Tourism Marketing in the Digital Age PDF

Introduction 01 Tourism Marketing in a Digital Age Sept 19 2024...

Introduction 01 Tourism Marketing in a Digital Age Sept 19 2024 , Definitions marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and : exchanging offerings that have value for customers, clients, partners, and society at large.” (American Marketing Association) Digital marketing today is more about types of audience interaction… It involves harnessing the following ‘5Ds of managing : digital marketing interaction’ Digital Device, Digital Platforms, Digital Media, Digital Data, Digital Technology) (Chaffes et al. 2019) Tourism marketing refers the process by which companies in travel and hospitality industry create value for customers and : build strong customer relationships in order to capture value from the customers in return” (Kofler et al., 2017). understanding the definitions 1. creating value for customers what kind value is created in tourism ? > - of Think your own journeys. what kind value did you ? of experience. 2 build strong customer relationships -How strong relationships be built with brands/with tourism people. 3 Capture value from the customers in return > - What kind of value do you think of here ? A word of mouth is super What is different in Tourism marketing ? important !! · Immaterial service is sold over a long distance 3 is not testable recommendations and ratings are more important · service has to be delivered at a certain point in time Cano-acti principle => challenge for the personnel/pricing/yeild management · often , there are people involved to deliver the service-machines/digitalization does not help to the same extent as e.. g in retail banking/insurance services. · External factors e. g. weather , other service providers in the destination , other tourists influence the experience. by the sproduced consumer · Tourist is prosumer e. g. good equipment background knowledge , , good mood. what is the "product" When it comes to a Tourism service ? -service concept : A shell model marketing Embedded to deliver the service at consistent level Schallenge a. > - thetruejudgements customer -services whathappensif e n you receive? 'Ambience now is ex : you get a pillow chocolate Gasesn't count it done ↳ location (ex city centre : at a hotel. whats actually there, only what the customer sees. I expectations create 12/7 of the P's) ↳ reading for exam marketing : An Evolution - Established Processes · > - efficient (digital) processes for routines > - Added value for non-routines /e g personalization)/critical.. incidents e service Level Agreements to ensure that "suppliers" deliver the required service at a defined quality level People/personnel · > - people can make a difference in critical incidents or when providing insider tips training improves quality e > - personnel can be the reason for a customer to return. Physical · Evidence > - Artifacts > - Precious Materials point of sales > - Puzzle Activity Process check booking is it easy , how the turn around from to booking system quick is request confirmation · : · (with printable option)/Apple wallet compatible check-in digitalize Automation of "Welcome Mrs Mrs XYZ" on hotel room/suite TVs/welcome package ↑ Hold guarterly training for younger/new personnel to reinforce SOP's 3 SLA's Checkout survey · Cruise App for streamlines seamless experiencee find itinerary times importance info, · , , menus etc. ↳ communication for alerts Promotion run television 3 Social media advertisements (print is not very relevant anymore) · promotions for shoulder seasons special packages/themes loctober haunted/ghost excursions) · , · clear branding > - luxury what age group ? activities ? how are partner agencies advertising the product ? Are we in their news letter ? Can · we plan campaigns with them Incentives for off season bookings ex : book novembers get complimentary bottle of wine from the · a region · Goals : more bookings , better guest experience , mor skilled support staff. more tours AT on the Danube. Marketing Strategy Planning Is Tourism Marketing in a Digital Age Sept. 27 , 2024 what is ? marketing strategy The concept of strategy has its origins in military history and context: It was first used in the context of warfare to refer to the planning and execution of military operations, a strategy represents the pursuit of situational superiority over an enemy. The term “strategy” comes from the Greek world “strategos” which means “General” What we learn from the military context: (1) notion of using resources skillfully (2) creating decisive positions of superiority over competitors Management scholars added two elements to apply the strategy concept to business: the need to make the differential advantage sustainable it must be from the perspective of the customer (90s) Marketing strategy consists of decisions actions focused on building a sustainable differential advantage , relative to competitors in the minds customers , to create value for stakeholders. , of Differences between corporate strategy and marketing strategy. what is marketing planning ? why do we need to plan - marketing ? mmmm Marketing planning is the process by an organisation analysing its strengths and weaknesses in its current and prospective markets, identifies its aims and the marketing Strategy ? Planning vs Hiking opportunities it seeks to develop, and defines strategies to achieve its aims terms tourism organization marketing planning In of the , : the concentrate · causes the organization to identify on its objectives Helps to shape the · corporate mission statement. Marketing planning stages Encourages · the organization to concentrate on internal strengths and weaknesses · Forces the organization to plan for the future Helps the organization to carry out marketing day-to-day · on a basis (not on an adhoc-as/when needed basis ) -. Encourages competitors · the organization to look at who its are marketing strategyis marketing Plan Strategic Tactical marketing Conclusion : 1) Good tactical marketing can never compensate for bad strategic marketing 2) foundation Strategic marketing is the of organizational success. Tourism marketing planning process (long-term) · The marketing planning process starts with the vision marketing planning process must also be consistent with organization mission 3 Strategy The visions mission are interpreted (medium · into marketing goals to long term) · Later into short-term marketing objectives. slide 22-26 Tools for Analysis Strengths & Weaknesses (internal resources and capabilities of the organization): mission and vision - STP – segmentation, targetting positioning Analysis : Difference between vision mission - PLC – product live cycle (or TALC – tourism area life cycyle) – used to predict the development path of a tourism product or destination - BCG matrix (to analyse product portfolio) - GE matrix Opportunities & Threats (external factors that have the potential to influence the performance) - PESTLE/PESTEL analysis (for examining the current maco trends in the market) Competitor Analysis - Porters 5 forces Analysis What is your business about ? Mission : Statement Mission statement: an organization`s reason for being. It Mission statement is a broad statement bout the organization`s business should: and scope, services and products, markets served and - Be broad overall philosophy Mission statements do not tend to be - Focus on markets changed greatly over the history off an organisation, - Provide inspiration (to whereas marketing goals and objectives are changeable. consumers, staff, The mission is what the business or destination does on stakeholders) an everyday basis Analysis : where are we heading ? - Vision vision statement Vision: a comprehensive long-term goal set by a destination or tourism business normally with the intention of achieving this target within 10 years Vision statement: a desired word picture of the destination or tourism business and the outcomes of its marketing at the end of the planning time frame. Vision statement is setting a new horizon for a tourism business or destination. It is an aspirational future situation. marketing planning stages Planning-setting marketing goals Marketing goals: medium to long-term (3 to 5 years) results that a destination or tourism business desires to achieve as a result of its marketing Marketing goals should be measurable in some way: in numbers or subject to yes/no questions. Marketing goals should be realistic They should correlate to overall business goals Marketing goals provide a way of justifying marketing spendings Specific h Measurable Achievable · Realistic T ime specific/Timely Planning setting marketing objectives Marketing objectives: short-term (one or two year) Increase by 10 % over average indr more Spend (look at previous years measurable results that a destination or tourism company - - more nights per trip wants to achieve as an outcome of its marketing plan. How to track ? two goals in one ? motivations ? ? Marketing objectives are more specific than marketing goals. ? Marketing objectives are actionable – objectives must be How ? Star ratings ? Review ? capable of being translated into actions that can be objective ! In a year... 3 accomplished. goal more detailed approach marketing strategy marketing plan slide 34 A marketing plan is a written document describing the activities or actions that a destination or tourism business proposes to guide its marketing (usually in the next year) and accomplish its marketing objectives. Tourism marketing plans vary greatly in their design, contents ad size. Some marketing plans are kept as confidential, others are shared widely Elements of marketing plan: Rationale – reasoning behind the plan, assumptions, reasons, marketing segmentation, positioning, USPs. Implementation plan: objectives, activities or actions, budget, timetable, responsibilities. Executive summary marketing strategies EXERCISE EXERCISE Ottawa 5-yrs Strategy : Niagara 2022 : clear · tactics on how goals will be well broken down into explanations · achieved occasionally missing numbers hard · or more emphasis on previous goals/ · key indicators y success (M) objectives- > doesn't specify what Data 3 Stats included · · they are aiming for next Easy to follow "We will continue" mentions technology Assessment · No clear measurement tactics · or · mentions influencers , content creation benchmarks media hosting  marketing planning stages All consumers differ Managing Customer Heterogeneity Customer heterogeneity is variation among customers needs , desires , and behaviours in terms of their subsequent STP Approach - Market Segmenting , Targeting Positioning , A market includes anyone who wishes to purchase a tourism and hospitality offering, including consumer, clients, diners, users, guests, tourists, organisations and visitors. Segmenting-cutting market into slices Market segmentation is an important analytical tool that forms the basis of the internal analysis stage of the marketing planning process Market segmentation is the way in which companies divide a market into clearly defined groups of buyers who share similar needs, characteristics or behaviour patterns and might require separate products or marketing programs The purpose of segmentation is to identify and profile segments with varying degrees of buying potential, based on a range of criteria. Market segmentation can be applied by any unit operating in tourism industry: hotels, travel agencies, tourist attractions, restaurants, and local charities. The objective is then to develop the offering with promotional messages so that it appeals to the segments that it is seeking to serve. It is not feasible to reach all market segments through marketing activities. key customer segmentation criteria  Segmentation Criteria The segmentation criterion can be one single consumer characteristic, such as age, gender, country of origin, or stage in the family life cycle. Alternatively, it can contain a larger set of consumer characteristics, such as a number of benefits sought when purchasing a product, a number of activities undertaken when on vacation, values held with respect to the environment, or an expenditure pattern. Geographic Market Segmentation Demographic 3 socio-economic market segments Identifying and describing people by place of residence Identifying and describing people by population statistics Geographic source market segmentation is simple to apply Socio-economic status is influenced by: income, (geographic areas have clear definitions) education occupation Markets are specified by many geographical levels: region, Demographic profile includes: age, gender, maritial status, country, state, province, territory, city, etc. race, ethnicity, language, religion, household characteristics Measurements of the markets is straightforward Generational cohorts may be included(Gen Y, Z, Baby The markets have access to demographic, socio-economic and Boomers, etc.) tourism statistics Age is related to participation in certain forms of Many media channels (Tv radio, online) cover specific recreation (backpacking vs. slow tourism) geographic area People with higher education level and income tend to DMOs tend to use geographic source segmentation to guide travel more often their promotions and communications Psychographic market segmentation Trip purpose market segmentation Dividing customers into groups based on their Identifying and describing people by visitor`s main psychological orientations, attitudes, interests and activities purpose for travelling Psychographic market segmentation is a more There are four main divisions: sophisticated approach and is thought to be a better Business and business events predictor of tourist behaviour than geographic source, trip Holiday, vacation, leisure purpose, and demographic and socio-economic Visiting friends and relatives (VFR) segmentation. Personal (e.g. medical, legal, education) Tourism marketers have two main options to apply It is assumed that people with different trip purposes psychographic segmentation: have unique needs, wants, requirements and expectations Conduct their own primary research Trip purpose segments may overlap: example – Buy into psychographic or lifestyles segmentation BLEISURE, WORKATION systems that have been developed by market research companies (for example VALS system – Strategic Business Insights). Behavioural market segmentation special interest tourism segments Dividing customers into groups based on their past purchasing and travel behaviours or future travel intentions Set of consumer data is needed: in-house database, survey, technologies (social media, apps). Behavioral characteristics: Use volume and frequency of use: past volume of purchases or past frequency of visits (example: Frequent Flyer, loyalty programmes) Benefits of market Segmentation usage status: two groups are created – past users and developing new tourism products that better satisfy the non-users – destination may target repeat visitors or new visitors needs and wants of specific tourist segment use occasions: trip purpose, occasion (weddings, design of more effective marketing programmes to anniversaries, mega events) reach and satisfy the defined tourist segments brand loyalty: level of loyalty towards the brand or more efficient and effective allocation of marketing destination – use frequency and usage volumes benefits sought, resources length of stay: day trippers vs. excursionists (staying it forces organization to reflect on what they are overnight) particularly good at compared to competitors, expenditures improved match can, in turn, form the basis of a long- transportation modes use, term competitive advantage in the selected target segment(s) market dominance, which results from being best able to cater to the needs of a very specific niche segment market segmentation - Examples Targeting-choosing the slice you want to get The next stage is to decide how many and which segments to target It is not feasible to target all market segments Market targeting is the process of evaluating each segment`s attractiveness (its size, growth rate), selecting one or more of segments and designing different strategies to reach each segment selected An ideal target segment should meet six criteria: 1. Based on customer needs (customer care) 2. Different than other segments (little crossover competition) 3. Differences match firm’s competences (firm can execute within resource constraints) 4. Sustainable (can keep customers) 5. Customers are identifiable (can find targeted customers) 6. Financially valuable (valuable in the long term) The GE matrix is one analysis tool designed to helps managers visualize and select target segments  Gematrix manage customer heterogeneity Niche marketing strategy Differentiated marketing strategy Niche marketing (concentrated marketing): focus on Differentiated marketing strategy (multi-segment meeting he needs and wants of narrowly defined marketing): recognizes separate segments of the total marketing segments market and treat each segment separately This approach is commonly used in the activity holiday Targeting for several segments spreads the risk A market – specialist holidays (medical, health, safari, tourism and hospitality organization operating with a cycling, pet travel, etc.) wide range of offerings in many markets typically uses Niche marketing can be a very effective strategy in a multi-segment approach (for example TUI) tourism, sine consumers are often willing to pay a premium for a more exclusive offering. Ansoff Matrix market penetration The disadvantage of this approach: organisation ma selling more of the organization's current offerings in an become dependent upon the one segment it serves existing market /lowest risk options undifferentiated marketing strategy Examples: A quick-service restaurant chain might encourage Undifferentiated marketing strategy (Mass market strategy): consumers to buy more frequently, or it could attempt to ignores market segmentation and seeks to communicate to attract consumers from one of its competitors, such as KFC, the entire mass market with one tourism offering by offering special promotions This strategy focuses on what is common in the needs of consumers, rater than on what is different There are few offerings that satisfy all or even most consumers. Ansof) Matrix Market Development Ansoff Matrix product development Looking for new markets for an organization's offering Developing new products/offerings for the Example: A city hotel chain might target new markets organization's existing markets. such as leisure (holiday and weekend gateaway) tourists. Example: Hotels might pursue this strategy; while continuing to Airlines start offering flights in children-free zones. concentrate on their core products such as rooms, food, service and business facilities, they could develop leisure facilities (gym) to become more attractive to the business market. Pizza place could attempt to target families more welcome by providing children`s menus and play areas, and large-flat-screen tv sets. Airline starts offering flights for owners of (large) dogs.  Ansoff Matrix diversification Developing and selling new products in new markets. The most dynamic and risky strategy Appropriate strategy if current products and markets no longer provide financial returns, the organisation hs underutilised resources, organisation wants to broaden its portfolio Example: The Virgin Group brand launched Virgin Cola, Virgin Airiines, Virgin Media, Virgin Holidays, Virgin Money, Richard Branson successfully penetrated new markets with new products. Foreign market Segments - 12 segments In 2024 Marriot introduced new brand – Moxy, designed for those who are young at heart and on the hunt for new experiences, Moxy offers a playful and engaging environment at an approachable price point without sacrificing style. positioning Market positioning is the way in which tourism and hospitality organisations want their consumers to perceive their products in relation to the organisation`s competitors It is about the place the brand/product occupies in a consumer`s mind Positioning involves identifying unique selling proposition (USP) Positioning is not something one does to a product or offering, rather it is managing customer something one does to the minds of customers heterogeneity in steps Possible strategies: Specific or original product Specific benefits Specific concept (e.g. boutique hotels) Specific atmosphere/ambiance Against existing competitors 3 steps in marketing positioning Product positioning map Product positioning map revels customer perceptions of the organisation and its products and competitors How do you perceive our hotel: as leisure oriented or business oriented?  customer dynamics All customers change Customer dynamics are changes in customer preferences that occur over time Customer’s desires/needs for most products and services change over time or due to specific events − Individual consumer needs change (age, experience, and due to trigger events) − Customers are embedded in industries/markets, which change overtime (e.g. 20 years ago and now) It is necessary to adapt our “static” segmentation of all customers based on “generic” needs by focusing on our existing customers and accounting for their time dependent needs Sources of Customer dynamics Evolution Approaches for managing Customer Dynamics customer Dynamic Segmentation Approach Evaluates existing customer`s behaviour and needs in each Acquisition-Expansion-Retention stage to understand temporal differences - customers are temporally similar in each stage. Dynamic based segmentation is called the Acquisition-Expansion-Retention (AER) model – it captures customers entering the firm`s portfolio ad expanding over time: a)Acquisition stage: begins with first contact, usually before the first purchase occurs. Customers usually have self-selected offerings from one or several companies. b)Expansion stage: after customers transact with the firm for some period of time, their needs and desires continue to change, focus on cross-selling, firms are trying to cross-sell, up-sell, loyalty programmes c)Retention stage: deals with customers who migrate because of a mismatch in the core offering or a life event or just because they have a basic propensity to switch, in pursuit of “greener pastures.” Steps to dynamic Segmentation 1-6 6-10 10 + years 1.Segment customers in each AER (Acquisition, Expansion, Retention) stage and name the related personas. invest in 2. Find the migration paths, triggers and learners CLVs of each persona. 3. Determine the AER positioning statement and strategies (who, what, why and how) for each persona.  customer Lifetime value Calculating CLV Customer Lifetime Value (CLV) represents a customer’s value to a (Average Spend) × (Number of Repeat Sales) × company over time. (Average Retention Time) = (Customer Lifetime Value). The value is defined as the profit that a customer contributes to the Average spend: company. Segmentation is crucial in travel industry: domestic vs. The formula is straightforward: Average annual customer profit x international travel average duration of customer retention. Number of repeated sales: how frequently customer The value of a customer is the net profit the customer contributes makes a purchase again, in the same year, on average, to the business over time, so the value is the net profit in the future e.g. 3 times a year or once in 2 years. discounted to its present value. Segmentation is crucial: business vs. leisure. CLV is also helpful in determining the upper limit on spending to Average Retention Time: how long you expect customer acquire a customer. to stick with the company/brand A company cannot spend more on acquiring the customer than the Online CLV Calculator https://yespo.io/ltv CLV. Example How to calculate CLV Average Check x Purchase Frequency x Time gretention = CLV Information: 1. Three times a week I buy snacks at Bachmann: Average check : 8 50. + 3 80. = 12. 30 a) Monday – salad (8.50), coffee (3.8) 5 80 + 4 80.. = 10 60. b) Wednesday – sandwich (5.80), juice (4.80) 13 80 + 5 00 = 18 80 c) Friday – pizza (13.80), cola (5.0)... weekly = 41 70cHF 2. I work in Lucerne since Dec. 2021, average tenure at universities: 5.7 years. How much is my CLV? yearly 2 , 768 40 CHF =. Make sure that you calculate the purchase frequency (per year) CLV 42 , 359 88. 1. **Average spend per purchase:** - Monday: 8.50 + 3.80 = 12.30 CHF - Wednesday: 5.80 + 4.80 = 10.60 CHF - Friday: 13.80 + 5.0 = 18.80 CHF - Total weekly spending: 12.30 + 10.60 + 18.80 = 41.70 CHF - Average spend per purchase: 41.70 / 3 = **13.90 CHF** 2. **Frequency of purchase per year:** - Annual purchase frequency: 3 * 52 = **156 times per year** 3. **Time of retention:** - New average tenure: **6 years** 4. **Calculate CLV:** CLV = Average spend * Frequency of purchase * Time of retention CLV = 13.90 * 156 * 6 CLV = **13,010.40 CHF**  All competitors React Competitors copy successful strategies and come up other innovate appealing offer. Because all competitors react, managers must build and maintain sustainable competitive advantages (SCAs) to protect from competitive attacks. Competitors can displace firms in many ways, including: 1. Technical innovations (such as platforms that feature disruptive offerings). 2. Attempts to exploit customers’ changing desires and cultural, environmental, or technology shifts. 3. Better solutions to problems. 4. Copycat tactics that offer greater efficiency or effectiveness, usually by selecting specific aspects to specialize in, such that the copycat can provide those specific features more efficiently Sustainable Competitive Advantage A sustainable competitive advantage (SCA) exists if a firm can generate more customer value than competitors for the same offerings within an industry, such that other firms cannot duplicate its effective strategy Criteria of good Sustainable Competitive Advantage: − Customers must care about it − The firm does it better than competitors (relative advantage) − The SCA must be hard to copy or substitute, even with significant resource investments Being first to market with a new idea is not sufficient to create a barrier to competitors, especially if market leaders recognize the threat od an innovative new entrant and devote their resources to protect their sales to existing customers. To make sustainable competitive advantage difficult to copy, companies turn to key market-based sources of sustainable competitive advantage Market-based sources of Sustainable Competitive Advantage Example of Starbucks Starbucks has a high-quality brand, that customers feel emotionally attached to Distinctive offering of unique coffee-based drinks and store environments Customer develop relationships with the employees and their local stores (employees remember their drink orders and name) Company continues to innovate its offerings Technology-based services help to maintain their advantage (mobile payments, loyalty program)  Managerial implications arising from Characteristics of tourism products customer Equity Perspective Brand , offering Relationship ,. Monitoring Reasons for measurement marketing planning stages marketing performance - > - return on investment Reasons for marketing performance measurement 1. Accountability is the obligation of a tourism marketing department or organisation to justify the programmes and activities that it selects, and to accept the responsibility for the results from implementing these programmes and activities. Marketing performance results must be disclosed in a transparent manner, and responsibility must be assumed for all resources used in marketing 2. Benchmarking is continually measuring and improving marketing performance against the best in the tourism sector as well as relative to competitors. The goal is to obtain information about new and successful marketing programmes and activities, and to gather data on comparable marketing results. 3. Performance improvement: measuring the outcomes of the strategies, programmes and activities used in tourism marketing and then modifying these strategies, programmes and activities to enhance or increase the outcomes. 4. Performance measurement: is a business progress that tracks the outcomes of marketing and how they affect the organisation`s performance. 5. Return on investment is how much revenues or profits are realised as a result of a given investment in a marketing programme or activity or for an entire marketing plan. Differences between business and destination performance measurement There are differences in marketing performance measurement between tourism businesses and DMOs Tourism businesses can readily measure bookings, revenues and profits in their own systems DMOs cannot as easily track the results of their marketing programmes and activities, it is difficult to prove a 100% cause- and-effect relationship between marketing and the number of tourists in the destination. In the perfect world, a DMO would know exactly how many of its visitors were motivated to come solely by the DMOs efforts. And further, the DMO would be able to pinpoint exactly which of its sales and marketing efforts was responsible for the visitor. Measuring techniques and criteria differ between DMOs and companies Homework Company marketing performance measurements: sales analysis: hotels – occupancy rates, average room rate, revenue per room read case study - : market share analysis "Tourism marketing planning marketing cost and profitability analysis Marine Dynamics Shark tours " Brand (awareness, quality, strength) - prepare your answers for Relationship (loyalty to salesperson, trust, relationship quality, velocity) a discussion (03 10) Acquisition (new customers, CLV, duration). DMOs Performance reporting Industry Standards Destinations International (formerly Destination Marketing Association International) is an international professional association for DMOs DMAI launched its Performance Reporting Initiative in 2003, The standard DMO Performance Reporting system is divided into 5 functional areas: convention sales, travel trade sales, marketing and communication, membership and visitor information centre DMAI handbook for performance reporting (DMAI, 2011) lists more than 100 metrics that can be used to assess various aspects of a DMO’s sales, marketing, and communications performance. Example of Performance Reporting for DMOs  Analysis Customer Insights Oct 3 , 2024 Analysis - Customer Insights customer insight is the understanding of your customer, based on their buying behavior, their experiences with you, their beliefs or needs. Customer insights go beyond raw data or research, it is a multi-view of your customers derived from a strategic analysis of qualitative and quantitative data.” Marketing Information : where do we stand ? Analysis on Macro- and micro-level EX : People coming to the destination · suppliers T EX : Hotel · customers internal · competitors EX : Middle East tourism affected by wars Based on Market Analysis/Environment Analysis > - Choose positioning strategy (relative to competition) How to Analyze : · SWOT (micro to macro Cost leadership - you offer a product or service that is in high PEST/PESTEL (macro) · demand at the lowest possible price. · Potters 5 Forces (depends the product) Differentiation - you offer a product or service that is in high demand but with unique characteristics. Cost focus - you offer a product or service in a niche market, and you ensure the lowest possible price. Differentiation focus - you offer a product or service in a niche market, and your product or service has unique characteristics. Differentiation what is the USP ? : Product Differentiation The chosen strategy translates into a relative positioning : − Physical Attributes How many differences and which ones? − Service − Important: i.e., delivers high value to target buyers − Personnel − Distinctive: i.e., competitors do not offer the difference − Location − Superior: i.e., superior to other ways the customer might − Image receive the same benefit − Communicable: i.e., can be made visible to buyers − Preemptive: i.e., cannot be easily copied − Affordable: i.e., buyers can afford to pay the difference − Profitable: i.e., the company can introduce the difference profitability - Market Information : Marketing Information : Clients - Individual Customers - purchasing decision process CorporateCustomers (Business/Group) - Major Influences on Business Buying Behaviour & is lowest Sakenaes for returning customers. 3 sales Market Information : Corporate Customers (Business/Group) organizational - Buying decisions(esp *. MICE context Decision Variable Matrix : Group markets market information. Bow The challenge of collecting marketing information to gain the needed customer insight. marketers don't need more information - they need better information , and they need to make better use of the information they already have Assessing Information Needs Cost versus Usefulness, e.g., value of having an item of information against the costs of obtaining it. The costs of obtaining, processing, storing, and delivering information can add up quickly. Questions to consider marketing Information : 1. What types of decisions do you make regularly? Information sources overview 2. What types of information do you need to make these decisions? 3. What types of useful information do you get regularly? 4. What social media sites can provide useful information? 5. What types of information would you like to get that you are not getting now? 6. What types of information do you get now that you don't really need? 7. What information would you want daily? weekly? monthly? yearly? 8. What topics would you like to be kept informed about? 9. What databases would be useful to you? 10. What types of information analysis programs would you like to have? 11. What would be the four most helpful improvements that could be made in the present information system? Internal data Internal data consists of electronic databases non-electronic information records of consumer 3 market information obtained from within the company. Usually can be accessed more quickly and cheaply than other information sources some problems: − often collected for other purposes, it may be incomplete or in the wrong form for marketing decisions (e.g. sales and cost data used by the accounting department for preparing financial statements must be adapted for use in evaluating the value of specific customer segments, sales force, or channel performance − Data also ages quickly; keeping the database current requires a major effort, − Challenge of integration, so it is readily accessible and can be fund EXAMPLES  Marketing Intelligence contains information about developments in the marketing environment that helps managers prepare adjust marketing plans. Marketing intelligence systems determine the needed intelligence, and they collect and deliver it in a useful format to marketing managers. 1. Internal: can be gathered by a company's executives, front-desk staff, service staff, sales force (Train on role as intelligence gatherers and train them to spot and report new developments) 2. External: must encourage suppliers, convention and tourist bureaus, and travel agencies to pass along important intelligence 3. Competitive: available from competitors' annual reports, trade magazine articles, etc. Hotel and restaurant managers should also visit their competitors' premises periodically EXAMPLE Marketing Research Marketing research is a process that identifies and defines marketing opportunities and problems, monitors and evaluates marketing actions and performance, and communicates the findings and implications to management. Marketing researchers engage in a wide variety of activities. - Interpret The researcher must now interpret the Define d Develop findings, draw conclusions, and report the conclusions to management, The researcher The manager best understands the problem or Research objectives must be translated into should avoid overwhelming managers with decision for which information is needed, and the specific information needs, i.e. determining the numbers, complex statistical techniques, and researcher best understands marketing and how to needed information and developing a data- focus on enabling decision making /answer obtain the information A Marketing research collection plan. the questionsInterpretation should not be left project can have one of three types of objectives: Researchers can gather primary data, entirely to the researcher. Findings can be 1. exploratory research; to gather preliminary secondary data, or both. interpreted in different ways, and discussions information that will help define the problem and Primary data consist of information collected between researchers and managers will help suggest hypotheses; for the specific purpose at hand point to the best interpretations. Interpretation 2. descriptive research: to describe the size and Secondary data consist of information already is an important phase of the marketing composition of the market (e.g. market potential for in existence somewhere, having been collected research process (wrong interpretation, a product or the demographics and attitudes of for another purpose.. biases, rejection because not what was consumers) expected etc.) 3. causal research: to test hypothesis about cause and effect relationships. Managers often start with Implement exploratory research and later follow with The researcher puts the marketing research plan into action by collecting, processing, and descriptive and/or causal research analyzing the information Data collection can be done by the company's marketing research staff, which affords the company greater control of the collection process and data quality, or by outside firms, Outside firms that specialize in data collection can often do the job more quickly at lower cost The data-collection phase of the marketing research process is generally the most expensive and the most subject to error (collaboration, shortcuts, accuracy, completeness etc.)  Branding Oct 3 , 2024 The Benefits of Branding in Tourism Reducing perceived purchase risk Brand can reduce uncertainty associated wit the purchase of tourism products Perceived risks: financial, functional, social Product / Service is more recognisable with a brand Consumers are confident what they will get Achieving differentiation Branding helps an organization to stand out from ist competitors Simplifying desicion-making Tourism and hospitality consumers are faced with an overwhelming number of choices of products offering similar features and benefits Recognising a brand name can help simplify decision-making Creating expectations Brand names, logos, trade names encourage consumers to purchase particular products because of unstated promise (benefits) To sell a line of products Branding can be used to sell a line of products (brand stretching) Brand Awareness Pyramid Topg mind Brand awareness – the way in which consumers recognize a specific brand and its products or services through associated images, logos, qualities. Add e recall Brand recognition- Ability to recognize a product by its name, qualities, image Brand recognition Brand recall - ability to retrieve the brand from memory when the product category is mentioned (thought of) a wave of a th Top of mind awareness: the first brand that comes to mind when consumers think of a certain niche, product or industry.  Destination Image Destination image is defined as an individual's overall perception or the total set of impressions of a place. It is regarded as the mental portrayal of a destination. All knowledge, impressions, prejudices and emotional thoughts an individual or group has of a particular object or place. Destination image influences tourists in the process of choosing a destination, the subsequent evaluation of the trip and in their future intentions A destination's image can be developed based on the estimation or understanding of a region's characteristics Like product and service brands, destination brands generate sets of expectations or images of a place prior to consumption Destination Image vs Country Image Country image can be understood as the sum of beliefs and impressions people hold about places. Images represent a simplification of a large number of associations and pieces of information connected with a place They are a product of the mind trying to process and pick out essential information from huge amounts of data about a place Tourism has the greatest single influence on a country's image. The Strongest Nation Brands in 2022 Brand Finance identifies the world's strongest and most valuable nations every year. A country's national image not only has an impact on its economy and its brands. It is also one of the most important factor when it comes to investment in the country, exports or tourism and skilled migration. Two metrics are important here: brand strength and brand value. Brand strength makes a non-financial or non-monetary statement about the brand effectiveness of a nation. Brand value, on the other hand, makes a monetary statement about a nation's brand. Brand Elements Brand Identity · Name Typography · · Logo Shape · · · Brand colours sound · slogan Image · Brand elements - Name words to identify a company, product, service, destination usually, it is the first impression consumer have of your brand helps customers to identify and differentiate one product from another A brand name can become more popular than generic product name itself (like: Adidas) it should be easy to read, to speak and to recall it needs to be distinctive it needs to be meaningful for customer it needs to be capable of registration and protection (consider trademark issues) It should be free of negative connotations (consider potential meanings and negative connotations of your brand name) Consider longevity and mission Brand Elements - Logo Logo is a visual trademark Logo should be as recognizable as the brand name Brand logo goes on almost every asset the brand owns (business cards, website, social media pages, marketing materials) A good logo is memorable, distinctive, simple Images are often remembered easier than words Wordmark logos – brand name skillfully designed with branded fonts and colours Emblem logos Brand elements - Typography Typography refers to the fonts you use in all business materials you create Typography should be consistent, to achieve cohesive brand Fonts influence your readers’ subconscious perception of your brand. unappealing fonts tend to reflect badly on the readers' emotional response to content. A good brand font should be: Legible Unique Memorable Multi-platform oriented Able to communicate brand personality Brand Elements Shape and Form - Brand elements - colours Specific shapes hold associations in the human Most popular branding colours among top 100 global brands: brain 34% used black in their logo Adding a deliberate shape to logo design changes 30% used blue in their logo how it is understood and perceived by the audience 30% used red in their logo Attributes associated with basic shapes: 9% used yellow in their logo Circular shapes: Unity, community, friendship, 7% used green in their logo stability, feminine 6% used grey/silver in their logo Triangular shapes: Masculine, power, law, science, 5% used orange in their logo stability and balance 2% used brown in their logo Square shapes: Strength, efficiency, Blue was popular for tech companies, whereas red was preferred professionalism, practicality by the automotive industry and black was by far Vertical lines: Aggression, masculinity, strength, the most popular choice for luxury brands. progress Brand elements shapes Horizontal lines: Calm, tranquility, community, - speed Brand elements - sounds Audio branding — sometimes referred to as sonic branding —the strategic use of sound elements (whether it is voice, jingles, songs, or even silence) to complete a brand identity and communicate it to the consumer. A sound logo is the audio equivalent of a visual logo. More than any other element of sound branding, it represents the brand and embodies the brand’s values and positioning in the market Humans can respond to sounds up to 100 times faster than they can to visual images. Sound informs our deepest emotional instincts and slips past our rational brain Sounds evoke memories Brand elements - slogan A slogan is usually a short phrase that captures core values, personality, and positioning of a brand. Slogans complement the brand logo and name (as these two are limited in creating an image because they lack inherent ability to say much about a product or service). Slogans communicates descriptive information about the brand (like mini mission statement) Slogans are simpler to understand and remember An effective branding slogan not only sticks in customers mind, but also invokes a mood and creates a bond with the consumer. Brand slogans also help in positioning brands. They communicate the brand’s value proposition or brand promise. Criteria for choosing Brand elements Brand Essence wheel The Brand Essence Wheel is a template which can be used to help define a brand. The brand wheel poses four simple questions about a brand which are answered from the perspective of past, current or future customers. The questions are as follows: What does the brand do for you? How would you describe the brand? How does the brand make you look? How does the brand make you feel? The term ‘you’ is often replaced by ‘the customer’ in the above questions. Similarly, the term ‘brand’ is occasionally replaced by ‘product’ to help ease understanding. Multiple answers are given for each question. Answers typically consist of one-word adjectives or single phrases. Simplicity is key when creating a Brand Wheel. The answers to each of the four questions are then further refined and divided into ‘Facts & Symbols’ and ‘Brand Personality’. A ‘Core’ Brand Essence is identified from these. The Brand Essence Wheel is usually completed by marketing, brand or product managers and used to inform an overall marketing strategy. In smaller organisations and start-ups business owners or entire teams may also be involved. Brand Association Networks - Brand concept Map (BCM) Understanding brands involves identifying the network of strong, favorable, and unique brand associations in consumer memory Consumers might associate a brand with a particular attribute or feature, usage situation, product spokesperson, or logo. These associations are typically viewed as being organized in a network in a manner consistent with associative network models of memory This association network constitutes a brand’s image, identifies the brand’s uniqueness and value to consumers, and suggests ways that the brand’s equity can be leveraged in the marketplace The BCM was developed to graphically represent the thoughts and feelings people hold about a brand, that is, brand image. The process has three stages: elicitation, mapping, and aggregation Brand positioning Positioning is the way in which organisations want their consumers to perceive their brands and products Positioning is about the place the brand occupies in a consumer`s mind Brand positioning refers to the unique value that a brand presents to its customer. It is a marketing strategy brands create to establish their brand identity while conveying their value proposition, which is the reason why a customer would prefer their brand over others. Rebranding The ideal situation is for brands to live for as long as possible But how long can a brand last and for what reasons should it be changed? Before it can be decided whether a ‘rebranding’ or a ‘refreshment’ of a destination brand is necessary, it is important to remember that both strategies have to be harmless, meaning that the brand platform (i.e. the audience) is not disturbed. Rebranding involves a process where an outdated or irrelevant brand identity and image are modified and re-launched with a new focus. Goal of rebranding: support a new destination (brand) image, leading to a new customer perception. Pros: ‘fine-tuning’ of the brand’s visual and verbal components, it can stimulate new markets, reach new target groups and increase competition Cons: Rebranding is a highly expensive process. Brand value, which comes mainly from customer recognition and a set of brand associations, might be lost through name change, leading to a loss of brand equity. Rebranding Reasons change in ownership structure, change in corporate strategy, change in competitive conditions, change in the external environment, the product has failed, sales revenue for the product decreased heavily, consumer tastes have changed drastically, the product’s reputation and recognition has been severely damaged rebranding after a catastrophic event, war, pandemics TALC Tourism Area Life Cycle (Tourism Destination Life Cycle model) Destinations, just like tourism offerings, manufactured products, and people, have a lifespan. Butler applied the traditional product life cycle (PLC) concept to destinations and devised the tourism area life cycle (TALC) model. A framework for understanding how destinations and their markets evolve. The tourism area life cycle model is a model for understanding how destinations evolve over time and pass through a series of stages (from exploration to involvement to development to consolidation to stagnation to decline or rejuvenation) The model helps to identify where the destination is positioned within the life cycle at a given point in time and what implications this has if measures are not taken. The TALC model also suggests that a destination will appeal to different markets as it matures. The destination life cycle will attract different types of travellers and for different lengths of stay. For instance, mature destinations are more likely to attract short-break holiday tourists rather than longer stay tourists Repositioning vs Rebranding REPOSITIONING REBRANDING repositioning deals with what's on the inside associated with the looks, or aesthetic of a brand A brand can be repositioned without changing its includes changing the brand elements such as a identity. name, logo, tagline and/or fonts and icons. Repositioning focuses on the customer perception of the rebranding is a logical next step for brands that brand relative to the major competitors. have a misleading name, tarnished reputation, This usually involves changes in the brand promise and/ outdated graphics, unpopular slogan or any other or personality. imagery that no longer fits the company. A company should consider repositioning when major If the core products are great and the image shifts are happening in the competitive landscape, heavily needs some work, rebranding is the right strategic branded products are not performing, or the target market move. has changed. Rebranding is a identity change Repositioning is a change in the Brand's promise and overall personality caseg+icino- slide 62  Marketing Planning Branding I Oct 4 , 2024 - impact Price Branding Relevance Brands fascinations strong power of seduction · have a great - · Brands are images of identities that we carry in our heads 3 hearts Relevance The brand is ultimately what reaches people (head) 3 stays with them (heart) · Reality "A brand is a promise kept " olins o Check Wally · & -. strong communities · Even more so in a highly connected world , with Branding Terminology difference between Image 3 Reputation ? · what is the - Why do we need to talk about this in the digital era ? Era of connectivity · company driven marketing > - Human driven marketing vs "The company [McKinsey] found that on average, two-thirds of the touchpoints during the evaluation phase of a ↳ purchase involve humandriven marketing activities like internet reviews, social media conversations, and word-of-mouth recommendations from friends, family, and online experts.“ 55 > - How to monitor ? Hashtags > - Analytics tools (Online) +Crm systems > - communicate with people (reviews monitor different , channels) Brand identity as a basis > - direct communication with community (Events) -> classic market research Switzerland Tourism Based off - customer journey a Tourism Broad Branding Dreaming & campaigns ↓ wheel Planning > multilevel -not a slogan Booking but a key idea 3 purpose Exploring Narrow remembering  Goal Alignment of Switzerland Tourism Why is rebranding so difficult ? Switzerland Tourism VISION We want to position Switzerland as the leading travel, Rebranding started vacation destination in the Alpine region two years ago. CORPORATE GOALS Volume target, quality target, customer target, economic objective, regional objective W z MARKETING OBJECTIVES Branding strategy marketing e.g. address X% of the target group with relevant brand messages, Generate X leads for Swiss hotels, etc. SOCIAL MEDIA TARGETS / CONTENT MARKETING TARGETS content marketing is not new e.g.: Increase average reach and engagement rate, campaign conversion rate increase SOCIAL MEDIA METRICS / CONTENT MARKETING METRICS Measured value that can be used to assess performance. e.g. organic reach, CPC, ER Digital Transformation - Content and platform shock - > - Mobile first - Social catalyst - Dialogue instead of monologue - User research - Share of Voice principle vs. Share of Voice dilemma - Emotionalization of brands How can we "Market" our brand to our customers in a holistic successful way ? Multichannel is key · P-paid media : placements - reach for which a payment is made (Google Adwords etc.) ↑ E- Earned Media : Placements thatdrise organically (others distribute voluntarily) publicity e press , (more control Se shared media : Dedicated organic social media content > - Social media (less control) O - Owned media : placements on own platforms or presences The PESO model Definition Content marketing is "owned" marketing discipline · an Owning media space instead of buying (paid) via ads >