Marketing Management is a business aspect that entails the marketing department of an organization researching and giving proposals on how best an organization can change its business techniques to best suit the changing environmental conditions. The roles of a marketing manager or consultant vary depending on the size of an organization and general industry characteristics.
To create an effective marketing strategy, marketing managers or consultants should understand clearly the market environment within which they operate.
A marketing environment consists of factors or elements such as customers, competitors, suppliers, government policies or controls among other micro and macro-economic factors that affect a business. Given the fact that all those aspects, which form the marketing environment, are always constantly changing, marketing consultants are compelled to be up to date.
It is only when a marketing manager is armed with current information that he or she can come up with new strategies and ideas to ensure his or her organization remains competitive. Based on this understanding, this paper provides an analysis of Singapore’s Manor House Country Club Hotel.
Manor House Country Club Hotel
Manor House Country Club Hotel (MCCH), which is the case study in this paper, is located in Singapore; is an island of almost 650 square kilometers. Manor Country Club House is on a 1.2 ha piece of land and given its strategic geographical location on the Island, it attracts many customers. It is situated near Theme Park and a Museum, which increases its economic prospects. In order to understand factors affecting its profitability, a marketing consultant has to look in both the microenvironment and the macro-environment in which it operates.
Microenvironment of MCCH
The microenvironment of a business consists of factors such as organizational culture, organizational resources, organizational structure, customers, competitors, suppliers and the immediate public that surround the organization.
It is reported that the hotel industry has witnessed an increase in sit-down meal customers i.e. a growth rate of 16% was registered since 2003. Based on this trend, an increase in customers should be expected if variety of sit-down meals from diverse parts of the world are introduced.
Additionally, the management should consider introducing a boutique at MCCH to attract customers. Information from hotels in other middle-east countries, like Qatar, shows that tourists prefer services of boutique while on holiday. Therefore, the new CEO of MCCH should consider investing in a boutique to provide more value for tourists who lodge at the hotel.
The new CEO will be preparing to fail if he does not address himself to competitors’ characteristics. It has to be noted that in the Singapore market, there is lack of differentiation i.e. all the hotels do the same things save for different prices and the different locations of these hotels. The only things that distinguish MCCH from competitors are price and location. Differentiation through the introduction of more quality and diverse services is thus very important in delivering a competitive advantage.
It is recommendable that MCCH focuses of tailored cultural experiences in order to attract and delight customers more than competition. Many visiting tourists must necessarily find it exciting when they are exposed to different Singaporean cultures while staying in MCCH.
Macro-environment of MCCH
A business’ macro-environment consists of factors that affect an organization but the organization has no direct control over the same.
Macro-economic factors that affect business operations include demographic, economical, environmental, legal technological, cultural, and political forces. Macro-environmental factors keeps on changing over the years. Therefore, it is important for marketers to keep scanning the business environment to respond to change in time.
In the year 1990, the total population in Singapore was 2.705 million. The latest population projection indicates that Singapore’s total population is 3 million. This means that for a period of ten years the population has increased by a paltry 300,000 people.
It therefore follows that Singapore has a very low population growth rate and majority of the total population are ageing people. Such statistics should inform all decisions made by the marketing department at MCCH. For instance, the marketing strategy has to target largely people who are ageing and couples.
The marketing manager at MCCH has to come up with policies that best suit the kind of people targeted, as given by population statistics. Away from the aging segment, the luxury bedrooms that were made available at MCCH in the year 2002 and the bar inside MCCH that was licensed to sell alcoholic drinks will on the other hand attract all the young couples and singles to MCCH.
Just as changes keep on occurring in the Singaporean, the relative demand by tourists for products also keeps changing. Psychographic trends are measured y studying specific characteristics of a certain population, and they include attitudes, motives, values, and interests of a certain population. According to a research by Kau et al, 65% Singaporeans said that family was the most important thing for them.
65% is great majority thus need to bear in mind that Singaporeans value their families when planning any marketing venture. The government also seems to agree with these facts since a family day is usually organized by the government every year where families get together to share various activities.
MCCH through its new CEO should therefore look out for these family days and organize family day promotions. MCCH can also organize special treats on specific weekends monthly for families to just come together and spend some time at the facility. Religion and education also matter a great deal of most Singaporeans. MCCH through its CEO should desist from inclining towards any kind of religion be it Buddhism or Christianity since it can lead Singaporeans from one religion completely ignore MCCH.
Another critical macro-environmental factor that may affect MCCH’s performance is government control through bureaucracy. This is evident through bans on smoking and licensing laws that affect the hotel industry.
Finally, it is worth noting the contribution of technology in improving operations at the hotel. Technological changes that improve efficiency e.g. use of credit cards in all hotel transactions and electronic door systems on hotel rooms have been adopted by MCCH.
SWOT is an acronym for the words Strengths, Weaknesses, Opportunities and strengths. To understand an organization, an analyst has to look within its internal environment to identify strengths and weaknesses therein and within its external environment to identify opportunities and threats. Based on the information given a SWOT analysis on MCCH is as shown below.
Market leader in profitability
Prime physical location i.e. proximity to famous tourist sites
11 years of continued investment
Increased capacity due to buying of adjacent property and increasing luxury bedrooms in 2002
Extended and modernized function suite
Busy and successful bistro
New Spacious Foyer
Beauty salon that offers latest beauty treats
Well trained staff in communication skills and customer care
Increased consumer spending on sit down meals
Increasing adoption to new cuisines from different parts of the world
Eating out major part of lifestyle of young and middle aged couples
Growing demand for healthier eating
Growth in domestic tourism
Increased inbound tourism in the country
Increased family travel
Decline in corporate client bookings
Retirement of one of the major partners
Lack of enthusiasm from other partners towards new ideas
Highly competitive hotel industry
Lack of product differentiation
Increased government control
Persistent war prices
Highly demanding customers; i.e. affluent customers who wish to have an authentic experience