Role Role ofof CommunicationCommunication in Destination in Destination Marketing Marketing

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Role Role ofof Communication CommunicationCommunicating with the tourist market means giving information to potential visitors about the destination and it requires,•the form an attractiveattractive imageimage of destination•develop packages of attractions and amenities

–Attractions alone do not attract not attract visitors–Also requires effective communication effective communication to

potential visitors

The Communication ProcessThe Communication Process

• Total marketing communications programs of a destination, called its communication mixcommunication mix, consists of a specific blend of advertising, sales advertising, sales promotion, public relations, publicity and promotion, public relations, publicity and personal sellingpersonal selling to achieve promotion and marketing objectives.

• The five basic communication tools are defined as the followings;

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Communication Communication ToolsTools

• AdvertisingAdvertising: : any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Sales promotionSales promotion: : Short-term incentives to encourage the purchase or sales of a product or service

• Public relationsPublic relations: : Building good relations with various publics by obtaining favorable publicity, developing a good image, and handling or heading off unfavorable rumors, stories or events about the destination.

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Communication Communication ToolsTools• PublicityPublicity: : It involves various efforts to

publicize specific products or services of any destination.

• New productsNew products:: special events such as festivals, redesigned products such as aas a newly renovated hotels; newly renovated hotels; and products that are popular because of current trends in the destination are all potential candidates for publicity.

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Overcoming Problems of Intangibility of Overcoming Problems of Intangibility of Tourism/Hospitality ProductsTourism/Hospitality Products

• It may be difficult to communicate tourism/hospitality service benefits to customers, especially when the product is intangible

• IntangibilityIntangibility creates four problems:– AbstractnessAbstractness

• No one-to-one correspondence with physical objects– GeneralityGenerality

• Items that comprise a class of objects, persons, or events– NonNon--searchabilitysearchability

• Cannot be searched or inspected before purchase– Mental impalpability Mental impalpability (grasp)(grasp)

• Customers find it hard to grasp benefits of complex, multidimensional new offerings

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Advertising Strategies forAdvertising Strategies for Overcoming IntangibilityOvercoming Intangibility

Intangibility problemIntangibility problem Advertising strategy • GeneralityGenerality

– objective claims Document physical system capacity Cite past performance statistics

– subjective claims Present actual service delivery incident

• NonNon--searchabilitysearchability Present customer testimonials(witness) Cite independently audited performance• AbstractnessAbstractness Display typical customers benefiting

• Impalpability Impalpability Documentary of step-by-step process, Case history of what firm did for customer Narration of customer’s subjective

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Using Metaphors to Communicate Value PropositionsUsing Metaphors to Communicate Value Propositions

• Tangible metaphors Tangible metaphors help to communicate benefits of service offerings, for example:– Allstate insurance —“You’re in good handsYou’re in good hands”– Prudential Insurance — uses Rock of GibraltarRock of Gibraltar as symbol of

corporate strength

• MetaphorsMetaphors communicate value propositions more dramatically and emphasize key points of difference

• Highlight how service benefits are actually provided

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Facilitate Customer Involvement in Production

• When customers are actively involved in service production like tourism and hospitality, they need trainingtraining to perform well

• Show product delivery in action such as example self service at the hotel

• Television and videos engage viewer• Streaming videos Streaming videos on Web are new channels to reach active

customers• Advertising and publicity can make customers aware of changes aware of changes

in service features and delivery systems

– Sales promotions to motivate customers– Offer incentives to make necessary changes– Price discounts to encourage self-service on an ongoing basis

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Help Customers to EvaluateHelp Customers to Evaluate Product Product Offerings Offerings

• Customers sometimes may have difficulty distinguishingdistinguishing one destination from another–We have to provide some tangible cluesclues

related to destination service/product performance

• Some performance attributes lend themselves better to advertising than others

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Help Customers to Evaluate Product Offerings

– For example, airlines

• Boast about punctualitypunctuality• Do not talk overtlyovertly in advertising about

safetysafety, admission that things might go wrong make prospective travelers nervous

• Use indirect approachUse indirect approach: promote pilot expertise, mechanic’s maintenance skills, newness of aircraft

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Promote the Contributions ofPromote the Contributions of PersonnelPersonnel

• Frontline personnel Frontline personnel are central to tourism and hospitality service delivery especially in high-contact services– We have to make the service more tangible more tangible

and personalized– We can aadvertise employees dvertise employees at work to help

customers understand nature of service encounter

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Promote the Contributions ofPromote the Contributions of PersonnelPersonnel

• We can show customers work performed behind the scenesscenes to ensure good delivery– To enhance trust, highlight expertiseexpertise and

commitment of employees commitment of employees whom customers normally do not normally encounter

– Advertisements must be realisticrealistic – Messages help set customers’ expectationsexpectations– Service personnel should be informedinformed about the

content of new advertising campaigns or brochures before launch

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Setting Communication ObjectivesSetting Communication Objectives

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Checklist for Marketing Communications Planning: The “5 Ws” Model

• Who is our target audiencetarget audience?• What do we needneed to communicate and

achieve?• HowHow should we communicate this?• WhereWhere should we communicate this?• WhenWhen do communications need to take

place?

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Target Audience: 3 Broad Categories

• ProspectsProspects–Employ traditional communication

mix because prospects are not known in advance

• UsersUsers–More cost-effective channels

• EmployeesEmployees

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Target Audience: Target Audience: 3 Broad Categories3 Broad Categories

• EmployeesEmployees–Secondary audience for communication

campaigns through public media–Communications may be directed

specifically at employees as part of internal marketing campaign, not accessible to customers

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The Marketing The Marketing Communications Communications

MixMix

Marketing Communications MixMarketing Communications Mix

• Numerous forms of communication• Different forms have distinctive distinctive

capabilitiescapabilities–Types of messages that can be conveyed–Market segments most likely to be

exposed to them

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Marketing Communications MixMarketing Communications Mix

• Two types of communicationTwo types of communication– Personal communications: personalized messages

that move in both directions between two parties– Impersonal communications: messages move in only

one direction

• Technology creates gray area between bothTechnology creates gray area between both– For example, combine word processing technology

with information from database to create impression of personalization; interactive software; voice recognition technology

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Marketing Communications Mix Marketing Communications Mix for for Tourism Tourism (1)(1)

21Key: * Denotes communications originating from outside the organization

Word-of-mouth(other customers)

Selling

Customer service

Training

Advertising

Broadcast

Print

Internet

Outdoor

Direct mail

Sampling

Coupons

Sign-up rebates

Gifts

Prizepromotions

Telemarketing

Word of mouth

*

22Key: * Denotes communications originating from outside the organization

Publicity &public relations

Pressreleases/kits

Websites

Manuals

Brochures

Interactive software

Voice mail

Signage

Interior decor

Vehicles

Equipment

Stationery

UniformsMedia-initiated

coverage*

Marketing Communications Mix for Tourism (2)(2)

Pressconferences

Sponsorship

Special Events

Trade Shows,exhibitions

Instructionalmanuals Corporate design

Sources of Messages Received by Target Audience

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Messages originating within organization

Messages originating outside organization

Production

channels

Marketingchannels

Front-line staff

Service outlets

AdvertisingSales promotionsDirect marketingPersonal sellingPublic relations

Word of mouth

Media editorial

AUD IENCE

Sources

Messages Transmitted through Messages Transmitted through Production Channels (1)Production Channels (1)

• Developed within organization and transmitted through production channels that deliver the service itself

• Customer service from front-line stafffront-line staff–Shape customer’s perceptions customer’s perceptions of service experience

and the firm –Responsible for delivering supplementary services such

as providing information, receiving payment, resolving providing information, receiving payment, resolving problems, problems, etc.

–Firm may require customer service staff to cross-sell cross-sell additional services

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Messages Transmitted through Production Channels (2)

• Customer trainingCustomer training–Familiarize customers with service product and teach

them how to use it to their best advantage via familiarization tours to the destination

• Service outlets at the hotels Service outlets at the hotels –Planned and unintended messages reach customers

through the medium of the service delivery environment itself

–Servicescape: Servicescape: Physical design of service outlet

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Messages through Marketing Channels: Trade Shows

• Stimulate extensive media coverage media coverage • Many prospective buyers come to shows (Travel

Agencies)• Opportunity to learn about latest offerings from wide

array of suppliers–Environment is very competitive–Compare and contrast –Question company reps

• Physical evidence Physical evidence displayed through exhibits, samples, demonstrations

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Communication StrategyCommunication Strategy

• The communication process has 6 6 broad stages

– To whomwhom to say it– WhyWhy to say it– WhatWhat to say– HowHow to say it – How oftenoften to say it– WhereWhere to say it

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Communications StrategyCommunications Strategy

To whom to say itTo whom to say it– Define the targettarget

market– Research– Wants and needs

clearly identified

Why say itWhy say it– Expect it to have a

certaincertain effect– What needs to be

accomplished

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CommunicationsCommunications StrategyStrategy

• What to sayWhat to say– Methods chosen

need to achieve the strategic objective

– Consumer adoption process model

• How to say itHow to say it– The execution stage– Communication that

most accurately accomplishes the goals consistent with the target market

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Communications StrategyCommunications Strategy

• How often to say How often to say itit

– Consumer-driven and budget-driven

• Where to say itWhere to say it– Using the various

components of the communications mix

– Select appropriate media

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Communications StrategyCommunications Strategy• Push/pull strategiesPush/pull strategies

– Push strategyPush strategyMarketing communication efforts to intermediariesintermediaries, who then push the product to their customer base

– Pull strategyPull strategyMarketing communication efforts directly to the consumerconsumer, who purchases the product directly or through an intermediary

– Both are common in the communications industry

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Word of Mouth (WOM) Communication Word of Mouth (WOM) Communication

• Most powerful form of communication• Products cannot be tested before

purchase so outside advice is important• Elements of the communication mix

can influence WOM• In this way, what we what we dodo has more

impact than what we what we saysay

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Word of Mouth (WOM) CommunicationWord of Mouth (WOM) Communication

• Impact of word of mouthImpact of word of mouth– Should give people something interestinginteresting

to talk about– Create communitiescommunities and networks to

connect people– Work with influentialinfluential communities– Create advocateadvocate programs– Blogs

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Word of Mouth (WOM) CommunicationWord of Mouth (WOM) Communication

• Measuring word of mouthword of mouth– Lifetime value of a customer based on:

• Gross profit on an average purchase• Average number of purchases a customer

makes each year• Average number of years customer will

continue to purchase• Probability that customer will continue to

purchase

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The Communication ProcessThe Communication Process

Design the messageDesign the message

• Message ContentContent • Message StructureStructure • Message FormatFormat • Message SourceSource

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The Communication ProcessThe Communication Process

• Select Communication ChannelsChannels

• PersonalPersonal Communication Channels • NonNon--personal personal Communication Channels

• Select the Message Source

• Measure Communication Results

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Establishing the Total Marketing Establishing the Total Marketing Communications BudgetCommunications Budget

• Affordable Method Affordable Method – based on what the company can afford

• Percentage of Sales MethodPercentage of Sales Method – based on a percentage of current or forecasted sales

• Competitive Parity Method Competitive Parity Method – based on competitors’ budgets

• Objective and Task Method Objective and Task Method – based on objectives, tasks, and estimated costs

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Nature of Each Promotion ToolNature of Each Promotion Tool

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Advertising Advertising

Personal Selling

Personal Selling

SalesPromotion

SalesPromotion

PublicRelations

PublicRelations

DirectMarketing

DirectMarketing

Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive

Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive

Personal Interaction, Relationship Building, Most Expensive Promotional

Tool

Personal Interaction, Relationship Building, Most Expensive Promotional

Tool

Wide Assortment of Tools, Rewards Quick Response, Efforts Short-LivedWide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived

Very Believable, Dramatize a Company or Product, Underutilized

Very Believable, Dramatize a Company or Product, Underutilized

Nonpublic, Immediate, Customized, Interactive

Nonpublic, Immediate, Customized, Interactive

Factors in Setting the Promotion Mix

• TypeType of Product and Market

• PushPush vs. PullPull Strategy

• Buyer ReadinessReadiness State

• Product Life-CycleLife-Cycle Stage

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Messages through Marketing Channels: AdvertisingAdvertising

• Build awareness, inform, persuade, and remind

• ChallengeChallenge: How does a firm stand out from the crowd?–TV, radio broadcasts, newspapers, magazines,

Internet, many physical facilities, transit vehicles—all cluttered with ads

–Wide array of paid advertising media–Ads reinforced by direct marketing tools

• Research suggests that less than half of all ads generate a positive return positive return on their investment

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Major Advertising DecisionsMajor Advertising Decisions

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Objectives Setting

•Communication objectives•Sales Objectives

Setting the Budget

Message Decisions•Message Strategy•Message Execution

Media Decisions•Reach, Frequency, Impact•Major Media Types•Specific Media Vehicles•Media Timing

Campaign Evaluation•Communication Impact•Sales Impact

Setting Advertising ObjectivesSetting Advertising Objectives

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Informative AdvertisingInformative AdvertisingInform Consumers or Inform Consumers or Build Build PrimaryPrimary Demand Demand Persuasive AdvertisingPersuasive Advertising

Build Build SelectiveSelective Demand Demand

Reminder AdvertisingReminder AdvertisingKeeps Consumers ThinkingKeeps Consumers Thinking

About a ProductAbout a Product

AdvertisingAdvertising

• Ideally, will accomplishIdeally, will accomplish::– TangibilizeTangibilize the service element– Promise a benefit that can provide

solutions to problems– DifferentiateDifferentiate the property from that of the

competition– Have positive effects positive effects on employees who

must execute the promises– CapitalizeCapitalize (benefit) on word of mouth

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AdvertisingAdvertising

CollateralCollateral material material– Promotional

materials such as brochures, direct mail, and other forms of advertising that are used to informinform customers and createcreate interest

MerchandisingMerchandising– A tool used in the

marketing communications mix to reach identified target markets

– Primarily an in-house in-house marketing technique marketing technique used to stimulate sales of additional products or services on premise

– A long-term goal is increasing customer customer satisfactionsatisfaction

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MMerchandisingerchandising• merchandising is any practice which contributes

to the sale of products to a retail consumer• replica jerseys, keychains, a wide range of

clothing, sports equipment, posters and wall plaques are the examples

Basic rules of merchandising:– Have a purposepurpose beyond sales projections– CompatibilityCompatibility and consistency– PracticalityPracticality– ConsistencyConsistency– SimplicitySimplicity

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MMerchandisingerchandising

• Examples of good merchandising– Business centers Business centers in hotels that cater

to business travelers– PizzaPizza on finer hotels’ room service

menus– Mini bars Mini bars in guest rooms

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Major Decisions in AdvertisingMajor Decisions in Advertising

• Setting the ObjectivesObjectives

• Setting the Advertising BudgetBudget

• Message DecisionsDecisions

• Media DecisionsDecisions

• Campaign EvaluationEvaluation

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Media DecisionsMedia Decisions

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Step 1. Decide on Reach, Frequency, Decide on Reach, Frequency, and Impact and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers,

Nature of the Product, Types of Message, Cost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.

Must Balance Media Cost Against Media Factors:Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

Profiles of Major Media Types

49©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

• Mailings, recorded telephone messages, faxes, e-mail

• Potential to send personalized messages to highly targeted micro-segments– Need detailed database of information

about customers and prospects

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Messages through Marketing Channels: Messages through Marketing Channels: Direct Marketing (1)Direct Marketing (1)

Messages through Marketing Channels: Direct Marketing (2)

• Advance in on-demand technologies empower consumers to decide how and when they prefer to be reached, and by whom– For example, e-mail spam filters, pop-up blockers– Permission marketingPermission marketing: customers encouraged to “raise

their hands” and agree to learn more about a company and its products in anticipation of receiving something of value

– Enables firms to build strong relationships with custrong relationships with customers– For example, people invited to register at a firm’s website

and specify what type of information they like to receive via e-mail

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Messages through Marketing Channels: Sales Promotion (1)

Defined as “communication attached to an communication attached to an incentiveincentive”

Should be specific to a time period, price, or customer group

Motivates customers to use a specific service sooner, in greater volume with each purchase, or more frequently

Provides a “competitive edgecompetitive edge” during periods when demand would be weak

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Messages through Marketing Channels: Sales Promotion (2)

Speeds up introduction and acceptance of new services

Interesting sales promotions can generate attention and put firm in favorable light (especially if interesting results publicized)For example, SAS International Hotels—if a hotel

had vacant rooms, guests older 65 years old could get a discount equivalent to their years

When a guest announced his age as 102 and asked to be paid 2 % of the room rate in return for staying the night, he received it—and got a game of tennis with the general manager!

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Messages through Marketing Channels:Public RelationsPublic Relations

PR/publicity involves efforts to stimulate positive interest in an organization and its products through third partiesFor example, press conferences, news releases, For example, press conferences, news releases,

sponsorshipssponsorships Corporate PR specialists teach senior managers how

to present themselves well at public events, especially when faced with hostile questioning

Unusual activities can present an opportunity to promote company’s expertise

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Public RelationsPublic Relations (PR) (PR)

• PR effort can steersteer in a positive or negative way

• Press release is a prepared document for release to selected media containing information or “newsnews” about a firm

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Public RelationsPublic RelationsUndertaking public Undertaking public relationsrelations– An ongoing task that is

an important part of the marketing planning

– Happens at corporate, property or unit level

– Employee and management belonging to public organizations contributes in some manner to PR

Planning public relationsPlanning public relations

– Identify a purpose and know the target markets

– Consider the benefit to the customer

– Know the correct media to reach the target market prospects

– Establish relationships with editorseditors and writerswriters and other media

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Major ActivitiesActivities of PR Departments

• Press Relations• Product Publicity• Corporate Communication• Lobbying• Counseling

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PublicityPublicity• Extensive mention in the news media or by

word of mouth or other means of communication, and messages about firm disseminated through various media to attract public notice

• Product Related PublicityProduct Related Publicity– Assist in the Launch of New Products.– Assist in Repositioning a Mature Product– Build Up Interest in a Product Category

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PublicityPublicity Publicity is created to

generate continued positive coverage positive coverage of a firm

Have a targeted purpose and an evaluation post-publicity

Publicity helps with promotionspromotions

Starts with inviting media to cover a specific event

Press releases Press releases of background information are made available at the event

PR works the event, pitching to the media

Follow-up calls and thank you

Program evaluation Make provisions for the

unexpected; crisis management teams

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Major Tools in Marketing PR

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Public ServiceActivities

IdentityMedia

Speeches

Publications

News

Events

DiscussionDiscussion Questions Questions

• Find several advertisements for a hospitality or travel organisation. Then visit their web site. Is the communication provided on the web site congruent with and support their print adverstising and broadcast advertising? Explain your answers.

• Recently, a number of restaurants have shifted some of their promotional budget from advertising to public relations. What benefits does public relations offer that would make the restaurants spend more?

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Thanks for Thanks for attentionattention

Orhan İçözOrhan İçöz62