Tourism Mktg Lecture 9

8/19/2019 Tourism Mktg Lecture 9

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International Hospitality and TourismMarketing – M045LON

Destination Marketing

Unit: 9


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On completion of this module the student

should be able to:

• Synthesise relevant marketing theory and be able to applyconceptual frameworks to the analysis of real life marketing cases.

• Conduct strategic marketing analysis and evaluation in a sector of

the hospitality and tourism industry.

• Evaluate theories of the consumer decision-making process with

respect to tourist and hospitality buyer behaviour and satisfaction.• Appreciate the opportunities, challenges and constraints of

destination marketing.

Module Learning Outcomes


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Module design

Week 1 MarketingFundamentals I

Week 2 MarketingFundamentals II

Week 3 Buyer Behaviour Week 4 Segmentation,Targeting and

Positioning

Week 5 Marketing Mix – Product & Price

Week 6 Distribution

Week 7 MarketingCommunications I

Week 8 MarketingCommunications II

Week

Destination

Marketing

Week

10

Marketing Plan


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In this Unit we shall:

• Discuss the importance of tourism to the

world’s economy and the benefits of

tourism to the local economies.

• Review tourism strategies and

investments at a destination level.

• Discuss the organising and managing of

tourism at a destination level.


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“a stay of one or more nights away from home

for holidays, visitors to friends or relatives,

business conferences or any other purpose

except such things as boarding education orsemi-permanent employment .”

The British Tourist Authority (in Kotler, Bowen and

Makens 2011: 502)

Definition of tourism


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The World’s Top Tourism Destinations

International Tourist Arrivals, in Kotler, Bowen and Makens 2011: 503


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Destinations are

“ places with some form of actual or

perceived boundary, such as physical

boundary of an island, political

boundaries, or even market-created

boundaries” (Kotler, Bowen and Makens

2011: 504)

The tourism destination


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Benefits of tourism

• Direct employment in hotels, restaurants,

retail establishments, and transportation.

• Support industries and professions

• The multiplier effect as tourist

expenditures cycle through the local

economy.

• State and local revenues derived from

taxes on tourism.

• Export of locally made products.


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A destination attractiveness can be diminished by:

• Violence, political instability.

• Natural catastrophe, adverse environmental factors.• Lack of necessary infrastructure or build inappropriate

infrastructure.

• Overcrowding

• Lack of destination maintenance

Management of the tourist destination


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Tourist development must balance temptation tomaximize tourist dollars with preservation of the

natural tourist attractions and the quality of life

for local residents. (Kotler, Bowen & Makens

2011)

• Economic impacts

• Socio-cultural impacts• Environmental impacts

The concept of carrying capacity

Planning for development


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• ‘Stay Close to Home’/ Stay-cation

• Costs versus Benefits of travel and stay

• Events and Attractions

Tourism strategies and investments


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Issues to consider:

• What strategic factors relate to this event?

• What is the profile of visitors?• What is the expenditure profile?

• What are the economic and social costs and

benefits of the event?

• What is the event’s profile?

(Kotler, Bowen and Makens 2011: 511-512)

Planning for events


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Characteristics of event planning:

• adequate organization & experience to plan,organize, and market the event

• a marketing plan, including a description of targetmarkets

• a quantitative objective for number of expectedvisitors

• a method to derive a count or estimate of thenumber of visitors who attended the event

(Kotler, Bowen and Makens 2011: 510)

Planning for events


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• Natural attraction (Niagara Falls)

• Manufactured attractions (Shopping Areas

of Buckingham Palace or Hong Kong)

• National or state parks (Yellowstone, New

Forest)

• Historic attractions (the pyramids of Egyptand Mexico)

Attractions


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Remember!

• Ability to concentrate attractions, facilities, and services

in a convenient, accessible location is essential to createa strong destination pull.

• Tourist expansion is highly dependent on public

investments, inadequate without private investment andmarket mechanisms to respond to changing consumer

needs and wants.

Attractions


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Financial investments

Hospitality investments

Additional investments:

• Expansion of public services.

• Promotion of tourism internally to citizens, retailers,

restaurants, financial institutions, the public/private

sectors

• Investments in recruiting, training, licensing, and

monitoring tourist-related businesses and employees

Investing in tourism destination

development


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• Agritourism

• Space tourism

• Hiking and religious pilgrimages• Medical tourism

More types of tourism


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• Collecting information about the current

destination visitors

• Auditing the destination’s events and

attractions and selecting segments that

might logically have an interest in them.

Identifying the destination target markets


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Most popular common classifications - based

on if the tourist travels with a group or

independently

group-inclusive tour (GIT)

and

independent traveler (IT)

Classification of visitor segments

(1)


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Classifications describing tourists by degree

of institutionalization and impact on destinations:

– Organized mass tourists. GIT. Little or no influence

over the travel experience other than to purchase one packageor another

– Individual mass tourists. GIT. Somewhat more control over

their itinerary. For instance, they may rent a car to visit

attractions

– Explorers. IT. They plan their own itineraries and

make their own reservations

– Drifters. IT. These people, the backpacker group,

seldom, if ever, are found in a traditional hotel

– (Kotler, Bowen and Makens 2011: 522-524)


(2)


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Cont inued

– Visiting friends/relatives. VFR are people that stay in

the homes of friends or relatives.

– Business travelers. Often any form of business including

conventions, trade shows, job seeking & other reasons. – Pleasure travel. An all-encompassing classification, which may

be of limited use without further segmentation.

– Business and pleasure travelers. Many convention and

business travelers plan to incorporate a period of

relaxation prior to or after their business.• (ibid.)


(2)


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Continued

– Tag-along visitors. The presence of tag-along children

has created a sub-industry of child care & entertainment.

– Grief travel. A segment more important as society ages. – Education and religious travel. Includes students, those on a

pilgrimage & missionaries, and may be of limited use in tourism

planning unless further segmented.

– Pass-through tourists. Extremely important visitors to states

such as Kansas and Nebraska and to cities in Texas that serveas convenient rest or overnight stopping areas.

(ibid.)


(2)


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(Plog)

The nature of visitors

changes, with each new

group somewhat less

adventurous than the

preceding group.

Finally, a destination

becomes so familiar

the least adventurousgroup of psychocentrics

finds it acceptable.

(Kotler, Bowen and Makens

2011: 525)

Plog’s categorisation of destinations


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• The NTOs are government or quasi-government

agencies that market destination tourism.

• Role of the NTOs:

The NTO formulate and develop the tourist product or

products of the destination and promote them in

appropriate markets.

National Tourism Organisations

(NTOs)


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• flow of research data• representation in markets

• organization of workshops and trade shows

• familiarization trips

• participation in joint marketing schemes

• support for new or small businesses

• consumer assistance and protection

• general education

(Kotler, Bowen and Makens 2011: 529-230)

Functions of the NTOs


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– past experiences in the region with regard to tourism

must be considered – the regional tourism organization must be prepared

to adapt the region’s mission

– the region’s tourism resources make certain missions

possible and others not – the preferences of the region’s major tourism publics

must be considered

– the mission must be based on the region’s distinctive

competencies

(Kotler, Bowen and Makens 2011: 530)

NTOs – formulating a mission statement


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• Goals provide direction to the organization, such as the

following typical tourism goals: – economic; consumer

– environmental and natural resources

– government operations.

• The objective of national strategy formulation is to

translate current conditions in the region into desired

situations.

(ibid.)

NTOs - Goals


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• Regional Tourism Organisations promotea specific destination and are called a

destination marketing organization (DMO).

Their major focus is to bring meetings &

conventions to local facilities & hotels with

meeting space.

Regional Tourism Organisations


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• Explain the purpose of a marketing plan.

• List and discuss the steps necessary to

prepare a marketing plan.

• Review the structure and the elements of

a marketing plan.

In the next Unit we shall:


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In this Knowledgecast we have addressed the following Learning

Objectives:

• Synthesise relevant marketing theory and be able to apply

conceptual frameworks to the analysis of real life marketing cases.• Conduct strategic marketing analysis and evaluation in a sector of

the hospitality and tourism industry.

• Evaluate theories of the consumer decision-making process with

respect to tourist and hospitality buyer behaviour and satisfaction.

• Appreciate the opportunities, challenges and constraints ofdestination marketing.

Knowledgecast Summary


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In preparation for the seminar you have to read the case study briefs on the Gold

Coast (Australia) and the Costal del Sol (Spain) and discuss the following

questions:

Discuss the approaches to destination marketing which the two destinations

have adopted and their appropriateness in the specific context.

Suggest alternative or additional strategies that the two destination

authorities could adopt.

Come to the seminar prepared to present your views. In the first 15 minutes of

the seminar session you will discuss your views within your group and come

up with a ‘group’ view, which you should present in front of the class.

You can the case studies in the following sources:• The Costa del Sol: Case study 13 (487-492), Holloway, J.C. (2004) Marketing for Tourism, 4th edn,

Harlow: FT Prentice Hall

• The Gold Coast: Case study J (197-211) , Laws, E (ed) (2007) Tourism Marketing - Quality and Service

Management Perspectives. Thomson Learning

Seminar 9


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Group Activity 9

Having successfully completed and submitted your mid-term assignment you will

now proceed with working on the End-of-Module assignment. This is anindividual report of 4,000 words that counts towards 60% of the total marks for

this module. This assignment is due to be submitted by 9:00am on Monday,

week 11.

• In the Mid-Term Assignment you have undertaken an evaluation of the strategic positionand the strategic direction of the designated organisation and studied the available

market segments and the appropriate target markets.

• In your End-of-Module Assignment you are required to build on the analysis and

evaluation already done and to prepare a Marketing Plan for the designated organisation

to be presented to the client. You must demonstrate an understanding of the marketing

planning process and all of its key elements. You should research the available

information to evaluate and analyse the real life marketing mix elements of the

designated organisation, complete with examples and evidence. You should support

your arguments with due academic and commercial underpinning wherever necessary.

• For more details please refer to the End-of-Term Brief available in Moodle.

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Tourism Mktg Lecture 9

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