DESTINATION MARKETING 12 DESTINATION MARKETING Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 12-1 Copyright © 2009 by Nelson Education Limited.

12 Topics Principles of destination marketing Role of destination marketing organizations (DMOs) Principles of destination branding Strategies used to promote destinations Marketing of events and conferences Marketing of all-inclusive resorts 12-2 Copyright © 2009 by Nelson Education Limited.

The Principles of Destination Marketing 12 Destination Marketing The Principles of Destination Marketing Destinations places that have some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market-created boundaries 12-3 Copyright © 2009 by Nelson Education Limited.

Characteristics of Destinations 12 12 Destination Marketing Characteristics of Destinations Table 12.1 12-4 12-4 Copyright © 2009 by Nelson Education Limited.

Classifications of Destinations 12 Destination Marketing Classifications of Destinations Table 12.2 12-5 Copyright © 2009 by Nelson Education Limited.

12 Attractions Often the main motivator for a trip Destination Marketing Attractions Often the main motivator for a trip A major attraction often stimulates the development of the destination Can be natural or human-made Private attractions: driven by profit motive Public sector attractions: more social considerations 12-6 Copyright © 2009 by Nelson Education Limited.

Objectives of Destination Marketing 12 Destination Marketing Objectives of Destination Marketing improve image of an area in hopes that industrialists will relocate their factories and offices to the area provide jobs for local residents increase range of facilities available for local community give local residents more pride, which can happen when people see that tourists want to visit their region provide rationale and funding for improvements to local environment make the destination politically more acceptable 12-7 Copyright © 2009 by Nelson Education Limited.

The Role of Destination Marketing Organizations (DMOs) 12 Destination Marketing The Role of Destination Marketing Organizations (DMOs) Destination Marketing Organizations (DMOs) government agencies, convention and visitors bureaus, travel associations, and other bodies that market travel to their respective destination areas can function at the local (often CVB), regional or national (NTO) level 12-8 Copyright © 2009 by Nelson Education Limited.

The Role of Destination Marketing Organizations (DMOs) 12 Destination Marketing The Role of Destination Marketing Organizations (DMOs) Convention and visitor bureaus (CVBs) regional or city-level organizations responsible for marketing a specific destination 500 of the larger bureaus belong to Destination Marketing Association International (DMAI) 12-9 Copyright © 2009 by Nelson Education Limited.

The Role of Destination Marketing Organizations (DMOs) 12 Destination Marketing The Role of Destination Marketing Organizations (DMOs) Destination Marketing Association International (DMAI) an organization that provides educational resources and networking opportunities to its members and distributes information on the CVB industry to the public 12-10 Copyright © 2009 by Nelson Education Limited.

12 Tourism Development Tourism area life cycle (TALC) Destination Marketing Tourism Development Tourism area life cycle (TALC) the stages a destination goes through, from exploration to involvement to development to consolidation to stagnation to rejuvenation or decline (also known as the “tourism destination life cycle”) 12-11 Copyright © 2009 by Nelson Education Limited.

The Tourist Area Life Cycle 12 Destination Marketing The Tourist Area Life Cycle 12-12 Copyright © 2009 by Nelson Education Limited.

12 Destination Branding Destination branding Destination Marketing Destination Branding Destination branding A method of establishing a distinctive identity for a destination based on competitive differentiation from others Snapshot: Capitals of Canada 12-13 Copyright © 2009 by Nelson Education Limited.

Challenges of Destination Branding 12 Destination Marketing Challenges of Destination Branding Limited Budgets Politics External Environment Destination Product Creating Differentiation 12-14 Copyright © 2009 by Nelson Education Limited.

Stages of Brand Building 12 Destination Marketing Stages of Brand Building Market Investigation, Analysis, and Strategic Recommendations Brand Identity Development Brand Launch and Introduction Brand Implementation Monitoring, Evaluation, and Review 12-15 Copyright © 2009 by Nelson Education Limited.

Destination Brand Benefit Pyramid 12 Destination Marketing Destination Brand Benefit Pyramid 12-16 Copyright © 2009 by Nelson Education Limited.

Destination Promotion 12 Destination Marketing Destination Promotion Promotion strategy reaching prospective visitors via expenditure on a promotional mix intended to achieve destination awareness and influence prospective customers’ attitudes and purchasing behaviour; a traditional approach to destination marketing 12-17 Copyright © 2009 by Nelson Education Limited.

Destination Promotion 12 Destination Marketing Destination Promotion Media investment has grown rapidly in recent years, and most DMOs are involved in a range of promotional activities these include six types: brochures, advertisements, the press and public relations, personal selling, sales promotions, and trade fairs and exhibitions 12-18 Copyright © 2009 by Nelson Education Limited.

Destination Promotion 12 Destination Marketing Destination Promotion Marketing Cooperation creates marketing bridges between a DMO and individual operators in the tourism industry; and between “umbrella” campaigns and industry marketing expenditure 12-19 Copyright © 2009 by Nelson Education Limited.

Marketing Events and Conferences 12 Destination Marketing Marketing Events and Conferences Events and festivals Often introduced to cope with seasonality and to boost tourism receipts during normally quiet times of the year Conferences Includes conventions, exhibitions, trade shows, meeting and incentive travel 12-20 Copyright © 2009 by Nelson Education Limited.

Marketing All-Inclusive Resorts 12 Destination Marketing Marketing All-Inclusive Resorts decreases the uncertainty of the tourist about the total amount of money to be spent during a holiday involves the sale of different products as a unique package at a price lower than the total price of its components sold separately criticized for their social, economic, and environmental impacts 12-21 Copyright © 2009 by Nelson Education Limited.