with

the local tastes The personnel will be trained at a regular basis so as to keep them updated and also to be

able to meet up the customers‟ expectations In this way Raol Guest House will be able to bdquoadd value‟ to

its service through its employees Also the employees will be able to have a good clientele with the cus-

tomers In this way the staff will learn about the guests‟ likes and dislikes thus with this knowledge the

personnel can provide an improved experience to the tourists who would lead to an increased in the profita-

bility margin The resources that Raol Guest House has are its workers from waiter to the General Manag-

er each of them is recruited according to skills qualifications and work experience They are recruited

from Sir Gaeumltan Duval Hotel School Moreover Raol Guest House also encourages continuous training

which will help the employees to create innovate and communicate effectively

14

Process

A process is a flow of activities At Raol Guest House the process is simple since it operated at a small

scale The process is more coordinated according to the needs of the customers

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

11

POSITIONING

To combat the effects of a competitive market environment and to position itself Treacy and Wiersema

suggests three value disciplines which firms should focus their operation (1995) The disciplines Opera-

tional Excellence ProductService Leadership and Customer Intimacy

Operational Excellence

Operational Excellence pertains to the firm‟s ability to provide ldquomiddle-of-the-market products at the best

price with the least inconveniencerdquo to the consumer (Treacy amp Wiersema 1995 p xii) Raol Guest House

focusing on this discipline will utilize a ldquocost reduction in operationsrdquo while still providing reliable prod-

ucts and services at a competitive price (Riemann amp et al 2009 p 4) The firm‟s managers must pay close

attention to cost controls if they seek to achieve an optimized business process (Riemann amp et al 2009

Porter 1980) Raol Guest House utilizing lower costing operational procedures will yield greater returns

when compared to their competitors (Porter 1980)

ProductService Leadership

ProductService Leadership references how the firm strives to offer the best available product or service

(Treacy amp Wiersema 1995) This value discipline relates to the differentiation strategies that the firm may

implement The offered product or service may exceed competing offerings by ldquodesign technology fea-

tures customer servicerdquo or other complex element (Porter 1980 p 36) Strategies focused around

productservice e leadership allow the firm to narrow their business focus to providing the best available

offerings to improve their leadership position (Treacy amp Wiersema 1995) A lodging firm utilizing en-

hanced products and services is further attempting to improve the consumer‟s quality of stay (Riemann amp

et al 2009) This value discipline is expected to yield ldquoabove-average returnsrdquo as it encourages consumer

ldquobrand loyaltyrdquo 30 and a lower threshold for price sensitivity (Porter 1980 p38) The firm develops a

competitive advantage by being at the forefront of product or service innovation (Treacy amp Wiersema

1995)

Customer Intimacy

Customer Intimacy references the firm‟s ability to provide customizable products and services that cater to

the needs and requests of their individual guests (Riemann amp et al 2009) This value discipline is focused

on ldquoserving a particular target [market] very wellrdquo (Porter 1980 p 38) The firm strategically works to-

wards providing a consumer solution oppose to a service (Treacy amp Wiersema 1995) Establishing and

maintaining intimate consumer relationships is important to this discipline (Treacy amp Wiersema 1995)

The firm recognizes the consumers‟ ldquolifetime valuerdquo and attempts to establish lasting consumer loyalty

(Treacy amp Wiersema 1995 p 41) The market strategies developed around this discipline aim to provide

products and services that meet or exceed the specific needs of the consumer McGuire suggests that firms

should strive towards these strategies as they aid the consumer in understanding and differentiating the

uniqueness between competing firms (2009)

12

MARKETING MIX

ldquoThe marketing mix concept is a well-established tool used as a structure by marketers It consists of the

various elements of a marketing programmed which need to be considered in order to successfully imple-

ment the marketing strategy and positioning in the company‟s market It is the important internal elements

or ingredients that make up an organization‟s marketing programmerdquo- Adrian Payne

Product

ldquoA product is anything that can be offered to a market for attention use or consumption that might satisfy a

want or a need It includes physical objects services places organisations and ideasrdquo KotlerBowen and

Makens

In the tourism industry there is no production of goods but rather this industry provides a myriad of ser-

vices and experiences The service that Raol Guest House procures has special characteristics

Intangibility

Services can be purchased but cannot be seen touched or tasted ndashthey are intangible The heart of a service

is the experience created for the customer In choosing Raol Guest House a customer might look to the ad-

ditional services that Raol Guest House offers to its customers

Inseparability

The service is created and consumed at the same time Therefore the client and employee are both in-

volved during this process During this process it is vital to keep the same standard of service when deliv-

ering to its customers

Heterogeneity

No 2 customers will demand exactly the same service they will have different de-

mandsexpectationstastesmoodsperceptions and emotions ( George200121)

Lack of ownership

In this conceptthe customer has nothing to take away except hisher experienceMost of the services are of

ldquo temporary use‟ and the memories arising from there Like for Raol Guest Housea room will only be

served to enhance or degrade their experience of the service being provided

Perishability

The hospitality offered by the Raol Guest House cannot be storedsaved or reuse-it is perishable

Some new services could be generated A babyndash sitting service a 24 hour room service car rental Fur-

thermore a fitness studio can be set up which will give more profit and a bit of modern touch to the Raol

Guest House Other services like organising transport facilities for their guests suggesting plans of inter-

ests in the area organising tours bookings can be offered Vacation packages also can be offered

13

Price

Price is the value that is placed on something Price is an indispensable element in the marketing mix since

it generated revenue and it is the only basis of recovering the costs and profitsZeithaml ( 1998 ) claimed

that the customers will think whether they received the value of money or before they decide to return the

purchase from the service provider Raol Guest House can adopt a seasonal pricing where the price paid for

a particular service can be during a certain time or period only or even price flexibility also can be em-

braced which is an unstable amount that can be paid for the same services by two different customers or it

can be adjustable price for different customers with the same service depending on the customer relation-

ship ( Keyes 2010104)

Physical Evidence

This factor refers to the ability and environment in which the service will be delivered For example the

interior and exterior decoration its furnishing lights Moreover Raol Guest House will have its own bro-

chures will be available for its customers This service scope includes three physical environment dimen-

sions that represent the relation between services and environment namely

1Environmental conditions such as temperaturesoundsmell

2Space and functions such as mapequipementdecoration

3Signssymbols and artefacts such as decoration style

The more intangible the service the more important it is to make the service around it tangible The physi-

cal evidence serves as a visual metaphor of what the company represents what services it facilitates and

the relations between customers and employees

People

All the staff being employed at Raol Guest House will be the locals since they are more acquainted with

the local tastes The personnel will be trained at a regular basis so as to keep them updated and also to be

able to meet up the customers‟ expectations In this way Raol Guest House will be able to bdquoadd value‟ to

its service through its employees Also the employees will be able to have a good clientele with the cus-

tomers In this way the staff will learn about the guests‟ likes and dislikes thus with this knowledge the

personnel can provide an improved experience to the tourists who would lead to an increased in the profita-

bility margin The resources that Raol Guest House has are its workers from waiter to the General Manag-

er each of them is recruited according to skills qualifications and work experience They are recruited

from Sir Gaeumltan Duval Hotel School Moreover Raol Guest House also encourages continuous training

which will help the employees to create innovate and communicate effectively

14

Process

A process is a flow of activities At Raol Guest House the process is simple since it operated at a small

scale The process is more coordinated according to the needs of the customers

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

12

MARKETING MIX

ldquoThe marketing mix concept is a well-established tool used as a structure by marketers It consists of the

various elements of a marketing programmed which need to be considered in order to successfully imple-

ment the marketing strategy and positioning in the company‟s market It is the important internal elements

or ingredients that make up an organization‟s marketing programmerdquo- Adrian Payne

Product

ldquoA product is anything that can be offered to a market for attention use or consumption that might satisfy a

want or a need It includes physical objects services places organisations and ideasrdquo KotlerBowen and

Makens

In the tourism industry there is no production of goods but rather this industry provides a myriad of ser-

vices and experiences The service that Raol Guest House procures has special characteristics

Intangibility

Services can be purchased but cannot be seen touched or tasted ndashthey are intangible The heart of a service

is the experience created for the customer In choosing Raol Guest House a customer might look to the ad-

ditional services that Raol Guest House offers to its customers

Inseparability

The service is created and consumed at the same time Therefore the client and employee are both in-

volved during this process During this process it is vital to keep the same standard of service when deliv-

ering to its customers

Heterogeneity

No 2 customers will demand exactly the same service they will have different de-

mandsexpectationstastesmoodsperceptions and emotions ( George200121)

Lack of ownership

In this conceptthe customer has nothing to take away except hisher experienceMost of the services are of

ldquo temporary use‟ and the memories arising from there Like for Raol Guest Housea room will only be

served to enhance or degrade their experience of the service being provided

Perishability

The hospitality offered by the Raol Guest House cannot be storedsaved or reuse-it is perishable

Some new services could be generated A babyndash sitting service a 24 hour room service car rental Fur-

thermore a fitness studio can be set up which will give more profit and a bit of modern touch to the Raol

Guest House Other services like organising transport facilities for their guests suggesting plans of inter-

ests in the area organising tours bookings can be offered Vacation packages also can be offered

13

Price

Price is the value that is placed on something Price is an indispensable element in the marketing mix since

it generated revenue and it is the only basis of recovering the costs and profitsZeithaml ( 1998 ) claimed

that the customers will think whether they received the value of money or before they decide to return the

purchase from the service provider Raol Guest House can adopt a seasonal pricing where the price paid for

a particular service can be during a certain time or period only or even price flexibility also can be em-

braced which is an unstable amount that can be paid for the same services by two different customers or it

can be adjustable price for different customers with the same service depending on the customer relation-

ship ( Keyes 2010104)

Physical Evidence

This factor refers to the ability and environment in which the service will be delivered For example the

interior and exterior decoration its furnishing lights Moreover Raol Guest House will have its own bro-

chures will be available for its customers This service scope includes three physical environment dimen-

sions that represent the relation between services and environment namely

1Environmental conditions such as temperaturesoundsmell

2Space and functions such as mapequipementdecoration

3Signssymbols and artefacts such as decoration style

The more intangible the service the more important it is to make the service around it tangible The physi-

cal evidence serves as a visual metaphor of what the company represents what services it facilitates and

the relations between customers and employees

People

All the staff being employed at Raol Guest House will be the locals since they are more acquainted with

the local tastes The personnel will be trained at a regular basis so as to keep them updated and also to be

able to meet up the customers‟ expectations In this way Raol Guest House will be able to bdquoadd value‟ to

its service through its employees Also the employees will be able to have a good clientele with the cus-

tomers In this way the staff will learn about the guests‟ likes and dislikes thus with this knowledge the

personnel can provide an improved experience to the tourists who would lead to an increased in the profita-

bility margin The resources that Raol Guest House has are its workers from waiter to the General Manag-

er each of them is recruited according to skills qualifications and work experience They are recruited

from Sir Gaeumltan Duval Hotel School Moreover Raol Guest House also encourages continuous training

which will help the employees to create innovate and communicate effectively

14

Process

A process is a flow of activities At Raol Guest House the process is simple since it operated at a small

scale The process is more coordinated according to the needs of the customers

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

13

Price

Price is the value that is placed on something Price is an indispensable element in the marketing mix since

it generated revenue and it is the only basis of recovering the costs and profitsZeithaml ( 1998 ) claimed

that the customers will think whether they received the value of money or before they decide to return the

purchase from the service provider Raol Guest House can adopt a seasonal pricing where the price paid for

a particular service can be during a certain time or period only or even price flexibility also can be em-

braced which is an unstable amount that can be paid for the same services by two different customers or it

can be adjustable price for different customers with the same service depending on the customer relation-

ship ( Keyes 2010104)

Physical Evidence

This factor refers to the ability and environment in which the service will be delivered For example the

interior and exterior decoration its furnishing lights Moreover Raol Guest House will have its own bro-

chures will be available for its customers This service scope includes three physical environment dimen-

sions that represent the relation between services and environment namely

1Environmental conditions such as temperaturesoundsmell

2Space and functions such as mapequipementdecoration

3Signssymbols and artefacts such as decoration style

The more intangible the service the more important it is to make the service around it tangible The physi-

cal evidence serves as a visual metaphor of what the company represents what services it facilitates and

the relations between customers and employees

People

All the staff being employed at Raol Guest House will be the locals since they are more acquainted with

the local tastes The personnel will be trained at a regular basis so as to keep them updated and also to be

able to meet up the customers‟ expectations In this way Raol Guest House will be able to bdquoadd value‟ to

its service through its employees Also the employees will be able to have a good clientele with the cus-

tomers In this way the staff will learn about the guests‟ likes and dislikes thus with this knowledge the

personnel can provide an improved experience to the tourists who would lead to an increased in the profita-

bility margin The resources that Raol Guest House has are its workers from waiter to the General Manag-

er each of them is recruited according to skills qualifications and work experience They are recruited

from Sir Gaeumltan Duval Hotel School Moreover Raol Guest House also encourages continuous training

which will help the employees to create innovate and communicate effectively

14

Process

A process is a flow of activities At Raol Guest House the process is simple since it operated at a small

scale The process is more coordinated according to the needs of the customers

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

14

Process

A process is a flow of activities At Raol Guest House the process is simple since it operated at a small

scale The process is more coordinated according to the needs of the customers

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

15

Place

Place refers to the physical and virtual environment ambiance staff and activities and at the point of ser-

vice offering The atmosphere and the physical environment are the specific factors that each guest house

getsAccessibility is a critical element of place as it represents the extent to which markets and destinations

are connected (Weaver and Oppermann 2000) The location where Raol Guest House is situated is a highly

tourist attraction The guest house has 35 standard rooms are categorized into 3 groups-(Sea view Moun-

tain View and Road view)

Promotion

Promotion has got a vital role in promoting a destinationit enables to communicate with individual

groups organisations to directly or indirectly facilitate exchange by informing and persuading the different

market segments to welcome the choice of the destination being promoted

A successful promotion strategy is devised by having a push and pull promotion

According to Kotler (2001 pg531)

ldquoA push strategy involves pushing the product through distribution channels to final consumers The prod-

uct directs it marketing activities (personnel selling and trade promotion) toward channel members to in-

clude them to carry the product and to promote it to final consumers Using a pull strategy the producer

directs its marketing activities (primarily advertising and consumer promotions) towards final consumers to

induce them buy the productrdquo

Push strategy is also known as ldquotaking the product to the consumer ldquo The push promotional strategy in-

volves taking the leisure product directly to the customer This can be achieved by making use of any

means and the final aim is to ensure that the customer is aware of the guesthouse‟s name providing the lei-

sure activity at the point of purchase One example of the push promotional strategy is the point of sale

displays in the guesthouse lobby

Pull strategy is also known as ldquoGetting the customer to come to yourdquo The pull strategy is to motivate the

tourists in such a way that they are themselves encouraged to come and seek leisure facilities in the guest-

house One example of the pull strategy is advertising and mass media promotion

According to Kotler (2001) there are five strategy promotional mix they are

Advertising

Advertising is any form of non-personal communication from an identified sponsor about the organization

and its services using the media to influence a target market (Blech amp Blech 1998 Wells Burnett amp Mori-

aty 1998 Zikmund amp D‟amico 1996) This is to inform potential customers about the products that the

organization is offering and to persuade them to buy it Some examples of advertising can be yellow pages

local newspapers radio trade journals exhibitions and websites

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

16

Sales promotion

It is providing the customers with the basic service adding further appealing packages to it This can help to

achieve customer loyalty and as the same time attract new customers

Public Relations

Public Relations (PR) are defined by the British Institute of Public Relations as the planned and sustained

effort to establish and maintain goodwill between an organisation and its public Public Relations are ex-

tensively used in the tourism industry as a way of communicating with potential customers

Public Relations can also be defined as any group that has actual or potential interest on a company‟s abil-

ity to achieve its objectives (Kotler 2000)

PR is concerned with a number of marketing tasks These include the following

Building or maintaining image

Supporting the other communication activities

Handling problems and issues reinforcing position

Influencing specific publics

Direct Marketing

Direct marketing is to carry out a market research from time to time to know about the exact needs and

wants of the customers and to cater for them This component of the promotional mix does not use the tra-

ditional formal channels of advertising instead it is done through fliers catalogue distribution and promo-

tional letters

Personal Selling

Personal selling is to communicate orally with a potential customer of the leisure activity with the intention

to make a sale This is the most effective form of promotion as the customer is able to get the exact service

and information that she is expecting

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

17

STRATEGIC PLANNING APPROACHES

The Productmarket opportunity matrix (Ansoff Matrix) has been used to show strategic planning approach

that the company will adopt

Market Penetration

An organisation pursuing a market penetration strategy is aiming to sell more of its existing products in ex-

isting markets To support a market penetration strategy an organisation must make sure that it maintains

and builds the competences that are relevant to the particular market and that it has the relevant capacity to

meet higher levels of demand Raol Guest House can make use of the following strategies make use of ag-

gressive Make use of aggressive advertisement television radio newspapers health conscious magazines

and internet Build customer loyalty by providing discounts on cumulative purchases Offer discount cou-

pon for old customers

Productservice Development

This strategy involves the organisation operating in its existing markets and developing innovative or modi-

fied versions of its existing products to appeal to those markets For an effective product development

strategy an organisation must either be able to build on its existing competences or acquire new ones but it

does allow the organisation to exploit its existing knowledge of its customersRaol Guest House can Devel-

op new types of services like Spa

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

18

Market Development

This strategy entails expanding into new markets with existing products which are at the most only

slightly modified for the new market These may be new markets geographically new market segments

or new uses for products Whatever the market this approach to growth depends upon the existence of

new consumer groups who are willing and able to buy the existing product The company can look for

international markets like the European Countries enter new market segments market through Social

media (eg Facebook)

Diversification

Diversification involves the organisation moving into new markets with new products Diversification

may become necessary when none of the alternative mechanisms for generating growth are feasible and

is generally thought to be the more risky route to growth But for Raol Guest House for the time being it

can concentrate on the three above strategies since they carry lower risks as the organisation has some

experience in it By contrast the fourth strategy - diversification is much more risky because the organi-

sation is moving into areas in which it has little or no experience As a consequence the instances of

pure diversification are rare When diversification is undertaken the risks can be reduced by concentrat-

ing on either familiar markets or familiar technologies Moving into new markets with products which

require new technologies constitutes the riskiest and also the rarest form of diversification In the long-

runRaol Guest House can opt to diversify

CONTROLS AND EVALAUTION

Implementation

The marketing manager will coordinate the marketing activities that are crucial in achieving the finan-

cial and marketing objectives of the company Raol GuestHouse requires the marketing department to

maintain its professional integrity looking out for its marketing goals and implementing the marketing

programmes as best fits its strategy

Controls

To maximise the return on a marketing plan there need to be controls in place to monitor the plans pro-

gress Control is not a singular thing but a host of tools for making sure that the company is on track

Raol GuestHouse will be using four types of controls to monitor the service marketing plan progress

Annual plan control

The purpose of the annual plan control is to ensure that Raol GuestHouse achieves the sales profits and

other goals established in the marketing plan

Sales analysis - Actual sales will be compared to sales targets and budgets and an analysis of any vari-

ance between the two will be carefully examined

Market share analysis - Raol Guest House will be using overall market share served market share and

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

19

Customer attitude tracking - Raol Guest House will monitor customer feedback through polls and surveys

The company will carry out customer surveys by phone or in person and host online polls to gauge what

customers feel about the Services The company will also implement a customer complaint and suggestion

scheme to increase customer satisfaction level

Sales-to-expense ratios - Sales-to-expense ratios will be used to determine whether Raol Guest House is

spending too much or too little on marketing the Services in order to achieve its sales goals The following

sales-to-expense ratios will be used

advertising to sales

sales force size to sales

sales promotion to sales

marketing research to sales

Profitability control

Profitability control will help Raol Guest House to evaluate and improve spending and examine whether it

is making profits or losses The following measures will be taken to control its profitability

Sales revenue and costs from the previous year will be compared to that of the current year

Actual and estimated profits will also be compared to determine differences

A cost control system will be developed to maintain costs that remain within the specified budget

Efficiency control

Efficiency control will be used to evaluate and improve the spending efficiency and impact of marketing

expenditures The efficiency of sales force advertising sales promotion and distribution will be moni-

tored

Strategic control

The purpose of strategic control is to examine whether Raol Guest House is pursuing its best opportunities

with respect to markets products and channels The following marketing tools will be used

marketing effectiveness rating instrument

marketing audit

marketing excellence review

company ethical and social responsibility review

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc

20

REFERENCES

BELCH GE AND BELCH MA 2007 Advertising and promotion an integrated marketing communi-

cation perspective In IrwinMcGraw Hill 7th ed Boston Massachusetts 45

FERREL O C and HARTLINEMD 2008 Marketing Strategy Mason Thomson Higher Education

KOEGEL K 2010 ldquoBuilding Brands Onlinerdquo Ad Age Insights October 11

KOTLER P ANG SH LEONG SM and TAN CT 1999 Marketing Management An AsianPer-

spective 2nd Ed Prentice Hall

LANCASTER G AND REYNOLDS P 2005Management of Marketing Burlington Elsevier Butter-

worth ndash Heinemann

WEBSITES httpsquizletcom30731376casino-management-exam-2-flash-cards

httpfacultyjwuedupbagdanHOSP3050worksheetsch14_worksheetdoc

httpfacultyjwuedupbagdanHOSP3050worksheetsCHAPTER2014doc