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Destination Marketing 1 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 2 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 3 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. 4 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. 5 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. 7 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. 8 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. 9 Benefits of Tourism on the Destinations • • • • • 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 12 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. 13 • “Destination Marketing” is an integral part of developing and retaining a particular location’s or destination’s popularity and promoting local tourism services. 14 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 15 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 17 18 19 20 21 22 23 24 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 25 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 26 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 27 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 28 Branding Consistency Attributes High Brand Loyalty Name Awareness Quality & Value Advantages of Brand Names Brand Equity Identification Strong Brand Association Perceived Quality 29 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 30 Branding with Positioning • • • • 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 31 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 32 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. 33 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. 34 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. 35 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. 36 Destination 37 Creating Brand for Destinations • • • • • • 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 38 Some examples of destination brands • • • • • • • • • • 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 39 40 41 Destination Brands 42 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? 43 End of Chapter Slides