R. Cleverdon
2. Marketing Strategic Approaches
World Tourism Organization Manila, 20 – 22 March 2006
R. Cleverdon
SESSION COVERAGESESSION COVERAGE•Marketing policy central to overall tourism development policy – so need for a strategic marketing planning approach
•Characteristics of tourism that affect marketing strategy
•Process of strategic marketing planning within overall planning
•Strategic marketing planning based on differentiation & resource:
market matching
•Taking account of priorities of different stakeholders
•Marketing tools & techniques - introduction
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
UNDERSTANDING TOURISM DESTINATIONS
UNDERSTANDING TOURISM DESTINATIONS•What is a tourist destination?
* one product – but also many
* many stakeholders with different goals
* both physical & socio-cultural aspects
* mental concept for potential visitors
* subject to a wide range of influences
* subject to historical, real & fictitious events
* evaluated subjectively for value-for-money
* no two destinations the same!!
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
TOURISM’S SPECIAL FEATURESTOURISM’S SPECIAL FEATURES•Huge range of impacts – economic, socio-cultural, environmental?
•Special facilities, training, institutions, laws etc
WHY – because tourists represent an addition to the resident population with all the needs of any population and more
•What is perception? – what is reality?
YOU CANNOT TEST DRIVE A HOLIDAY
IN TOURISM, THE PERCEPTION IS THE REALITY
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
KEY TOURISM MARKETING PROPOSITIONS
KEY TOURISM MARKETING PROPOSITIONS•1. Marketing – products are designed, adapted & promoted to
meet the long-run expectations & interests of prospective customers
2. Services marketing – peculiar characteristics of inseparability & perishability call for a different application of the traditional marketing mix
3. Tourism marketing – shaped by the nature of demand and operating characteristics. Forms of promotion have their own characteristics, distinguishing their use from other sectors.
Middleton, V.T.C. & Clarke, J Marketing in Travel & Tourism
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
UNDERSTANDING CONSUMERS’ NEEDSUNDERSTANDING CONSUMERS’ NEEDSCharacteristics of Tourism with Implications for Marketing
* fragmentation of supply
* interdependence & complementarity
* rigidity of supply
* fixed in time & space
* intangible: “expectation-experience-memory”
* price elasticity of demand
* seasonality
* consumer part of the product
* importance of intermediaries
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
PROCESS OF MARKETING PLANNINGPROCESS OF MARKETING PLANNING
Marketing plan is a navigational chart – enabling the organisation/destination to realise its goals
Typical plan structure: executive summary, situation analysis, objectives & goals, market segments, marketing strategies, marketing mix, resources, implementation, assessment
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
PRODUCT >< MARKETING PRODUCT >< MARKETING In a marketing mix, the product comes first
BUT - in tourism the role of marketing can precede the development of the product – remember the importance of mental concepts
Marketer gathers information on the expectations of customers
For a destination, the customer can be:
* its citizens
* investors
* tourists
* the travel trade
* others?
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
PRODUCT >< MARKETING PRODUCT >< MARKETING Marketer’s task – to communicate to statal decision makers the features & benefits each of the customer groups want & how to reconcile their often competing & contradictory needs
Marketer participates in the design of the destination’s products;
* branding & PR campaign
* investment laws & regulations
* development & presentation of attractions
* promotion of export products
* fostering of positive relations with neighbours, NGOs & international organisations
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
DESIGNING PRODUCTS DESIGNING PRODUCTS Leverage factors:
* natural endowments
* acquired endowments, public goods, externalities
* risk mitigation
* economic prowess
Products & brands not fixed & unalterable
Maintaining the destination’s brand & promoting its products are ongoing tasks
R & D needed – just like a corporate entity
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
STRATEGIC MARKETING PLANNING STRATEGIC MARKETING PLANNING Strategy – long term
* where are we now?
* where do we want to get to?
* how do we get there?
Key components of strategy:
* goals & objectives
* images, positioning, branding
* strategies & programmes
* budget
* review & evaluation
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
TACTICAL MARKETING PLANNING TACTICAL MARKETING PLANNING Tactics – short term
Respond to market conditions & competitors’ activities
Tactical marketing incorporates:
* objectives & targets
* mix & budget
* action programmes
* monitoring & control
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
DISTINGUISHING: STRATEGY & TACTICS
DISTINGUISHING: STRATEGY & TACTICS Three strategic concepts absent in tactical marketing:
1. Strategic business units & business portfolio analysis
2. Product: market growth models
3. Corporate & product positioning
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
STRATEGIC MARKET PLANNINGPROCESS
STRATEGIC MARKET PLANNINGPROCESS 1. Place audit – expanded SWOT analysis
2. Vision & goals
3. Strategy formulation
4. Action plan
5. Implementation & control
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
COMPETITOR ASSESSMENTCOMPETITOR ASSESSMENTSUPERIOR COMPETITOR – protect position, avoid overpopularity
PEER COMPETITIOR – intensified competition, or coopetition
WEAK COMPETITOR – establish new strategy & positioning
Assess competitive position according to:
STRENGTHS – major or minor
NEUTRAL
WEAKNESS – major or minor
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
PERFORMANCE:IMPORTANCE MATRIXPERFORMANCE:IMPORTANCE MATRIXLow High
Importance VV 1 2 3 4 5 6 7 8 9 10 <<Performance
High 10 A. Concentrate B. Keep up the
9 here good work
8
7
6
Low 5 C. Low priority D. Possible overkill
4
3
2
1
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
OPPORTUNITIES & THREATSOPPORTUNITIES & THREATSOverall attractiveness of a destination one of four:
1. Ideal – high in opportunities, low in threats
2. Speculative – high in both opportunities & threats
3 Mature – low in major opportunities & threats
4. Troubled – low in opportunities but high in threats
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
STRATEGIC VISIONSTRATEGIC VISIONOverall growth path
BUT also
* unique combinations of attraction factors to be targeted
* target markets
* short- and long-term goals
* operative prerequisites
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
STRATEGY & IMPLEMENTATIONSTRATEGY & IMPLEMENTATIONFour abilities matrix (Kotler, Hamlin, Rein & Haider, 2002)
Strategic ability
High
Frustrators Expanders
V
V
Losers Gamblers
Low/Low>>>> >>>>High Implementation ability
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
BCG MATRIXBCG MATRIX
Product: market growth
High
Star Problem
V child
V
Cash cow Dog
Low High>>>> >>>>Low Market share
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
ANSOFF MATRIXANSOFF MATRIX
PRODUCT
New
Product Diversification
V development
V
Penetration Market
development
Existing Existing>>>> >>>>New MARKET
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
COMMUNICATING MARKETING STRATEGY
COMMUNICATING MARKETING STRATEGYMARKETING MIX – THE 4 Ps
* Product = customer value
* Promotion = communications
* Place = convenience of access
* Price = cost
MARKETING STRATEGIC
APPROACHES
R. Cleverdon
THE COMPETITIVE CONTEXT
LET’S QUICKLY TAKE STOCK….
•Does your destination have a competitive strategy….?
•Are you clear about the most important challenges facing your destination? What are they?
•Do you know who your competitors are…..more importantly do you know how they are performing and what their plans/actions are?
•Do you know who your key customers are…more importantly what they like, dislike, do, read, how old they are, etc. etc.
•Do you know how your destination will distinguish itself…and whether it is achieving this?
R. Cleverdon
Thank you!