Professional Documents
Culture Documents
LEARNING OBJECTIVES
To understand the concept of destination marketing
To understand the importance of the relationship between marketing and product planning and
development
Branding
Competitive analysis
Competitive products
Consumer behavior
Differentiating
Image
Marketing mix
Marketing plan
Marketing segmentation
NTA
NTO
Positioning
Strategic plan
Visitor expectations
Visitor satisfaction
INTRODUCTION
This session discusses destination marketing and its role in the visitor decision-making process. A
destination can be a specific country, state or province, city, or a resort area. The visitor may apply various
terms to define a destination whether it refers to one geographic area or a combination of several geographic
areas. Regardless of how the term is applied, it is the consumer or visitor who defines a destination. From the
perspective of the visitor or consumer, a destination is perceived as having appealing attributes, features,
attractions, and services that would encourage the potential visitor to choose a destination for a leisure or
vacation trip or other travel purposes. The development of a destination marketing plan is usually the
responsibility of a government tourism marketing and promotion organization and is based on a careful analysis
of competition and market trends.
MARKET DEVELOPMENT
The process of destination marketing development involves a number of important steps which include
the following:
Market trends are also examined in a competitive analysis using information sources such as market
trends research and current visitor data. Typically, these trends examine:
Visitor trends including origin markets, length of stay, expenditure patterns, mode of transportation,
and demographic profiles
Major competitors, services and products offered by competitors, the competitive pricing structure,
and the assessment of the success of competitors
Need recognition – the recognition that a need or want on the part of the visitor or consumer to
purchase the product exists. In the case of the visitor, it is the strong desire to visit a particular
destination
Information search – the way in which the consumer obtains information about the destination
choices
Purchase and consumption – the mood of the consumer during product purchase and
consumption, for example, the vacation package to a particular destination
Post-purchase evaluation – comparison of the consumer’s expectations to the actual product after
the purchase is made or the travel is completed
Marketing Mix
Another basic concept in marketing is the marketing mix. The marketing mix is a combination of four
basic elements an organization controls in order to satisfy or communicate with consumers. The concept of a
marketing mix involves a number of variables which are interrelated and depend on each other to some extent.
For any market segment at a given point in time, the marketing mix usually involves at least four elements,
sometimes called the four Ps:
Place - The manner in which the products and services are sold, including channels of distribution
Price - A pricing policy that satisfies not only the customers but meets profit objectives
Positioning
Positioning the product-service mix is a highly valuable tool for destinations, however this can be a
difficult task to accomplish. Positioning involves careful consideration of the tourism product and the visitors’
experience and expectations. It is important that that the marketing organization positions the destination in the
consumer’s mind, so that the visitor’s experience meets their expectations. In order to position a destination’s
service mix successfully, a clearly perceived image must be established in the consumer’s mind regarding the
benefits offered by the destination and how the destination’s product-service mix can be differentiated from
other destinations. The objective is to give the consumer a positive image of the destination and is linked with
branding.
Branding
Branding is perhaps the most powerful marketing tool available to destination marketers confronted by
product similarity where tourism products appear equal or lack differentiation to the consumer and to the
competition. For many destinations, there are few differentiating factors for the facilities and services which are
offered. Today many destinations can offer five-star resorts, hotels and attractions, claim a unique culture and
heritage, and describe themselves as having the friendliest people and the most customer-focused tourism
industry and service. Therefore, there is a critical need for destinations to create a unique identity and to
differentiate themselves from their competitors.
Branding or establishing a brand identity attempts to promote a unique combination of the tourism
product characteristics to appeal to the consumer. These characteristics are linked to the brand in the
consumer’s mind and results from positioning. By creating a strong image for the consumer, the destination
gains an advantage which is referred to as a brand advantage. Brand advantage is secured through
communication that highlights the specific benefits of a product, creating an overall impression of a superior
All marketing plans focus efforts on achieving the goals and objectives of the destination over the short
and long-term and ensure that all key aspects of the marketing effort are included in formulating specific
activities. Marketing plans may be strategic, operational, or include both components. Strategic plans are
concerned primarily with long-term issues (three to five years), overall mission, goals and objectives.
Operational plans focus on specific steps to be taken to reach the strategic targets within the short-term (usually
one year). The marketing plan must support the destination’s overall strategic plan.
Mission - the guiding framework within which all decisions should be made. Typically, mission
statements are brief and define the scope of business for the destination
Strategy - a plan that integrates a destination’s major goals, policies, and action plan
Objectives - refinement of the broad goals statement, stating; what will be accomplished, what is
the timeframe, who is responsible for achieving the objective, and how the results will be evaluated
Policies - the formal rules and guidelines that direct all of the actions a destination takes
Tourism organizations usually work within a political structure. It is important that the organization
develop a leadership role within the community in order to be effective in the coordination and execution of its
programs. Tourism organizations should be visible entities within a destination, drawing attention to what they
are doing so that the community understands the significance of the visitor industry.
Tourism organizations have other important responsibilities including working with meeting and group
planners and providing key resources, information and assistance to planners. The tourism organization can
provide vital contact names and local information, locate necessary facilities, and act as a convention
management consultant to planners. The tourism organization also recommends reliable sources for services
and supplies, information on facilities and prices, assist planners with the securing of meeting rooms and hotel
room commitments, and serves as the broker or liaison between the planner and the host destination and its
resources.
Tourism organizations also help visitors to their destinations through information centers and by
responding to visitor inquiries. Tourism organizations can provide visitors with an array of information regarding
hotels, restaurants, attractions, shopping, recreation, and entertainment opportunities, and essentially serves as
a visitor’s one-stop shopping center for ideas and information.
Currently, HVCB is contracted on a three-year basis by the Hawaii Tourism Authority to market the
islands to North America, Hawaii’s largest visitor market. The HVCB’s Board of Directors is designed for a
balanced, statewide representation of companies, individuals, and associations from the tourism industry,
general businesses, and the community. A 10-member Executive Committee, with mandated membership and
balance from each county, acts as a steering group for the board.
A portion of the tax is used as an additional source of funding for tourism-related activities. This fund is
called the Dedicated Source of Funding for Tourism Activities, 37.9% of the total revenue from the tax is for the
purpose of creating a Tourism Special Fund for tourism-related activities including product development as well
as marketing and promotion. HTA has several different marketing contracts with organizations which are
responsible for marketing Hawaii to different regions of the globe, each market is given a separate budget. The
following identifies the marketing organizations responsible for each region as well as the corresponding budget
for the contract:
HVCB- North America & Corporate Meetings and Incentives (CMI) – $23,245,300
HTA - $155,000
MARKETING STRATEGIES
A major purpose for contracting out the marketing responsibilities of each geographic area is that each
region has a different marketing strategy and is marketing to a different market segment. The marketing
strategies for Hawaii’s two most important markets, North America and Japan, are described as follows:
Avid Traveler
Outdoor Recreation
Romance
Golf
Strategies
Leverage programs toward filling-in the spring and fall shoulder seasons
Maintain a consistent brand position across all touch points throughout North America
All audience groups – however, enhance public relations and magazine advertisements for the
following targets as quality markets:
Family
Wedding
In 2005, Hawaii Tourism Japan will communicate Hawaii’s unique tradition and historical facts to convey
in-depth charm and the aloha spirit of Hawaii.
Strategies
To increase the quality of tourist in terms of length of stay and amount spent
To enhance the Hawaii’s image as unique, based on its original culture and history
Communication Strategy
Increase contact points with Hawaii – As in 2004, expose Hawaii in an impressive manner from
various angles and through numerous contact points, not only through advertising but also by
combining various vehicles, such as public relations, the Web site, and events
SUMMARY
Destination marketing is a highly complex topic integrating several aspects many of which are
interdependent. As consumer needs and wants change, the role of destination marketers becomes even
greater, to ensure the destination is attracting the “right” consumer.
Destinations are competing in a very crowded marketplace where few tourists have any particular
loyalty to the destination they chose to visit. This makes it important to try to develop distinctive brands and to
DISCUSSION QUESTIONS
1. What are the major market areas (MMAs) for Okinawa’s tourism industry?
2. Describe the organizational structure of Okinawa’s tourism marketing and promotional organizations.