Slide Nr. 1 Destination Management Lecture 8 University of Applied Sciences Stralsund Leisure and...

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Destination Management

Lecture 8

University of Applied Sciences Stralsund

Leisure and Tourism Management

WS 2009/2010

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Part Three

Considers the challenges involved in managing attractions such as marketing, financial management, operations

management and human resource management

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Scope of strategic marketing planning !!!

• Where are we now?

- analysing the organizations current situation and direction

• Where do we want to be in the future?

- establishing mission statements, setting goals and objectives

• How are we going to get there?

- devising strategies and tactics helping to achieve these goals and objectives, and looking at implementation issues

• How will we know when we get there?

- monitoring and performance evaluation strategies, and systems for modifying strategies in response to monitoring

Part Three \ Strategic marketing planning

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How are we going to get there?


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Strategic options – Ansoff matrix

Part Three \ Strategic marketing planning \ How are we going to get there?

1 2

3 4

Marketpenetration

Productdevelopment

Marketdevelopment

Diversification

Present products new products

Ne

wm

ark

ets

Pre

sen

tm

ark

ets

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Strategic options – Ansoff matrix

• Market penetration- increase usage of existing products by existing market- e.g. season tickets as incentive for more frequent repeat visits

• Product development- offering new products to existing market- also means to develop service facilities to retain brand loyalty

• Market development- finding new markets for existing products- new marketing communication strategies

• Diversification- offering new products to new markets- highly risky, moving away from core business

Part Three \ Strategic marketing planning \ How are we going to get there?

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The Implementation of

Marketing Strategies

Part Three \ The implementation of marketing strategies \ How are we going to get there?

How are we going to get there?

cont…

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Basic statements

Marketing strategies are generally implemented through

Marketing Plans.

Implementing marketing strategies is mainly about

manipulating the Marketing Mix.

Implementing marketing strategies requires to keep up

with the latest Developments in Marketing.


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Scope of Marketing Plans

• Marketing Plans should answer the following questions:

- What will be done?

- When will it be done?

- What will it cost?

- Who will do it?

- How will it be measured?


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Marketing Mix

Product

PricePromotion

Place

• Product levels (Kotler)• Designed characteristics

• Positioning

• Service components• Image / Reputation

• Packaging• Branding• Quality

• List price• Discounts

• Concessions

• Value for money• Cost of travelling

• Methods of payment• Price / Quality trade off

• Literature• Advertising

• Direct marketing

• Press and public relations

• Sponsorship

• Sales promotion• Personal selling

• Signposting

• Booking agencies

• Place of purchase• Distribution

• Intermediaries

• Pre-booking• Pre-purchase

• Ticket systems


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Product

• Influencing the core~, tangible~ and augmented product

• Mainly ‘product development’ and ‘diversification’ strategy

• Image and reputation => Positioning!!!- all levels are under control of the organization- all elements of the product can be influenced by the org.- opening time, service facilities, car parking, noise …

• Quality and Guarantees- what to do if something goes wrong

• Branding- please see case study “branding the attraction”


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Case study

Branding the Visitor Attraction Experience


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Price

• Major importance for ‘market penetration’ strategy- but a basic consideration for every strategic decision

• List price or normal price- often a result of break even analysis- influenced by competitors and political decisions

• Discounts- attract more visitors at quiet times or new visitors (low income)- reduced costs vs. added value

• Concessions- reductions made on basis of social objectives- mainly offered by public operated attractions


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Promotion

• Literature and Internet- Brochures, Fliers, Website, …- the customer cannot inspect the product before!!!!!- size, design, content, amount, distribution, validity- please remember the samples distributed

• Advertising- television, radio, newspapers, magazines, poster sites, …- placing the right advertisement in the right media at the right time

- issue date/time - circulation- viewer figures- viewers profile!!!


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Practical example

City of Scottsdale Tourism Development

Advertising Description: America West Airlines Magazine will produce a Scottsdale editorial section to appear in the November 2004 issue. The Scottsdale CVB will place a full-page, four-color cover ad to support an art co-op section in the December 2004 thru March 2005 issues.

Scottsdale CVB Member Ad Opportunities:

Ad Size Range: 1/6 – full page

4-color Price Range: $2,000 - $9,730

Contact: Ernie Mulholland, 602-997-7200, ext. 13

(to reserve space, confirm costs and deadlines, and for more information)

Fax: 480-968-1041 E-mail: [email protected]

Demographic/Reader Profile:

Issuance: Monthly

Circulation: 125,000

Readership: 570,000; 1.6 million passengers per month

Median Age: 48

Median HHI: $129,000

Editorial Profile: America West Airlines Magazine is distributed nationally aboard all scheduled flights within the airline's route system of 90 cities in the United States, Canada and Mexico. This magazine is geared toward the well-educated reader who is interested in trends, creative people, fresh ideas and unconventional travel opportunities.

America West Airlines MagazineConsumer Magazine

Contact: Ernie Mulholland, 602-997-7200, ext. 13

(to reserve space, confirm costs and deadlines, and for more information)

Fax: 480-968-1041 E-mail: [email protected]

Demographic/Reader Profile:

Issuance: Monthly

Circulation: 125,000

Readership: 570,000; 1.6 million passengers per month

Median Age: 48

Median HHI: $129,000

Editorial Profile: America West Airlines Magazine is distributed nationally aboard all scheduled flights within the airline's route system of 90 cities in the United States, Canada and Mexico. This magazine is geared toward the well-educated reader who is interested in trends, creative people, fresh ideas and unconventional travel opportunities.

Advertising Description: America West Airlines Magazine will produce a Scottsdale editorial section to appear in the November 2004 issue. The Scottsdale CVB will place a full-page, four-color cover ad to support an art co-op section in the December 2004 thru March 2005 issues.

Scottsdale CVB Member Ad Opportunities:

Ad Size Range: 1/6 – full page

4-color Price Range: $2,000 - $9,730

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Practical example

Tasmanian Walking Tracks Strategy and Marketing Plan

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Promotion

• Press and Public relations- free editorial media coverage, most cost effective way of promotion- low control of content- requires good relationships with journalists

• Direct Marketing- direct mail, requires good databases- encourage loyalty

• Sales promotion- temporary offers and discounts- coupons at newspapers or from websites

• Personal selling- trade fairs and exhibition, but not commonly used


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Promotion

• Measuring effectiveness of promotional activitiesis mainly assured by coding

• “Coding advertisements is simply a means of determining where your orders come from …”

• Examples:- publishing a range of telephone numbers for booking- offering different coupons- using different mail accounts for direct mailing …


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Place

• Means the place of purchase and includes distribution

• The customer travels to the product

• Pre-purchase and pre-booking is rare

• Most visitors buy their ticket at the attraction gate- Degree of dependency on weather conditions influences the booking and purchasing behaviour of visitors

• But distribution channels do exist!- mainly for attractions in the cultural sector- computer and world wide web stimulates the creation of new distribution channels


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Organizer

Agency

SystemProvider

Co

ntr

act

Vendor

Contract

Visitor

Acc

ess

Contract

Mo

ne

y

Tic

ket

Co

ntin

ge

nt

Money

Ticket

Ticket Contingent Ticket ContingentSales InfoSales Info

Bu

y T

icke

t

Distribution


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Place

• Advantages of distribution channels are obvious:

- professional sellers are involved (small museums)

- reduces waiting time for visitors

- facilitates holiday budget planning for visitors

- encourages creation of packages (tour operators)

- improves ability to estimate visitor numbers and supports marketing decisions


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The seven Ps

• People – staff in terms of:training, appearance, behaviour, customer contact, …

• Physical evidence – environmentlayout, noise, cleanliness, furnishing, …

• Process – corporate policies and proceduresemployee empowerment, customer involvement, …

• Extension of the ‘product’ category !but emphasizes the importance of those three factorsfor service products


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The resource statement

• Statement of resources required for implementation:

- financial,

- human,

- and physical

• May allocate responsibilities between individuals andsets deadlines for the completion of tasks

• Should be included in every marketing plan

• BUT: there are many ways of writing marketing plans!


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Case study

Marketing The Lake District Visitor Centre


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How will we know when we get there?


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How will we know when we get there?

• Evaluation requires that:

- the marketing strategy contains measurable targets

- there are management information systems, providing up-to-date information of the organizations performance

- must provide internal data on the performance- and external information on business environment

- there are control mechanisms to allow corrective actions

• Corrective actions should be fed back into the strategy!!!

Part Three \ The implementation of marketing strategies \ How will we know when we get there?

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A critique of strategic marketing planning

• Strategies can become rigid blueprints that are incapable of adapting to changing circumstances and exploit unforeseen opportunities

• Requires market research data which are well beyond the means of most attractions

• The process may be time consuming, particularly for smaller attractions

• Few attraction managers have the necessary training or experience for this technical process

• BUT: supports thinking in structured and systematic waysPart Three \ Strategic marketing planning

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Constraints on marketing

Part Three \ The implementation of marketing strategies \ General considerations

Marketing

Budget available

Skills of theMarketing Staff

Corporate culture

Organizations history

Unforeseen changes inbusiness environment

Legal framework

Ethical considerations

Actions ofcompetitors

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The future of attractions marketing

• … is likely to change dramatically because of changes in:

- the nature of the product due to technological developments such as virtual reality

- the market in terms of its demographic structure

- the choice of media which are available especially in the fields of direct marketing (new databases)

- the legislation and political environment consumer protection, EU, Eastern Europe

- the marketing and management theory

Part Three \ The implementation of marketing strategies \ General considerations

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Homework

Read Case Study 11 carefully

and

Overlook chapter 6 & 7 of case study 12


Slide Nr. 1 Destination Management Lecture 8 University of Applied Sciences Stralsund Leisure and...

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