Strategic Marketing Report: Analysis of Hilton and Marriott Strategies

This report delves into the realm of strategic marketing, specifically within the hospitality industry, offering a comprehensive analysis of key concepts and practical applications. It begins by defining the role of strategic marketing in organizations and its relationship with corporate strategy, emphasizing its importance in achieving competitive advantage and enhancing profitability. The report then examines the development of marketing strategies, including assessing products, identifying target audiences, analyzing competitors, and setting marketing budgets. Furthermore, it explores corporate-level decision-making, such as setting missions and visions, and the influence of these decisions on business and functional levels. The report also assesses approaches to competitive positioning, internal and external environmental analysis, and the integration of these analyses. Finally, it identifies strategies for competitive advantage, analyzes marketing communication strategies, and provides recommendations for marketing plan implementation, using case studies of hospitality giants Hilton and Marriott to illustrate these concepts. The report concludes by summarizing the key findings and implications for strategic marketing in the hospitality sector.

STRATEGIC MARKETING
1 | P a g e

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
1.1 Role of strategic marketing in organization...........................................................................3
1.2 The relationship between corporate and marketing strategy.................................................4
1.3 Analyzing the way in which marketing strategy is developed..............................................4
3.1 Decision and choices which are made at corporate level......................................................5
3.2 Assessing the way in which decisions influence the marketing at business and functional
level..............................................................................................................................................6
3.3 Analyzing approaches to competitive positioning of businesses...........................................6
ACTIVITY 2....................................................................................................................................7
2.1 Evaluating approaches to internal environmental analysis....................................................7
2.2 Evaluating approaches to external environmental analysis...................................................7
2.3 Explaining the way in which internal and external analysis are integrated...........................8
ACTIVITY 3....................................................................................................................................8
4.1 Identifying a range of strategies that can contribute to competitive advantage of business..8
4.2 Analyzing marketing communication strategies for business...............................................9
4.3 Analyzing and implementing the marketing strategies........................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
2 | P a g e

INTRODUCTION
In today's competitive world, marketing is the core element which assists in increasing
the sales and in attaining the competitive advantage. However, it is essential for marketing
department to plan effectual marketing strategy with an aim to achieve maximum profit and to
sustain the business for a long run. It also provides direction which helps the firm to create their
own plan with an aim of attaining varied types of objectives such as increasing customer
satisfaction and enhancing the business profitability (Cravens and Piercy, 2008). In the present
report, there are various case activities which have been discussed. Thus, all these scenarios
focus upon the main objective which is of building strategic marketing plan for the prospective
customers. Further, the report also assesses the ways through which strategic marketing decisions
are undertaken by the firm. In the current report, the consultancy firm, 'Total Marketing
Solutions' (TMS) provides support and advice to its prospective new clients of hospitality
industry such as Hilton and Marriott that are focusing to develop their strategic marketing plan.
ACTIVITY 1
1.1 Role of strategic marketing in organization
As per the American Marketing Association (AMA), strategic marketing helps the firm to
gain competitive advantage within market and to enhance the sales and profitability. Therefore,
TMS is required to provide relevant information about strategic marketing to its potential clients
such as Hilton and Marriott. Following is the importance of strategic marketing within firm-
 Streamlines product development- Through developing marketing strategy, it helps the
organization to develop effectual products and services with the best chances to gain
profits. However, marketing strategy plays a crucial role to streamline the product
development process of organization. Thus, it starts through carrying out market research
and ends with fulfilling the needs and requirement of customers (Polonsky and
Rosenberger, 2001). Further, it helps in providing the required products and services with
an aim to attain the satisfaction among clients.
 Develop brand image- Furthermore, strategic marketing also helps Hilton and Marriott
to build positive brand image of hotel in the minds of clients. For instance, if businesses
undertake the modern and innovative technology for promoting their products and
services, it helps them to attract large number of customers. Thus, it creates a distinct
3 | P a g e

brand image of firm among clients and they intend to utilize the products and services of
firm at regular intervals (Larreche, 2005).
1.2 The relationship between corporate and marketing strategy
It can be evaluated that there is a strong relationship that exists among corporate and
marketing strategy of organization. However, it can be analyzed that Hilton hotel possess the
mission of delivering quality care and support to the customers which ultimately results in high
sales and profitability. With regard to perform the same, management of hotel is required to
provide proper information and knowledge about the type of unique products and services which
they are offering as compared to other rivals. Through this, it helps in attracting large number of
customers and in raising the sales (Cooper, 2000). However, in order to attain the stated goal,
consultancy firm provides information to hotel in regard to adopt effective marketing promotion
tools such as social media websites, newspapers etc. The specified tools and techniques would
help the firm to accomplish its mission of attracting potential clients and thereby, increasing its
sales and profitability.
Similarly, Marriott hotel has an aim to improve the satisfaction of its customers through
introducing attractive products and services at the marketplace. Thus, in order to attain such type
of objective, it is essential for the hotel to have strong connection with their marketing
department. Further, by carrying out proper market research, it assists the organization to
determine specific areas which requires to be extended (Wilson and Gilligan, 2012). However, it
can be analyzed that the marketing and corporate strategy are interconnected and interlinked with
each other.
1.3 Analyzing the way in which marketing strategy is developed
There are varied numbers of ways which can be adopted by the prospective clients of
TMS with the purpose to develop an effectual marketing strategy. Following are the steps that
need to be undertaken are as follows-
 Assessing the products and services offered by business- In this, the marketing
manager of Hilton and Marriott hotel is required to deliver proper information to guests
about the products and services being offered by them. Thus, through providing such type
of information, it helps in developing an effective marketing plan to attract the potential
clients (West, Ford and Ibrahim, 2015).
4 | P a g e

 Determining the target audience- Here, the marketing manager is required to collect
information about the type of customers which they are targeting for the particular
products and services. For instance, it is essential for the management to enhance its
knowledge regarding the requirement of selected target market because it helps them to
adopt effectual marketing strategy (Moutinho, 2011).
 Collection of information about rivals- It is essential for the hotel to collect necessary
information about the available competitors as it helps them to adopt the best marketing
strategy for firm. For instance, marketing department of Hilton hotel has assessed that its
rivals are using social media websites to attract the potential guests. Then, in such type of
condition, Hilton is also required to adopt specific action plan with an aim to increase the
sales and profitability of hotel (Beetles and Strong, 2014).
 Determining marketing budget and adopting appropriate promotional technique-
At the end, it is essential for the management of hotel to set suitable marketing budget for
business. Thus, through deciding the budget in advance, it helps the firm in selecting
appropriate promotional means. For instance, Hilton and Marriott has set very high
marketing budget, thus in such situation, firm can adopt varied promotional techniques in
order to attract large number of population worldwide (Navarro and et.al., 2011).
3.1 Decision and choices which are made at corporate level
There are numerous decision and choices that are to be made at the corporate level. One
of the crucial decisions that are required to be made is of setting the mission and vision of
company. For example, hospitality firm like Hilton and Marriott can set their direction by
formulating effective mission and vision. Also, at this level, management of hotel is required to
make decision with regard to select an appropriate strategy. Thus, in order to make such type of
decision, enterprise is required to take assistance from Ansoff matrix (Morgan, 2012). However,
such type of tool is effective as it helps in presenting strategic choices and decisions made by
firms at corporate level. By the selection of Ansoff matrix, it assists the business to enhance its
sales and profits.
Ansoff matrix adopts different types of tactical decisions and choices such as product
development, market development, diversification and market penetration. However, the
effectual decisions considering all these factors are made at the corporate level. Also, the top
management undertakes decision of attracting the clients and offering them innovative products
5 | P a g e

and services. Furthermore, in order to make such decision, corporate level individuals can adopt
porter’s generic model. Thus, such type of model involves cost leadership and differentiation
strategy (Nasir and et.al., 2013). The top management who resides at corporate level is required
to select differentiation strategy after assessing the market conditions of firm.
3.2 Assessing the way in which decisions influence the marketing at business and functional
level
There are varied departments such as finance, HR, marketing and sales etc. at business
and function level that performs the specific type of job. However, the decisions taken by
individuals at the corporate level give necessary impact upon the functions executed by the stated
departments. The corporate level team of Hilton hotel has adopted diversification strategy in
which it has decided to expand its operations in the retail sector. Thus, with regard to achieve
such mission, hotel has to involve and take assistance from varied functional and business level
departments (Panda and Mishra, 2012). Also, business is required to recruit skilled and talented
employees for the implementation of diversification action plan. Further, the human resource
department of firm is required to meet the needs of employees so that they can be motivated to
work hard and to attain the set goals. However, hotel is expanding its operations in the retail
sector, therefore, it is essential to provide information to potential customers about the same.
Thus, such objective can be attained by the marketing department of Hilton hotel.
3.3 Analyzing approaches to competitive positioning of businesses
It is essential for the management of firm to analyze the approaches which can be
adopted by the manager of Hilton and Marriott hotel in order to build competitive position in the
marketplace. However, setting clear goals and objectives can be one of the approaches that are
adopted by hotel. Thus, the success of organization largely depends upon the objectives which
are being set by them. In order to improve the sales and profits, business is required to develop
efforts in terms of attaining the stated goals (Payne and Frow, 2014). Additionally, with an aim
to build competitive positioning businesses like Hilton and Marriott, it can introduce them as a
leader of the hospitality market and thus, will offer unique products and services to its clients.
Moreover, in order to become the market leader, manager of hotel is required to minimize
its prices which help them to attract the potential guests. Thus, with the assistance of such
technique, it helps both the firms to gain competitive advantage among rivals. Furthermore, hotel
6 | P a g e

can also gain competitive advantage through undertaking niche marketing strategy. With the help
of such action plan, it helps the firm to focus upon the small market segment and to assess their
needs. For instance, Hilton and Marriott are the supreme hotels that targets high class clients who
are able to pay high prices for the offered services (Proctor, 2014). Thus, delivering the services
to premium class guests is regarded as the competitive edge for both the organizations.
ACTIVITY 2
2.1 Evaluating approaches to internal environmental analysis
It is essential for Hilton and Marriott hotel to carry out the internal environmental
analysis at the time of making any decision. However, by adopting value chain and resource
based approaches, it can be effectively performed by the hotel. The value chain approach is
useful as it assists in defining the firm's core competencies and activities. Further, it divides the
whole activity of business into two parts i.e. primary and supportive. Such type of analysis is
effectual as it describes regarding the specific process that can be adopted by the businesses like
Hilton and Marriott with an aim to add value to the services (Nijssen and Frambach, 2013).
However, it can be analyzed that value chain approach can be ineffective when certain
alterations occur in the external environment. Thus, organization needs to change its process
with the motive to add value to the existing products and services and to attract the customers.
However, another approach which can be adopted is resource based approach that helps the hotel
to determine its resources and capabilities. However, assessing both the information plays a
critical role in the process when business formulates their marketing strategy. For instance,
through carrying out the resource based analysis, manager of Hilton hotel can determine that
whether it has significant amount of resources in the form of HR and finance with regard to meet
the marketing objectives or not (Doherty and Lu, 2012). Thus, on the basis of stated information,
varied decisions will be undertaken by the firm.
2.2 Evaluating approaches to external environmental analysis
There are two basic types of approaches to the external environmental analysis such as
PESTEL and Competitor analysis. PESTEL is an effective tool as with the assistance of this,
hotel can collect information related to varied factors that might create hurdles in the process of
developing and implementing marketing plans. Further, by adopting such approaches, it helps
Hilton and Marriott to collect information about the market forces. However, undertaking
7 | P a g e

PESTEL analysis helps in providing the information about different factors such as political,
economic etc. which may influence the operations of firm. At the same time, such tool does not
provide information about the strategy that is required to be adopted by firm with the purpose to
deal with the stated factors. On the other hand, carrying out competitor analysis approach helps
in analyzing the external environment of firm (Quinton and Fennemore, 2013). Thus, with the
help of such tool, both the hotels can collect detailed information about the available competitors
of firm in market. Also, businesses can enhance their understanding related to the type of
strategy which is being adopted by the competitors.
2.3 Explaining the way in which internal and external analysis are integrated
Likewise, if firm carries out separate analysis of both internal and external environment,
it is impossible for them to make decision with regard to adopt one particular component only.
Therefore, it is essential for business to integrate between the internal and external analysis.
However, through adopting tool of SWOT analysis, an effectual integration can be established
by the hotels between both; the internal and external environment. For example, the factors
related to strengths and weaknesses provide information about the internal environment of hotel
(Ogden and Ogden, 2014). However, components such as opportunities and threats help to assess
the external environment of company. However, by using such tool, manager of Hilton and
Marriott hotel can take certain strategic decision about the operations of firm in the market.
Thus, it helps business to attain required enhancement in their sales and profitability.
ACTIVITY 3
4.1 Identifying a range of strategies that can contribute to competitive advantage of business
It involves a range of strategies which can be adopted by the manager of Marriott hotel in
order to gain competitive advantage in market. Following are the strategies that can be adopted -
 Segmentation- By adopting such strategy, it helps business to divide the total market of
firm into different sub segments. Such strategy can be adopted by the management of
Marriott with the purpose to perform proper segmentation of its products and services.
Thus, in order to perform the same, organization can adopt demographic segmentation
criteria in which age, gender and income is used. For example, hotel can segregate its
services on the basis of income of customers (Jaakkola, 2006). Thus, for high income
class people, hotel can plan unique products and services so that it can be attracted
8 | P a g e

towards firm. Also, services that involve additional benefits can be given by the
organization to those buyers who belong to superior income class.
 Targeting- It is another strategy which can be adopted by business in order to gain
competitive advantage. For instance, it is essential for Marriott hotel to adopt
differentiated targeting strategy so that it would help the firm to develop varied types of
promotional messages to different types of clients. Thus, by undertaking such type of
targeting tactic, it helps the hotel to gain competitive advantage with an aim to attract
potential customers (Strategic marketing, 2015).
 Innovation and development of products- Furthermore, it is another method that
Marriott hotel can adopt with an aim to develop distinct brand image of its products and
services in the marketplace. In context to this, Marriott hotel is required to introduce
innovative products and services in business which has not been introduced by any other
competitor. Thus, it helps the business to attain success in the market and in giving tough
competition to rivals as well (Larreche, 2005).
4.2 Analyzing marketing communication strategies for business
It can be evaluated that different marketing communication strategies can be adopted by
the manager of Marriott hotel with the purpose to spread information about its services among
prospective buyers. Following are the strategies which can be adopted by the firm -
 Adopting social media websites- Marriott hotel management can adopt such strategy in
order to reach at large number of individuals that resides at different locations. However,
advertising through social media websites such as Facebook, Twitter and Google+ assists
in providing useful information to the prospective buyers. Thus, management is required
to undertake such promotion tool as it helps in attracting various guests and in enhancing
the sales and profitability (Moutinho, 2011).
 Advertising through newspapers- Further, it is another effectual promotional technique
that helps in providing information to various customers through the help of newspapers.
It helps the marketing department of firm to deliver relevant information by adopting
newspapers and magazines and thus, leads to attract a large mass.
 Advertising on television- Such method can also be adopted by the marketing
department of Marriott hotel with an aim to target the particular segment of clients. For
instance, if hotel wants to attract business class customers towards its superior quality
9 | P a g e

services, then in this case, firm is required to place advertisement on business news
channels and it is needed to attract wide range of travelers (Cooper, 2000).
4.3 Analyzing and implementing the marketing strategies
Following is the process which involves marketing strategies that needs to be
implemented within firm are as follows-
 Evaluating business objective- It is the first and foremost step in which manager of
Marriott hotel is required to make decision about the particular objective that business
needs to attain. For example, main aim of hotel is to enhance its sales and profitability.
Therefore, marketing department is required to analyze such objective and then to
execute the operations in particular way so that results can be attained within specified
time period (Morgan, 2012).
 Adopting appropriate marketing strategy- Here, it is essential for the management of
hotel to adopt effective marketing strategy. Thus, in order to achieve such objective, it is
crucial for Marriott hotel to adopt social networking tactic so that large number of people
can be attracted at a particular point of time.
 Selecting marketing team- In this, business is required to assess that whether they
possess the team of skilled human resources or not so that promotion activity can be
executed effectively. However, business identifies that they do not possess skilled
individuals in order to promote the business on social networking sites then they need to
organize training and development sessions to attain the targets (Proctor, 2014).
 Implementation of action plan- At the end, after performing all these activities,
business is required to implement the selected strategy in order to attain the specified
objectives.
CONCLUSION
From the accomplished report, it can be evaluated that it is essential for the marketing
department of firm to carry out the market research and to focus on right product and service in
order to sustain the business. Also, Marriott is required to promote its innovative products and
services through social media sites and to gain competitive advantage in the market.
Furthermore, businesses are required to collect proper information and knowledge regarding the
rivalry products and services so that effectual marketing strategy can be adopted. Moreover, it
10 | P a g e

has also been evaluated that the corporate and marketing strategy of firm are inter-related and
interconnected with each other.
11 | P a g e

REFERENCES
Books and Journals
Beetles, A. and Strong, C., 2014. Special Issue of Journal of Strategic Marketing on ‘Adding
value to marketing education: best practice teaching in a modern education environment’.
Journal of Strategic Marketing. 22(6). pp. 561-561.
Cooper, L. G., 2000. Strategic marketing planning for radically new products. Journal of
marketing. 64(1). pp. 1-16.
Cravens, D. and Piercy, N. F., 2008. Strategic marketing. McGraw-Hill Irwin.
Doherty, N. and Lu, F. V., 2012. Strategic Marketing: Models and Plans. Service Science
Research. Strategy and Innovation: Dynamic Knowledge Management Methods:
Dynamic Knowledge Management Methods. 417.
Larreche, J. C., 2005. Marketing management: a strategic, decision-making approach. McGraw-
Hill/Irwin.
Morgan, N. A., 2012. Marketing and business performance. Journal of the Academy of
Marketing Science. 40(1). pp. 102-119.
Moutinho, L., 2011. Strategic management in tourism. CABI.
Nasir, S. and et.al., 2013. Significance of customer relationship management in strategic
marketing decisions: A study on banking sector of Pakistan. Interdisciplinary Journal of
Contemporary Research in Business. 4(10). pp. 575.
Navarro, A. and et. al., 2011. Integrated model of export activity: analysis of heterogeneity in
managers' orientations and perceptions on strategic marketing management in foreign
markets. Journal of Marketing Theory and Practice. 19(2). pp. 187-204.
Nijssen, E. J. and Frambach, R. T., 2013. Creating customer value through strategic marketing
planning: A management approach. Springer Science & Business Media.
Ogden, J. R. and Ogden, D. T., 2014. Utilizing a strategic marketing approach to managing
marketing communications. Bridgepoint Education.
Panda, J. K. and Mishra, A., 2012. Internet Advertising: A Strategic Marketing Tool for Brand
Building. Kushagra International Management Review. 2(1). pp. 147.
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing
imperative. Journal of Service Management. 25(2). pp. 213-227.
Polonsky, M. J. and Rosenberger, P. J., 2001. Reevaluating green marketing: a strategic
approach. Business Horizons. 44(5). pp. 21-30.
Proctor, T., 2014. Strategic Marketing: An Introduction. ROUTLEDGE.
12 | P a g e

Quinton, S. and Fennemore, P., 2013. Missing a strategic marketing trick? The use of online
social networks by UK charities. International Journal of Nonprofit and Voluntary Sector
Marketing. 18(1). pp. 36-51.
West, D., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press.
Wilson, R. M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Online
Jaakkola, M., 2006. Strategic Marketing and Its Effect on Business Performance: Moderating
Effect of Country-specific Factors. [PDF]. Available through:
<http://www.stratmark.fi/wp-content/uploads/2006/11/Thesis_Jaakkola_FINAL.pdf>.
[Accessed on 16th September 2015].
Strategic marketing. 2015. [Online]. Available through: <http://www.strategicmarketing.com/>.
[Accessed on 16th September 2015].
13 | P a g e