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Title: Lesson 4. Assessing Experience Economy Strategies of the Business


1
Lesson 4. Assessing Experience Economy Strategies
of the Business
2
Quick Links
  • 4.1 A 4E-based Marketing Plan to Help Define the
    Firms Position and Image
  • 4.2 4E-based Strategy Formulation
  • 4.3 Strategy Implementation and Evaluation
  • Assessment Tool I Marketing Plan Framework

3
Introduction
  • Lesson 4 provides business operators with
    practical background for developing a sound
    marketing plan for their business. It consists of
    three sections
  • 4.1. 4E-based marketing plan,
  • 4.2. 4E-based strategy formulation, and
  • 4.3. Strategy implementation and evaluation.

4
Introduction (continued)
  • The first section (4.1) introduces what a
    marketing plan is and how it can help business
    operators enhance their business, leading to
    increased profit. The second section (4.2)
    provides guidance and tools to analyze the
    current business situation so that the operator
    can have a better understanding of the business
    conditions from which to develop effective
    marketing strategies. The last section (4.3)
    presents ways of developing marketing strategies,
    implementing the strategies, and evaluating the
    strategy outcomes.

5
4.1 A 4E-based Marketing Plan to Help Define the
Firms Position and Image
6
4.1 A 4E-based Marketing Plan to Help Define the
Firms Position and Image
  • As noted earlier, a strong, highly differentiated
    business image attracts new customers as well as
    retains current customers. A marketing plan is
    important in positioning the business to be
    different from competing businesses in the minds
    of customers. A business operator uses the plan
    as a guide for decisions on improvement to
    content of advertising and choice of promotional
    events, so that customers form a strong image of
    the business, including its uniqueness.

7
4.1 A 4E-based Marketing Plan to Help Define the
Firms Position and Image
  • The present lesson provides a systematic
    approach to developing a well-designed marketing
    plan. Some of the reasons for having a marketing
    plan are
  • Aligns all marketing activities with the firms
    mission statement and long-term strategic plans
  • Helps operators/owners to review and think
    objectively through all steps in the marketing
    process
  • Assists in the budgeting process to match
    resources with marketing objectives
  • Creates a process to monitor actual against
    expected results
  • Helps position the firm competitively in the
    marketplace

8
4.1 A 4E-based Marketing Plan to Help Define the
Firms Position and Image
  • A marketing plan to help define effective 4E
    strategies
  • The marketing plan presented here focuses on
    developing Experience Economy (4Es)-based
    marketing strategies for a firm. The building
    blocks of a 4E-based marketing plan are presented
    in Figure 4-1 and they are discussed individually
    with a complementary worksheet in Assessment Tool
    I. Business operators should follow the stepwise
    directions and illustrations for each building
    block to develop their own effective marketing
    plan.

9
Figure 4.1 Building blocks of a 4E-based
marketing plan
10
4.2 4E-based Strategy Formulation
11
4.2.1 Mission statement
  • The very first task in a marketing plan is to
    review (or develop if absent) the mission
    statement of the business. The mission statement
    must answer the question, what is our business?
    The mission statement should express an
    organizations
  • Purpose
  • Approach to managing the business
  • Primary offerings
  • Target customers
  • Concerns for employees and the community (David,
    1995 Radtke, 1998)

12
4.2.2 Situation analysis
  • Situation analysis, also called environmental
    analysis, refers to collecting, analyzing, and
    interpreting information and trends that affect a
    company. An operator needs to constantly monitor
    these trends and conditions to estimate how the
    changes may affect the business. A primary goal
    of situation analysis is to identify current
    organizational strengths and weaknesses and
    emerging opportunities and threats (referred to
    as a SWOT analysis).

13
4.2.2 Situation analysis (continued)
  • The results of the situation analysis help
    operators determine the direction of their
    business, including the use of the 4Es. For a
    4E-focused marketing plan, situation analysis
    consists mainly of
  • Internal audit of offerings
  • Market trends analysis
  • Market potential analysis
  • Competitive analysis.

14
4.2.3 Internal audit of offerings
  • The business operator must conduct an internal
    audit aimed at identifying current strengths and
    weaknesses including the 4Es offered to the
    customer. The 4Es can result from a customers
    interaction with the sensory, physical and
    interpersonal components of the 4Ps of the firm
    Property, Product Presentation, Promotional
    Application, and People. Note that the 4Ps for
    the 4E-based marketing plan are slightly modified
    from the classic, product-oriented 4Ps of
    marketing (i.e., product, place, price, and
    promotion). Such modifications are necessary to
    aptly apply the concept of 4Es.

15
4.2.3 Internal audit of offerings (continued)
  • In combination, these 4Ps create the business
    experiential offerings. The present lesson will
    explain the 4Ps and provide an Assessment Tool
    I.3.1 to complete an internal audit of the
    business experiential offerings. This audit
    provides the operator with a better sense of the
    strengths or weaknesses in the depth and types of
    4Es that differentiate the business and where
    there may be room for improvement.

16
4.2.4 The 4Ps Property
  • To conduct an internal audit over the
    experiential nature of the sensory, physical, and
    interpersonal components of the business setting,
    the form (e.g., color, line, size) and content
    (i.e., emotional effect and message) of the
    following should be examined
  • Property becomes the stage for the business,
    including store, restaurant, hotel, and BB
    buildings and interiors, where customers interact
    with goods or partake of a service. Property also
    includes auxiliary assets such as delivery or
    shuttle vehicles that send a message to the
    customer about the business offerings.

17
4.2.4 The 4Ps Property (continued)
  • Property relatively permanent (i.e., physical
    and time-wise permanence) business assets such
    as
  • Architectural design elements
  • Interior design elements
  • Landscape design elements
  • Business name or location signage
  • Artwork
  • Business vehicles

18
4.2.4 Example of Property
19
4.2.5 The 4Ps Product Presentation
  • Goods and services are enhanced through sensory
    elements (e.g., music, scent) and physical
    elements (e.g., display units, props) of Product
    Presentation. Like music and props of a
    theatrical production, Product Presentation
    elements enrich the experience for the customer.

20
4.2.5 The 4Ps Product Presentation
  • Product Presentation easily changeable elements
    of the setting that surround and enhance goods or
    services including
  • Display units and props
  • Product labels
  • Product samples
  • In-store signage
  • Presentation materials, such as
  • Packaging, wrapping paper for retail products
  • Tableware, table linens, menus for food service
  • Bedding and linens for BBs
  • Music
  • Scents and tastes

21
4.2.5 Example of Product Presentation
22
4.2.6 The 4Ps Promotional Application
  • Experiential aspects of the business are
    announced and emphasized through Promotional
    Application. The firms Website can be one form
    of Promotions, but we will focus on other forms
    in the present lesson because they become sources
    for the Website design, as will be discussed in
    Lesson 5.

23
4.2.6 The 4Ps Promotional Application
  • Promotional Application informational outlets
    and activities for publicizing/promoting the
    business offering or name including
  • Advertisements
  • Brochures or catalogs
  • Banners
  • Newsletters
  • Stationary and business cards
  • Press releases
  • Public relations and special events

24
4.2.6 Example of Promotional Application
  • Example of Promotional Application

25
4.2.7 The 4Ps People
  • Personal attention and personalized service are
    strengths of many rural small businesses (Morris,
    1998). This suggests the potential of
    experiential offerings created through
    interactions with the staff, which is defined as
    People.

26
4.2.7 The 4Ps People (continued)
  • People qualities of staff and/or customers that
    affect customer experience including
  • Physical appearance, such as
  • Staff uniforms or costumes
  • Hairstyles and grooming
  • Interpersonal behavior, such as
  • Warmth, humor, interpersonal communication skills
  • Displaying or sharing of knowledge, skills, or
    experiences

27
4.2.7 Example of People
  • Example of People

28
4.2.8 Market trends analysis
  • Market trends are identified by analyzing
  • Customer behavior trends and preferenceand their
    changes over timefor the key business offerings
    (e.g., 4Es) of the business
  • Trends among business competitors in terms of
    focus of competition, emerging new competitors,
    modifications of offerings by key competitors,
    and new product developments that pose threats to
    the companys current offerings.
  • Industry trends as a whole, for example
    industry standards of offerings, general
    direction of industry movement, and other changes
    within the industry

29
4.2.8 Market trends analysis (continued)
  • Information relevant to these trends comes from
    sources such as
  • Chambers of commerce
  • Convention and visitors bureaus
  • Universities
  • Government agencies, such as small business
    development centers
  • Trade associations
  • Commercial organizations, such as marketing
    research firms and advertising agencies
  • The operator can also conduct research with
    his/her own customers to better understand market
    trends regarding changes in customers
    preference, including their response to 4E
    offerings.

30
4.2.9 Market potential analysis
  • In market potential analysis, the operator
    estimates the total demand for the business
    offerings. Although precise estimates are
    impossible in most cases, the operator tries to
    think out the best estimate through a logical
    process. For example, the operator can estimate
    whether the lodging business in a town is
    overbuilt or under-built (in a percentage term)
    by considering such factors as
  • total number of available guestrooms
  • average occupancy percentage by the competitors
  • total visitor volume

31
4.2.9 Market potential analysis (continued)
  • Whenever possible, all estimates should be
    expressed in concrete terms such as percent,
    number, and dollar. For example, the total
    demand of our target market is 2,250 rooms per
    month and by increasing Esthetic experience
    (e.g., enhancing design of the property), our
    company can enhance market share by 10.

32
4.2.10 Competitive analysis
  • In addition to analyzing the trends before, the
    operator should identify his/her main competitors
    and conduct an audit for each using the same
    Internal Audit checklist on Assessment Tool
    I.3.1. By using the same audit checklist, the
    operator can easily compare his/her company and
    competitors in terms of 4E offerings. The
    competitive analysis can be done and related
    information can be collected through shopping
    the competitor, interviews with customers of
    competitors, first-hand market research, and/or
    expert opinions.

33
4.2.11 SWOT analysis
  • After gathering trend, market potential, and
    competitor information, a SWOT analysis
    (Strengths, Weaknesses, Opportunities, and
    Threats) can be completed for the company and
    competitors. Typically, the strength and weakness
    of the business are identified from the internal
    audits, while market trends/potential and
    competitive analyses help identify emerging or
    neglected opportunities and threats that are
    external to the business. The Assessment Tool
    I.3.5 will help the operator construct a SWOT
    matrix.

34
4.2.12 Positioning
  • Positioning refers to placing a business clearly
    in the minds of customers by instilling a strong,
    salient, and positive image. An effective
    positioning should be able to address the SWOT
    identified before. Positioning begins with
    development of a strong theme that also fits the
  • Mission and core offerings (4Es in particular)
  • Market needs and preferences
  • Effective differentiation from those of
    competitors.
  • An example in Assessment Tool I.4 illustrates a
    firms positioning theme.

35
4.3 Strategy Implementation and Evaluation
36
4.3.1 Marketing objectives and strategies
  • Once the steps mentioned earlier are completed,
    the operator sets marketing objectives. In
    general, marketing objectives must be
  • Achievable and realistic
  • Expressed in clear numeric terms such as dollars
    (), percent (), number, or other quantitative
    measures (for example, increase the occupancy
    rate by 5 in the next year or increase the
    average seat turnover from 1.8 to 2.5 for dinner
    in the next year)
  • Time-specific--containing a specific business
    deadline for achieving the goals (for example,
    six months, next year, next two years, etc.)
  • Partially achieved by adding 4E strategies

37
4.3.2 4E offering strategies
  • To accomplish the marketing goals laid out
    before, the business operator needs to seek
    proper 4E offering strategies. In this lesson, we
    focus on developing a comprehensive 4E offering
    strategies. 4E offerings, here, are broadly
    defined to include not just tangible goods and
    instrumental services but also the 4Ps (Property,
    Product Presentation, Promotional Application,
    and People) that also contribute to the
    experiential offering.

38
4.3.2 4E offering strategies (continued)
  • First, developing 4E offering strategy requires
    (re)designing or selecting goods, services, and
    experiences to better meet the needs and
    preferences of the selected target market
    segments as well as addressing the SWOT for your
    organization. While considering all the analysis
    results and marketing objectives presented
    before, think about how you can specifically
    enhance value for the customer through 4E aspects
    of your total offerings.

39
4.3.2 4E offering strategies (continued)
  • For 4E offering strategy in general, the guiding
    principle of THEME (Pine Gilmore, 1999) will be
    helpful
  • Theme the experience Themeing an experience
    means creating an interesting storyline that
    helps the operator produce a unified set of
    design elements and messages through the 4Ps.
  • Harmonize impressions with positive cues The
    customers experience must leave indelible
    impressions. Impressions are the take-aways of
    the experience.
  • Eliminate negative cues Operators must eliminate
    anything that diminishes, contradicts, or
    distracts attention from the theme.

40
4.3.2 4E offering strategies (continued)
  • Mix in memorabilia The customer purchases
    memorabilia as tangible artifacts of experiences.
    You must develop and be able to sell memorabilia
    associated with the key experience you created.
  • Engage the five senses The more effectively an
    experience engages all the senses, the more
    memorable it will be.

41
4.3.2 4E offering strategies (continued)
  • For 4E offering strategies, Assessment Tool I.6.1
    provides detailed observations of the current
    offerings by the firm. It can be used to identify
    if a theme is carried through and where negative
    cues may exist that need the operators
    attention. In addition, Assessment Tool I.6.1
    provides helpful examples of 4E offerings
    classified into 4Ps.

42
4.3.3 Budget and resources
  • To implement the proposed marketing actions
    before, the operator must develop a budget to be
    allocated. It is often difficult to come up with
    a precise budget amount, but good estimates are
    necessary.
  • Develop and propose an estimated budget, with
    resources specified, for the 4E-added product
    improvement plan before
  • The budget and resources should be as detailed
    and realistic as possible each budget item may
    need brief justification
  • The budget must provide information on costs of
    materials at the unit level of materials planned
    for improvements
  • Include the advertising budget in the final
    marketing budget.

43
4.3.4 Marketing control plan
  • A marketing control plan provides a roadmap for
    precisely implementing the proposed marketing
    actions and periodically checking the progress
    toward goal achievements. The operator must
    develop a master chart that shows detailed time
    plans for implementing the suggested actions from
    above. To be included in the chart are
  • Each proposed marketing actions implementation
    (use colors for different major actions) see an
    illustrative example in Assessment Tool I.8.
  • Time sequence and time frame of each action
    implementation
  • Plans to check the progress and measure the major
    implementation outcomes

44
4.3.5 Summary of Lesson 4
  • This lesson provided business operators with a
    step-by-step framework for developing a marketing
    plan based on the core concepts of experience
    economy, i.e., 4Es. The framework was accompanied
    by a practical Assessment Tool to facilitate the
    actual process of preparing a marketing plan. The
    framework began with the mission of the business
    and proceeded with situation analyses in which
    operators were directed in how to analyze
    internal and external business environments as
    well as competition. The next step was to segment
    the market and position the business, followed by
    ways to establish market oriented marketing goals
    and objectives for the business. The framework
    then targeted an important section, named action
    plan, to guide business operators in developing
    effective product, pricing, and promotional
    strategies. The final section of the framework
    showed business owners how to develop marketing
    budgets and control plans. Business owners are
    not expected to have extensive marketing
    knowledge or skills to follow the lesson and
    apply it to their business.

45
References
  • Kotelnikov, V. (2005). Corporate vision, mission,
    goals, and strategies. Retrieved June 02, 2005
    from http//www.1000ventures.com/business_guide/cr
    osscuttings/vision_mission_strategy.html.
  • Kotler, P., Bowen, J. T., Makens, J. (2003).
    Marketing for hospitality and tourism, 3rd ed.
    Prentice Hall Upper Saddle River, NJ.
  • Morris, M. (1998). Entrepreneurial intensity
    Sustainable advantages for individuals and
    organizations. Westport, CT Quorum Books.
  • Pine, B. J., Gilmore, J. (1999). The experience
    economy. Boston, MA Harvard Business Review
    Press.

46
References (continued)
  • Radke, J. M. (1998). How to write a mission
    statement. Retrieved June 01, 2005 from
    http//www.tgci.com/magazine/98fall/mission.asp.
  • Schmitt. B. Simonson, A. (1997). Marketing
    aesthetics. New York Free Press.
  • Images
  • www.cafedonpablo.com/main_pages/wholesale.shtml
  • http//www.innisbrook.com/store/images/wedding/398
    .jpg
  • http//www.visitpa.com/visitpa/visitDetailPrintAd.
    pa?nameBeaverCountyRecreationandTourismDepar
    tment
  • http//www.foodzcatering.com/gallery_pop_up/staff_
    turquoise.htm

47
Assessment Tool I Marketing Plan Framework
48
This Assessment Tool contains real world
examples, guiding principles, practical
worksheets, and information that can help you
complete a 4E-based marketing plan for your
business. This Tool can serve as companion
activities for Lesson 4.
Click to download this assessment tool in MS
Word format.
49
Assessment Tool I.1 Executive summary
  • This is a summary of the marketing plan, so it is
    usually prepared after the plan has been
    completed. It should summarize
  • Situation analysis results
  • Marketing goals and objectives
  • Proposed marketing actions (strategies and
    tactics) to meet goals and objectives
  • Proposed marketing budget and key resources that
    are necessary to implement the marketing actions
  • Expected outcomes of the proposed marketing
    actions

50
Assessment Tool I.2 Mission statement
  • This statement summarizes the guiding principles
    for your business. Examples of mission statements
    are shown on the following slides with the type
    of information to be included. The three examples
    are presented in the way that you can see one
    from a well-established government organization
    and two from small businesses like yours. Try one
    on your own after examining the examples.

51
Assessment Tool I.2 Mission statement (continued)
  • Federal Food and Drug Administration
    (http//www.fda.gov/opacom/morechoices/mission.htm
    l)
  • The FDA is responsible for protecting the
    public health by assuring the safety, efficacy,
    and security of human and veterinary drugs,
    biological products, medical devices, our
    nations food supply, cosmetics, and products
    that emit radiation. The FDA is also responsible
    for advancing the public health by helping to
    speed innovations that make medicines and foods
    more effective, safer, and more affordable and
    helping the public get the accurate,
    science-based information they need to use
    medicines and foods to improve their health.

52
Assessment Tool I.2 Mission statement (continued)
  • The View Restaurant at Indian Kettles
    (http//www.indian-kettles.com/lake_george_restau
    rant.html)
  • Our mission is to provide only the freshest
    and finest foods possible at a reasonable price
    to our guests. In addition, we will provide the
    highest degree of service possible. We will treat
    each and every one of our guests like family
    visiting our home for a festive occasion. We will
    strive to keep all areas of our Lake George
    restaurant spotless. We will protect Lake George
    and our environment regardless of cost to
    ourselves. We realize that without our customers,
    our business would not exist and we welcome the
    opportunity to serve them.

53
Assessment Tool I.2 Mission statement (continued)
  • Beaver Lake Cottage (http//www.beaverlakecottages
    .com/missionstatement.htm)
  • Our goal is to provide the ambiance and
    amenities for our guests to Relax, Reflect and
    Renew.
  • Our primary measure of achievement shall be
    our Repeat and Referral business.
  • We shall provide a work environment that will
    encourage our employees to make our goals
    possible.
  • If we are ever in doubt about any personal or
    business decision, we shall ultimately rely on
    the Golden Rule as our Final Answer.

54
Assessment Tool I.3 Situation analysis
  • Situation analysis will help you understand the
    current and near-future business activities you
    and your competitors are using. By conducting
    this analysis you will understand how customers
    respond to your offerings and those of your
    competitors. The results of this analysis,
    therefore, provide a basis for your marketing
    strategy development later on.

55
Assessment Tool I.3.1 Internal audit
  • Provided next is a checklist that business owners
    can use when conducting an internal audit of
    their offerings. You can use this checklist as a
    guide and can modify it to suit the elements of
    your business.

56
Assessment Tool I.3.1 Internal audit (continued)
  • The internal audit allows you to systematically
    identify components of the 4Ps (Properties,
    Product Presentation, Promotional Application,
    and People) within your business that enhance
    experiential value for your customer. Sometimes
    you are too close to your business to accurately
    assess these experiential elements. Therefore, we
    encourage you to gather assessments from staff,
    customers, or vendors. The chart next lists many
    of the elements constituting the 4Ps of a
    business that can enhance customer experience.
    You can place the description of each element in
    the column under the appropriate 4Es.

57
Assessment Tool I.3.1 Internal audit (continued)
  • 4E Offerings
  • Educational ExperienceIdentify components of the
    4Ps (referring to the leftmost column in the
    table next) that contribute to customers
    enhanced knowledge, skill, personal development.
  • Esthetics Experience Identify components of the
    4Ps that contribute to a well-designed, unique
    physical setting in which a customer feels
    immersed.
  • Escapist Experience Identify components of the
    4Ps that contribute to active participation in
    creating a sense of a different place or time for
    a getaway.
  • Entertainment Experience Identify components of
    the 4Ps that contribute to engaging performances
    for the customer.

58
Assessment Tool I. 3.1 Internal audit checklist
for 4E offerings
59
Assessment Tool I. 3.1 Internal audit checklist
for 4E offerings
60
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
61
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
62
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
63
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
64
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
65
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
66
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
67
Assessment Tool I.3.1 Internal audit checklist
for 4E offerings
68
Assessment Tool I.3.2 Market trend analysis
  • To understand what is going on in the
    marketplace, you may want to analyze market
    trends as follows
  • Customer trends identify key trends in customer
    preference for each of 4Es by asking questions
    such as
  • What is the demographic of your customers (age,
    gender, income, occupation, etc)?
  • Why would these customers be interested in
    some/all of the 4Es you offer?
  • How often do customers buy from you?
  • What is your customers willingness to pay for
    the 4Es you offer?

69
Assessment Tool I.3.2 Market trend analysis
(continued)
  • Competitor trends try to understand what your
    competitors are offering
  • Who are in a head-to-head competition with you?
  • What is the focus of the competitions offerings?
  • Where are they located?
  • What are your competitors primary strengths, as
    compared to your business?
  • What are your competitors doing in terms of
    offering the 4Es?
  • Are there newly opened businesses that may
    directly compete with you in the future?

70
Assessment Tool I.3.2 Market trend analysis
(continued)
  • Industry trends Be aware of how the industry
    you are in changes as a whole and think about how
    you can stay ahead of such changes. Ask, for
    example
  • Which companies are the major players in the type
    of business you are in?
  • What are the major changes in the way similar
    companies market their offerings?
  • How widely are 4E offerings adopted in the
    industry you are in?
  • In general, what do you foresee in terms of the
    ways you and your competitors do business in the
    near future?

71
Assessment Tool I.3.3 Market potential analysis
  • Estimate the total demand for your offerings and
    estimate how demand can be increased by adding
    some selected 4E offerings. It is important not
    only to look at current demand for your
    offerings, but to realistically assess potential
    demand under the new 4E offerings added. (see
    Lesson 4.2.9. for example).

72
Assessment Tool I.3.4 Competitive analysis
  • Conduct an internal audit of your key
    competitors. This requires determining how they
    actually conduct business activities and
    decisions, so your access to this information may
    be limited. It may be necessary to discuss with
    your staff their ideas regarding key competitive
    strengths and weaknesses of your competitors.
    Your suppliers or customers can often provide
    insights into what your competitors are doing if
    they are also familiar with your competitors.

73
Assessment Tool I.3.5 SWOT analysis
  • A SWOT (strengths, weaknesses, opportunities, and
    threats) matrix can be constructed next to
    visually summarize key competitive elements for
    your business and your competitors with a focus
    on the 4Es.

74
Assessment Tool I.3.5. SWOT analysis (continued)
  • SWOT Matrix

Note You may want to add columns to include
additional competitors as necessary.
Strengths and weaknesses are based on the
internal audits of 4E offerings, while
opportunities and threats are based on analyses
of external factors such as market
trends and competitive trends.
75
Assessment Tool I.4 Position your business
  • By now, you should have a good idea of what is
    your SWOT and need to think about how to address
    your SWOT at a reasonable cost. One good way to
    address them is to build a strong, unique
    business image or theme based on your strengths
    (S) and opportunities (O) and communicate it to
    your customers. You may actively deal with
    weaknesses (W) and threats (T) as well, but, by
    focusing on what you can do best, you still can
    differentiate your business from your
    competitors. Such a differentiation is a starting
    point for business success.

76
Assessment Tool I.4 Position your business
(continued)
  • To effectively position your business in the
    minds of your customers, you need to develop a
    strong coherent theme for your business so that
    the customer can form a clear impression of your
    business image. The following example shows the
    position or theme statement of a restaurant.

77
Assessment Tool I.4 Position your business
(continued)
  • Jungle Jims Restaurant Bar, for example, has a
    positioning theme as follows (http//www.jungle-ji
    ms.com/rest/page_2.html)
  • Convenience
  • Customers do not have to "dress up" to go out to
    dinner. These are informal restaurants designed
    to serve customers in relaxed, comfortable
    environment. However, they also work well for
    those who are "dressed up" because of their
    richly decorated, up-scale design.
  • Family Oriented
  • Perfect for all occasions, birthdays to proms,
    everyone has a reason to celebrate at casual
    theme restaurants. These restaurants accommodate
    children without Mom and Dad having to worry
    about appropriate restaurant behavior.

78
Assessment Tool I.4 Position your business
(continued)
  • Entertainment Value Casual theme restaurants
    provide entertainment to their customers via
    design, decoration, music, food preparation and
    presentation employee outfits and an
    ever-present attitude of fun for all. Special
    holiday promotions contribute to the on-going
    excitement and entertainment. By giving children
    something to do with their energies, parents can
    also enjoy a comfortable, relaxed meal.

79
Assessment Tool I.5 Marketing goals and objectives
  • State your marketing objectives in realistic,
    clear, and measurable terms. Think about how you
    can relate the 4E offerings you have identified
    as realistic for your customers to the marketing
    objectives stated here. Examples are provided in
    Lesson 4.3.1.

80
Assessment Tool I.6 Marketing action plans
  • Marketing actions are means of achieving your
    marketing goals stated above. These actions must
    be realistic and help you position your business
    as planned above, while addressing your SWOT and
    market and industry trends.

81
Assessment Tool I.6.1 4E offering strategies
  • 4E offering strategies mainly concern enhancing
    your offerings overall. Use the results of the
    Internal Audit from previous slides to gather
    ideas for improving business offerings overall.
    Examples are shown in the chart next for a
    variety of rural small businesses.
  • The 4Ps (Property, Product Presentation,
    Promotional Applications, and People) can
    contribute to enhancement of the 4Es. The
    following tables provide examples of how aspects
    of the 4Ps may contribute to business offerings
    from the 4Es in accommodation/BB, restaurant,
    retail, and rural tourism marketing.

82
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Educational
    experience

83
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Educational
    experience

84
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Esthetic
    experience

85
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Esthetic
    experience

86
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Entertainment
    experience

87
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Entertainment
    experience

88
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Escapist
    experience

89
Assessment Tool I.6.1 4E offering strategies
(continued)
  • Examples of the 4Ps contributing to Escapist
    experience

90
Assessment Tool I.7 Budget and resources
  • Developing a comprehensive marketing budget
    requires you to specify all resources needed to
    implement the proposed marketing actions earlier.
    Your budgeting may closely follow the cost items
    inherent in your marketing action plans before.
    First, specify all necessary cost elements or
    items and obtain a real estimate for each cost
    element. The cost elements can be systematically
    broken down as exemplified in the table below. In
    addition, all resources required to implement
    your marketing actions must be included in the
    budget.

91
Assessment Tool I.7.1 Sample cost table for
marketing actions
This dimension should include all cost elements
required for advertising and promotion plans
developed under the Marketing Action Plan section.
92
Assessment Tool I.8 Marketing plan time table
  • Marketing plans are easier to follow and
    implement when they are put in a comprehensive
    time table. The following is an example of part
    of a marketing plan time table the table can be
    expanded to include many more marketing action
    plans.

93
Assessment Tool I.8 Marketing plan time table
(continued)
94
Assessment Tool I.8 Marketing plan time table
(continued)
  • Once a marketing plan time table is completed,
    the business owner needs to determine how the
    outcomes of each action will be evaluated and
    when or how often they will be checked over the
    marketing plan period. Such a review and revised
    plan is important to prevent waste in marketing
    resources.
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