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+ online course in responsible tourism development Stefano Andreotti Destinatio n marketing

Destination marketing YAC

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Session #3 YAC course on responsible tourism management

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Page 1: Destination marketing YAC

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online course in responsible tourism development

Stefano Andreotti

Destination marketing

Page 2: Destination marketing YAC

2+Agenda

1. What is destination marketing?

2. Why destination marketing?

3. How to do destination marketing?

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+What is destination marketing?

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Product Promotion

Placement Price

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+What is destination marketing?

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Destination Marketing is a crucial activity for making the

destination competitive on the tourism market.

Destination Marketing has two main goals:

Improve the attractiveness of the destination;

Position the destination or the tourism products on the market place;

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+Destination Marketing, what for?

Promote and sell tourism products related to tourists motivations

“Organize a combination of resources/products/services able to provide a real value for selected target of demands,motivate to buy and satisfy the customers expectations.

James Makens et al., Marketing for Hospitality and Tourism

Not only promotion!

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+ 6Destination marketing vs. mass products marketing

Destination marketing differs because:

In the tourism sector - diffrently from others sectors, in which the distribution channels deliver the products to the consumers - the consumers move to the destinations;

The tourism product is made up by different components (resources) managed by different stakeholders;

Decisions do not belong to one person/manager;

The image of the destinations can be influenced by external factors that can not be managed;

Vs.

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What influences competitivity

Attractions •Natural, cultural, artificial resources, events;

Accessibility •Roads, trains, airports;

Recreation •Commercial activities, other services etc.

Accommodation •Accommodation facilities (hotels, B&B, lodge, CBT etc.

Activities •All activities: adventure, sports, culture etc.

Commercial accessibility

•Packages and offer available on the market.

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+Why destination marketing?

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DEMAND OFFER

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+Why destination marketing?

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WHY?

Excess of offer

Higher competition

New motivations

Change in consumers’

behaviorProduct specializati

on

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How has the market change?

The long tail theory and the product specialization

Tourism product demand has moved towards niche products able to satisfy specific expectations of a limited number of people

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+Why destination marketing?

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The success of a destination depends highly on the level of efficiency of the destination marketing strategy and its activities aimed at:

Understand the activities and processes for connetting buyers (tourists) and sellers (local tourism offer);

Respond to the demand needs positioning the destination on the market;

Coordinate the activities and the offers of the destination, working for distribution;

Assume a meta level position in relation to: tourism product, brand, price, segmentation, promotion and distribution.

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+Why destination marketing?

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Normally the implementation of a destination marketing strategy is competence of a Destination Management Organization

The task of this organization are:

Creation of tourism products;

Definition of a pricing strategy of the destination (positioning)

Implementation of promotion and marketing strategies;

Favor the distribution, through different channels (tour operator, online destination portals, exhibitions etc.), of the tourism products;

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New Approach to destination marketing

Product

Price

Promotion

Position

Classic approach

Product

Personalization

Price

Position

Promotion

Partnership

People

Planning

New approach

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+How to do destination marketing?

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Product It is the first and foremost key for a successful destination

marketing strategy: people go to a destination because “they want to do something there”;

It is therefore important for destinations to move from a logic of “destination” to a on of “motivation”

MOTIVATION (“REASON WHY”)

DESTINATION

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Personalization Nowadays is the customer that lloks and find what he

wants, we can only try to influence their choice; Tourists are becoming more independent and conscious

about what they want to do and where they want to go: the tourism product becomes one of the most influencing factor when deciding where to go/what to do;

It is necessary to understand the expectations, the needs and wants of toursits in order to be able to respond adequately to them;

The destination itself looses its importance and what becomes determinant are the tourism products that the destination can offer.

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+How to do destination marketing?

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Price The price of a tourism product should be decided taking

into account quality and fariness; in fact what people look for most of the time is a product with good quality for an accessible price;

Quality, in this sense should take into consideration not only its functional components but also its emotionals ones;

The pricing policy should consider the following indicators: Maximization of the profit; Competitor’s pricing policy; Market segmentation;

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Distribution Accessibility is another key factor for success because

being the market so competitive if products are readily available for purchase makes it easier to win the competition;

Multi channel distribution strategy: tour operators, travel agencies, on line distribution;

The distribution strategy needs to take into consideration the selected targets and markets;

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Position Identify the competitive context in which the destination is

located; Identify which are the destinations that directly compete with

ours; Identify which are the motivations and the needs and wants

that tourist look for before arriving at the destinations (expectations);

Identify motivations,, needs and wants for tourist chosing a competitor destination;

Identify strengths and weaknesses of the offer, opportunities and threats for developing further the destination offer;

Develop a new positioning starting from the opportunities individuated;

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Promotion Promotion can be very expensive both in terms of time and

money; it is therefore important to selects channels and tools that are more appropriate for promoting the offer;

Some criteria for choosing the most suitable toots for promotion: Audience: number of people that can be reached by that

mean of communication; Opportunity to see: the chance that a person interested

in our product see the message

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Media strategy

Media strategy refers to the identification and planning of the different media that will be used for promoting the product; the criteria used for determining the strategy should be:

Target groups;

Budget;

Goal of the promotion campaign (ex: brand awareness or sell?

Timing;

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Partnership Nowadays is necessary to move from

competition to coopetition; Bundling: it means to promote different

products in unique offer so to present a varied range of coherent opportunities to the customer enhancing the chances of him buying them and enriching its consuming experience while maximizing profit;

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People Nowadays we talk of word of mouse vs. word of

mouth; still people are the main protagonist of the holiday experience and are those that most certainly can convince someone to follow their step;

Therefore it is important to ENGAGE with customers and potential customer in order to favor the word of mouse;

A positive comment on the destination said by a visitors is definitely more effective than one said by a DMO;

Be careful, people can also criticize… it is necessary to learn how to face criticism and how to respond to it.

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Planning

Develop a strategic marketing plan (every 3 years) in which identify goals and targets for the next operative period;

In order to be effective the strategic marketing plan should be followed by an operative marketing plan identifying the detailed operative steps to be done for reaching the determined goals

Monitor results and adapt the operative strategy when it shows to be ineffective;

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Steps to successful destination marketing

Identify markets and target

• For example: domestic vs. international;• For example: Family, DINKs, teen agers, honeymooners, adventurers, active holidaymakers, etc.

Identify customer needs and wants

• What do people with that holiday motivation from their holiday?

Match tourism resources and products with the selected targets and markets

• The products chosen are coherent with the target we want to attract?

Study the competitors

• What are others destinations doing on the same products/targets? • What are my direct competitors doing? Which products are they developing?

Develop tourism products coherent with the selected targets of demand

• How can I make my products more appealing for my targeted customers? What can be innovated in order to beat my competitors?

Develop and implement a marketing strategy

• Develop a marketing plan identifying goals, timing and budget

Monitor results

• Am I reaching the goals I established in the marketing plan? If not, how can I modify my strategy?

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Thank you very much!Stefano Andreottimail: [email protected]: standreotti