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Contents UNIT 0. INTRODUCTION ........................................................................................... 6 What is this module all about? ................................................................................ 7 References ................................................................................................................ 9 UNIT 1. MARKETING RESPONSIBLY, OR MARKETING RESPONSIBLE TOURISM PRODUCTS? .......................................................................................... 10 Introduction............................................................................................................. 10 Reasons to be responsible .................................................................................... 13 Corporate Attitudes Towards the Environment ................................................... 19 How corporate principles affect marketing .......................................................... 25 The Marketing Response ....................................................................................... 28 Strategic Marketing Planning ................................................................................ 39 Tactical marketing planning .................................................................................. 40 The Process of Marketing Planning ...................................................................... 40 Conclusion .............................................................................................................. 44 References .............................................................................................................. 45 UNIT 2: THE MARKET FOR RESPONSIBLE TOURISM ........................................ 46 Introduction............................................................................................................. 46 Is the Ethical Market Homogenous? ..................................................................... 47 How do authors look at segmentation? ............................................................... 48 How is data collected? ........................................................................................... 56 The Complexity of Researching the Industry....................................................... 58 ‘Green Gap’ Issues ................................................................................................. 61 Why look at segmentation differently? ................................................................. 62 Conclusion .............................................................................................................. 67 References .............................................................................................................. 73 Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 1 UNIT 3. TARGETING, SEGMENTING AND POSITIONING .................................... 81 Introduction............................................................................................................. 81 Segmentation .......................................................................................................... 83 Lifestyle Segmentation - Psychographics ........................................................... 89 Geotourism segmentation efforts ......................................................................... 91 Arkenford ................................................................................................................ 93 DEFRA Sustainable population segments ........................................................... 95 Your segmentation methods ................................................................................. 98 Targeting ............................................................................................................... 103 Choosing a market-coverage strategy ............................................................... 104 Positioning ............................................................................................................ 105 Positioning consists of three steps .................................................................... 106 Strategy based on differentiation and “matching” ............................................ 109 Designing your responsible tourism positioning .............................................. 111 Conclusion ............................................................................................................ 128 References ............................................................................................................ 128 UNIT 4. RESPONSIBLE TOURISM MARKETING STRATEGY ............................ 129 Introduction........................................................................................................... 129 Legitimacy reasons for responsible tourism products ..................................... 132 Altruistic reasons for responsible tourism products ........................................ 135 Commercial reasons for responsible tourism products ................................... 138 Strategic market oriented planning .................................................................... 143 Distinguishing between strategy and tactics ..................................................... 150 Product-market growth models........................................................................... 152 Summary ............................................................................................................... 153 References ............................................................................................................ 155 UNIT 5. ETHOS BRANDING AND IMAGE DEVELOPMENT ................................ 156 Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 2 Introduction........................................................................................................... 156 Modelling the tourist destination’s image .......................................................... 157 Consumer behaviour and the need for image analysis .................................... 160 Risk perception..................................................................................................... 163 Strategic image management .............................................................................. 168 Product’s image as they key to product positioning ........................................ 172 Differentiating a destination or company by its image ..................................... 174 Conveying an image in the communication mix ................................................ 177 Tools to communicate an image ......................................................................... 178 Prevailing destination image themes ................................................................. 179 Changing image and segmentation .................................................................... 180 Crisis management .............................................................................................. 183 Branding ................................................................................................................ 185 Conclusion ............................................................................................................ 192 References and additional reading ..................................................................... 193 UNIT 6. PRODUCT ................................................................................................ 195 Introduction........................................................................................................... 195 Product .................................................................................................................. 196 Product levels ....................................................................................................... 197 Product lifecycle ................................................................................................... 198 Product development and innovation ................................................................ 201 The nature of innovation: creation or change.................................................... 202 Determinants of innovation ................................................................................. 206 New product development process .................................................................... 208 Market readiness of your product ....................................................................... 216 References ............................................................................................................ 218 UNIT 7. PRICE AND YIELD MANAGEMENT ........................................................ 219 Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 3 Introduction........................................................................................................... 219 Factors determining price.................................................................................... 220 Segmenting and pricing ....................................................................................... 230 Yield management ................................................................................................ 231 A price premium for being responsible? ............................................................ 234 References ............................................................................................................ 237 UNIT 8. PROMOTION AND MEDIA MANAGEMENT ............................................ 238 Introduction........................................................................................................... 238 Can’t do it, or can’t be bothered? ....................................................................... 241 Writing the RT message- make it relevant.......................................................... 245 RT communications in the customer journey .................................................... 249 Communications at the point of purchase ......................................................... 251 Communication tools ........................................................................................... 254 Advert .................................................................................................................... 255 Competitions, prize draws, special offers and other creative thinking ........... 255 Press release ........................................................................................................ 257 Travel books and press ....................................................................................... 257 Newsletter ............................................................................................................. 258 Video ...................................................................................................................... 258 In-hotel signs ........................................................................................................ 259 How to communicate sustainability-quality consistency ................................. 260 Greenwashing ....................................................................................................... 264 The Sins of Greenwashing................................................................................... 266 Avoiding greenwash ............................................................................................ 267 Reading ................................................................................................................. 272 UNIT 9. DISTRIBUTION ......................................................................................... 273 Introduction........................................................................................................... 273 Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 4 Marketing directly: internationalising your product .......................................... 275 Marketing through dealers: relationship marketing .......................................... 279 How to approach a large tour operator with your product idea ....................... 282 Social media marketing and online retailing ...................................................... 284 eMarketing for the ultimate segmentation.......................................................... 291 References ............................................................................................................ 294 UNIT 10. SUSTAINABILITY CERTIFICATION ...................................................... 296 Introduction........................................................................................................... 296 Certification redefines sustainability .................................................................. 301 Benefits of certification ........................................................................................ 307 Equity in access to certification .......................................................................... 310 Typical problems with current sustainability certification programmes ......... 312 Conclusions .......................................................................................................... 315 References ............................................................................................................ 316 Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 5 UNIT 1. MARKETING RESPONSIBLY, OR MARKETING RESPONSIBLE TOURISM PRODUCTS? Goals After completion of this unit you should be able to: Understand why marketing policy constitutes a central component of overall tourism development and operational policy; and why a strategic marketing planning approach is necessary. Understand why destinations should engage in strategic marketing planning based on differentiation and resource, by matching the resource to the market. Appreciate the reasons for industry to engage intaking responsibility for sustainability, and how this translates into certain types of management and marketing actions Introduction Did this unit’s title confuse you? In this first unit we review both the challenges faced by companies in deciding to market their current products more responsibly, as well as the equally complex challenges of bringing to market a more responsible set of products. They arent’ necessarily the same thing. Marketing is both part of the problem, and I believe part of the solution behind the unsustainable use of resources. What do you think responsible tourism marketing is? That’s less clear, but it is perceived often as either claims of charitable donations and ecosavings, or at the other extreme hippy cycling holidays carrying all your camping gear (often in wet weather). Basically, responsible (or often called green) marketing has been done very poorly because very few marketers understand responsible practices, while few companies that behave responsibly engage well in marketing. Yet marketing professionals have the opportunity, and the duty, to make all of our products greener. The scale of the challenge ahead is so great this can no longer be a middle class niche market issue. All consumers must be engaged in consuming, knowingly or unknowingly, a greater proportion of green products. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 10 What’s the departure point: I generally believe in society, people do not want to knowingly do harm but changing behaviour is complex, Being green is for everyone, not just middle class, both as an opportunity and as a responsibility, The challenge is to change habit to make green normal, and the normal green, and Green products can and should be much better products in all their main attributes. Reading Attention distance learners! All these books have Google Books previews that will save you time and money. Marketing in Travel and Tourism Victor T. C. Middleton, Alan Fyall, Michael Morgan - 2009 Marketing communications in tourism and hospitality: concepts, ... Scott McCabe - 2008 Marketing efficiency in tourism: coping with volatile demand Peter Keller, Thomas Bieger - 2006 Handbook of Marketing Research Methodologies for Hospitality and ... Ronald A. Nykiel - 2007 Tourism-marketing performance metrics and usefulness auditing of ... - Page 1 Arch G. Woodside - 2010 Sustainable tourism: a marketing perspective Victor T. C. Middleton, Rebecca Hawkins - 1998 - To fully appreciate the role of marketing in tourism company and destination policy, strategy and planning, it is necessary to consider the ways in which the tourism sector differs from other economic sectors. Too many assumptions have been made Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 11 about the ability to sell green holidays because there’s a market for organic chocolate or fair trade coffee. Characteristics A tourism destination has many different characteristics which are significant from a marketing perspective. It: is one product but also many, involves many stakeholders with differing objectives and requirements, is both a physical entity and a socio-cultural one, is a mental concept for potential tourists, is subject to the influence of current events, natural disasters, terrorism, health scares etc is subject to historical, real and fictitious events, is evaluated subjectively in respect of its value-for-money (based on reality compared with expectations), and differs in size, physical attractions, infrastructure, benefits offered to visitors and degree of dependence on tourism – in fact no two tourism destinations can be treated the same. Impacts Tourism has a far wider range of direct and indirect impacts than other economic sectors. At its simplest tourism can be seen to be a temporary addition to the population of a given location, with tourists having all the needs and impacts that the permanent population does, plus a few more besides. Government planning, regulation etc is therefore needed; yet tourism is an economic sector in the main executed by the private sector (with the exception of providing the infrastructure and most of the attractions though, both key assets, but often provided at subsidised rates). Tourism activity involves direct contact with the local population. Tourism, then, involves a triumvirate of destination interests – state, private sector and community. As such, tourism planning for development and marketing is unlike any other economic sector and requires special approaches, procedures and institutions. And yet all too often we make a mess of it! Perception is the Reality How a destination, or commercial tourism organisation, promotes its products and/or services is a key factor in the realisation of developmental or economic/financial objectives. In an activity like tourism where the customer is “remote” from the place he/she is considering to visit, or from the tourism products and service he/she is thinking to buy, tourism marketing is a central component of tourism. Two of the adages of tourism marketing arising from this situation are that: “you cannot test Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 12 drive a holiday” and “in tourism, the perception is the reality”. You will see that traditionally most of the effort from national tourist offices (NTOs) is attempting to change the perception of destinations, rather than directly selling holidays, although this is changing, and NTOs are having to be more commercially minded. From the perspective of these three factors alone, it can be seen that: Tourism is an industrial sector requiring a different policy and planning approach to others; and Marketing policy is central to a destination’s tourism development since it is the vehicle which will determine whether the destination succeeds in its economic and other objectives for the sector. Government intervention in the form of tourism planning is justified in market-driven economies by one or more of: market failure; market imperfection and public/social concerns about market outcomes. Market failure takes many forms: inadequate protection of the environment where tourism can exploit common resources (“tragedy of the commons”), exploitation of local populations, erosion of indigenous culture, and weak infrastructure provision – with high dependence on governments to act as the main providers - being the principal examples. Reasons to be responsible There are many reasons to be responsible, and every one of these has an impact on your marketability- remember marketing isn’t just communication or sales. Reading Corporate social responsibility practices have been mostly analyzed in the large manufacturing business context, with little attention paid to the service sector and even less to small and medium-sized accommodation enterprises. This study aims to fill this gap through analyzing how these enterprises take responsibility. A survey of nearly 400 enterprises showed that the main reason for acting responsibly is altruistic, although competitiveness reasons are also important. Aspects of the "Resource-based view" of the firm are validated through the positive impact of environmental costsavings in financial performance, but also because other practices (not always related with economic reasons) are influencing their competitiveness. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 13 Indulge me and take a look at one of my latest papers, it’s relevant to the point we are making here. Garay, L & Font, X (2011) Doing good to do well? Corporate Social Responsibility Reasons, Practices and Impacts in Small and Medium Accommodation Enterprises, International Journal of Hospitality Management. In publication Copyright reasons means we cannot put journal articles in the resource disc, but your university username and password allow you to download this direct from the journal’s website. Reading This is a clearly written article that reviews CSR across all industries. Carroll A.B. and Shabana, K.M. (2010) The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice, International Journal of Management Reviews, Vol. 12. - pp. 85-105. http://dx.doi.org/10.1111/j.1468-2370.2009.00275.x. or http://onlinelibrary.wiley.com/doi/10.1111/j.14682370.2009.00275.x/pdf Revenue Growth Being seen to be sustainable can help increase income by securing the loyalty of current customers and attracting new ones, resulting in increased market share. Companies can change their current products to increase quality by being more sustainable, add new product lines to extend stay or expenditure or diversify the product choice to keep customers and promote repeat business. The market accepts pay for sustainable produce if they meet the key quality, location and convenience attributes. The temptation of tapping in the green market however has led to many mistakes and jumping onto the bandwagon without proper expert advice will undoubtedly do you more harm than good. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 14 Cost Savings Sustainability actions can help lower operating costs and improve overall productivity and efficiency by reducing resource use, decreasing waste output and avoiding noncompliance fines. Energy and transport prices will go up, so will food and most supplies. Sustainable supply chain management, lean production and efficient engineering are needed to reduce costs wherever possible. There is now sufficient expertise available to reduce key operating costs by up to 30% on a typical business. Access to Capital As environmental and social criteria are becoming a standard part of lending risk assessments, sustainable tour operators are more likely to be able to attract capital from banks and investors. Large businesses will, however, need to show corporate social reports that go beyond public relations glossy adverts for their customer’s charitable donations though. Small firms will be seen as less risky to lend to when they have a well worked out business plan that takes into account increasing prices of resources. Human Capital Staff are more likely to feel proud of working for employers that take their responsibilities to society seriously. Tour operators and hoteliers alike known for their sustainability policies have an increased capacity to attract and retain skilled and talented employees and contract labour, thus increasing their ability to innovate and compete. BUT create a Corporate Social Responsibility (CSR) policy that your staff laugh at and you will take two steps back. Take advice on how to engage staff properly and make your CSR work not only believable, but shared. Remember that sustainability problems are HUMAN problems, technically we could solve most of them if we had the understanding and will to do it. Brand Value and Reputation A reputation for being sustainable adds value to a tour operator’s brand and strengthens its market position, making it less vulnerable to short-term market and economic changes. Let’s face it, while the market was expanding there was business for everyone but now the fighting gets ugly. Only the best positioned companies will be able to use their CSR work to differentiate their strategy and positioning. Preservation of Destinations Acting sustainably helps make tourist destinations more pleasant places to visit and live in. Ensuring the long-term quality of the destination also helps reduce risks in business viability. Return on investment of building hotels is somewhere between 10 and 25 years, depending on the cost of land and construction- however you can seriously shorten Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 15 this if you use hotels as a hub to sell apartments, where you repay your investment almost instantaneously- or at least you used to when these were selling like hot cakes. In the destinations where hotels are just a way to sell real estate, the emphasis changes from long term destinations to short term selling. Shareholders and constituencies will put pressure on managers and politicians for short term gains and appearance of success. The real winners keep an eye on the horizon. Improved Service Sustainable management makes holiday facilities safer and healthier for employees and visitors, whilst supporting the local community and enhancing their economic well-being increases staff morale, resulting in improved service and thus higher customer satisfaction. Even the market for sea-sand-sun can be improved by providing fun excursions and not the current rip offs. The growing family adventure market and the (few) good voluntourism companies have shown new avenues for innovation. Every sector though must innovate- those that don’t - beware! Risk Management and License to Operate Tour operators can reduce their legal liability by managing compliance and preempting relevant legislation. For instance, the likelihood of losses from damage to their reputation can be reduced by demonstrating a proactive stance towards destination sustainability and product quality, which can be used as defence in any litigation. Pre-empting Government Regulations Governments are increasingly under pressure from NGOs, unions and the general public to regulate the business sector. This pressure increases if bad practices are uncovered. Tour operators that develop their own codes of conduct and produce independently verified performance reports are in a strong position to influence any proposed legislation. Reading More than ever we are thinking there’s a business case behind being green. WTM had traditionally been the only outlet, yet ITB 2009 changed that- In the US, the 2009 Green Travel Summit was a first for this market- not necessarily for its contents, but its bold belief that you can charge real money for an event on greening the tourism industry. Read it online at http://www.greentravelsummit.com/ to see speakers and outcomes from the event from 2009 onwards. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 16 Reading The Ernst & Young report ‘Hospitality going green’ looks at the concept and growth of sustainability within the hospitality industry in various regions worldwide. In Asia, the rise of brands with sustainability or ‘green’ strategies at their core is highlighted, whilst in Europe the lifestyle hotel sector is identified as the first to consider the ‘green’ agenda as part of their brand image. The report is available online at http://www.irei.com/uploads/marketresearch/128/ marketResearchFile/hospitality_insights_DF0052.pdf or on the resource disc as mkt1’1’Ernst&Young.pdf Reading The theory sounds good, but why don’t all firms engage equally, then? We tested this issue with small firms certified by the Green Tourism Business Scheme, to understand why they adopt different practices. We used theories of motivation to help us explain how engagement is influed by differences in worldviews, selfǦefficacy beliefs (how they think they might succeed), context beliefs (how they perceive their environment influences them) and goal orientation (what is important to them as individuals in their business). Sampaio, A., Thomas, R. & Font, X (2011) Why are some engaged and not others? Explaining environmental engagement among small firms in tourism, International Journal of Tourism Research. In publication. Let’s look at the reasons for being sustainable in a different way. The table below maps out actions a company can take to be responsible in relation to each of five key audiences that you want to influence, and against three aims. Starting with the organisation itself, the organisation can preserve resources by raising staff awareness, it can develop corporate advantage by keeping good staff relations, and save money through ecosavings- training staff to reduce operating costs that also improve environmental performance. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 17 Having reached this point, and not before, a company can start looking at how they can use their improved green/sustainable/responsible management to influence or use other stakeholders, be it shaping public sector policies by showing leadership, gaining financial advantage with customers through increase in prices, or corporate endorsement of NGOs for example. Most companies start their responsible tourism practices because they perceive they have to (everyone is doing it) and because they think a quick fix will reap short term benefits. This is not the case. Simply copying what others do can land businesses in more trouble than it’s worth, qualified advice is needed as in every other aspect of business. Activity 1.1 – Prioritising your RT marketing actions There’s much you can do to be more responsible, so you need to prioritise. From a marketing point of view, priorities will relate to how they contribute to your business case. For now the type of actions you can assess against these criteria will be intuitive, while by the end of the module they should be based on what you have learned. Score each potential action with 1 or 0 against how they contribute to each of these points: Action 1 Action 2 Action 3 Revenue growth Cost savings Access to capital Human capital Brand value/ reputation Preserve destinations Improved service Risk management Pre-empt regulations Total My question all along has been: what help is available for small firms that are working responsibly already, but have limited market access?. These firms will say there is no market for responsible tourism, but I usually find this is because they do not understand BUSINESS. Being responsible will not bring customers, it is only part of a good management strategy. Whether you have a small B&B or tour company for Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 18 lifestyle reasons, or because it is the only way to make a living where you are, you need to know about running a company first. Table 1.1. Reasons to be responsible Corporate Attitudes Towards the Environment Note that earlier I said you first have to be green before you market green. It seems obvious, yet the marketing departments I have spoken to do not understand green/responsible other than as tactics, not as strategy. It is treated as another opportunity for a campaign, or ignored as too difficult or irrelevant. Below is my proposal for modelling the behaviour of companies, depending on whether they do green marketing, green management, or just one or neither of them. In tourism marketing “perception is reality”, and if marketers too often think “we should not let the truth get in the way of a good story”, you can see how tempting it is to greenwash. The conservationists. Companies internalising environmental sustainability costs on a continuous improvement basis. These companies understand the green path as a continuous improvement path, rather than a fixed state. Their management systems incorporate environmental sustainability as part of quality and they set themselves targets higher than governmental regulations, yet they do NOT use their sustainability performance to promote themselves, often because this would generate additional unwanted demand, or because they would draw attention to themselves. Most international hotel chains are doing good work on energy and water savings, but they will not communicate this to consumers because it sends a negative message about having to make compromises on quality. Hilton and Accor would fall in this category. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 19 Figure 1.1. Corporate attitudes towards the environment Example Shangri-la Hotels, an Asian based luxury hotel group with over 60 hotels, has had an extensive environmental management programme in place for many years and their Corporate Social Responsibility policy is outlined on their website. But unlike e.g. Six Senses and Banyan Tree (which are well known for their responsible tourism commitments), Shangri-la does not promote itself based on its CSR activities. Look at their website: http://www.shangrila.com/en/corporate/aboutus/overview where you will see their brand is based on the concept of ‘Asian hospitality’. Read the Shangri-la Culture pages. The green entrepreneur. Those companies that will have sustainability standards as high as the conservationist companies but will also use their performance as a promotional tool. These will be companies using competitive edge sustainability management with a marketing focus, i.e. they will be “enviropreneurial” companies. &Beyond (formerly CC Africa) would fall in this category. Walley and Taylor (2006) have identified four typologies of green entrepreneurs that would help to explain in Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 20 more detail my own interpretation of green entrepreneur. Although they have different motives and objectives, they share highly responsible management practices that are used for marketing: 1. The innovative opportunist entrepreneur is generally influenced by drivers such as regulation that may lead to the identification of a green business opportunity. 2. The visionary champion sets up the business on both sustainability and “business-as-usual” principles. 3. The ethical maverick also bases their businesses in sustainability values but tend to avoid mainstream businesses; friends, networks and previous experiences exert great influence for the business formation. 4. The ad-hoc enviropreneur is the accidental green entrepreneur, with financial and not values-driven reasons, having been influenced mostly by family, friends and personal networks. Example Two luxury hotel groups based in Asia who’s responsible tourism commitments – and in particular their environmental programmes – are very much part of their brands. Look at Six Senses at http://www.sixsenses.com/home.php and Banyan Tree at http://www.banyantree.com/ The distracters. Companies that will take the “can do” rather than the “should do” approach. These companies will want to be seen as green, and will focus on issues that they can easily deal with as their only environmental flagship. The compliers. These are companies that comply with current legislation as a hurdle to tourism development. Environment is not a priority, and it will have little implications on management. The opportunists. Companies that use sustainability claims for marketing purposes, with little change in resource planning and management. These companies will comply with the basic environmental legislation and will have institutionalised environmental concerns via mission statements and broad aims. These will be presented to society via promotion, with little substance. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 21 The skivers. Opportunity-driven companies that, in the name of economic profits, will deny their most basic responsibilities to the environment. These companies do not comply with all environmental legislation and try to not draw attention to the environment around their organisation. “Externalising” (i.e. getting someone else to pay for) your social and environmental costs is seen as a way of maximising profit. The cowboys. Similar to the skivers, but these companies promote their tourism products as being nature-based without being respectful to the resources used. This can be easier in tourism than other sectors due to differences between the tourist destination and the tourists’ origin caused by the distance and the legal frameworks. I could name some voluntourism companies easily falling in this category! What would be the consequences of these profiles when it comes to greenwashing, or communicating before actions? The table below follows nicely (although in this case responsible actions (high high) are on the bottom right quadrant, while in the figure I had made above they are in the top right quadrant) Figure 1.2. Actions vs. Communications Source: Hudson, S (2008) Tourism and hospitality marketing, London, SAGE. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 22 Activity 1.2 – Mapping out companies Use the figure above to position some companies that you are aware of, and think why they would fit that profile. Think of what a company would need to do to move from one position to another, in particular the company you work for if that’s relevant. Use this typology to consider some of the case studies collected through Assessment 1 by other students. On what basis would you say a company fits into one of these typologies? Reading Tapscott, D. & Ticoll, D. (2003) The Naked Corporation: How the Age of Transparency Will Revolutionize Business, Free Press. The authors argue that corporate transparency is not optional but rather inevitable. They also counter the conventional wisdom that transparency costs companies, instead contending that transparency enhances shareowner value. This radical disclosure policy allows Progressive corporations to escape the anxiety that leads many companies to manipulate their quarterly earnings reports to match forecasts and instead focus on long-term performance. They see socially responsible investment, and the term transparency, as becoming so pervasive they will be invisible- by extension we could assume green marketing will follow the same fate. Read it online at http://www.amazon.com/gp/reader/0743246500/ ref=sib_dp_pop_ff?ie=UTF8&p=S002#reader-link Clearly not all companies or destinations see a case to be more responsible. Consider this Travel Weekly poll of travel agents in December 2006 that asked how can an industry that profits from people travelling ever be considered ‘green’? Only advances in technology will ever make travel 'green': 51% Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 23 Travel should forget being 'green' and promote other advantages: 26% It can’t and Government taxation on travel is inevitable: 19% It can but only if it accepts fewer people should travel: 4% Not what we would want, although not that surprising either. The survey below is more recent and goes into more detail. This latter research was conducted before the economic crisis and the fuel price increase had become even more apparent in the second half of 2008. It does however paint a fairly gloomy picture for self regulation of the sector. Reading In 2008, the Institute for Travel and Tourism surveyed over 500 tour operators and travel agents, of which 99 responded. This study is available to purchase for £45 from www.itt.co.uk, and the main points are summarised here. The findings suggest that: 1. Those operating as travel agents and tour operators do not welcome government regulation as a response to climate change, preferring to adopt voluntary measures. Paradoxically, however, only a third of the firms surveyed feel that travel and tourism businesses have a role to play in controlling global warming. 2. Half the firms think that industry will respond to climate change without the need for government regulation, but together with previous answers (low number of companies saying that they have a role to play in tackling climate change). A similar survey of other sectors found that they are much more likely to accept responsibility and the need to take action. 3. More than half of the firms surveyed think that the sector has a ‘bad press’, even though it is considered by respondents to make no more of a contribution to climate change than many other sectors of the economy. A similar proportion feels threatened by the issue of climate change. 4. On the evidence of this survey, most businesses— some 70 per cent—do not know how to respond to climate change. This suggests that a comprehensive knowledge transfer programme relating to this issue might be appropriate. 5. Approximately a third of those surveyed claimed that they would be prepared to work for slightly less pay if this were in exchange for more environmentally Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 24 sensitive business practices. 56 per cent did not consider such a proposition to be appealing. How corporate principles affect marketing What are you trying to do? I mean, why are you letting people know you are green? Is your aim to change how people: 1) view the world- the culture of consumption, or 2) what they actually do or buy? Is your aim to satisfy market needs by making them aware of these and turning them into demands? Or do you see your role as in satisfying demands they are already aware of? The further down this list you go, the easier your job is in a way, but also the less attention you will receive for it is less innovative. Reading Grant, J. (2007) The Green Marketing Manifesto, Chichester, John Wiley. Section II The Green Marketing Grid, Overview, pages 59-74. One of the only books speaking about green marketing, you won’t agree with all it says but the grid he develops will become part of how the world tries to analyse green marketing in the future. If you like this chapter, probably worth buying it considering it’s usually not expensive- the rest of the book develops each element in detail. Read from resource disc as mkt1’2’greenmarketingmanifesto.pdf In his most useful book The Green Marketing Manifesto, John Grant breaks down green marketing into three types (2007: 12): A. Green- setting new standards- communicate: having commercial objectives only (where the product, brand or company is greener than alternatives, but the marketing is straightforward about establishing this difference) B. Greener- sharing responsibility- collaborate: having green objectives as well as commercial objectives (the marketing itself achieves green objectives, for instance changing the way people use this product). C. Greenest- supporting innovation- cultural reshaping: having cultural objectives as well (making new ways of life and new business models normal and acceptable). Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 25 Figure 1.3. John Grant’s green marketing grid A. Green B. Greener C. Greenest 1. Public Company & Markets Set an example Develop the market New business concepts 2. Social Brands & Belonging Credible partnerships Tribal brands Trojan Horse Ideas 3. Personal Products & Habits Market a benefit Change usage Challenge Consuming Set new standards. Communicate Share responsibility. Collaborate Support innovation. Culture reshaped (Source: Grant, 2007:14) Still, it is hard to understand why there is such variation in behaviours towards sustainability- can’t most companies benefit from it? And how do we explain the impact that different reasons for taking responsibility will have on the credibility of the firm? Most of these benefits are only achieved through time and a change in company values; those that look for quick fixes because of pressure to be seen to be green chance being publicly criticised for greenwashing. There are also many companies working more responsibly but greenhushing, i.e. not publicly speaking about it because of fears of being criticised. The corporate principles behind why a firm behaves more or less responsibly will affect how they plan to use their actions for marketing. ICRT PhD graduate Mohammed El Dief has developed a framework that distinguishes three dimensions of organizational values: competitiveness (instrumental), legitimacy (relational) and altruism (ethical); and seeks to understand how such value dimensions can lead firms to adopt beyond environmental compliance practices. Competitiveness, as it relates to the natural environment, explains how firms can search for cost efficiency or market opportunities and hence gaining competitive advantages over their competitors by applying proactive environmental strategies. Legitimacy-based values, however, relates environmental actions as a means to achieve cordial relations with external stakeholders by adhering to the broadly accepted values, norms and regulations. Finally, altruism stems from the argument that some firms search for lower environmental impacts because they see this as “the right thing to do”. Don’t dismiss it as theory, it’s important to understand these three points because they will affect all that happens afterwards, and you can use it to interpret their actions in your assignment. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 26 Much of his PhD looks at how personal and organisational ethical values influence the organisation’s green management, and green marketing. His research suggests that a firm's choice of environmental strategies are a function of managerial interpretations of environmental issues either as opportunity or a threat, and points to internal and external factors that affect how this environment is perceived. There are studies documenting the impact that all of these internal factors have on responsible behaviour: CEO and top management support and involvement, shareholder pressure, employee contribution, availability of financial resources, size and visibility of firm, belonging to an international corporation or chain and attracting certain international markets, and quality of services. External factors affect organizational behaviour in the extent that companies perceive them as an opportunity or threat. In terms of a threat, business responsiveness is the result of business desire to avoid negative consequences of non-compliance to external institutional pressures (most typically threat of regulation, but also de facto requirements to trade). Government regulation, trade association policies and standards, public concern and market demand [these are different though], suppliers or contractors. The ability to integrate stakeholder concerns into their strategy has shown to be a key indicator of whether companies will be proactively responsible. Reading UNEP’s report on sustainable motivation This report reviews the marketing and communications basics and evaluates how the objectives of sustainability can be aligned with the needs of marketers. The study was initiated to try to account for the discrepancy that exists between 30 years of promoting the sustainability message and the perceived lack of sustainable behaviour by consumers and corporate buyers. It is partly a review of past research and partly an expression of ideas concerning the role of marketers. The study discusses the gap that exists between knowledge and behaviour and suggests research approaches that may be followed to improve marketer’s understanding. It also discusses the requirements for culture change which might improve receptivity and cognizance of information but which are largely absent. The study highlights some of the inadequacies of current research methods, while emphasising that research is required to monitor trends which may be taken account of by marketers. The report reveals many inadequacies of current research and CSR reporting which might be expected to improve the Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 27 marketing performance of companies: although concern for sustainability issues is high, the strength and depth of attitudes are low the necessary ingredients for cultural change are absent the level of debate about sustainability is uninformative and short-hand communications are ineffective CSR reporting is directed to the wrong audience CSR performance cannot become an intangible asset of businesses and affect shareholder value unless it first affects their business performance marketers need to take a holistic view of their organisation and the value of sustainable production to brand image Read online from http://www.theresponsiblemarketer.org/ and http://www.mpgintl.com/papers/CIM%20Final%20Report__Jun%202006.pdf or from resource disc as 1’3’Sustainable production and consumption.pdf Read also from the resource disc the related report 1’4’Sustainable motivation.pdf What I want to do in presenting the business case for responsible tourism in the marketing module is to present a more holistic way of understanding this subject. Marketing is not advertising, it includes product design to suit the needs of the market. The market here not only refers to independent leisure tourists, but a full range of stakeholders, with key ones shown in table 1.1. If we see marketing in this much broader context and stop trying to find niche backpacker markets, we will see many more reasons for RT marketing, and many more benefits. The Marketing Response Marketers run the tourism industry. It is not the product that rules, but the brand. The marketer in other sectors has been very clever in providing “added value” in the product through its packaging that appeals to the consumer’s inner needs and demands, differentiating that product and communicating it in the most subliminal ways. The aim has been to “satisfy consumer needs”, they say. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 28 Reading Some materials are now being written to bring together responsible behaviour and marketing knowledge. Here are two worth reading: WWF, Let them eat cake. Read it online at http://www.wwf.org.uk/filelibrary/pdf/ let_them_eat_cake_abridged.pdf or from the resource disc as mkt1’5’letthemeatcake.pdf CSR Europe’s Sustainable Marketing guide Read it online at http://www.csreurope.org/data/files/sustainablemarketingguide.pdf or from the resource disc as mtk1’6’CSREuropegreenmarketingguide.pdf Kotler and Lee, 2005, Corporate Social Responsibility: doing the most good for your company and your cause. New York: John Wiley. Read it online (although not complete),at http://books.google.co.uk/books?id=2ppzhuJyyPgC&printsec= frontcover&source=gbs_summary_r&cad=0 or get one of our 9 library copies sent to you by our distance learning librarian at [email protected] (we pay the postage, you pay to return them) The problem is that whether we think marketers are nice people or not, we still have to work with them. Change from within is the only answer, I would suggest. So get in the shoes of a marketer to see how they would instinctively use ethical consumer values. I have listed them here following the layout of Kotler and Lee’s book Corporate Social Responsibility. These include: 1. Cause promotions 2. Cause related marketing 3. Social marketing 4. Corporate philanthropy 5. Community volunteering 6. Socially responsible business practices 1. Cause Promotions The company provides funds, in-kind contributions, or other organization resources to increase awareness and concern about a social cause. Contributions are not tied Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 29 to company sales, and most of the effort is communicating the social message, not in changing business practices of the firm. It involves more than charitable donations from the company as some staff time is required to plan how the cause promotion will be run. The purpose of the cause promotion is to raise awareness, not to change behaviour of the consumer. Providing retail and online store space are typical cause promotion activities. Most cause promotions are run by NGOs and the private firm provides some in kind assistance, usually in consumer outreach. Benefits are mainly on brand positioning- selecting the cause is important in this respect, it needs to reinforce the good behaviour of the company and it is best if it the problem cannot be directly attributed to the company or similar companies, as it can be counterproductive. Examples of activities include: Building awareness of a cause or problem, such as the poor animal, natural or human conditions in a holiday destination. Persuading people to learn more about the cause, such as coral damage or the loss of natural habitats for wild animals. Persuading people to donate time, money, or non monetary resources. Persuading people to participate in events, such as take an excursion to the charity being promoted. Example The JW Marriott Phuket launched the Mai Khao Marine Turtle Foundation in 2002. Read online how the hotel is involved, the range of products that can be bought at the hotel, and the activities guests can participate in: http://www.jwmarriottphuket.com/turtlenew.swf and http://www.maikhaoturtles.com/ Banyan Tree have a number of projects running in various locations, ranging from three marine biology laboratories, turtle conservation and community youth support initiatives to Earth Day activities, tree planting programmes and a large range of Save the World / Save the Oceans merchandise developed in partnership with a gallery. Look at the range of activities at: http://origin-www.banyantree.com/csr/index.html Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 30 Activity 1.3–Dig out your own examples of cause promotions. Is Trip Advisor really concerned about responsible tourism? Unlikely. Their recent charitable donations campaign achieved two purposes, one is to align their product with altruistic consumer values, without having to change the way they retail at all, the second is to collect email addresses for direct marketing. For submitting your details you got a free ecopy of their report Get the Truth, then Go Green (Read it from the resource disc as mkt1’7GoGreen.pdf ) which won’t do anything to change behaviour and is just a very early attempt to change views within the company at its best. Call me cynical if you wish. Can you think of similar campaigns? 2. Cause related marketing The company commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales e.g. donate 5% of the price of each product sold. This is usually for a pre-specified period (often low season) and for a specific charity. There is a mutually beneficial financial arrangement, and the company will expect a collaboration from the charity to drive business through to them in return for the funds raised, as well as the image benefits through brand association, which can lead to empathy image, brand recall and top of mind awareness. Because of the higher stakes, there is usually a more formal contractual agreement between the two parties. This is more easily done in fast consumer moving goods, where profit margins are higher as the cost of production is very small compared to the typical retail price. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 31 In tourism, cause related marketing might be used to boost shoulder and low season sales as a contribution to fixed costs (see pricing section in unit 5). You can otherwise make donations on the purchase of add-on products that would complement a main sale, as a way of incentivising additional buy (i.e. percentage of sales on green/ethical travel insurance or greener car hire, which customers might not otherwise buy from you). The donation can be linked to a percentage of the product sold, or a fixed amount per booking, or matching consumer donations. Promotion of carbon offsetting in particular would fit this category, when firms do it for the consumer, match contributions or provide add on benefits to anyone that offsets. Cause related marketing works best when the cause you support is unique and cannot be easily copied by competitors, when this partnership has been long term and not just last minute, and when the cause is of direct interest to your target market. Koter and Lee give examples in their book from McDonald’s, NorthWestern Airlines and American Express; examples which are all of relevance to our sector. Reading In 2006, Sir Richard Branson pledged to invest $3bn (£1.6bn) to fight global warming. The Virgin boss has committed all profits from his travel firms, such as airline Virgin Atlantic and Virgin Trains, over the next 10 years. The funds are being invested in schemes to develop new renewable energy technologies, through an investment unit called Virgin Fuels. This is part of Branson's plan to turn his vast empire, which spans planes, trains, mobile phones, travel, wine, and even spaceships, green. Whether some of these are first publicity stunts or sustainability practices will depend on viewpoints, and certainly the use of biofuel as currently known is not sustainable, yet testing commercially alternative fuel sources is part of moving forward in the low carbon economy debate. A global survey in 47 countries with 26,000 participants has found that UK participants voted Richard Branson as the best person to lead a global combat against climate changethis “brand recognition” isn’t something you earn quickly, and his cause related marketing must have contributed in part. Read online at http://www.guardian.co.uk/environment/2006/sep/22/ travelnews.frontpagenews news about Branson’s pledges- a Google search will give you much more. Reading Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 32 Pringle, H & Thompson, M, (1999) Brand Spirit: How Cause Related Marketing Builds Brands, Chichester: John Wiley Read it online at http://www.amazon.com/gp/reader/ 0471499447/ref=sib_dp_pt#reader-link (not complete). Cause Marketing forum- use this forum- amongst other topics it speaks, rather naively, about holidaymakers wanting business to help them do good. Read and contribute online at http://www.causemarketingforum.com/ Reading The Galapagos Conservation Fund was established by Lindblad Expeditions. Customers that make a charitable donation of USD250 receive a discount coupon for the same amount for their next trip. Lindblad not only donates to this conservation but has a programme for other organisations to apply for donations. Read online at http://www.sustainabletravel.org/docs/pdf_Lindblad.pdf or from the resource disc as mkt1’8’Galapagosconservationfund.pdf Check the company’s website at http://www.expeditions.com/Our_Philosophy85.asp 3. Social Marketing Social marketing supports the development and/or implementation of a behaviour change campaign. These will typically include aspects of how to behave during your holiday at the destination, what to wear, what are the traditions of the place, how to speak with locals, what souvenirs to buy (e.g. avoid endangered species or historical artefacts), and not to touch corals or feed animals to mention some typical aspects. Aside from this, tour operators promoting travelling by public transport to the airport would also fall in this category. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 33 Reading ECPAT’s Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism has been signed by TUI-UK, while other tour operators are actively working with ECPAT UK on implementing policies, training and information sharing in their organisations, both within the UK and abroad. In order to create local ownership, ECPAT UK has developed a training guide for trainers in the tourism industry and regularly conducts training of trainers to enable the operators to undertake such training programmes independently. As of November 2008, Comic relief has granted funding to ECPAT UK in partnership with ABTA to develop and implement an online training course for travel and tourism professionals to protect children both travelling with UK travel companies and children in holiday destinations. ABTA and ECPAT will work in collaboration with the Travel Industry’s Child Protection Group to develop the course and will launch the product in 2009. The Travel Industry’s Child Protection Group was set up last year by ABTA and is made up of Tour Operator and Travel Agent Members as well as representatives from the police and NSPCC. ECPAT has already provided training courses for social workers and police in preventing the trafficking of children, as well as delivering a pilot course with First Choice in 2005, with the backing of the Travel Foundation. The company needs to provide a positive solution to the alternative behaviour, and it is important to introduce these campaigns in a tactful way that do not give the impression to customers that had never thought about commiting some of those “offences” that this is the kind of tourists that goes with that company or establishment. I have seen signs in hotels from Copacabana to Siem Reap about not being allowed to have “guests” in the rooms are quite shocking to some of the customers when they realise this is to prevent sexual exploitation - “Could this be happening just in the next room along? Maybe even in this very bed just some days ago!”. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 34 4. Corporate Philanthropy The company makes a direct contribution to a charity or cause, most often in the form of cash grant, donations, and/or in-kind service. Philanthropy or charitable donations should be used when the contractual powers of the company do not allow to change some of the unsustainability of the destination or environments that the company operates in, especially if these can be attributed as externalities of the company, i.e. if the operating of the company has in any way contributed to aggravating them. There are hundreds of individual and association level examples of charitable donations, and these can clearly have brand, image and press coverage benefits. I will not go into these in more detail because I personally find focusing on them alone is not a good precedent for responsible tourism marketing- we need to go deeper. Clearly collecting the spare change on a flight back is a worthy activity, and will contribute in some small way, but I am not prepared to call that company responsible just for doing that. Reading Build in sustainability from the hotel siting (choosing its location) and design. Well, if you can’t, at least do some philanthropy at that stage. Hotel development firm Ridge Hospitality is different, in that from the outset in their homepage they use their philanthropic activities as a marketing tool. Annoyingly, there’s nothing here about how other aspects of the project management will ensure the building of the hotel deals with its impacts. Read it online at http://www.ridgelinehospitality.com/ Example Check the Four Seasons website, Corporate Values section: http://www.fourseasons.com/about_us/corporate_values/ “Since 1992, Four Seasons Resort and Club Dallas at Las Colinas has supported local cancer facilities. So far, it has raised$2 million through a series of events called Four Seasons Cool October – a month of festivities including a run, a golf tournament, sports marathons, a dinner, an auction and a community raffle”. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 35 Reading Small Luxury Hotels (SLH) of the World are partners in the Good Night Foundation, a recently created philanthropic effort to leverage the generosity of hotel guests to contribute to a range of social causes. This is part of the SLH portfolio of activities within its Caring Luxury, in itself an example of responsible tourism positioning. In my view, this is at least in part guilt alleviation- but a very well managed project indeed. Read about SHL’s Caring Luxury at http://www.slh.com/caringluxury.html and about Good Night Foundation at http://www.spafinder.com/NewsReleases/October8/GoodNight.pdf or from the resource disk as mkt1’9’Goodnightfoundation.pdf Reading A&K Launches Travel Philanthropy Initiative, reports Travelmole on 24 November, 2008. Read it from the resource disk as mkt'1'10'Travel Philanthropy Initiative.doc 5. Community Volunteering We all understand volunteering now, it is sufficiently common: a company supports and encourages employees, retail partners, and/or franchise members to volunteer their time to support local community organization and causes. We have fewer cases than charitable donations, some of these are long term partnerships and others are punctual, some are annual events while others are year long activities. They do contribute to company togetherness and feel good, while they can be criticised for being shallow rewards for the chosen few- particularly if travel is involved- that put additional financial pressure on the company overall. Companies will need to be careful before deciding what level of effort they want to put into it, and for what purpose. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 36 Reading Many specialist tour operators informally volunteer, and most large hotel chains also have volunteering programmes. Large tour operators however, don’t. The exception in the UK is First Choice, that volunteers staff time towards Travel Foundation projects (at the moment the only tour operator participating). Normally these are middle management staff working on specific projects, while in the Travel Foundation’s South Sinai project I manage I had the help of four front line staff that did surveys of snorkelling and desert excursions to back up the need for training and to collect baseline data. Read and watch online about the Travel Foundation volunteer programme at http://www.thetravelfoundation.org.uk/index.php?id=391 6. Socially responsible business practices Interestingly, the last of the chapters in Kotler and Lee’s book speaks about adopting and conducting discretionary business practices and investments that support social causes to improve community wellbeing and protect the environment. As examples they give community trade and environmental friendly processes, and give examples of sourcing fair trade or organic coffee (e.g. Starbucks). I say interestingly because you would be forgiven for thinking that changing business practices should come first, and that focusing on the other aspects is greenwashing. Yes, it is. But to the marketer, perception is reality unfortunately. Every other module in our masters helps you think of ways in which the product can be genuinely made more responsible, authentic and ethical. I hope what you learn throughout this module is put to good use towards social marketing, not just traditional marketing. Yes the company has to be market driven, but the responsible tourism company needs to put ethics beyond legislation compliance first. Do it for real, then market it. No gimmicks. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 37 Table 1.2. Branding approaches to Customer relations marketing Source: Hudson, S (2008) Tourism and hospitality marketing, London, SAGE, page 442. Reading Travel Operators for Tigers goes beyond charity, by promoting the responsible use of wild habitats in a variety of integrated ways. Their main work, besides awareness raising, is setting and advising on sustainability standards for suppliers. While the member tour operators encourage donations, they also donate themselves to a common pot of funds to promote change from within. Integrated into the supply chain, this change is more meaningful. See it at http://www.toftigers.org/ Enough depressing thoughts. Table 1.2 provides an alternative way of breaking down the different approaches to cause related marketing (here Hudson understands cause related marketing as broader than Kotler and Lee though, as any corporate philanthropy organised to increase the bottom line, and understood specifically as marketing communications not other aspects of marketing. What is useful about this table is the more practical aspects of running the CRM campaign Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 38 . Strategic Marketing Planning For marketing purposes, strategic planning is the process by which an organisation: first, analyses its strengths and weaknesses in its current and prospective markets “where are we now?”; second, identifies its aims and the opportunities it seeks to develop – “where do we want to get to?”; and, third, defines the strategies and costed programmes of activity to achieve these aims – “how do we get there?”. Strategic decisions are always focused on the longer run, normally beyond three years. Marketing strategy identifies and is designed to produce future sales revenue through the specification of market segments to be targeted, products to be developed and focussed on, and associated action programmes to realise the potential identified in these targeted segments. Business strategy is not only about marketing, but all strategy for commercial organisations depends on its ability to persuade sufficient customers to buy enough of its products to secure a surplus of revenue over costs in the long run and to produce customer satisfaction. The key components of marketing strategy are: Goals and objectives The position or place in its chosen markets that an organisation seeks to occupy in a future period, defined in terms of sectors of business, target market segments, sales volume, product range, market shares and levels of profit. Images, positioning and branding Where the organisation wants to be in terms of the market’s (trade and consumer) perceptions of its products and values, including image and branding in relation to competitors. Strategies and programmes The specification of actions, including product development and investment, needed to achieve the goals and objectives set. Budget What resources - human, technical and financial – are required to realise the goals. Review and evaluation Procedures and systems permitting the appraisal of the extent to which goals were met in the context of overall market conditions (including competitors’ activities) and external factors. As Middleton and Clarke (2001) state: “strategy is essentially proactive in the sense that it defines and wills the future shape of the organisation as well as responding to changing industry patters, technology, market conditions and consumer needs.” Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 39 Tactical marketing planning Tactical decisions are always focused on the short run - from a few weeks to a maximum of one to one-and-a-half years - in which specific marketing campaigns are planned, implemented and evaluated. Tactics respond to market conditions and particularly to competitors’ activities. This is where too often green and responsible marketing starts and ends. Tactical, or operational, marketing plans include: Objectives and targets Specified, quantified, volume and sales revenue targets and other specific marketing objectives to be achieved. Mix and budget Decisions on the marketing mix (product, price, promotion, place) and marketing budget. Action programmes The implementation of marketing programmes and coordination of promotional activity to achieve specified targets. Monitoring and control an effective system of monitoring the results of the marketing and the application of control procedures related to the agreed targets. The Process of Marketing Planning If we now understand the marketing context, and the mainly communications (and not really marketing) actions that will become low hanging fruit, then what can we do to get it right? Well, for a start understand marketing as a long term, strategic function, not a tactical fix. A marketing plan is essentially the means by which an organisation – whether a commercial company, a not-for-profit organisation or a government agency or authority – realises its goals in respect of its “market”. It is a navigational chart and as such a tool for implementation, guiding the specific activities designed to influence the behaviour of the market and enabling the effectiveness of such activities to be assessed. The development of a marketing plan may not require intensive scholarly work; it is an attitude that will govern and influence the directions an organisation intends to go. Drawing on Gartrell (1994), marketing plans typically include the following sections: Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 40 1. Executive Summary The objective is to give a clear understanding of what the marketing plan is about without going into detail. Though presented at the beginning it is usually completed after the whole plan has been prepared. Length – 2 to 3 pages. 2. Situation Analysis This assessment explores the structure, characteristics and performance of the sector, the community, the travel product, the economic environment, and the present and potential market. It is also known as “place audit”. For tourism place marketing, some of the following questions should be examined: What is present demand for tourism attractions and activities in your area? What resources and facilities do you have to market to visitors? What is your community known for? What kind of image does it have among outsiders? And to local residents? What are your strengths and weaknesses, and how do they impact your tourism markets? What changes do you anticipate over the next five years – taking account of market and competitor trends – and how will they impact your ability to attract visitors to your destination? What other developments and trends might impact your community/destination? How responsive is your community to having visitors? Developing a situation analysis is fundamental to better understand the capabilities, potential and interest that may exist for visitors within a destination. 3. Objectives and Goals It is important in developing a marketing plan to establish measurable goals. This requires careful consideration of the demand and supply potential of visitors to the destination. Questions that address this issue are: What kind of goals should be established? i.e. short or long term? Is there a sound baseline against which such goals can be set? What kinds of tourism markets should be targeted, and what goals should be set for each target segment? How will the organisation assess the attainment of these goals? Are the goals realistic in terms of the organisation’s resources, timetables and travel products? Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 41 4. Market Segments The third essential element in a marketing plan is that of identifying and selecting the target markets – market segmentation, a topic that is dealt with in detail in Unit 3. No organisation has the financial resources to cover the whole of the market: it is necessary to identify and select those sub-groups with most interest in the products being offered. There are many means of segmenting the market, as seen in Unit 3. 5. Marketing Strategies Once the segments to be targeted are identified, the marketing strategies likely to produce the maximum penetration and benefit to the organisation are defined and specified. In selecting the most appropriate marketing approaches and deciding on the product’s positioning, the organisation will need to ask itself the following questions: Which selected marketing strategies will be the most effective for an identified market segment? What are the strengths and weaknesses of a strategy? Who is affected by a selected strategy? What combination of strategies might be most productive in reaching a selected market segment? 6. Marketing Mix How the product will be marketed to the targeted segments. Arriving at the most appropriate marketing mix will be determined by answering the four key questions: How will the product be offered to prospective tourist customers? What should be the pricing structure for the product? How should the product’s positioning and image be communicated to its target market segments? How will the product be distributed – made available - to tourists? 7.Resources An organisation needs to allocate its resources adequately to support the programmes outlined for attaining the desired goals. Without funding and personnel, programmes will not be productive. The following questions need to be addressed: To what extent will personnel and money be dedicated for a specific programme? Will the allocation be sufficient to reach the desired programme goal? Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 42 Does the organisation have other community resources that might be employed towards a specific programme to ensure its success? This section should also have a clear and transparent marketing budget. 8. Implementation Scheduling and timing are key determinants of the success of a marketing plan. These affect the placement of advertising and its impact on the targeted market segment. Questions that might direct the implementation of a plan include: When is the best time to launch a specific marketing strategy for a specific market segment? What kind of lead times applicable to various market segments would impact goal achievement? In what sequence should various marketing elements be implemented? Does one strategy need to follow another to maximise impact? Who is doing what? When? How? And with whom? In implementing a programme, is it coordinated for maximum efficiency? 9. Assessment Being able to evaluate a marketing effort is imperative. The questions to be posed include: What kinds of results are being sought in a specific marketing effort? Are the results quantified? What kinds of criteria have been established against which to assess a marketing programme? What kinds of contingencies have been developed for a programme that may prove less effective than intended? How do we measure green marketing success? I adapted John Grant’s examples (2007:13) to the tourism sector: Number of sales of your product- you highlight the greener credentials of your hotel in your communications mix and then measure the impact this has had. Campaign for more responsible behaviour- highlight impact of snorkelling on coral reefs and measure changes in breakages or regrowth Home swap scheme to encourage lower consumption forms of holidayingyou’d measure success by membership, usage and attrition of the scheme. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 43 Reading Sometimes we believe that national tourist offices have more power than they really have. Read this interview with the internationally experienced Sarah Graham Mann on destination marketing Read it online at http://www.ecoclub.com/news/070/interview.html I have enjoyed regularly reading other interviews, headlines and the magazine in this site, worth joining. Conclusion This introductory Unit has set the scene for the study of tourism marketing by examining the characteristics of tourism that differentiate it from other sectors, thereby demonstrating the central significance of marketing for overall tourism development and operational policy. The necessity to adopt a strategic approach to destination and corporation marketing has been stressed and we have looked at a number of research and analytical techniques by which the tourism marketer can develop a strategic approach in order to produce the optimal results for the destination or enterprise. Central to all research and analysis in tourism is accurate forecasting and guidance has been provided on selecting and applying the most appropriate method under different circumstances. In the next Unit we turn our attention to tourism demand analysis, which will lead in Unit 3 to market segmentation, positioning and targeting within marketing strategies. In the meantime, I leave you with a last food for thought with this reading. Reading Green Lodging News is a US based online news portal covering all things ‘green’ for the hospitality industry. A section devoted to sales and marketing can be found at: http://www.greenlodgingnews.com/SalesAndMarketing.aspx It is interesting to note that many news items listed in this section relate to the meetings/conference/events industry. Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 44 References Ansoff, H.I. (1987) Corporate Strategy. Penguin, London Hudson, S (2008) Tourism and hospitality marketing, London, SAGE Kotler, P., Bowen, J. and Makens, J (2003) Marketing for Hospitality and Tourism. Prentice Hall – Pearson Education, New Jersey Kotler, P., Hamlin, M.A., Rein, I. and Haider, D.H. (2002) Marketing Asian Places: attracting investment, industry, and tourism to cities, states and nations. John Wiley & Sons (Asia) Pte. Ltd., Singapore Middleton, V.T.C & Clarke, J. (2001) Marketing in Travel & Tourism. Butterworth Heinemann, Oxford National Geographic (2003). Geotourism Survey Shows Millions of Travelers Care (http://news.nationalgeographic.com/news/2003/10/1024_031024_travelsurvey.html) Pike, S (2004) Destination Marketing Organisations. London: PERGAMON Swarbrooke, J. (1999) Sustainable Tourism Management. CAB International, Wallingford Dr Xavier Font International Centre for Responsible Tourism, Leeds Metropolitan University 45