strategic destination branding and marketing 122

7/31/2019 Strategic Destination Branding and Marketing 122

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Marketing Mix


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SESSION COVERAGE

Marketing mix implementing the marketing strategy

Market vs. destination approach

PRODUCT:

Cluster development

Public:private partnerships in product development

PROMOTION

Promotional basket

AIDA - awareness, interest, demand, action

Personal & Non-personal communications

Marketings role in responsible tourism

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE


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SESSION COVERAGE

PRICING

Perception & reality in value-for-money Market vs. destinationapproach

PLACE

Role of intermediaries

Role of destination marketing organisations (DMOs)Role & impact of electronic technology




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MARKETING MIX

Marketing mix four Ps - product, promotion, price, place

Analogy driving a car all components used in unison to be

effective

Production > Consumer orientation four Ps to four Cs:

Product > customer value

Promotion > communications

Price > cost

Place > convenience




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PRODUCT

Two approaches to strategic product planning:

Market approach

What do we have that can be developed to appeal to

tourists?

Destination approach

What are we prepared to develop that tourists might be

interested in?

Normal approach something between these extremes




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PRODUCT

Tourism is developed for the benefit of the people of the destination

The goal is to develop the right package of product offerings for the

most attractive market segmentsin terms of rewards for thedestination.

Once the product mix & target markets/segments have been

determined, then follow the destination positioning & branding,

promotion, pricing and distribution to achieve the maximum benefits

from the selected product:market mix




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TOURIST AREA LIFE CYCLE

Destinations have tourist area life cycles TALC similar to productlife cycles

Emergent>Growth>Stagnation>Decline

Time period of TALC depends on the product and marketing

initiatives of the destination. Appropriate action when the TALC

approaches the stagnation period can extend the growth phase.

Such actions can be product-based, market/segment-related,

promotional or changed methods of distribution i.e. the marketingmix




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CLUSTER DEVELOPMENT

Key approach to product developmentclusters

Grouping of attractions & facilities in a location, or

Grouping of like attractions in a broader destination eg golf courses

Clusters:

1. Provide economies of scale & scope to justify promoting

the destination, and2. Serve as the magnet to draw visitors to the area.

Critical advantage: allow members to cooperate & compete




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PUBLIC:PRIVATE PARTNERSHIP (PPP)

Tourism is a private sector activity

BUT

Requires public sector guidance & direction

WHY?

1. Tourism takes place where other people live so impacts their

living environment

2. Tourism has major infrastructure, education & training, regulatory& organisational needs

3. A destination identity has to be developed & communicated to the

market




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PUBLIC-PRIVATE PARTNERSHIP (PPP)

PPP most suitable for:

* improving a destinations attractiveness (A)

* marketing (M)* productivity (P)

* management of its tourism system (M)

PPP recognises:

* increasing difficulty of differentiating destinations

* high cost of reaching the marketplace

Pooling resources gives good value-for-moneyand consistency ofmessage




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Critical success factors (WTO 2000):

* balanced structure with clear roles

* shared leadership between public & private sectors withcommon goals, realistic expectations & benefits for all

parties

* flexible approach and genuine spirit of partnership

* understanding that tourism must be sustainable

* commitment to combination of long term strategic vision &

shorter term goals and measurable initiatives

* periodic evaluation of each partners inputs

* good communication: partners & stakeholders




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Key to successful PPP is to understand the motives & methods of

the private sector particularly of the foreign operators with which

the destination does business and to enlist the cooperation andcommitment of the private sector:

- in pursuing practices that are mutually beneficial to both

operator & destinationshort term priorities and

- in the realisation of strategies determined by thedestination a longer term goal




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PROMOTION

Purchase cycle:

Pre-transactional>transactional>post-transactional

Expectations>experiences>memoriesCommunications campaign planning built around the AIDA model

Awareness

Interest

Demand

Action




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COMMUNICATIONS OBJECTIVES

Three categories:

Informing

creating awareness

Persuadinggenerating interest>desire and on to purchase

Re-inforcing

building support/loyalty




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COMMUNICATIONS OBJECTIVES

Which are these?

DISCOVER EAST TIMORERITREA: THREE SEASONS IN TWO HOURS

INCREDIBLE INDIA

SMILEYOURE IN THE CANARIES

VISIT BRITAIN

SO WHERE THE BLOODY HELL ARE YOU?

WOW! PHILIPPINES




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STIMULUS-RESPONSE MODEL

Five stages:

Stimulus inputproduct offering

Communications channelspaid & non-paid

Buyer characteristics & decision processfilter allcommunications & other influences to determine

needs/wants/goals

Motivation

Responsepurchase choice




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MARKETING COMMUNICATIONS

Personal:

- telephone/email

- website- trade fairs & exhibitions

- familiarisation visit

Non-personal

- advertising

- public relations/publicity

- brochures & other printed material

- sponsorship




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TOURIST OFFICES FACILITATION ROLE

- research data for the private sector

- representative offices in marketplace

- facilitating participation at overseas trade shows- organising fam trips

- preparing & distributing travel trade manuals

- joint marketing & promotional schemes with private sector

- support for new tourism products

- information (& reservations) system

- consumer assistance & protection

- intermediary between private sector & government




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THE CASE OF NORTHERN TERRITORIES

- FLOW OF RESEARCH INFORMATION & CLEAR

STRATEGY AVAILABLE TO ALL

- SHARE OUR STORY STRAP LINE AND SUITE OF

MARKETING TOOLS FOR IDENTITY CREATION

- COOPERATIVE ADVERTISING: WITH OPERATORS IN

NT, NATIONAL PARTNERS & FOR INTERNATIONAL

MARKETS

- FULL WEBSITE www.nttc.com.au

- CLOSE COLLABORATION WITH TOURISM AUSTRALIA


http://www.nttc.com.au/http://www.nttc.com.au/


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MARKETING PARTNERSHIPS

Not easy because of differing objectives & levels of commitment of

relevant stakeholders

Difficulty of persuading:

- public sector to give up some of its control, and

- private sector to contribute more resources

Most successful example: Maison de la France

From start in 1987 now has 1,200 members with an annual budget

of over Euros60mn, over half from the private sector

Growing role of consumer in forcing public:private partnerships?




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SUSTAINABLE & RESPONSIBLE MARKETING

Respond to and encourage consumer demand for tourism

related to natural & cultural resources of destination

Support operators who meet the development & operating criteria &quality standards laid down

Give marketing & promotional support to developers & operators of

sustainable tourism products/services

Provide incentives for developers & operators of sustainableproducts/services to enable them to sell at prices acceptable to the

market consider the soft core/hard core model of ecotourism

Implement a code of ethics to make ir-responsible marketing

unacceptable in the marketplace and among stakeholders




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SUSTAINABLE MOTIVATION

Tourism at the forefront in that emotional factors (including

perceived value-for-money) play a central role in decision-making

Psychographic research identifying consumers most likely to be

sensitive to the sustainable or responsible tourism message so they

can be ring-fenced for product offerings & marketing

communications eg TIA/National Geographic Geotourism survey

Conversion achieved through persuasion & stimulation rather than

hectoring or haranguing




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PROMOTING TOURISM INVESTMENT

Tourism development characterised by high capital costs with only a

gradual build up of income so profitability only achieved in 3 5

years

Role on incentives to encourage appropriate developments

Incentives: specific & regularly reviewed




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PRICING

Accelerator or brake

Targets: those who could otherwise not afford to travel to thedestination, or who consider standard prices too high

Tactical pricing in tourism:

- seasonality

- inflexibility/rigidity of supplyNeed to attract only those who would otherwise not visit andsegments that are compatible with existing onesother tourists

part of destination experience




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PLACE - DISTRIBUTION

Especially vital in travel & tourism:

- growing size of businesses

- several units within a group owned or strategic alliances- growth of long haul travel weak consumer knowledge

- reaching & attracting first time customers

- providing convenience for repeat customers

- growing competition where excess destination capacity

- need to sell capacity ahead of production for cash flow

- need to maximise promotion & tactical pricing through

modern distribution channels yield management




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Five main choices:

1. Principal>Customer (on producers premises)

Producer=Retailer2. Principal>Customer (in customers home) - reservation system

3. Principal>Owned retail outlet>Customer (on retailers premises)

vertically integrated

4. Principal>Independent retail outlet>Customer (on retailerspremises) agent commission system

5. Principal>Tour operator>Independent retail outlet>Customer (on

retailers premises) bulk sale to tour operator

TOUR OPERATOR HYBRID WHOLESALER/PRINCIPAL




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Reservations systems accessed through electronic technology

can be developed by principals, tour operators or travel agents

so these five systems can still apply

BUT

the balance of power can be manipulated in favour of the

destination principal through easier direct communication with

prospective customers

Need for high quality & well-connected destination websites thatenable searches from initial enquiry through to direct booking to

be done through a single web hit with appropriate links




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DESTINATION PLAYERS IN DISTRIBUTION

1. Tourist office nothing to sell!

2. Facilities/attractions remote from main marketplace3. National airline but half traffic comes on foreign carriers

4. Source market tour operators key providers bur foreign-owned

with little commitment to specific destinations

5. Source market travel agents major influence but all owned in

source countries little concern which destination chosen




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DESTINATION MARKET REPRESENTATION

1. No representation

2. Individual public relations(PR)/information officer

3. PR company appointed

4. Marketing representation company (MRC) appointed

5. Both PR & Marketing Representation companies appointed

6. Destination marketing organisation (DMO) appointed combining

PR & MR functions

7. Own office established

ISSUES: communications with prospective travellers; ensuring

no conflict of interest; national vs provincial; budgets




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ELECTRONIC TECHNOLOGY

Electronic reservations systems now dominant

One-in-five Britons buy their holidays on-lineand a far higherproportion carry out web research

Advantages - destination parent website a vital entry point for

interested tourists to research attractions and whats on offer

through themed linked pages to activities, places within the

destination, accommodation etc

Linked access to individual suppliers websites enable tourist to

make bookings




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ELECTRONIC TECHNOLOGY

Problem still exists for small destination supplier

How do I identify my prospective customer? Or, rather, howdoes my prospective customer identify my operation?

Needle in a haystack - luck if he/she continues the web search

down through the pages as small producers not on initial pages

.travel domain now established www.tralliance.info

Enable a better match between buyers & sellers through more

precise results to would-be travellers on-line enquiry

Role in relationship/ one-to-one marketing


http://www.tralliance.info/http://www.tralliance.info/


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TRAVEL DIRECTORY

Information retrieval from an integrated, classified data set

Directory controlled vocabulary of 1,800 travel/tourism terms

.travel Directory process

Where do you want to go? DESTINATION

What do you want to do? ACTIVITIES

What is your lifestyle? LIFESTYLE

How do you want to get there? TRANSPORTATION

How would you like to stay?ACCOMMODATION

What services do you need? TRAVEL SERVICES




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LOCAL LEVEL ACTION

1. Money from the centre is tight

2. Need for tightly focussed niche marketing on a highlytargeted basis

3. Counterbalance to the international tourism distribution

systems push for standardisation in destination tourism

products

4. Exploiting growing consumer trends

Local level action: only way the differentiation vital for long term

survival as distinct & distinctive destinations can be achieved




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Time out !!

strategic destination branding and marketing 122

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