Chapter 6
Marketing Strategy
Marketing Hospitality, 3rd ed.,
Hsu/Powers
Concept of Strategy

A course of action aimed at ensuring
that the firm will achieve its objectives
by matching its internal resources and
skills with the environmental
opportunities and risks it faces
The Marketing Strategy Triangle
Technological Environment
Other
market
segments
Customers
Target
segments
Value
Value
Competitors
Economic
Environment
Product/Service
Differentiation
Social
Environment
Strategic vs. Functional
Marketing
Strategic
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
Long range
Strategic perspective
Broad resource
allocation
Less formalized
Proactive
Broad issues
Senior managers
Functional







One year
Marketing programs
Short-term trade-offs
More formalized
Reactive
Specific issues
Operating managers
Corporate
Headquarters
Strategic
Business Unit 1
(e.g., Travel Services)
Marketing
Unit
Level
Unit
Level
Strategic
Business Unit 2
(e.g., Lodging and
Foodservice)
Operations
Unit
Level
Unit
Level
Strategic
Business Unit 3
(e.g., Real Estate)
Human
Resources
Unit
Level
Unit
Level
Accounting
Unit
Level
Unit
Level
Corporate Mission
Identification of SBUs
SWOT
SBU Mission
and Strategies
Positioning
Functional Strategies
and Plans
Portfolio Analysis
Hilton Hotels Mission Statement

Hilton Hotels Corporation is recognized
internationally as a preeminent hospitality company.
Among our 250 hotels are some of the most wellknown properties to be found anywhere, including
The Waldorf-Astoria, Hilton Hawaiian Village and
Palmer House Hilton. Our hotels offer guests and
customers the finest accommodations and
amenities for business or leisure. For 80 years, the
Hilton brand name has been synonymous with
excellence in the hospitality industry.
BCG Growth-Share Matrix
Market Share (Cash Generation)
High
Growth
(Cash Use)
High
Low
Low
GE Model
CRITERIA
CRITERIA
Market Attractiveness
High
Low
Size
Market share
Profitability
Costs
Differentiation
Financial
strengths
Human assets
Image
Technological
position
Flexibility
Marketing
effectiveness
Medium
Low
Size
Market growth
Competitive
structure
Profitability
Pricing practices
Social changes
Environmental
concerns
Technological
stability
Political
considerations
Government
regulations
= build/grow
= hold/milk
= harvest/divest
Numerous
environmental
opportunities
Cell 3:
Turnaround
Critical strategy
Cell 1:
Aggressive
strategy Substantial
internal
weaknesses
internal
strengths
Cell 4:
Defensive
strategy
Cell 2:
Diversification
strategy
Major
environmental
threats
SBU Mission

Carlson Hotels Worldwide, a division of
Carlson Hospitality Worldwide, provides
a brand management structure upon
which the hotel brands of Carlson
Hospitality Worldwide continue to grow
as leaders in the luxury, upscale and
mid-tier segments of the lodging
industry
Generic Strategies
Competitive Advantage
Uniqueness
Industrywide
Particular
Segment
Low Cost
Differentiation Cost Leadership
Wendy’s
McDonald’s
Red Lobster
Differentiation
Focus
Cost Focus
Four Seasons
Motel 6
Grand Strategies
Existing
New
products/services products/services
Existing markets
Market
penetration
Product
development
New markets
Market
development
Diversification
Positioning


The process of establishing and
maintaining a distinctive place in the
market for an organization and/or its
individual product offerings.
Repositioning
Customer
analysis
Market
segmentation
Target
market
selection
Corporate
objectives
Corporate
capabilities
“Position”
Competitive
analysis
Product/
service
differentiation
Package of
benefits
selection
Marketing
program
and
operations:
Product
Price
Place
Promotion
Positioning Statement
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Differentiate the property
Communicate the benefits
Create an image