Destination Management

1. Destination Management Lecture 8 University of Applied Sciences Stralsund Leisure and Tourism Management WS 2009/2010

2. Part Three Considers the challenges involved in managing attractions such as marketing, financial management, operations management and human resource management

3. 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

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

5. Strategic options – Ansoff matrix Present products new products 1 2 Marketpenetration Productdevelopment Presentmarkets 3 4 Marketdevelopment Newmarkets Diversification Part Three \ Strategic marketing planning \ How are we going to get there?

6. 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?

7. The Implementation of Marketing Strategies How are we going to get there? cont… Part Three \ The implementation of marketing strategies \ How are we going to get there?

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

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

10. Marketing Mix Place of purchase Product levels (Kotler) Distribution Designed characteristics Pre-booking Service components Image / Reputation Pre-purchase Positioning Intermediaries Packaging Booking agencies Branding Ticket systems Quality Literature List price Advertising Discounts Signposting Concessions Sponsorship Value for money Direct marketing Cost of travelling Sales promotion Methods of payment Personal selling Price / Quality trade off Press and public relations Place Product Promotion Price Part Three \ The implementation of marketing strategies \ How are we going to get there?

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

12. Case study Branding the Visitor Attraction Experience Part Three \ The implementation of marketing strategies \ How are we going to get there?

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

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

15. Practical example 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: ernie@skyword.com 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 America West Airlines Magazine Consumer 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: ernie@skyword.com 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 City of Scottsdale Tourism Development

16. Practical example Tasmanian Walking Tracks Strategy and Marketing Plan

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

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

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

20. Distribution Visitor Organizer TicketContingent Money Money Contract Buy Ticket Access Ticket Agency Vendor Contract Contract SystemProvider Sales Info Sales Info Ticket Contingent Ticket Contingent Part Three \ The implementation of marketing strategies \ How are we going to get there?

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

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

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

24. Case study Marketing The Lake District Visitor Centre Part Three \ The implementation of marketing strategies \ How are we going to get there?

25. How will we know when we get there? Part Three \ Strategic marketing planning

26. 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?

27. 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 ways Part Three \ Strategic marketing planning

28. Constraints on marketing Organizations history Budget available Actions ofcompetitors Corporate culture Marketing Skills of theMarketing Staff Legal framework Ethical considerations Unforeseen changes inbusiness environment Part Three \ The implementation of marketing strategies \ General considerations

29. The future of attractions marketing … is likely to change dramatically because of changes in:- the nature of the productdue to technological developments such as virtual reality- the marketin terms of its demographic structure- the choice of media which are availableespecially in the fields of direct marketing (new databases)- the legislation and political environmentconsumer protection, EU, Eastern Europe- the marketing and management theory Part Three \ The implementation of marketing strategies \ General considerations

30. Homework Read Case Study 11 carefully and Overlook chapter 6 & 7 of case study 12 Part Three \ The implementation of marketing strategies \ How are we going to get there?