Marketing Management: Boutique Hotel Marketing Strategies Essay


Describe about the Marketing Management for Boutique Hotel Marketing Strategies.



In present competitive business environment, every organization is looking to implement several unique strategies that can provide competitive advantage to the market. However, implementation of different marketing strategies depend various factors. Therefore, it is critical for the organizations to evaluate all the factors before implementing any marketing plan. Otherwise, organizations might not able to gain desire success due to implementation of the marketing plan. In this report, the prime focus will be on the hotel industry. Over the past few years, average per capita income of people has grown significantly. As a result, people are now more willing to spend money on improving the quality of the leisure. This has provided huge amount of impact on the success of the hotel industry. However, increase in popularity has induces many organizations to get involved into the hotel sector. Therefore, hotel industry is presently experiencing huge amount of competition. For that reason, the report will focus on the competitors and market structure analysis in order to develop effective marketing plan.

Application of management principles, concepts and practices in marketing decision making:

As per the article by Wang (2012), effectiveness of the marketing decision heavily depends on the structure of the market. Since, structure of the market helps organizations to identify several competitive threats that organizations have to face in order to maintain its position in the market. Market structure is heavily dependent on the presence of number of organizations in the industry. Market structure can be divided into four categories namely monopolistic competition, perfect competition, monopoly and oligopoly. A perfect competitive market structure defines a bunch of small organizations in the same industry. As a result, none of the organization possesses the ability to affect the pricing structure. For instance, Saffire Freycinet formulate its pricing structure according to the pricing standard of the market. Otherwise, the hotel will fail to maintain its position in the market. A monopolistic market structure represent a market where many seller sales several products. This market structure also has different buyers. As a result, it allows organizations to implement a range of prices instead of a single pricing structure. For instance, Emporium Hotel Brisbane utilizes this market structure in order to gain competitive advantage in the market. Utilization of monopolistic market structure has allows to the hotel to position themselves in a better way in the market. Oligopolistic market structure represents a small number of organizations working in the same industry. However, organizations in hotel industry have to face huge amount of competition. Therefore, they possess very limited ability to affect the pricing structure of the market. In fact, hotel industry’s pricing structure is heavily depended on the demand supply equation of the market. As a result, hotels often charges high prices in the festive seasons. For instance, Grand Hyatt Melbourne utilizes different pricing structure in different season in order to maintain the revenue at the expected level. Since, demands for hotels are very high in these seasons. On the other hand, hotels have to maintain low pricing strategy at the time of lean season. Analysis of the market structure and competitors is extremely crucial, as it allows organization to implement the best possible plan for the maintaining competitive advantage in the market.

According to Mohammed, Rashid & Tahir (2014) decision-making is a process that organizations utilize to counter with several threats and opportunities so that organizations can able to fulfill its goals successfully. Generally, management decision making can be divided in to two categories namely non-programmed decisions and programmed decisions. Program decisions reflect routine decisions that managers have to take in order to maintain effective operational process. Non-program decisions reflects unusual situation where managers have to implement innovative managerial decisions to gain competitive advantage in the market.

As per the classical decision model, management of the organizations is rational and logical. Therefore, this model assumes that the managers are capable of taking decisions that will help organizations to gain competitive advantage in the market.

Figure 1: The classical model of decision-making

(Source: Mohammed & Rashid, 2012)

As mentioned in the article by Morrison (2013) marketing decision-making has to follow systematic procedure in order to have optimum impact on the market. Furthermore, systematic maintenance of the procedures will allow organizations to improve its position in the market. The systematic steps for decision-making are discuss as follows:

Figure 2: Decision making steps

(Source: McManus, 2013)

From the above figure, it can be assess that identification of the areas will have to be made by the organizations. Thereafter, organizations will have to frame the problem and also have to generate different alternatives that can have impact on the organizational success. Then, organizations will have to select a particular alternative that can have best possible impact on the promotional campaign of the organization. Then organizations will have to utilize the selected technique to get closer to the potential customers. In the final step of the decision-making, organizations will have to consider the feedback from the market. Since, considering feedback will allow organizations to identify the places or the areas of the businesses that have to be changed in order to implement management decision for the effective utilization of the business.

Critical analysis of the marketing functions:

As per the article by McDaniel & Gates (2013), operational and marketing planning is crucial for an organization to remain competitive in the market. Specifically for the hotel industry, which is experiencing huge amount of growth in continues manner. Therefore, marketing planning will allow utilize all the resources of the organization in an effective manner. Many studies have highlighted the fact that marketing planning can be separated into two parts such as operational planning and strategic planning. Operational planning is a crucial factor that organizations have to consider in order to implement effective marketing strategies effectively. Utilization of the effective operational processes will allow organizations to reduce the cost for maintain the business. As a result, it will allow organization to focus more on the marketing strategies (Winston, 2012). Operational planning will also allow organizations to develop tactics for the future development of the businesses. On the other hand, strategic planning of the organizations deal with shapes and structure of the business processes. It will also help organization to develop marketing objectives and goals so that they can able to implement business strategies in a much more effective way.

As per the article by Martin & Isozaki (2013), marketing planning involves setting goals and objectives, designing and implementation of the selected plan. It also involves controlling and monitoring of the plan that has executed. The marketing planning process involves planning, analysis, control and implementation. The marketing planning process is describes as follows:

Figure 3: Marketing planning process

(Source: Lahap et al., 2016)

However, Kotler et al. (2015) mentioned that implementation and control of the marketing plan depends on several internal and external factors that organization has to consider in order to have optimum effect on the business processes. In case of external factor, organizations have to focus on political, legal, social, technological factor, as it can create difficulties in the organizational developmental process. Specifically, in case of hotel industry, organizations have to consider political pressure in order to conduct the business effectively. Furthermore, government also implements different rules and regulation that affects the operational process of the organization. Technology is another factor that can have huge amount of impact on the business process of the hotel industry (Westwood, 2013). Since, different organizations is utilizing different technologically advance strategies that are enhancing the present level of the business for the organization. Thus, without the proper utilization of the technological factor, organization dealing in the hotel industry cannot able to prosper in the market.

In case of internal factor, organizations will have to focus to the factors like leadership, culture, processes, resources etc. For instance, leadership style is the key in developing marketing plan. Since, many studies have found that aggressive leadership style often leads to utilization of the aggressive marketing plan. Furthermore, leadership plays a key role in developing utilizing all the internal resources so that the marketing plan can be implemented in an effective manner. As per the article by Kotler et al. (2015), organizational culture also has greater impact on the marketing planning process. Specifically for the service industry, organizations will have to implement proper organizational culture so that it can able to sustain its position in the market.

Key outcome of the value cycle:

As mentioned in the article by Chan (2014) value cycle reflects a conceptual framework that plays crucial role for continues evaluation of the marketing planning process. Value chain cycle helps organization to develop momentum to add value on the marketing process. Value cycle also helps organization to analyze the factors like comparative advantage, competitive advantage, value proposition, market base performance effectively. As a result, it allows organizations to understand the effectiveness of the implemented marketing processes for the success of the organization. According to Hollensen (2015) majority of the organization utilize value cycle as an integrated process that includes governing objectives, priorities, performance scorecard and vision. Therefore, it allows organizations to measure the effect of the implemented strategies in the market. Outcome of the value cycle consists of seven prime steps that help organizations to manage both external and internal factors in a much more effective manner.

Figure 4: Outcome of the value cycle

(Source: Chan, 2013)

Segmentation analysis and its impact on the marketing decisions:

As per the article by Boone & Kurtz (2013), utilization of the segmentation analysis can allow organization to implement marketing decision much more effectively. Thus, segmentation analysis has the potential to help organization at the time of utilizing all the organizational factors. Many studies have highlighted that market segmentation is a kind of process that identify and analyze all the potential customers that can help organization to achieve their pre-developed target. In fact, segmentation analysis allows an organization to understand demographics of the customers. Therefore, it allows organizations to motivate potential customers to avail the services of the hotels.

As per the article by Boenigk & Schuchardt (2013), market segmentation helps organizations in breaking down the total market into distinct segments and subgroups. Therefore, it allows organization to utilize different type of marketing plan for the different segment or subgroups. It allows organizations to get closer to the potential customer, which eventually reflects through the increase in the revenue level. In fact, it helps organizations to utilize distinctive marketing mix strategy so that the selected marketing plan can able to create impact on each and every segment of the market. The prime objective of the market segmentation is to leverage scare resources appropriately. From different perspective, it ensures that all the elements of the marketing mix are designed to fulfill specific needs of the particular groups. Thus, it has special characteristics that are important to the implemented marketing strategy. Therefore, it also highlighted the importance of market segmentation for the proper utilization of the developed marketing plan (Yameen, 2013). The central focus of the market segmentation is based on the identified issue and grouping heterogeneous customers into a particular group.

As per the article by Ali et al. (2015), organizations can utilize several approaches at the time of segmenting the market. In the first approach, organizations will have to follow breakdown method. Since, allow organizations to group customers who share specific differences. In the second approach, organizations can use buildup method, as it allows organizations to consider all the customers that are different from each other. Many studies have highlighted that breakdown approach is the most popular approach that organizations consider at the time of segmenting the entire marketing in different groups and subgroups. It also highlighted that the buildup approach is very complex, as it focus on the characteristic of each and every individuals. Hover, organizations can utilize number of strategies for segmenting the market. According to Almeida et al. (2012), effectiveness of the segmentation depends on arriving at segments that are accessible, measurable, actionable, and differentiable. Measurable segment is implemented where segment size and related purchasing power are quantified. Accessible market segment reflects the degree to which an organization can able to reach its target segment efficiently. Many studies have also highlighted that segment must have to be substantial so that it can able to provide enough profit for the organization. In fact, lack of size of the selected segment can actually increases the cost level that organizations have to put in order to implement effective marketing plan.


From the above discussion, it can be assess that organizations will have to consider many factors in order to create impact on the overall effectiveness of the marketing plan. However, organizations will have to utilize all the factors in an effective way so that the marketing plan can able to fulfill its objectives. The report also highlighted different types of decision-making model that organizations utilize so that the planning can be implemented in an effective manner. It also highlighted that organizations have to maintain a systematic procedure at the time of developing any particular marketing plan for the organization. Since, utilization of the systematic procedure will allow organizations to analyze the value chain cycle in an effective manner. From the segmentation analysis, it can also be understand that utilizing only one type of marketing plan might not able to fulfill objectives of the organizations. Therefore, organizations have to utilize different marketing technique for different segment of the market, as it will help organization to get closer to the potential customers.


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