Transcript 16 Destination Marketing

Destination Marketing
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Outline
 Destination defined
 Types of tourism destinations
 Benefits of tourism for destinations
 Management of tourism destinations
 Destinations as tourism product
 Marketing the destinations
 Branding the destination
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Destination Marketing
• “Marketing should focus on market creation,
not market sharing”
- Regis McKenna
• To be wise, a man should read ten thousand
books and travel ten thousand miles.”
- Li Bai, Chinese poet, Tang Dynasty
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Tourism Destinations
• By definition, “tourism destinations are
places that attract and provide for the needs
of visitors”.
• Such places exist when the resources,
infrastructures and services required to
facilitate travel to the destination, and the
attainment of satisfactory visitor experiences
at the destination, are in place.
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Tourism Destinations
• The terms “destination” and “resort” are
often used interchangeably, although the
latter more commonly used in reference
to individual complexes such as hotels,
which position themselves as selfcontained resorts.
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The Tourism Destinations
• Destinations are places with some form
of actual or perceived boundaries
• Macro-destinations - the United States
contains thousands of microdestinations, including regions, states,
cities, towns, and even visitor
destinations within a town
Tourism Destinations
• Destinations then, can range from purpose
built resorts through to entire countries.
• In between these extremes, historic towns
(Florence, Ephesus), capital cities (Paris, London),
provinces (Izmir), and macro regions within a
country (Texas, USA) or entire nation states
(Turkey, Greece) may be referred as
destinations.
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Tourism Destinations
• Destinations are generally perceived by
their boundaries such as the
– Physical boundary of an island
– Political boundaries
– Market-created boundaries such as those of
a wholesaler who defines a South Pacific
tour solely as Australia and New Zealand.
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Tourism Destinations
• The use of political boundaries to define
destinations is an obvious consequence
of public decision making structures.
• Thus local, regional and/or national
government decision will be made
relating to the development, positioning,
branding and marketing of tourism
destinations.
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Benefits of Tourism on the Destinations
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Direct employment
Support industries and professions
Multiplier effect
Source of state and local taxes
Stimulates exports of place-made
products
Management of Tourist Destinations
• Destinations that fail to maintain the necessary
infrastructure or build inappropriate
infrastructure run significant risks
• Violence, political instability, natural disaster,
adverse environmental factors, and
overcrowding can all diminish the
attractiveness of a destination
• Example; the effect of 9/11 on US Tourism
Destination as Tourism Product
• There is no specific product in tourism classified and
defined as traditional manufactured product.
• Instead, tourism product generally considered as an
accommodation, a transportation, a meal, an
entertainment, and a souvenir as single products, or
combination of several services during travel
• In this context, a package tour or inclusive tour is
defined as tourism product.
• Tourists really buy dream, total experience, activity, or
business opportunity while they visit any destination
creates destination tourism product
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Destination as Tourism Product
• Tourism destinations are considered as tourism product
since they offer a combination of goods and services
offered to the visitors
• Destinations are geographical locations, and this
natural and geographic structure itself can be an
attraction for some wanderlust tourists (e.g. an island).
• But generally manmade, historical and natural,
attractions in the area, local infrastructure, hospitality
establishments, public services, private businesses and
even local people are the main elements of destination
tourism product.
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• “Destination
Marketing” is an
integral part of
developing and
retaining a particular
location’s or
destination’s
popularity and
promoting local
tourism services.
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Identifying the Tourist Markets to Destination
• Like the other business enterprises, tourism
destination marketers must know the actual and
potential customers and their needs and wants.
• They must determine which target markets to serve,
and decide on appropriate products, services and
programs.
• Not every tourist is interested in a particular
destination.
• Therefore, destination marketing managers should
know and apply the basic principles of market
segmentation and market targeting.
• Segmentation is examined in a separate heading
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Organizing and Managing Destination
Marketing
• National tourist organizations (NTOs) are
central tourist agencies that make a
destination tourist friendly
– may be public, quasi-public, non-profit, or
private
– this agency is often run by the central
government, state, or province, together
with local government officials
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Destination Brand Decisions
• A brand is a name, term, sign, symbol,
design, or a combination of these
elements that is intended to identify the
goods or services of a seller and
differentiate them from competitors
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Branding
• Brands are among a company’s most valuable
assets
• A Brand represents what the company is and
what it stands for
• A Brand implies trust, consistency, and a
defined set of expectations
• The strongest brands own a place in the
customer’s mind
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Functions of brand for consumers
– Identification of source of product
– Assignment of responsibility to product
maker
– Risk reducer
– Search cost reducer
– Symbolic device
– Signal of quality
– Deliver its value
– Live up to consumer expectation
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Functions of brand for Manufacturers
– Means of identification to simplify handling
and tracing
– Means of legally protecting unique features
– Signal of quality level to satisfied customers
– Means of endowing/supplying products with
unique associations
– Source of competitive advantage
– Source of financial returns
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Branding
Consistency
Attributes
High Brand
Loyalty
Name Awareness
Quality & Value
Advantages
of
Brand Names
Brand
Equity
Identification
Strong Brand
Association
Perceived Quality
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Conditions that Support Branding
• The product is easy to identify by
brand or trademark
• The product is perceived as the
best value for the price
• Quality and standards are easy to
maintain
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Branding with Positioning
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A brand is a well known product or service
of consistent quality available to consumers
in multiple tourism locations
Strong brands attract more franchises and
higher revenues
Technology has had a significant impact on
branding
Product consistency and the integrity of
branded properties affects positioning of
the entire brand
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Branding & Rebranding
• A good brand name should:
– be protected (or at least protectable)
under Trademark law.
– be easy to pronounce.
– be easy to remember.
– be easy to recognize.
– be easy to know
– attract attention
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Branding & Rebranding
– be easy to translate into all languages in the
markets where the brand will be used.
– suggests product benefits or suggest usage
– suggests the company or product image
– distinguishes the product's positioning
relative to the competition.
– be attractive.
– stands out among a group of other brands.
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Branding the Destination
 Immaterial and perishable nature of tourism
sector makes difficult for customers to make their
choices among vast services.
 Therefore, brands help consumers to feel more
safe in their choices.
 Brands become an organization’s lifeline to the
external environment and branding becomes a
new management framework that turns old
wisdoms upside down by conceptualizing the
organization from the outside in.
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Branding the Destination
• The destination brand is described a powerful
tool with the ability to create emotional appeal
and
• brand image is considered crucial to the
marketing success
• the destination brand is the tangible and
positive outcome of the achievement of unity
and collaboration amongst the stakeholders of a
tourism destination.
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Branding the Destination
• Destination branding is the
management process which leads to a
strategic plan to build brand identity
based upon destination attributes
selected on the basis of
competitiveness, uniqueness and
desired identity.
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Destination
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Creating Brand for Destinations
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Creating and maintaining effective destination
brand and identity requires;
Unique attractions, both men made, and
natural/cultural/historical
High quality services
Adequate infrastructure and superstructure
Well educated and qualified employees
High level of visitor satisfaction and their total
holiday experiences with impressions
Local community and DTO offices support
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Some examples of destination brands
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Las Vegas: the gambling and entertainment city
Paris; the city of history and romance
Antalya; The Turkish Riviera full of sun, sea, and sand
Vienna; History and Classical Music
Thailand; Mystic far east
Switzerland; The Alpine and Chocolate Country
Spain; Picasso, Dali, Gaudi and Football
Lisbon; The gate open to the new world
Argentina: The beef country
Venice; The wet city
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Destination Brands
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Discussion Questions
• How does a tourism destination determine what
to promote and to whom it should be promoted?
• What benefits does tourism bring to your area?
• Find two or more different sites of tourism
promotion organisations. Evaluate how effective
you feel these web sites are in promoting the
destination. Explain your answer.
• What are the basic differences between
destination marketing and a tangible product
marketing?
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End of Chapter Slides