Implement marketing strategies Essay Example
10th March, 2016.
Some of the stakeholders that are involved in the hotel industry include:
Stockholders and investors
Bankers and creditors
Partners and suppliers
Employees and work council
Local and national traders
Each of the above has either a positive or negative impact when coming up with the industry’s marketing strategy. Among the positive aspects may include:
Employees will be engaged through events arranged internally and conferences. This will help the hotel as the workers are able to share their success story at the same time advertising the company. A negative impact may arise where workers may want to portrays a bad image about the company when the staff is not rewarded as they would wish.
Stockholders and investors can be involved in the marketing strategy through brand websites or through social media channels. A negative impact would arise where investors would shift to other industries that are generating more profits than the hotel industry.
Suppliers and partners have a role in marketing strategy as hotels are encouraged to locally get their goods. Through involving them, hotels are in a better position to know what is best in the market and source it at affordable rates. Suppliers will have a negative impact when they do not deliver their services on time or give substandard goods.
Industry associations come in to shape how strategies will be implemented. Hotels can engage them through organizing conferences that will establish and monitor how effective strategies will work. A negative impact will be when there is no coordination of the rates to be offered at different seasons where some hotels will offer way too cheaply or expensively.
Bankers will be highly involved as they will come up with financial terms and will boost the hotel industry. Tourists will mostly enjoy where everything is offered on demand and at their point of satisfaction. On the other hand when bankers reduce their credit period, it doesn’t favor the hotels as different seasons come with different incomes.
The government plays a key role where licenses are issued in order to establish hotels in certain areas. A positive impact will come in where the government offers subsidies to set up hotels in undeveloped areas. This in return causes such like places to develop gradually. On the other hand, the government is mandated to come up with controls of the services rendered hence strategic planning has to involve the government. It will be a negative impact when there is no political stability as tourists will not prefer war torn areas as their destination.
Competitors will have a positive impact as this is a platform where different hotels compare themselves to each other hence hotels will try to come up with above standard services while using minimum costs. Competition will negatively impact the marketing strategy where there is cut throat competition and the government is not regulating it.
Advertising is a major role in the service industry and incorporating media channels as part of marketing strategy would be a bonus. This in return brings more customers and increases revenue. Advertising would impact negatively where there is discrimination of some hotels while leaving out some.
Some of the stakeholders’ roles would be:
Decision making where the board is held with the power to come up with new ideas and come up with major decisions that would be of help to the company.
Another role is to directly manage the organization. The managers are tasked with such like duties where they control different departments and ensure there is coordination of work done.
Investors majorly deal with company finances so they act as guardians on financial performances in a company. It is with their investments that the management is able to come up with ways of managing the company.
Competitors, local and national traders have a role of corporate conscience they would like to observe how the company operates. It is also their responsibility to check where all laws are adhered to.
Bankers and creditors have a role to play as they feed the company with cash. It is their responsibility to monitor whether profits are being made or not.
It is the role of suppliers to ensure that necessary resources are allocated so as to ensure continuous flow of services.
For there to be effective marketing strategy, there has to be flow of communication either from the top management or form junior staff to the top management. As indicated above, there has to be marketing president who may sometimes be helped by his secretary. Below them are various managers where each has been assigned different roles in implementing market goals and there are all given staff who will help in getting information. This creates a team which has to communicate often.
Types of communication
Among managers, there can be horizontal type of communication and this will come in while consulting. There is also upward communication when a research is being carried on. Downward communication comes in when communicating results or ideas to the team.
Types of risks
The hotel industry will cater for the following in their risk management
Security has become a major challenge in the hospitality industry. Some of the risks involve:
Loss of competitive advantage with other companies
Attack of cyber crimes
No security audits or they take time.
Theft of credit card.
On a scale of 1 to 5, the following seems to be the most risky to least risky respectively.
Theft of credit cards.
Invasion of cyber crime.
Low security audits.
Loss of competitive advantage.
The impact of marketing plan is that most hotels will be reluctant to use credit cards as a way of payment as it is a way of theft. Cyber crime has an impact as secret information for the hotel is exposed hence lack of security. With reduced or long security checks, the marketing plan becomes a challenge more costs will be incurred in hiring personal security officers. Physical crimes will impact marketing as terrorism is on the raise. Most hotels will have to look for flexible hours and increase security measures. With increased security threats, more companies are using more costs on damages.
To manage the above risks, more security officers should be employed to scrutinize all credit cards. Firewalls should be installed as a way of regulating cyber crimes. There should be more if not often security checks in the hotels. On the issue of terrorism, the governments should coordinate with other states on increasing peace in war ton areas.
On marketing mix strategy, four P’s will be used in the hospitality industry. This will include:
Promotion where this will involve methods used for advertising as this will be seen as a way of communication.
Product which in this case is intangible will seek to satisfy the needs of the client. In the market mix, the products should have unique features to enable it sell.
Price is the actual amount that the service will go for. In this, the customer seeks to know that they are buying a service which will be valuable to them. The price will also be used to measure the level of competitive advantage among other companies.
Place would refer to how the product offered and where it will be. This strategy will help in knowing the most suitable place the service can be accessed.
, Frank. Strategic Management: Concepts and Cases. New York: McGraw-Hill Education, 2012.Print.Rothaermel
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