Transcript Use of Available Tourism Data for Marketing Research & Policy Tyrone Clarke

Use of Available Tourism Data for
Marketing Research & Policy
Tyrone Clarke
Definition of Marketing
• Marketing consists of the strategies and tactics used
to identify, create and maintain satisfying
relationships with customers that result in value for
both the customer and the marketer.
• A social and managerial process by which
individuals and groups obtain what they need and
want through creating and exchanging products and
value with others (Kotler, 1988,p.3)
• The management process responsible for
identifying, anticipating and satisfying customers’
requirements profitably (CIM, 1984)
The need for meaningful Research
• Before committing to the complexities and costs inherent in
exporting our tourism services, it is absolutely essential that we
undertake some degree of research to better understand the foreign
markets that we will be competing in and the consumers to whom
we will be selling.
• It is important that this research is meaningful; simply compiling
statistics and other facts about a market without any purpose, is of
limited value.
• Any information that we collect needs to be compared, interpreted
and conclusions drawn.
• Our marketing research activities should be planned and practical
exercises leading to specific decisions that drive our marketing
strategies.
• There is a plethora of data available
Market research versus marketing research
• Market research is about understanding the broader
marketplace in which we intend to compete.
• Marketing research, on the other hand, is about
understanding what 'package' of marketing elements (i.e.
the product, price, promotion and distribution factors) the
country will need to put together in order to meet
customer needs and to succeed in the marketplace.
• Market research is the more encompassing/broader
concept of understanding the market environment in
which you will be competing, while marketing research is
the more specific/focused view of consumer needs and
behaviour.
Gaining an Information Advantage
• In its role as the foundation of marketing, marketing research is
arguably marketing’s most important task. Today marketers
not only view research as a key ingredient in making marketing
decisions they also consider information to be a critical factor
in gaining advantage over competitors. Because organizations
recognize the power information has in helping create and
maintain products that offer value, there is an insatiable
appetite to gain even more insight into customers and
markets.
• Marketers in nearly all industries are expected to direct more
resources to gathering and analyzing information especially in
highly competitive markets.
• In conducting our research we also test concepts against our
competitors in order to gain further insights as to what sets us
apart and play to those strengths
Cost Implications
• While research is key to marketing decision making,
it does not always need to be elaborate to be
effective. Sometimes small efforts, such as doing a
quick search on the Internet, will provide the needed
information.
• However, for most marketers there are times when
more elaborate research work is needed and
understanding the right way to conduct research,
whether performing the work themselves or hiring
someone else to handle it, can increase the
effectiveness of these projects.
•
Marketing Decision Types of Research
•
Target Markets-
sales, market size; demand for product, customer characteristics, purchase
behavior, customer satisfaction, website traffic
•
Product-
product development; package protection, packaging awareness;
brand name selection; brand recognition, brand preference, product positioning
•
Distribution
distributor interest;
•
Promotion
advertising recall; advertising copy testing, sales promotion response
rates, sales force compensation, traffic studies (outdoor advertising),
public relations media placement
•
Pricing
price elasticity analysis, optimal price setting, discount options
•
External Factors
competitive analysis, legal environment; social and cultural trends
•
Other
company image, test marketing
E/D Card
• The E/D card is a rich source of data for
tourism purposes. Serving both the
operational and policy aspects of the
tourism industry.
• The Caribbean is in an advantageous
position compared to larger countries who
utilize passenger surveys to estimate
tourist counts versus the Caribbean where
our data is virtually census data.
E/D Card
• Every permutation of data from the E/D
card is useful.
• Apart from the tourists count, this data can
be used for marketing purposes
E/D Card
• Today regional governments heavily
subsidize airline carriers into the region.
• Therefore it is imperative that
governments understand the implications
of their investments
• Data from the E/D cards can aid in
determining this kind of investment
– Airline load factors
– Occupancies for hotels
E/D Card
• Following trends from the E/D cards can
also guide in the development of supply in
terms of room stock.
• i.e if there is a heavy leaning towards a
particular type of product then countries
can invest in this type of product
Survey Data
• Types of surveys
– Visitor Exit Surveys
– Travel agent surveys
– Delphi pannel
– Hotel Registration information
The New Technology
• The Blogs (trip advisor) can also provide a rich
source of data for both the private sector as well
as government agencies.
• The private sector can use the feedback from
these sites to improve on product deficiencies
• Government can use this information as a
feedback mechanism to ensure that product
offerings are consistent with where the country
promotes itself
• In addition, rich content for advertising can come
from this unsolicited source of data
The New Technology
• The internet has facilitated competitive analysis
which would have been very difficult years ago.
• Tour operator /travel agent websites, airline
websites, travel sites all provide competitive
analysis on where countries are currently trading
compared to other destinations.
• Monitoring these sites consistently can also
provide insight as to the state of the market at
over time i.e a plethora of special promotions in
the market would suggest difficult times for
destinations and can trigger further market
stimuli on the part of the destination
Target Markets
•
•
•
•
•
UK total population 60.9 million
USA population 305 million
Canada population 33 million
CARICOM population 16 million
China population 1.3 billion
Defining the target Market
• We have used segmentation studies in all
our major markets
• USA- PRIZM
• UK – ACORN
• CANADA – PRIZM
• EUROPE in process
• CARICOM basic data
Segmentation Analysis
• Addresses four fundamental marketing
questions
– Who are the target you want to reach?
– What are they like?
– Where do they live?
– How can we reach them most cost
effectively?
PRIZM ANALYSIS
• The strategy for identifying our marketing
targets is based on two tried and true
observations
– The customers of our product are existing
customers
– Birds of a feather flock together
PRIZM ANALYSIS
• Methodology
– Data Collected from E/D cards
– Names and addresses of all USA customers
– All duplicates removed from dataset
– All VFR travelers removed from dataset
– Total unique households
Who are the targets
• US visitors are predominantly upscale and live in
neighborhoods that run the gamut from urban to
rural
• 66.4% of all US visitors fall within 40% of US
base household count (first 2 quintiles)
– 42.6 % of US visitors fall into first quintile (20% of
total)
– Second Quintile contains 23.9% of all USA visitors to
Barbados
• 1.63 times as likely to reach our target audience
within this group
Game Plan Categories
Expansion
Core
NonTarget
Conversion
Percent of
Index 100 
Game Plan Categories:
US Visitors 1.61% 

Core. There is a large proportion of customers in these clusters and households are more likely than average to be
customers.

Expansion. Households in these clusters are more likely to be customers, but there are not many of them in either
the customer population or the base population.

Conversion. Conversion clusters contain a significant proportion of customers; however, they represent an even
larger proportion of the base population. Therefore, indices suggest they are less likely than average to be customers.
Since these clusters represent a significant portion of total customers, they do have potential. However, because of their
under representation with respect to the base population, there are many households that have not been reached yet.
Target marketing strategies designed specifically for these clusters may attract or convert non-customers into the Core
group.
NonTarget. NonTarget clusters account for a small proportion of customer households, and indices suggest
they are less likely than average to be customers. These clusters may require further analysis for classification due to
their small numbers.
US Visitors
Target
Category
Number of
Clusters
Core
Expansion
Conversion
NonTarget
17
2
4
39
Percent of
Base
Households
37.17
1.48
11.76
49.58
Percent
of
US
Visitors
62.90
1.51
11.11
24.49
Index
188
103
94
49
Tourism Authority’s-US Visitors Target Groups
Percent of US Visitor
Older Wealthy Couples
Percent of US Visitor
Older Wealthy Couples
Wealthy Midlife Families
Young Professionals
Older Upper-mid Mix
Young Urban Mix
Non target
% Comp
Index
15.8
12.42
11.93
17.55
8.04
34.87
Wealthy Midlife Families
16%
232
204
199
157
110
55
35%
12%
Young Professionals
Older Upper-mid Mix
8%
12%
17%
Young Urban Mix
Non target
Percent of Base Households
Older Wealthy Couples
Percent of Base Households % Comp
Household input
Older Wealthy Couples
6.53
4,765,999
Wealthy Midlife Families
6.1
4,449,718
Young Professionals
5.99
4,372,342
Older Upper-mid Mix
11.19
8,160,246
Young Urban Mix
7.33
5,350,296
Non target
62.86
45,856,109
7%
Wealthy Midlife Families
6%
6%
11%
Young Professionals
Older Upper-mid Mix
63%
7%
Young Urban Mix
Non target
CORE GROUP
Social
Group
S1
S1
S1
U1
T1
S1
U1
S2
T1
C1
T1
C1
S2
S2
U1
U1
U1
U2
Lifestage
Group
M1
F1
Y1
Y2
F1
F1
M1
Y1
M1
M1
Y1
Y1
M2
M2
Y2
M2
F2
Y2
Cluster
1
2
3
4
5
6
7
8
9
10
11
12
14
15
16
26
29
31
Nickname
Upper Crust
Blue Blood Estates
Movers & Shakers
Young Digerati
Country Squires
Winner's Circle
Money & Brains
Executive Suites
Big Fish, Small Pond
Second City Elite
God's Country
Brite lites, Li'l City
New Empty Nests
Pools & Patios
Bohemian Mix
The Cosmopolitans
American Dreams
Urban Achievers
TOTAL
Base
Households
% Comp
2.21
1.40
2.29
1.79
2.38
1.48
2.93
1.57
2.03
1.56
1.92
1.99
1.46
1.69
2.63
1.62
2.90
2.44
US Visitor
Analysis
2000-2004
% Comp
6.37
3.80
5.05
5.20
5.07
2.61
6.61
2.07
3.76
2.18
3.19
2.18
1.70
1.95
4.66
1.91
3.37
2.49
Index
288
270
220
290
213
177
226
132
185
140
166
109
117
115
177
118
116
102
36.31
64.18
177
Expansion
Social
Group
T1
Lifestage
Group
F2
Cluster
20
Nickname
Fast-Track Families
TOTAL
Social
Group
C1
S2
S2
T2
U3
Lifestage
Group
F2
F2
Y1
M2
M4
Cluster
13
18
19
28
59
Nickname
Upward Bound
Kids & Cul-de-sacs
Home Sweet Home
Traditional Times
Urban Elders
TOTAL
US Visitor
Base
Analysis
Households 2000-2004
% Comp
% Comp
0.84
0.94
0.84
0.94
US Visitor
Base
Analysis
Households 2000-2004
% Comp
% Comp
2.04
1.93
2.04
1.71
2.34
1.82
1.99
1.72
1.78
1.75
10.19
8.93
Index
113
113
Index
95
84
78
86
98
88
Forming Target Groups
Nickname
Upper Crust
Movers & Shakers
Big Fish, Small Pond
Older Wealthy Couples
Base Households
Count % Comp
1,613,101
2.21
1,672,033
2.29
1,480,865
2.03
4,765,999
6.53
US Visitor Analysis 2000-2004
Count % Comp %Pen Index
12,047
6.37
0.75
288
9,545
5.05
0.57
220
7,111
3.76
0.48
185
28,703
15.18
0.60
232
Blue Blood Estates
Country Squires
Winner's Circle
Fast-Track Families
Wealthy Midlife Families
1,024,348
1,736,830
1,077,838
610,702
4,449,718
1.40
2.38
1.48
0.84
6.10
7,179
9,583
4,942
1,782
23,486
3.80
5.07
2.61
0.94
12.42
0.70
0.55
0.46
0.29
0.53
270
213
177
113
204
Young Digerati
Bohemian Mix
Executive Suites
Young Professionals
1,308,793
1,919,575
1,143,974
4,372,342
1.79
2.63
1.57
5.99
9,828
8,818
3,912
22,558
5.20
4.66
2.07
11.93
0.75
0.46
0.34
0.52
290
177
132
199
Money & Brains
God's Country
Second City Elite
The Cosmopolitans
New Empty Nests
Pools & Patios
Older Upper-mid Mix
2,136,713
1,402,639
1,138,957
1,183,871
1,063,372
1,234,694
8,160,246
2.93
1.92
1.56
1.62
1.46
1.69
11.19
12,496
6,032
4,130
3,615
3,218
3,692
33,183
6.61
3.19
2.18
1.91
1.70
1.95
17.55
0.58
0.43
0.36
0.31
0.30
0.30
0.41
226
166
140
118
117
115
157
American Dreams
Brite Lites, Li'l City
Urban Achievers
Young Urban Mix
2,115,686
1,455,404
1,779,206
5,350,296
2.90
1.99
2.44
7.33
6,379
4,125
4,702
15,206
3.37
2.18
2.49
8.04
0.30
0.28
0.26
0.28
102
110
Target groups were
formed by selecting those
clusters that indexed
above (100+) and
grouping those with
similar demographic and
socio economic
characteristics.
Target groups account for
65% of all US visitors to
the island and 37% of the
116
USA household counts
109
Older Wealthy Couples
PRIZMNE Clusters
1 Upper Crust
3 Movers & Shakers
9 Big Fish, Small Pond
Lifestage
Group
M1
Y1
M1
Social
Group
S1
S1
T1
TOTAL
Base
Households
%Comp
2.21
2.29
2.03
US Visitor
Analysis
2000-2004
%Comp
6.37
5.05
3.76
US Visitor
Analysis
2000-2004
Index
288
220
185
6.53
15.18
232
1) Older Wealthy Couples are predominantly middle-aged and older married couples living
in expensive, single-unit homes. There is a somewhat higher than average Asian
representation in these households. These comfortable couples tend to be college-educated,
often with advanced degrees, and hold white-collar occupations with high incomes. The
median household income for this target group is $89,930. Older Wealthy Couples enjoy
travel, and are likely to be members of any frequent flyer program. When traveling
domestically, they are likely to use Continental Airlines and visit Maine, New Hampshire, or
Vermont. International travel destinations likely include European countries such as Spain,
Portugal, Ireland/UK, France, or Italy.
Older Wealthy Couples are also...
More Likely to...
Less Likely to...
Have
Have
Have
Have
Have
Have a Home Valued <$80,000
Be an Income Below Poverty Family
Live in a Mobile Home or Trailer
Have No Vehicles in the Household
Have Only an Elementary School Education
Household Income $500,000+
EBI $500,000+
a Home Valued $1,000,000+
a Professional School Degree
2004 Household Wealth $1,000,000+
Belong to a Country Club
Eat at Shakey’s, Whataburger, or Pizza Inn
Buy Tennis Equipment
Eat at Checker’s, Mazzio’s, or Godfather’s Pizza
Cruise on Royal Caribbean
Rent or Buy a Music Video Tape
Contribute $50+ to PBS a Year
Be a Fan of Truck Racing/Pulls
Belong to an Arts Association
Eat at Sonic, Rally’s, or Captain D’s
*EBI: Effective Buying Income. Refers to after-tax income.
Wealthy Midlife Families
PRIZMNE Clusters
2 Blue Blood Estates
5 Country Squires
6 Winner's Circle
20 Fast-Track Families
Lifestage
Group
F1
F1
F1
F2
Social
Group
S1
T1
S1
T1
TOTAL
Base
Households
%Comp
1.40
2.38
1.48
0.84
US Visitor
Analysis
2000-2004
%Comp
3.80
5.07
2.61
0.94
US Visitor
Analysis
2000-2004
Index
270
213
177
113
6.10
12.42
204
2) Wealthy Midlife Families are predominantly middle-aged (35-54) married couples with
children living in expensive single-unit homes. These affluent households have a slightly
higher than average Asian representation. Adults in this group tend to have earned bachelor
and graduate degrees and hold a variety of white-collar occupations with high incomes. The
median household income for households in this group is $92,915. Wealthy Midlife Families
travel regularly and are likely to be members of Delta or USAir’s frequent flyer programs.
Their last trip was likely to have been domestic travel for business purposes and they tend to
travel by airplane on domestic business trips three or more times a year.
Wealthy Midlife Families are also...
More Likely to...
Less Likely to...
Have EBI $500,000+
Have Household Income $500,000+
Have a Home Valued $400,000-$500,000
Live in a Home Built 1999 – March 2004
Be Employed in the Management of a Company
Live in a Multi-Unit Structure
Have a Home Valued <$80,000
Be an Income Below Poverty Family
Have EBI <$15,000
Be a Renter
Own a Cross Country Ski Machine
Eat at Arthur Treacher or Rally’s
Travel Domestically on Continental Airlines
Stay at a Motel 6 on Vacation
Rent a Vehicle from Hertz or National
Buy from HSN/QVC/Other
Buy Soccer Equipment
Expect to Marry in the Next Year
Eat at Roy Rogers
Play Any Lottery 1+ Times a Week
*EBI: Effective Buying Income. Refers to after-tax income.
Young Professionals
PRIZMNE Clusters
4 Young Digerati
8 Executive Suites
16 Bohemian Mix
Lifestage
Group
Y2
Y1
Y2
Social
Group
U1
S2
U1
TOTAL
Base
Households
%Comp
1.79
1.57
2.63
US Visitor
Analysis
2000-2004
%Comp
5.20
2.07
4.66
US Visitor
Analysis
2000-2004
Index
290
132
177
5.99
11.93
199
3) Young Professionals are predominantly younger (<45) singles and couples living in
multi-unit housing, often in urban areas. Households in this group are three times as likely as
average to be Asian and have a slightly higher than average Hispanic representation. These
young, white-collar workers tend to have bachelor and advanced degrees and earn uppermidscale incomes. The median household income for this group is $63,624. Young
Professionals are likely to be members of Continental or United Airlines’ frequent flyer
programs and travel internationally by railroad. Travel destinations tend to include Asia,
Italy, and France.
Young Professionals are also...
More Likely to...
Less Likely to...
Use Public Transportation
Live in a Structure with 50+ Units
Have a Home Valued $750,000-$1,000,000
Have Art/Design/Entertainment/Sports/Media Occup.
Have Legal Occupations
Live in a Mobile Home or Trailer
Have Farm/Forest/Fishing Occupations
Have a Home Valued <$100,000
Live in a Boat, RV, or Van
Be in the Armed Forces
Buy Latin or Jazz Music
Buy a Travel Book
Travel Internationally on Continental Airlines
Have a Liberal Outlook
Exercise at a Club
Use CellularOne for Cell Phone Service
Buy from Hardee’s, Golden Corral, or Shoney’s
Own a Rifle or Shotgun
Eat at Arthur Treacher, Papa Gino’s or Ponderosa
Buy Sporting Goods from a Catalog
Older Upper-mid Mix
PRIZMNE Clusters
7 Money & Brains
10 Second City Elite
11 God's Country
14 New Empty Nests
15 Pools & Patios
26 The Cosmopolitans
Lifestage
Group
M1
M1
Y1
M2
M2
M2
Social
Group
U1
C1
T1
S2
S2
U1
TOTAL
Base
Households
%Comp
2.93
1.56
1.92
1.46
1.69
1.62
US Visitor
Analysis
2000-2004
%Comp
6.61
2.18
3.19
1.70
1.95
1.91
US Visitor
Analysis
2000-2004
Index
226
140
166
117
115
118
11.19
17.55
157
4) Older Upper-mid Mix are predominantly older (45+) singles and couples living in singleunit homes. There is a higher than average Asian representation within these households.
They are likely to have bachelor or advanced degrees and are employed in white-collar
occupations. The median household income for this group is $71,025. Members of Older
Upper-mid Mix are likely to stay at a Hilton on vacation, be a member of Delta’s frequent
flyer program, and visit Orbitz.com. Likely travel destinations include Spain/Portugal,
Ireland/UK, France, and the U.S. Virgin Islands. Airlines for international travel tend to
include Continental and Delta.
Older Upper-mid Mix are also...
More Likely to...
Less Likely to...
Have Household Income $500,000+
Have a Home Valued <$80,000
Have EBI $500,000+
Live in a Mobile Home or Trailer
Have a Home Valued $500,000-$750,000
Be an Income Below Poverty Family
Have 2004 Household Wealth $1,000,000+
Have Farm/Forest/Fishing Occupations
Have Legal Occupations
Live in a Boat, RV, or Van
Gamble in Atlantic City
Eat at Taco Time, Sonic, or Long John Silver
Be a Member of USAir’s Frequent Flyer Program
Eat at Hardee’s or Captain D’s
Travel Domestically to ME/NH/VT
Use CellularOne for Cell Phone Service
Belong to a Country Club
Eat at Krystal Hamburgers or Godfather’s Pizza
Gamble in Lake Tahoe/Reno
Eat at a Fast Food Fish Restaurant
*EBI: Effective Buying Income. Refers to after-tax income.
Young Urban Mix
PRIZMNE Clusters
12 Brite Lites, Li'l City
29 American Dreams
31 Urban Achievers
Lifestage
Group
Y1
F2
Y2
Social
Group
C1
U1
U2
TOTAL
Base
Households
%Comp
1.99
2.90
2.44
US Visitor
Analysis
2000-2004
%Comp
2.18
3.37
2.49
US Visitor
Analysis
2000-2004
Index
109
116
102
7.33
8.04
110
5) Young Urban Mix are predominantly singles and couples under age 45 living in multi-unit
housing in urban areas. These young urbanites have a higher than average likelihood of
being Asian or Hispanic. They tend to be college educated and are employed in white-collar
and sales/office administration occupations with midscale incomes. The median household
income for this target group is $49,800. Members of Young Urban Mix tend to eat at a
variety of restaurant chains, including Arthur Treacher, Roy Rogers, Boston Market, and
Romano’s Macaroni Grill. They are likely to travel domestically on American or United
Airlines and belong to Columbia House or a classical music club.
Young Urban Mix are also...
More Likely to...
Less Likely to...
Live in a Structure with 20-49 Units
Use Public Transportation
Commute by Bicycle
Live in a Household with 2+ Persons, Nonfamily
Have Art/Design/Entertainment/Sports/Media Occup.
Have Farm/Forest/Fishing Occupations
Live in a Mobile Home or Trailer
Have a Home Valued <$40,000
Live in a Boat, RV, or Van
Have a Home Valued $1,000,000+
Eat at Carl’s Jr, Papa Gino’s, or Shakey’s
Eat at Del Taco, Bennigan’s, or Round Table Pizza
Gamble in Las Vegas
Go Mountain/Rock Climbing
Play Racquetball
Use CellularOne for Cell Phone Service
Buy Fishing Equipment
Buy Garden Supplies by Catalog
Own a Rifle or Shotgun
Belong to a Veterans Club
Where are the targets?
How can I reach them?
Likely Media Usage Habits by Target Group
1. Older Wealthy Couples
Classical Radio
All News Radio
All Sports Radio
Newspaper, Business/Finance Section
Yellow Pgs for Landscape/Garden/Tree Svc
News/Talk Radio
2. Wealthy Midlife Families
Yellow Pgs for Building/Construction Supply Yellow Pgs for Electricians
Yellow Pgs for Furniture Stores
Yellow Pgs for Landscape/Garden/Tree Svc
Newspaper, Business/Finance Section
Yellow Pgs for Auto Dealer/Sales
3. Young Professionals
Source for TV Program Info, Internet
Watch VH1
Jazz Radio
Alternative Radio
Watch BET
Watch BBCAmerica
4. Older Upper-mid Mix
Yellow Pgs for Travel Agents
Alternative Radio
Classical Radio
All Sports Radio
MOR/Nostalgia/Big Band Radio
All News Radio
5. Young Urban Mix
Source for TV Program Info, Radio
Alternative Radio
Urban Contemporary Radio
Spanish Radio
Use Online Svc for Listen to Internet Radio
Radio, NBA Regular Season
How can I reach Them?
Magazines
Television Programs
1. Older Wealthy Couples
Washington Post, Daily & Sunday
The West Wing
Wall Street Journal, Daily
US Open, Men’s Tennis
Fortune
Ed
Architectural Digest
CNBC, Kudlow & Cramer
Business Week
CNBC, Louis Rukeyser’s Wall Street
Traditional Home
Wall Street Journal, Daily
Food & Wine
Money
SmartMoney
2. Wealthy Midlife Families
Celebrity Mole
MSNBC, MSNBC Live with Lester Holt
FOX News, Fox Report w/Shepard Smith
CNBC, Kudlow & Cramer
People’s Choice Awards
3. Young Professionals
New York Times, Daily & Sunday
Access Hollywood (S)
Fortune
Travel, Travel Channel Secrets
Los Angeles Times, Daily & Sunday
VH1, VH1 All Access
Scientific American
MTV, Road Rules
Washington Post, Daily
MTV, Sorority Life
4. Older Upper-mid Mix
The New Yorker
Kennedy Center Honors
Scientific American
CNBC, Closing Bell
Fortune
CNN, Lou Dobbs Moneyline
New York Times, Daily & Sunday
NHL Playoffs/Finals
Money
CNBC, Louis Rukeyser’s Wall Street
5. Young Urban Mix
Los Angeles Times, Daily & Sunday
Nick at Nite, Family Ties
Chicago Tribune, Daily
Soul Train Music Awards
Vanity Fair
BET, Rap City
Elle
Grammy Awards
GQ
Malcolm in the Middle
Why segmentation
• Segmentation and target marketing are
central to our marketing strategy
– Different customer groups require the correct
marketing mix to suit their individual needs
– NTAs operate on a limited budget which has
to serve all major markets and therefore
targeting ensures an effective allocation of
resources in areas with a high potential for
conversion
Product
• The effectiveness of planning the
marketing mix depends as much on the
ability to select the right target markets as
on devising a product which will generate
high levels of satisfaction.
• Tourist have to believe that the product
offers high value.
• There should be continuous monitoring of
product via exit surveys
Product
•
•
The BTA consistently monitors the
competition to ensure that our
services are amenities being
offered are consistent with market
norms and encourage the local
suppliers to enhance their
products to reflect this.
Research will also develop
strategies to lift the quality of
products and services being
offered on island and raising the
national standards.
–
–
•
•
•
ZAGAT
AAA
Monitor the quality of all the
components of the product and
provide feedback to suppliers
falling below the standards.
Duty free sector
Cleanliness drive
Brand Image
•
•
•
•
In order to effectively
sell and promote a
country we need to
understand the
consumers perception
of the destination and
determine what points of
differentiation set the
island apart from the
competition
Conducting brand audits
starting with the
perceptions of current
customers
Barbados for example
trades on Friendliness,
safety and security
The island that works.
Price
• Extremely challenging for a destination
marketing organization as they do not
control any inventory
• We cannot tell a supplier to sell his
product at any specific price even if its
priced above where it should be.
What do we do with Price
• Develop structured or informal relationships with travel trade
partners who have a ready supply of data available
• They supply relevant market intelligence regarding the pace of
bookings and what is being offered in the market i.e value for money
• Conduct scans of the market as well as economic conditions to
determine what national efforts need to be undertaken and what
would constitute a compelling offer.
• Several of these initiatives have been instituted within recent years
within the region. However, there is a function for researchers to
determine the success rate as well as the ROI. The use of E/D
cards as well as Exit surveys extremely important in these
evaluations
• In order to determine this we have to determine the correct timing for
the offer i.e the booking cycles of the consumer.
• In determining the offer we calculate the return on investment to
ensure its feasibility and benefits to the country.
Advertising &
Promotion
• Consistently conduct research
to monitor our advertising and
PR efforts in all markets
• Consistently ‘word of mouth’
ranks very high as a PR
vehicle for Barbados.
Suggesting the need to ensure
that the product is correct.
• In recent years, use of the
internet has been very
important trend for Barbados.
• Traditional media have been
diminishing in effectiveness
• Have therefore reoriented our
communications efforts to
reflect the changing
environment
Testing of Concepts
• Before launching any
campaign it is tested
either through focus
groups or more
recently we have
embraced the new
technologies to test
our concepts to
ensure that the
message is most
effectively
communicated
Distribution
USA
BOOKING CHANNELS
TRAVEL AGENCY
WEBSITE
2%
HOTEL RESERV.
WEBSITE
7%
TOUR OPER.
WEBSITE
6%
HOTEL RESERV.
14%
TRAVEL AGENCY
30%
ONLINE AGENCY
35%
TOUR OPERATOR
6%
• Again simple questions on the exit survey can provide
useful insights into the distribution channels
Website Customer tracking
• Enhanced Tracking - The Internet offers an unparalleled ability
to track and monitor customers. Each time a visitor accesses
our website they provide us with extensive information
including how they arrived at the website (e.g., via a search
engine) and what they did when on the website (e.g., what
products were investigated).
• This information is being used in the redevelopment of our new
site and to provide information on interest of the consumer so
that the relevant content is added to the website
• Research Tools – A large number of Internet services have
added options for conducting research. These include the
ubiquitous search engines, tools for conducting online
surveys, and access to large databases containing previous
research studies (i.e., secondary research).
Forecasting
• Tourism is a highly perishable commodity. A
room or airline seat not sold today cannot be
sold tomorrow
• This highlights the need for accurate forecasting
as it has implications for jobs and the general
health of the economy as tourism is the main
engine of growth for many islands within the
region
• Countries can be proactive in devising strategies
in the event of fall off in business.
• The data from the E/D cards is useful as well as
information from travel partners
Forecasting
• The BTA reported this to the government for
planning purposes.
• This has resulted in a US$15 million fund being
established to aid properties and attractions in
distress due to the economic fallout
• This will minimize job losses and to try to
prevent any major downturn in the economy
from the tourism sector as it is heavily tied to the
other sectors of the economy
Rationale for Events
• In order to maximize the marketing spend it is
felt that events with significant television
coverage can provide a destination with
advertising and promotional opportunities which
we could not have otherwise afforded.
• The combined effect of a number of these
events in the right segments can raise the
destination profile.
• Finally, the additional visitation for the events
can boost the immediate needs of the industry.
Evaluation of Proposal
• The evaluation of all proposals should be
conducted based on the information
sources available
• This should be done with a ROI on these
events in mind.
– Must provide a minimum return of 20:1 to be a
viable option
– Coverage of the event must be significant
band in line with the image and profile of
Barbados.
Event Evaluation
• Focus testing and surveys of participants
to help with future events
ICC World Cup
• Delivered in numbers for the island
surpassing the ROI required
• Significant coverage but in areas where
the number of tourist not significant to
barbados
Other Events
• At this time not viable as the profile of
clients not necessarily Barbados clients
Conclusion
• Destination marketing and planning for the
Barbados Tourism Authority involves interaction
with various publics from the both from the
supply side and the demand side and protecting
their interest.
• It is imperative that the relevant information to
make sound decisions is available and that
actions are taken in the most cost effective way
to the benefit of Barbados as a whole.
QUESTIONS