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Destination Management. Lecture 8 University of Applied Sciences Stralsund Leisure and Tourism Management WS 2009/2010. Part Three. Considers the challenges involved in managing attractions such as marketing, financial management, operations management and human resource management.

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destination management

Destination Management

Lecture 8

University of Applied Sciences Stralsund

Leisure and Tourism Management

WS 2009/2010

part three

Part Three

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

scope of strategic marketing planning
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

how are we going to get there
How are we going to get there?

Part Three \ Strategic marketing planning

strategic options ansoff matrix
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?

strategic options ansoff matrix1
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?

the implementation of marketing strategies
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?

basic statements
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?

scope of marketing plans
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?

marketing mix
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?

product
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?

case study
Case study

Branding the Visitor Attraction Experience

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

price
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?

promotion
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?

practical example
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

practical example1
Practical example

Tasmanian Walking Tracks Strategy and Marketing Plan

promotion1
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?

promotion2
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?

place
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?

distribution
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?

place1
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?

the seven ps
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?

the resource statement
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?

case study1
Case study

Marketing The Lake District Visitor Centre

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

how will we know when we get there
How will we know when we get there?

Part Three \ Strategic marketing planning

how will we know when we get there1
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?

a critique of strategic marketing planning
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

constraints on marketing
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

the future of attractions marketing
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

homework
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?