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Friday, September 11, 2015

UNIT II MARKETING PLAN - Developing and Implementing Action Plans and Monitoring and Evaluating the Marketing Plans

Developing and Implementing Action Plans

The core of the marketing plan is developing and implementing action plans. The core activities that are essential for reaching marketing objectives are called as Action Plans.
Success comes to those hotel marketers who make decisions and take action based on what they have learned about their property, the competition, the market place and their guests.

The analysis of this data helps to identify:

What areas need sales activity (prioritizing sales task as per need)
At what time of year the business is expected to pick up
The appropriate market segments to be targeted to fulfill objectives

There should be detailed action plans for each market segment and operations area (Restaurants, Banquets, and Rooms etc.) and the responsibility for implementing action plans should be assigned to specific individuals.

Action plans should be very specific involving the following five areas:

A.    A description of the types of business and the market segments to be taken care of –  A hotel might want to increase room revenue by associating itself with local travel organizations or an internet site like www.makemytrip.com



B.   Target Customers – Hotels can target customers who have been regularly visiting the hotel. They may also make an action plan to attract new customers in different demographic segments.

C.   Rates/Special Plans/Packages/Promotions – To attract the business, hotels may have different package rates for different market segments and may give special discounts to the channels giving maximum business (Travel agents, Tour Companies etc.).

D.   Aim of the action plan (Objective) – It is not enough to say “increase meeting rooms business.” A specific goal – “Increase meeting rooms business by 20% over weekend period in July” – will help in establishing action steps and monitoring progress toward meeting the objective.

E.    Action Steps – The specific steps that will be taken to achieve marketing objectives. Each action plan should include the who, what , why, when, and where of each step if it is to meet objectives.

Internal marketing initiatives should be taken so that the employees are aware of the efforts by the marketing team. Employee involvement in action plan reaps rich dividends and can be taken seriously to meet marketing objectives of the organization.


Monitoring and Evaluating the Marketing Plans

The periodic review of marketing strategies to take corrective action throughout the planning cycle is known as Monitoring and Evaluating the Marketing plans.

The more carefully the marketing effort is measured, the easier it will be to plan future activities and programs for building business and profitability. Monitoring and evaluation of the marketing plan should be done periodically so that the corrective action can be taken throughout the planning cycle. Methods of monitoring the marketing plan include:

1.    Recording the number of room nights for each market segment – This method results in a report that facilitates the comparison of actual results with marketing plan goals

2.    Comparing the number of restaurant covers sold before and after advertising.

3.    Survey the part of city, regions and different locations to determine which media are most effective in local advertising. This type of analysis is especially effective for restaurant promotions and weekend packages.

4.    Tracking prospecting results and sales production versus goals by sales people.

5.    Keeping track of each sales person’s output periodically. Business booked by the sales staff during peak and off-peak periods. Repeat business versus new business booked by sales staff

6.    Evaluating cost of internal marketing campaigns by monitoring the average expenditure by each guest prior to and through out the promotion.

7.    By recording direct mail responses and telephone enquiries in a log book. This type of monitoring not only gives an indication of the effectiveness of the advertising campaigns, but may also provide insight into the strengths and weaknesses of the sales staff.


Remember, control is an essential part of the marketing plan cycle, and periodic evaluation should be designed into the plan from the beginning. A record should be kept each time an advertising campaign is run, any strategies that do not contribute to the bottom line can be immediately re-examined.

If action plans are effective and objectives are realized within established budget limits, corrective action need not be a part of the process. However, if the hotel sales are not being met, the problem can often be traced to:

a)    Lack of responsibility – The marketing team member or team leader for a revenue center has not assumed responsibility for seeing that schedules are met and evaluations of results have been made.

b)    Lack of Communication – Sales people or other employees are not aware of their role in the marketing plan.


c)    Lack of Time – Insufficient time has been allocated for making outside sales calls or direct advertising efforts in the required markets

d)    Lack of Authority – Sales people have not been given the authority to commit the budget for specific marketing efforts


e)    Lack of Control – Outside factors (the economy, the energy crisis, and weather conditions) have made it necessary to lower the marketing plan goals.

f)     Lack of Realistic goals - Guests have been targeted at a time when they are not planning to buy; or the sales goals are simply too high.

Whatever the reasons for lagging sales, one must determine that enough time has been given for the plan to work and that corrective measures have been taken to build sales in each market segment. Objective evaluations and corrective actions may prevent costly mistakes and can lead to more effective marketing strategies in subsequent years.

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