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Priorities, Key Topics, Products, Source Markets and Promotion Tools Used by HNTO in 2005 The Hungarian National Tourist Office has identified an increase of 3% in domestic and foreign guest nights spent at commercial accommodation establishments as a realistic objective for 2005. This goal should be achieved with a tighter budget than before. To continue the concept laid out in the marketing plan for 2004 and on the basis of statistics and research results, the HNTO will concentrate its promotion efforts on the following key topics, as the efficiency of utilizing resources increases substantially when specific priorities are kept in focus: Key topics: (in international communications) ¾ Hungary ¾ Budapest ¾ Lake Balaton ¾ Health tourism ¾ Business tourism Key topics: (in domestic communications) ¾ Health tourism ¾ Event tourism ¾ Holiday vouchers It has been a legitimate claim for years that we should associate the properly introduced and accepted logo of Hungary with a country specific, inviting general slogan that builds on the tourist attractions of the country. We intend to keep the slogan (“Itthon otthon van”) coined for domestic communication in 2003 in an unchanged form. We will need to identify the slogan to be used uniformly in international communications. That will require the involvement of the complete HNTO network and the technical assistance of the Hungarian and the International Advertising Association. The product offering of each region guarantees major attractions for the domestic market. These are communicated to the general public by our Regional Marketing Directorates and our Regional Tourist Project Offices. Consequently, the three topics listed above cover the promotion of tourism in all of the regions, including holidays spent at the Lake Balaton as well as spa tourism in Western Hungary and in the Southern Hungarian Plain. Source Markets Focused marketing efforts are worth the effort also in areas other than the promoted topics, which is why source market have been clustered into three groups: Major Source Markets (realizing the most guest nights for years) ¾ Germany ¾ Austria ¾ Italy ¾ France ¾ USA ¾ United Kingdom Potential Markets (with great potential) ¾ The Netherlands ¾ Denmark ¾ Russia ¾ Poland ¾ Japan ¾ China The third group obviously includes all the remaining countries. In 2005, we continued the cooperation project that we launched with the Tourist Organizations of the Visegrád Countries in 2003, which calls for continuing to engage in joint promotion efforts in long-haul destinations (USA, Japan, China, India). Promotion Tools We have also studied the efficiency of the promotion tools used in marketing communication. Exhibitions offered the most striking lesson as that is the area where we spend most on accessing a potential consumer. Naturally, these results have to be taken with care as successful promotion requires a combination of tools which interrupt with, strengthen and complement each other. As regards exhibitions it is worth considering that they involve active outreach and direct communication with potential customers whilst advertisements involve passive perception. Mention should be made of the point that service providers enjoy tourist exhibitions and participate in high numbers. Accordingly, the order of tools is first of all an indication of where we break away from past practices and focus most of our human and financial resources. The order may change in the promotion of individual products and target groups. A preference list of promotion tools used by the HNTO in 2005.: 1. Internet 2. Study tours 3. Events 4. Exhibitions 5. Publications 6. Advertisements Resource Allocation HUF 5 billion has been allocated to the HNTO for promoting tourism from the Targeted Funds of Tourism, including HUF 1.6 billion to cover the operating costs of marketing and HUF 3.4 billion for direct marketing promotion. The main figures of the marketing budget are shown in the table below: Description Marketing promotion by head office Foreign representations Regions 2005 Budget (HUF million) 1,560 1,140 700