Chapter 8 Tourism Promotion

The Tourism System 6th edition Kendall Hunt Publishing Company

Chapter 8 Tourism Promotion

Robert C Mill and Alastair M Morrison © 2013 1

Chapter 8

Tourism Promotion

© 2013 Tourism Australia Copyright

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Contents Reviews the process of promotion or how tourism

organizations communicate with potential visitors. Discusses the ways that organizations attempt to

get their messages across to customers and to form images in people's minds.

Tourism Australia Copyright




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Purpose Having learned about the general principles of communications and promotion, students will be able to describe a program for implementing a promotion in a tourism destination or company. They will also be able to explain the roles of destination marketing organizations (DMOs) at all levels.


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Learning Objective 1: Promotional Effectiveness and Visitor Buying Process Stages Identify and describe which promotional methods are most effective during the various stages of the visitor’s buying process.





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Goals and Types of Promotions The ultimate goal of promotion is behavior

modification. Three types of promotions:

Informative promotions Persuasive promotions Reminder promotions


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Promotion and the Visitor’s Buying Process Informative promotions are most effective at the

earlier buying process stages (attention and comprehension).

Persuasive promotions work better at intermediate buying process stages (attitudes, intention, and purchase).

Reminder promotions are most effective after the first visit or use.





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Learning Objective 2: Informative, Persuasive, and Reminder Promotions Distinguish between informative promotion, persuasive promotion, and reminder messages, and identify when the use of these techniques is most appropriate.


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Promotions and the Visitor’s Buying Process Informative Promotions Informative promotions: Communicate data or ideas about the key features of destinations and other tourism facilities or services. They are more important during the first (introduction) stage of the product life cycle (PLC) when a new destination or business is entering a market.





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Promotions and the Visitor’s Buying Process Persuasive Promotions Persuasive promotions: Aim at getting visitors to select particular destination or company or brand over those of competitors, and to actually make a booking or purchase. They are more likely to be used during the growth and maturity stages of the PLC.


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Promotions and the Visitor’s Buying Process Reminder Promotions Reminder promotions: Jog visitors’ memories and help keep the tourism destination or organization in the public eye. Are more useful in the growth and maturity stages of the PLC. Also, reminder promotions are more effective after the first visit to the destination or first use of the organization’s services. Reminder promotions help stimulate repeat visits or purchases.





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Learning Objective 3: Elements of the Communication Process List and describe the main elements in the communication process.


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The Communications Process SENDER (Destination/Organization)

TARGET MARKET (Audience) Promotional objectives Promotional budget Message idea Message format Promotional mix elements Promotional media





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The Communications Process TARGET MARKET (Receivers) 1. Response Control Evaluation


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Learning Objective 4: Promotional Mix Elements List and describe the elements of the promotional mix.





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Elements of the Promotional Mix Advertising Personal selling Sales promotion Merchandising Public relations and publicity plus: Internet marketing (or sometimes called digital

marketing)


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Elements of the Promotional Mix


Integrated

Advertising

Sales

Marketing

Public Relations and

Publicity

Sales Promotion

Communications

Internet Marketing -

Social Media – Mobile (ICT)

Merchandising




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Learning Objective 5: Implementing a Promotional Program Identify and explain the procedures involved in implementing a promotional program.


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Procedures in Implementing a Promotional Program 1. Select the target market 2. Develop promotional objectives 3. Establish the promotional budget 4. Determine the message idea 5. Select the message format 6. Select promotional mix elements 7. Select promotional media 8. Measure and evaluate promotional effectiveness





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1. Select the Target Market

Use secondary and primary research to pinpoint and determine the target market’s characteristics (e.g., demographics and geographic origins).

The target market must be accessible through one or more promotional mix elements or specific type of media.

The target market must include people with similar characteristics who are the best prospects for future business.


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1. Select the Target Market


Visitors (consumer promotions)

Online and Traditional Travel Trade

Intermediaries (trade promotions)

Media and Press Local Community

Promotional Target Groups




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2. Develop Promotional Objectives Objectives must be target-market specific, stated as a

desired result or outcome, measurable, realistically attainable, and have a deadline for achievement.

Consider target market’s buying process stage and awareness of destination or organization.


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3. Establish the Promotional Budget Budget is based on promotional objectives using

objective-and-task budget method, which is a zero-based approach.

But must consider what the organization has available to spend (affordable budgeting method).

Cooperative promotions (partnerships) should be considered to expand budget amounts.





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4. Determine the Message Idea

Pinpoint target market’s perceptions (images), needs, wants, motives, and expectations.

Determine what to communicate in the message (message idea).

Support the positioning approach for the destination or organization.

Pre-test message idea or ideas.


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5. Select the Message Format Analogy, association, symbolism Comparisons Fear Honest-twist Slice of life Testimonials Trick photography or exaggerated situations





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6. Select Promotional Mix Elements Advertising: Any paid form of non-personal

presentation of ideas, goods, or services by an identified sponsor.

Personal selling: Oral conversations, either by

telephone or fact to face, between salespeople and prospective customers.


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6. Select Promotional Mix Elements Sales promotion: Approaches other than personal

selling, advertising, and public relations and publicity where customers are given short-term inducement to make an immediate purchase or booking, or to communicate with potential visitors or travel trade intermediaries.





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6. Select Promotional Mix Elements Merchandising: Materials used in-house to stimulate

sales including brochures in display racks, signs, posters, photographs, displays, tent cards, and other point-of-sale promotional items..


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6. Select Promotional Mix Elements Public relations and publicity: All the activities that

maintain or enhance relationships with other organizations and individuals. Publicity is one public relations technique that involves non-paid communication of information about a destination’s or organization’s services.





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6. Select Promotional Mix Elements Internet marketing: Using the web, social network

services (SNSs), e-mail, etc. to communicate with potential visitors.


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7. Select Promotional Media Cost per contact Cost per inquiry (CPI) Cost per thousand (CPM) Geographic selectivity Life span Market selectivity Noise level





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7. Select Promotional Media Pass-along rate Reach Source credibility Timing flexibility Total cost Visual quality


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8. Measure and Evaluate Promotional Effectiveness Measure changes in awareness levels or perceptions,

responses or conversion rates. Advertising tracking studies Cost-comparison method Concept testing Conversion studies Inquiry and lead tracking Pre-testing and post-testing Travel or trade show audits





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Learning Objective 6: Roles and Activities of National Tourist Offices Describe the roles and activities of national tourist offices (NTOs) related to promotion.


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National Tourist Offices An NTO is the organization officially responsible for

the marketing and development of tourism for a country.

Examples include the Canadian Tourism Commission, China National Tourism Administration, Embratur, Singapore Tourism Board, South African Tourism, Tourism Australia, Tourism Ireland, and Tourism New Zealand, and VisitBritain.





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Roles of National Tourist Offices FOCUS ON INBOUND INTERNATIONAL TOURISM

PROMOTION Image creation and enhancement Literature distribution and fulfillment Marketing research and database development Package and tour development Partnership development Consumer marketing and promotion Travel trade marketing and promotion


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Learning Objective 7: Promotional Programs of State, Provincial, Territorial, Regional, and Local Tourist Offices Describe the promotional programs operated by agencies at the state, provincial, territorial, regional, and local levels.





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State, Provincial, Territorial Tourism Organizations An STO/PTO/TTO is the organization officially

responsible for the marketing and development of tourism for a state, province, or territory.

Examples include Tourism British Columbia, Tourism New South Wales, Anhui Provincial Tourism Administration (China), Free State Tourism Authority (South Africa), Visit Florida, etc.


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Regional Tourism Organizations Multi-country level: Caribbean Tourism Organization, European Travel

Commission, Pacific Asia Travel Association, and Scandinavia Tourist Boards

Within-country level: Yarra Valley Regional Tourism Association

(Australia), Tourism Partnership of Niagara (Canada), Christchurch Canterbury (NZ), and Travel South USA





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Local Tourism Organizations U.S. has developed a network of convention and

visitor bureaus (CVBs) at the county and city levels, many funded through room taxes.

Traditional CVB role to attract MICE (meetings, incentives, conventions, and exhibitions). Recently, CVBs placing more emphasis on group and individual travelers.

In other countries, LTOs tend to receive more direct government funding (e.g., London Tourist Board/Visit London, England).


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State, Provincial, Territorial, Regional, and Local Programs FOCUS MAINLY ON DOMESTIC TRAVEL PROMOTION

1. Image creation and enhancement 2. Literature distribution/fulfillment 3. Marketing research and database development 4. Package and tour development 5. Partnership development 6. Consumer marketing and promotion 7. Travel trade marketing and promotion





THE TOURISM SYSTEM

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Chapter Summary Highlights


Chapter Summary Highlights

Chapter 8

Three types of promotion are informative, persuasive, and reminder.

The effectiveness of these three types varies by the visitor’s buying process stage and the stage in the product life cycle (PLC).

The promotional mix elements are advertising, personal selling, sales promotion, merchandising, and public relations and publicity. Internet marketing now adds further impact to these five traditional promotional elements.

National tourist offices focus mainly on inbound tourism. State, provincial, territorial, regional, and local tourist offices

focus mainly on domestic tourism.