8.

Marketing Mix
World Tourism Organization
Manila, 20 22 March 2006
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

SESSION
SESSIONCOVERAGE
COVERAGE

Marketing mix implementing the marketing strategy

Market vs. destination approach
PRODUCT:
Cluster development
Public:private partnerships in product development
PROMOTION
Promotional basket
AIDA - awareness, interest, demand, action
Personal & Non-personal communications
Marketings role in responsible tourism

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

SESSION
SESSIONCOVERAGE
COVERAGE
PRICING
Perception & reality in value-for-money Market vs. destination
approach
PLACE
Role of intermediaries
Role of destination marketing organisations (DMOs)
Role & impact of electronic technology

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

MARKETING
MARKETINGMIX
MIX
Marketing mix four Ps - product, promotion, price, place
Analogy driving a car all components used in unison to be
effective
Production > Consumer orientation four Ps to four Cs:
Product > customer value
Promotion > communications
Price > cost
Place > convenience
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PRODUCT
PRODUCT
Two approaches to strategic product planning:
Market approach
What do we have that can be developed to appeal to
tourists?
Destination approach
What are we prepared to develop that tourists might be
interested in?
Normal approach something between these extremes

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PRODUCT
PRODUCT
Tourism is developed for the benefit of the people of the destination
The goal is to develop the right package of product offerings for the
most attractive market segments in terms of rewards for the
destination.
Once the product mix & target markets/segments have been
determined, then follow the destination positioning & branding,
promotion, pricing and distribution to achieve the maximum benefits
from the selected product:market mix
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

TOURIST
TOURISTAREA
AREALIFE
LIFECYCLE
CYCLE

Destinations have tourist area life cycles TALC similar to

product life cycles
Emergent>Growth>Stagnation>Decline
Time period of TALC depends on the product and marketing
initiatives of the destination. Appropriate action when the TALC
approaches the stagnation period can extend the growth phase.
Such actions can be product-based, market/segment-related,
promotional or changed methods of distribution i.e. the marketing
mix

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

CLUSTER
CLUSTERDEVELOPMENT
DEVELOPMENT

Key approach to product development clusters

Grouping of attractions & facilities in a location, or
Grouping of like attractions in a broader destination eg golf courses
Clusters:
1. Provide economies of scale & scope to justify promoting
the destination, and
2. Serve as the magnet to draw visitors to the area.
Critical advantage: allow members to cooperate & compete

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PUBLIC:PRIVATE
PUBLIC:PRIVATEPARTNERSHIP
PARTNERSHIP(PPP)
(PPP)
Tourism is a private sector activity
BUT
Requires public sector guidance & direction
WHY?
1. Tourism takes place where other people live so impacts their
living environment
2. Tourism has major infrastructure, education & training, regulatory
& organisational needs
3. A destination identity has to be developed & communicated to the
market
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PUBLIC-PRIVATE
PUBLIC-PRIVATEPARTNERSHIP
PARTNERSHIP(PPP)
(PPP)
PPP most suitable for:

* improving a destinations attractiveness (A)

* marketing (M)
* productivity (P)
* management of its tourism system (M)
PPP recognises:
* increasing difficulty of differentiating destinations
* high cost of reaching the marketplace
Pooling resources gives good value-for-money and consistency of
message
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PUBLIC-PRIVATE
PUBLIC-PRIVATEPARTNERSHIP
PARTNERSHIP(PPP)
(PPP)
Critical success factors (WTO 2000):

* balanced structure with clear roles

* shared leadership between public & private sectors with
common goals, realistic expectations & benefits for all
parties
* flexible approach and genuine spirit of partnership
* understanding that tourism must be sustainable
* commitment to combination of long term strategic vision &
shorter term goals and measurable initiatives
* periodic evaluation of each partners inputs
* good communication: partners & stakeholders
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PUBLIC-PRIVATE
PUBLIC-PRIVATEPARTNERSHIP
PARTNERSHIP(PPP)
(PPP)
Key to successful PPP is to understand the motives & methods of
the private sector particularly of the foreign operators with which
the destination does business and to enlist the cooperation and
commitment of the private sector:
- in pursuing practices that are mutually beneficial to both
operator & destination short term priorities and
- in the realisation of strategies determined by the
destination a longer term goal

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PROMOTION
PROMOTION
Purchase cycle:

Pre-transactional>transactional>post-transactional
Expectations>experiences>memories
Communications campaign planning built around the AIDA model

Awareness
Interest
Demand
Action
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

COMMUNICATIONS
COMMUNICATIONSOBJECTIVES
OBJECTIVES
Three categories:
Informing creating awareness
Persuading generating interest>desire and on to
purchase
Re-inforcing building support/loyalty

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

COMMUNICATIONS
COMMUNICATIONSOBJECTIVES
OBJECTIVES
Which are these?
DISCOVER EAST TIMOR
ERITREA: THREE SEASONS IN TWO HOURS
INCREDIBLE INDIA
SMILE YOURE IN THE CANARIES
VISIT BRITAIN
SO WHERE THE BLOODY HELL ARE YOU?
WOW! PHILIPPINES

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

STIMULUS-RESPONSE
STIMULUS-RESPONSEMODEL
MODEL
Five stages:
Stimulus input product offering
Communications channels paid & non-paid
Buyer characteristics & decision process filter all
communications & other influences to determine
needs/wants/goals
Motivation
Response purchase choice

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

MARKETING
MARKETINGCOMMUNICATIONS
COMMUNICATIONS
Personal:

- telephone/email
- website
- trade fairs & exhibitions
- familiarisation visit
Non-personal
- advertising
- public relations/publicity
- brochures & other printed material
- sponsorship
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

TOURIST
TOURISTOFFICES
OFFICESFACILITATION
FACILITATIONROLE
ROLE
- research data for the private sector

- representative offices in marketplace

- facilitating participation at overseas trade shows
- organising fam trips
- preparing & distributing travel trade manuals
- joint marketing & promotional schemes with private sector
- support for new tourism products
- information (& reservations) system
- consumer assistance & protection
- intermediary between private sector & government
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

THE
THECASE
CASEOF
OFNORTHERN
NORTHERNTERRITORIES
TERRITORIES
- FLOW OF RESEARCH INFORMATION & CLEAR
STRATEGY AVAILABLE TO ALL

- SHARE OUR STORY STRAP LINE AND SUITE OF

MARKETING TOOLS FOR IDENTITY CREATION
- COOPERATIVE ADVERTISING: WITH OPERATORS IN
NT, NATIONAL PARTNERS & FOR INTERNATIONAL
MARKETS
- FULL WEBSITE www.nttc.com.au
- CLOSE COLLABORATION WITH TOURISM AUSTRALIA

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

MARKETING
MARKETINGPARTNERSHIPS
PARTNERSHIPS
Not easy because of differing objectives & levels of commitment of
relevant stakeholders
Difficulty of persuading:
- public sector to give up some of its control, and
- private sector to contribute more resources
Most successful example: Maison de la France
From start in 1987 now has 1,200 members with an annual budget
of over Euros60mn, over half from the private sector
Growing role of consumer in forcing public:private partnerships?

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

SUSTAINABLE
SUSTAINABLE&&RESPONSIBLE
RESPONSIBLE
MARKETING
MARKETING

Respond to and encourage consumer demand for tourism

related to natural & cultural resources of destination
Support operators who meet the development & operating criteria &
quality standards laid down
Give marketing & promotional support to developers & operators of
sustainable tourism products/services
Provide incentives for developers & operators of sustainable
products/services to enable them to sell at prices acceptable to the
market consider the soft core/hard core model of ecotourism
Implement a code of ethics to make ir-responsible marketing
unacceptable in the marketplace and among stakeholders

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

SUSTAINABLE
SUSTAINABLEMOTIVATION
MOTIVATION
Tourism at the forefront in that emotional factors (including
perceived value-for-money) play a central role in decision-making
Psychographic research identifying consumers most likely to be
sensitive to the sustainable or responsible tourism message so they
can be ring-fenced for product offerings & marketing
communications eg TIA/National Geographic Geotourism survey
Conversion achieved through persuasion & stimulation rather than
hectoring or haranguing
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PROMOTING
PROMOTINGTOURISM
TOURISMINVESTMENT
INVESTMENT
Tourism development characterised by high capital costs with only a
gradual build up of income so profitability only achieved in 3 5
years
Role on incentives to encourage appropriate developments
Incentives: specific & regularly reviewed

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PRICING
PRICING
Accelerator or brake
Targets: those who could otherwise not afford to travel to the
destination, or who consider standard prices too high
Tactical pricing in tourism:
- seasonality
- inflexibility/rigidity of supply
Need to attract only those who would otherwise not visit and
segments that are compatible with existing ones other tourists
part of destination experience
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PLACE
PLACE- -DISTRIBUTION
DISTRIBUTION
Especially vital in travel & tourism:

- growing size of businesses

- several units within a group owned or strategic alliances
- growth of long haul travel weak consumer knowledge
- reaching & attracting first time customers
- providing convenience for repeat customers
- growing competition where excess destination capacity
- need to sell capacity ahead of production for cash flow
- need to maximise promotion & tactical pricing through
modern distribution channels yield management
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PLACE
PLACE- -DISTRIBUTION
DISTRIBUTION
Five main choices:
1. Principal>Customer (on producers premises)
Producer=Retailer
2. Principal>Customer (in customers home) - reservation system
3. Principal>Owned retail outlet>Customer (on retailers premises)
vertically integrated
4. Principal>Independent retail outlet>Customer (on retailers
premises) agent commission system
5. Principal>Tour operator>Independent retail outlet>Customer (on
retailers premises) bulk sale to tour operator
TOUR OPERATOR HYBRID WHOLESALER/PRINCIPAL
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

PLACE
PLACE- -DISTRIBUTION
DISTRIBUTION
Reservations systems accessed through electronic technology
can be developed by principals, tour operators or travel agents
so these five systems can still apply
BUT
the balance of power can be manipulated in favour of the
destination principal through easier direct communication with
prospective customers
Need for high quality & well-connected destination websites that
enable searches from initial enquiry through to direct booking to
be done through a single web hit with appropriate links

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

DESTINATION
DESTINATIONPLAYERS
PLAYERSIN
IN
DISTRIBUTION
DISTRIBUTION
1. Tourist office nothing to sell!

2. Facilities/attractions remote from main marketplace

3. National airline but half traffic comes on foreign carriers
4. Source market tour operators key providers bur foreignowned with little commitment to specific destinations
5. Source market travel agents major influence but all owned in
source countries little concern which destination chosen

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

DESTINATION
DESTINATIONMARKET
MARKET
REPRESENTATION
1.REPRESENTATION
No representation
2. Individual public relations(PR)/information officer
3. PR company appointed
4. Marketing representation company (MRC) appointed
5. Both PR & Marketing Representation companies appointed
6. Destination marketing organisation (DMO) appointed combining
PR & MR functions
7. Own office established
ISSUES: communications with prospective travellers; ensuring
no conflict of interest; national vs provincial; budgets
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

ELECTRONIC
ELECTRONICTECHNOLOGY
TECHNOLOGY
Electronic reservations systems now dominant
One-in-five Britons buy their holidays on-line and a far higher
proportion carry out web research
Advantages - destination parent website a vital entry point for
interested tourists to research attractions and whats on offer
through themed linked pages to activities, places within the
destination, accommodation etc
Linked access to individual suppliers websites enable tourist to
make bookings

R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

ELECTRONIC
ELECTRONICTECHNOLOGY
TECHNOLOGY
Problem still exists for small destination supplier
How do I identify my prospective customer? Or, rather, how
does my prospective customer identify my operation?
Needle in a haystack - luck if he/she continues the web search
down through the pages as small producers not on initial pages
.travel domain now established www.tralliance.info
Enable a better match between buyers & sellers through more
precise results to would-be travellers on-line enquiry
Role in relationship/ one-to-one marketing
R. Cleverdon

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

TRAVEL
TRAVELDIRECTORY
DIRECTORY
Information retrieval from an integrated, classified data set
Directory controlled vocabulary of 1,800 travel/tourism terms
.travel Directory process
Where do you want to go? DESTINATION
What do you want to do?

ACTIVITIES

What is your lifestyle?

LIFESTYLE

How do you want to get there? TRANSPORTATION

How would you like to stay? ACCOMMODATION
What services do you need?
R. Cleverdon

TRAVEL SERVICES

THE MARKETING MIX: PRODUCT,

PROMOTION, PRICE, PLACE

LOCAL
LOCALLEVEL
LEVELACTION
ACTION
1. Money from the centre is tight
2. Need for tightly focussed niche marketing on a highly
targeted basis
3. Counterbalance to the international tourism distribution
systems push for standardisation in destination tourism
products
4. Exploiting growing consumer trends
Local level action: only way the differentiation vital for long term
survival as distinct & distinctive destinations can be achieved

R. Cleverdon

Time out !!

R. Cleverdon