Download Marketing Your Product

TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Marketing Your Product
Contents
Marketing Your Product ................................................................................2
The Marketing Plan ....................................................................................2
Positioning..................................................................................................3
The Marketing Mix..........................................................................................3
Product or Service .....................................................................................3
Place (Distribution) ....................................................................................3
Promotion or Selling ..................................................................................4
Advertising ..............................................................................................4
Methods of Advertising ..........................................................................5
Brochures................................................................................................6
PR/Media..................................................................................................7
Price ............................................................................................................7
Packaging ...................................................................................................9
Partnerships .............................................................................................10
Accreditation ................................................................................................10
Awards..........................................................................................................10
Grants/Funding ............................................................................................10
Visit Victoria Website ..................................................................................11
Star Ratings..................................................................................................11
Conferences, Forums & Workshops ..........................................................11
Further Information and Assistance ..........................................................12
TOURISM VICTORIA
PRODUCT DEVELOPMENT - FACTSHEET
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
1
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Marketing Your Product
Marketing is an essential part of running a business. New and existing tourism
businesses need to undertake some basic marketing initiatives to be successful. The
best hotel, tour or attraction in the world will not succeed without a planned approach
to marketing.
The Marketing Plan
A marketing plan establishes a direction for your business. It identifies a marketing
budget, sets out a media and promotion timetable and how you will review the
success (or otherwise) of your marketing efforts.
The basic elements of a marketing plan are:
Overview
Business Description
Mission statement
SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats
Positioning
Positioning statement – what is my competitive advantage?
Consumer profile – who are my customers?
Marketing Mix ( the 6 P’s )
Product or service
Place or distribution
Promotion or selling
Price
Packaging
Partnerships
Monitoring
Review performance of the Marketing Plan as part of your Business Plan.
For more information on marketing plans, please visit:
www.tourismexcellence.com.au/module3/index.php?page=marketing
Five essential tips for growing your tourism business:
1. Stand out from the crowd
2. Get your website working and continually updated
3. Encourage your customers to share their experiences
4. Find your target audience and join the conversation
5. Be found in search engines
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
2
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Positioning
Positioning means designing your product to suit your target market. Before you do
this you need to know who your customers are. How you position your product will be
determined by the customers you are targeting. Market research is most helpful in
analysing potential target market segments. An important consideration when
positioning your product is how you are going to reach your customers.
Your choice of distribution channels is an important element in positioning your
product because it is through these channels that your customers will get the first
impression of your product. You need to establish within your target markets a
perception about your product that will differentiate it from that of your competitors.
The name of your company, along with the price of your product, the design of the
brochure, photography and advertisements will establish and reinforce your unique
position in the mind of your customer.
Your competitive advantage is what makes your product more appealing than those
of your competitors. It may be something unique you have to offer, it may be superior
service or extra value included in the price you charge.
For more information regarding market research and benchmarking, please visit:
www.tourismexcellence.com.au/module1/index.php?page=module1-02
The Marketing Mix
Product or Service
You probably have a general idea of what your product or service will be. You will
need to establish a clear idea of the components of your business and the level of
service or standards you intend to provide. It helps to identify the special features or
benefits of your business, i.e. your competitive advantage, and to build your product
or service around these.
Place (Distribution)
In order to gain maximum exposure for your product in your target market, you should
consider all the different types of distribution channels that are available to you.
These will include:
Direct to the consumer
Retailers (travel agents)
Wholesalers
Tourist Information Centres
Electronic distribution
TOURISM V
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
3
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Promotion or Selling
Promotion represents all of the communications and means of letting people know
about your business.
Promotion includes:
Advertising
Public relations
Publicity
Direct marketing
Online (Website) and E-Marketing
Trade and Consumer shows
Word of mouth
A promotional mix specifies how much attention to pay to each subcategory and how
much money to budget for each item. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance, positioning or
competitive retaliation.
Promotion can be through brochures, trade displays or editorial in print media such as
magazines generated from familiarisation visits. Make the most of cost-effective
promotional opportunities such as public relations, word of mouth and web and emarketing.
Advertising
Even the most appealing product requires some form of promotion in order to
maximise sales and financial return. Advertising can help raise awareness of a
product and create an appealing product image.
Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet adverts through to print media, television and billboards. It can
reach a large audience at once and the same message can be repeated many times.
Creating the right message
The advertisement should convey the following important information to the potential
customer:
Introduce a particular product/service
Explain the product or service
Demonstrate its unique selling points
Provide an indication of price
Indicate where the product is available/ distributed for sale
Advertising in the tourism industry
Advertising in the tourism industry is somewhat different to other industries. A holiday
is an intangible product that the consumer can’t see or touch before they buy. Often
the customer will pay for the product before experiencing it.
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
4
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
With this in mind, advertising priorities should consider:
Who would find your product most appealing?
What are the potential customers’ needs and desires?
What creative methods can be utilised to generate interest in a particular product?
What is the best way to reach these customers?
Methods of Advertising
Leaflets/Flyers
Either distributed by hand, in letterboxes or inserted in publications
Print advertising
Placed in local, regional or national newspapers, ethnic publications, trade and tourist
magazines, journals or newsletters and magazines relevant to your target market.
Canvassing
By way of sales visits/sales calls
Radio Advertising
Placed locally or regionally
Wholesaler Programs
Promotional costs for such programs are shared and therefore less expensive.
They can also reach a wider audience.
Sponsorship
Consider sponsoring local community events which attract large crowds and
significant media coverage. Participating in such events can improve business
exposure.
Listings and displays
Includes advertisements in telephone or business directories and cinema advertising
Cooperative Advertising
Cooperative advertising and promotion with your local, regional or industry association
will help your message get wider distribution and because there are more businesses
involved it will also cost less.
For more information regarding Tourism Victoria’s Cooperative Marketing Opportunities,
click here: www.tourism.vic.gov.au/marketing/marketing/marketing-opportunities/
E-Marketing
Tourism Victoria, in partnership with other state tourism organisations through the
Australian Tourism Data Warehouse (ATDW), has produced a series of online
marketing tutorials for tourism operators. The Online Marketing E-kit covers
everything from the basics of developing a good web site to advanced topics like
search engine marketing and online product.
To download the free e-kit, click here: www.tourism.vic.gov.au/industryresources/industry-resources/toolkit/
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
5
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Brochures
Brochures are an important means of conveying your image and message to
potential customers. Brochures need to be easy to read with an eye-catching
heading, a simple message, and easy-to-read print.
There are some basic decisions that need to be made early in the brochure
production process. e.g:
What do you want your brochure to do?
Who is the brochure aimed at?
What size/style should it be?
What is your budget?
How many do I need?
Your brochure should be consistent with other brochures in the industry. These are
usually either A4 in size (210mm x 297mm) or DL (210mm x 100mm). Both these
sizes fit standard size envelopes.
What to include in a Brochure
Be sure that you include:
Tour details - the number of days, departure dates, the itinerary,
departure or pick-up points, start and finish times
Booking conditions
Contact details for bookings (phone/fax numbers, email and web
addresses)
Validity dates of the brochure
Tariffs or tours prices - this section should include discounts for
pensioners, students, etc. and list what is and is not included in the price
Alternative booking agencies
Room on the back of the brochure for a travel agents stamp (if you are
distributing to retail outlets)
A map is useful, particularly if you are intending to promote your product overseas or
interstate. Maps should show the location of your product in relation to Victoria or
Australia.
When drafting the copy (or words) of your brochure make sure you do not include any
unacceptable (illegal) clauses or misleading information. There has been an increase
in the number of legal actions bought against operators for loss of enjoyment or
deceptive and misleading advertising. It is essential to honestly represent your
product/service in promotional material. If in doubt, seek legal advice.
The impact of your brochure will be dependent on effective distribution. You must
consider who you want to distribute your brochure to and have a system in place to
update stocks as required.
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
6
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Brochure Distribution
Potential distribution points include:
Personal delivery to other attractions and facilities
Display at your own facility, information centres and accommodation
facilities
Availability at transport terminals including airport, rail and coach
operations
Inclusion in local/regional information kits
Direct mail to former and potential customers, related government
departments and travel media
Handouts at seminars, conferences and official functions
Appropriate travel shows, caravan and camping shows, specialist
markets i.e. farmers markets etc
Visitor Centres
PR/Media
You have just completed your marketing plan and one of your aims is to achieve
positive media coverage in the next 12 months. How do you achieve publicity? What
do you need to do for media to take note of your business/product/service?
Tourism Victoria provides a Media Guide geared to help you understand what the
media is, how it works and how you can better promote your product, service or event
through a variety of media channels.
For a copy of Tourism Victoria’s Working With The Media - A Practical Media
Guide, click here:
www.tourism.vic.gov.au/images/stories/Documents/MediaCentre/media_guide.pdf
Price
To be successful in the marketplace, a product must be priced accurately and
competitively. This requires a clear understanding of the individual costs of all product
components and their impact on total product price.
Factors Influencing Pricing
Seasonality: Fluctuations in business between high and low seasons.
Operating costs: Includes general overheads, promotion and labour costs which can
vary, depending on business peaks and troughs.
Competition: This influences the maximum price for which a product can be sold.
Demand: Generated by existing and potential customers.
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
7
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Important points to consider when setting your prices are:
The total costs involved in getting the product or service to the market
Required profit margins
Price sensitivity of target markets
Commission levels and other distribution costs
Allowance for any taxes that are applicable
The research and statistical information that is available
Competitor analysis and competitive advantage
Market and image perception of the product and the region
The image of the business
The perceived value of the product
The quality of the product
Distribution Channels
Expanding the number of distribution channels selling a product can improve sales
and profitability. Establishing a business link with sales intermediaries does involve
some costs. These costs are commonly known as commission and are classified as a
distribution cost.
Who’s who in the distribution process?
Retailer / Travel Agent
Either based in Australia or overseas and commonly known as a retail travel agent.
Wholesaler
Either based in Australia or overseas, wholesalers provide retailers with travel
packages comprising of two or more products supplied by different operators.
Inbound Tour Operator
Based in Australia and responsible for booking the ground arrangements on behalf of
an international wholesaler.
Pricing products with commissions
Each distribution channel receives a level of commission which is generally a
standard rate. These commissions should be added to the nett rate to create a retail
price.
Distribution channel commission
International or domestic retailers who sell directly to a customer: 10%
International or domestic wholesalers who sell to retailers, who then sell to a
customer: 20%
Inbound tour operators who sell to wholesalers, who then sell to retailers,
who then sell to a customer: 25-30%
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
8
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Commission Breakdown
Traveller / Consumer
Retailer / Travel Agent
10%
Wholesaler
10-15%
Inbound Tour Operator (ITO)
5-10%
Product / You
Dynamic Pricing
Dynamic pricing is a popular method of pricing in the tourist industry. Higher prices
are charged during the peak season, or during special-event periods.
In the off-season, hotels may charge only the operating costs of the establishment,
whereas investments and any profit are gained during the high season.
Varying Levels of Dynamic Pricing
Special Event Surcharges
Seasonal Rates
Day of the week variations
Re-negotiations based on demand
Surcharges for Ad Hoc groups + FIT on constrained days (above allocation)
Packaging
In order to sell your product it must be easy to buy. Packaging can improve business
and provide travellers with well-priced, attractive and convenient holiday options.
A package combines two or more products so that the purchaser is advantaged
compared with buying the items separately. Core holiday components-transport,
accommodation, meals, attractions, entertainment-can be carefully combined into a
complete packaged experience that provides the customer with convenience or a
more competitive price.
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
9
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Partnerships
Develop relationships with the organisations that promote your product - the local
tourist association, tourist information centres, RACV and Tourism Victoria.
Tourism Associations promote cooperation, successful partnerships and the
exchange of industry experience. Policy, planning and tourism development enquiries
can be directed to Victoria’s Regional Tourism Associations.
For a complete list of Victoria’s Regional Tourism Associations please visit the
ARTN website: www.regionaltourism.com.au/ARTN/rto/vic.html
Accreditation
Accreditation is a set of industry standards established by the tourism industry to
provide a model for better business practice and customer service. In other words,
accreditation provides business operators with a guide or outline of industry
requirements to help them plan, develop, improve and document their business
practices and procedures.
Tourism Accreditation Board of Victoria Inc
The Tourism Accreditation Board of Victoria Inc (TABV) administers the accreditation
program in Victoria.
TABV contact details: Address: Level 2, 10 Queen Street, Melbourne, VIC 3000
Phone: (03) 9620 4199
Email: [email protected]
Website: www.tourismaccreditationvic.com.au
Awards
Victorian Tourism Awards
The Victorian Tourism Awards recognise and reward excellence across all sectors of the
tourism and hospitality industry. The recognition and rewarding of quality and innovative
businesses translates into a number of competitive advantages and benefits.
For more information on the Victorian Tourism Awards and other Tourism Awards,
click here: www.tourism.vic.gov.au/industryresources/industryresources/tourismawards/
Grants/Funding
If you are you looking for financial support, advice, or education and training
programs to help improve your business, the Victorian and Federal Government can
assist with a range of funding and support services for all aspects of business from
research and development to management and export.
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
10
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
For more information on Grants and Funding Opportunities, click here:
www.tourism.vic.gov.au/industry-resources/industry-resources/funding-programs/
Visit Victoria Website
Sign up and list your business on Victoria’s official consumer website,
http://www.visitvictoria.com, one of the leading state tourism websites in Australia.
Create your own listing, complete with images, a full description, facilities, rates and
maps that can be updated at any time. Tourism Victoria also offers businesses a
personalised web address.
To register or edit your listing go to: http://my.visitvictoria.com
Star Ratings
AAA Tourism, on behalf of Australia’s Auto Clubs, manages the renowned STAR
Rating Scheme for the Australian accommodation industry. In addition, AAA Tourism
manages Australia’s most comprehensive accommodation database and is the major
publisher of online content and travel guides, available through the Auto Club
websites, retail network and other selected outlets.
For more information, visit www.aaatourism.com.au/
Conferences, Forums & Workshops
The Annual Victorian Tourism Conference
The Annual Victorian Tourism Conference gathers together tourism industry
professionals to discuss issues at the forefront of the industry, strengthen networks
and learn skills to create a more sustainable and professional tourism industry.
For more information, visit www.tourismalliance.com.au
Starting up in Tourism Workshop
Tourism Alliance Victoria, Small Business Victoria, Tourism Victoria and the OAMPS
Group, have combined their expertise and resources to develop an introduction into
the tourism industry for new operators. Its intention is to provide a strategic insight
across a range of essential business practices and improve overall business acumen
and planning.
For more information, visit www.tourismalliance.com.au
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
11
TOURISM VICTORIA
PRODUCT DEVELOPMENT – FACT SHEET
Tourism Victoria's Tourism Marketing Masterclass
Tourism Victoria's Tourism Marketing Masterclass is an innovative forum designed to
provide you with updates and insights on what marketing is happening in the industry.
Come to the Tourism Marketing Masterclass to find out what you need to know about
reaching your target and prospective domestic audiences, and how to achieve better
results from your marketing efforts.
For further information, click here:www.tourism.vic.gov.au/industryresources/industryresources/marketing-masterclass/
Further Information and Assistance
Victorian Business Centres
Victorian Business Centres offer business start-up information and referral services.
They also have expert counsellors who can assist in the development of a business
plan and marketing plan.
Find your nearest Victorian Business Centre at
www.business.vic.gov.au/BUSVIC/STANDARD/294405633/PC_62558.html
Business Victoria
Business Victoria is a comprehensive online resource designed to help you start, run
and grow your business. Visit: www.business.vic.gov.au
Tourism Victoria: Marketing Opportunities Guide
Tourism Victoria’s Marketing Opportunities Guide outlines marketing activities
available to regional campaign committees, local and regional tourism associations,
industry sector groups and individual business owners. The guide also provides key
industry contact details.
Find a copy of the Marketing Opportunities Guide (405 kb) here:
www.tourism.vic.gov.au/marketing/marketing/marketing-opportunities/
This fact sheet is part of a series prepared by Tourism Victoria to support the development of a professional and
sustainable Victorian tourism industry. The information contained in this publication is provided for general guidance
only. Tourism Victoria have applied due diligence in producing the material contained in this fact sheet and does not
make any representations or warranties (expressed or implied) as to the accuracy, currency or authenticity of the
information.
Tourism Victoria does not accept any liability or responsibility in the event of any person being subjected to legal
proceedings for any failure of any statutory or other duty under any Act or Award, whether or not such proceedings
arise directly or indirectly from any material contained in this fact sheet.
© Tourism Victoria 2009
Tourism Victoria: Product Development Fact Sheet: Marketing Your Product
12