Marketing Management in A Tourism Destination Pertemuan 17-18 Matakuliah : G1174/Tourism Management and Planning Tahun : 2007 Marketing Management in A Tourism Destination Pertemuan 17-18

Topics Marketing concept in tourism destination Marketing Mix Bina Nusantara

Objectives To identify the marketing concept in tourism destination To explain the marketing mix in tourism Bina Nusantara

Destination Marketing Destination rely on tourism as a major tool in the creation of development and suport for the indigenous population. The understanding of destination image is important for any destination marketing and it is closely interrelated component of: The perception which refers to individual’s own knowledge Affective appeals which refers to individual’s feeling toward a destination Key areas in destination marketing: The image of destination Stakeholders and their support for destination Bina Nusantara

Definition of Tourism Marketing Marketing is a management philosophy which, in light of demand, makes it possible through research, forecasting and selection to place products on the market most in line with the organization's purpose for the greatest benefit Marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchange products and value with others Bina Nusantara

Characteristics of Tourism Marketing Customer: first priority/ prime focus Research: constantly asking Review: review organization's strengths and weaknesses Plan: long/short strategic marketing plan Perception: image Co-orporate/ co-ordinate: throughout organization to reach common goal Change: dynamic Broadly conceive/understand Evaluation: how successful is the promotion Bina Nusantara

The Importance of Marketing In Destination Management Stakeholder satisfaction Customer satisfaction Higher quality products & services Higher quality environment Employee satisfaction Continuous improvement Breakthrough innovation Growth Profit Marketing Bina Nusantara

Marketing vs. Selling Marketing Selling Customer Satisfaction Focus on customer needs Marketing plan is crucial Long terms Utilized integrated market To achieve profit through customer satisfaction Selling Product Sales volume Focus on product, factory Selling approach is important Short terms Use selling and promotion To achieve profit Bina Nusantara

Marketing Principles for Tourism Destination Tangibilizing the service product: Promotional materials Employee appearance: trade dress, uniform & costume Physical surrounding ‘Green Marketing’ Managing employee through internal marketing Managing perceived risk: minimizing service gaps Managing consistency A point to encounter Moment of truth Bina Nusantara

Marketing Mix in Tourism Marketing mix is the set of controllable tactical marketing tools that the company blends to produce the response it wants in the target markets Marketing tools: Product: combination of service, brand, quality, benefit, value Pricing: stimulate sales, achieve financial goals Promotion: advertising, sales promotion, merchandising, PR Place: manner to sell the product, distribution People: skill & knowledge Physical evidence: environment, image, facilities, added value Process: efficiency, performance, speed Consumer: expectation Convenience: related to distribution Cost: related to price Communication: related to promotion Bina Nusantara

The level of products What is a tourist product? Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want and need Include: physical objects, services, places, organization and ideas Level of products: core products facilitating products supporting products augmented products Facilitating Core Accessibility Participation Interaction Physical evidence Augmented Supporting Bina Nusantara

Physical evidence through branding A successful brand is an identifiable products or services or persons or places augmented in such a way that buyer or user perceives relevant, unique added values to match their needs most closely What is a brand? Why a company or a product use brand? Brand is a name, term, sign, symbol which makes people remember the products or services. It It used to identify the services or goods and differentiate them from competitors Condition that support branding: 1. Easy to identify 2. Perceive as the best value 3. Maintain quality 4. Expand from small to larger market 5. Economic of scale Bina Nusantara

Price and cost The amount of money charged for a good or service Pricing Objectives: Financial: profit, cash flow Competitive: leader, follower, innovator, survivor Volume: sales, market share Image: positioning Factors to considering when setting the price Internal Factors: Marketing Objectives Marketing Mix Strategies Cost Organization of Pricing External Factors: Nature of the market Competition Other environment Factors Price Bina Nusantara

Distribution channels and convenience A set of independent organization involved in the process of making a product or service available to customers Why the tourism and hotel industry need marketing intermediaries? Efficiency in making service available to target markets Distribution channel functions: 1. Information 2. Promotion 3. Contact 4. Matching 5. Negotiation 6. Physical distribution 7. Financing 8. Risk taking Bina Nusantara

Communication vs. Promotion A company’s total marketing communications program, called its Promotion Mix, which consists of advertising, sales promotion, public relation, personal selling. Element in the communication process Media Sender Encoding Message Decoding Receiver Feedback Noise Response Bina Nusantara

Promotion Mix Factors in setting promotion mix Promotion mix Type of product or service and market Strategy: push vs. pull Buyer readiness stage Product lifecycle stage Promotion mix Advertising: long term, impersonal, one way communication Personal selling: relationship, personal interaction, needs tools – promotional kits Sales promotion: assortment of tools, quick sales, two way communication Public relation: create positive image through publication, events, news, speeches, etc. Direct marketing: telemarketing, relationship marketing, direct mail Bina Nusantara

Process in service delivery - the gap analysis model Tourist Word-of mouth Personal needs Past experience Expected services Gap 5 Perceived service Marketer Gap 4 Service delivery (incl. Pre & Post-contact) External communication Gap 1 Gap 3 Translation of perceptions Gap 2 Management perceptions of tourist expectation Bina Nusantara

People as internal marketing Tourism is unique in that people - employees are part of the products, thus, they should be excited about the company they work for. Internal marketing uses a marketing perspective to manage the company’s staffs. It is aimed internally at the firm’s employees Bina Nusantara

Marketing Concept in Indonesian Tourism Bina Nusantara

Conclusion Marketing in a destination management is a way to created and maintained profitable customers, stakeholders’ satisfaction and high quality employee performance. Customer satisfaction leading to profit is the central goals of tourism planning and marketing. The uniqueness of tourist product makes marketing in the tourism became a strategic matter which can be manage. Bina Nusantara