Role of Communication in Destination Marketing

Role of Communication Communicating with the tourist market means giving information to potential visitors about the destination and it requires, the form an attractive image of destination develop packages of attractions and amenities Attractions alone do not attract visitors Also requires effective communication to potential visitors

The Communication Process Total marketing communications programs of a destination, called its communication mix, consists of a specific blend of advertising, sales promotion, public relations, publicity and personal selling to achieve promotion and marketing objectives. The five basic communication tools are defined as the followings;

Communication Tools Advertising: any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion: Short-term incentives to encourage the purchase or sales of a product or service Public relations: Building good relations with various publics by obtaining favorable publicity, developing a good image, and handling or heading off unfavorable rumors, stories or events about the destination.

Communication Tools Publicity: It involves various efforts to publicize specific products or services of any destination. New products: special events such as festivals, redesigned products such as a newly renovated hotels; and products that are popular because of current trends in the destination are all potential candidates for publicity.

Overcoming Problems of Intangibility of Tourism/Hospitality Products It may be difficult to communicate tourism/hospitality service benefits to customers, especially when the product is intangible Intangibility creates four problems: Abstractness No one-to-one correspondence with physical objects Generality Items that comprise a class of objects, persons, or events Non-searchability Cannot be searched or inspected before purchase Mental impalpability (grasp) Customers find it hard to grasp benefits of complex, multidimensional new offerings

Advertising Strategies for Overcoming Intangibility Intangibility problem Advertising strategy Generality objective claims Document physical system capacity Cite past performance statistics subjective claims Present actual service delivery incident Non-searchability Present customer testimonials(witness) Cite independently audited performance Abstractness Display typical customers benefiting Impalpability Documentary of step-by-step process, Case history of what firm did for customer Narration of customer’s subjective experience

Using Metaphors to Communicate Value Propositions Tangible metaphors help to communicate benefits of service offerings, for example: Allstate insurance —“You’re in good hands” Prudential Insurance — uses Rock of Gibraltar as symbol of corporate strength Metaphors communicate value propositions more dramatically and emphasize key points of difference Highlight how service benefits are actually provided

Facilitate Customer Involvement in Production When customers are actively involved in service production like tourism and hospitality, they need training to perform well Show product delivery in action such as example self service at the hotel Television and videos engage viewer Streaming videos on Web are new channels to reach active customers Advertising and publicity can make customers aware of changes in service features and delivery systems Sales promotions to motivate customers Offer incentives to make necessary changes Price discounts to encourage self-service on an ongoing basis

Help Customers to Evaluate Product Offerings Customers sometimes may have difficulty distinguishing one destination from another We have to provide some tangible clues related to destination service/product performance Some performance attributes lend themselves better to advertising than others

Help Customers to Evaluate Product Offerings For example, airlines Boast about punctuality Do not talk overtly in advertising about safety, admission that things might go wrong make prospective travelers nervous Use indirect approach: promote pilot expertise, mechanic’s maintenance skills, newness of aircraft

Promote the Contributions of Personnel Frontline personnel are central to tourism and hospitality service delivery especially in high-contact services We have to make the service more tangible and personalized We can advertise employees at work to help customers understand nature of service encounter

Promote the Contributions of Personnel We can show customers work performed behind the scenes to ensure good delivery To enhance trust, highlight expertise and commitment of employees whom customers normally do not normally encounter Advertisements must be realistic Messages help set customers’ expectations Service personnel should be informed about the content of new advertising campaigns or brochures before launch

Setting Communication Objectives

Checklist for Marketing Communications Planning: The “5 Ws” Model Who is our target audience? What do we need to communicate and achieve? How should we communicate this? Where should we communicate this? When do communications need to take place?

Target Audience: 3 Broad Categories Prospects Employ traditional communication mix because prospects are not known in advance Users More cost-effective channels Employees

Target Audience: 3 Broad Categories Employees Secondary audience for communication campaigns through public media Communications may be directed specifically at employees as part of internal marketing campaign, not accessible to customers

The Marketing Communications Mix

Marketing Communications Mix Numerous forms of communication Different forms have distinctive capabilities Types of messages that can be conveyed Market segments most likely to be exposed to them

Marketing Communications Mix Two types of communication Personal communications: personalized messages that move in both directions between two parties Impersonal communications: messages move in only one direction Technology creates gray area between both For example, combine word processing technology with information from database to create impression of personalization; interactive software; voice recognition technology

Marketing Communications Mix for Tourism (1) Personal communications Sales promotion Advertising Selling Broadcast Sampling Customer service Print Coupons Training Internet Sign-up rebates Telemarketing Outdoor Gifts Word of mouth Direct mail Prize promotions * Word-of-mouth (other customers) Key: * Denotes communications originating from outside the organization

Marketing Communications Mix for Tourism (2) Publicity & public relations Instructional manuals Corporate design Press releases/kits Websites Signage Press conferences Manuals Interior decor Special Events Brochures Vehicles Sponsorship Interactive software Equipment Trade Shows, exhibitions Voice mail Stationery * Media-initiated coverage Uniforms Key: * Denotes communications originating from outside the organization

Sources of Messages Received by Target Audience Messages originating within organization outside organization Production channels Marketing Front-line staff Service outlets Advertising Sales promotions Direct marketing Personal selling Public relations Word of mouth Media editorial A U D I E N C Sources

Messages Transmitted through Production Channels (1) Developed within organization and transmitted through production channels that deliver the service itself Customer service from front-line staff Shape customer’s perceptions of service experience and the firm Responsible for delivering supplementary services such as providing information, receiving payment, resolving problems, etc. Firm may require customer service staff to cross-sell additional services

Messages Transmitted through Production Channels (2) Customer training Familiarize customers with service product and teach them how to use it to their best advantage via familiarization tours to the destination Service outlets at the hotels Planned and unintended messages reach customers through the medium of the service delivery environment itself Servicescape: Physical design of service outlet

Messages through Marketing Channels: Trade Shows Stimulate extensive media coverage Many prospective buyers come to shows (Travel Agencies) Opportunity to learn about latest offerings from wide array of suppliers Environment is very competitive Compare and contrast Question company reps Physical evidence displayed through exhibits, samples, demonstrations

Communication Strategy The communication process has 6 broad stages To whom to say it Why to say it What to say How to say it How often to say it Where to say it

Communications Strategy To whom to say it Define the target market Research Wants and needs clearly identified Why say it Expect it to have a certain effect What needs to be accomplished

Communications Strategy What to say Methods chosen need to achieve the strategic objective Consumer adoption process model How to say it The execution stage Communication that most accurately accomplishes the goals consistent with the target market

Communications Strategy Where to say it Using the various components of the communications mix Select appropriate media How often to say it Consumer-driven and budget-driven

Communications Strategy Push/pull strategies Push strategy Marketing communication efforts to intermediaries, who then push the product to their customer base Pull strategy Marketing communication efforts directly to the consumer, who purchases the product directly or through an intermediary Both are common in the communications industry

Word of Mouth (WOM) Communication Most powerful form of communication Products cannot be tested before purchase so outside advice is important Elements of the communication mix can influence WOM In this way, what we do has more impact than what we say

Word of Mouth (WOM) Communication Impact of word of mouth Should give people something interesting to talk about Create communities and networks to connect people Work with influential communities Create advocate programs Blogs

Word of Mouth (WOM) Communication Measuring word of mouth Lifetime value of a customer based on: Gross profit on an average purchase Average number of purchases a customer makes each year Average number of years customer will continue to purchase Probability that customer will continue to purchase

The Communication Process Design the message Message Content Message Structure Message Format Message Source

The Communication Process Select Communication Channels Personal Communication Channels Non-personal Communication Channels Select the Message Source Measure Communication Results

Establishing the Total Marketing Communications Budget Affordable Method – based on what the company can afford Percentage of Sales Method – based on a percentage of current or forecasted sales Competitive Parity Method – based on competitors’ budgets Objective and Task Method – based on objectives, tasks, and estimated costs

Nature of Each Promotion Tool Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Reach Many Buyers, Repeat Message Many Times, Impersonal, Expensive Personal Interaction, Relationship Building, Most Expensive Promotional Tool Wide Assortment of Tools, Rewards Quick Response, Efforts Short-Lived Very Believable, Dramatize a Company or Product, Underutilized Nonpublic, Immediate, Customized, Interactive

Factors in Setting the Promotion Mix Type of Product and Market Push vs. Pull Strategy Buyer Readiness State Product Life-Cycle Stage

Messages through Marketing Channels: Advertising Build awareness, inform, persuade, and remind Challenge: How does a firm stand out from the crowd? TV, radio broadcasts, newspapers, magazines, Internet, many physical facilities, transit vehicles—all cluttered with ads Wide array of paid advertising media Ads reinforced by direct marketing tools Research suggests that less than half of all ads generate a positive return on their investment

Major Advertising Decisions Message Decisions Message Strategy Message Execution Objectives Setting Communication objectives Sales Objectives Setting the Budget Campaign Evaluation Communication Impact Sales Impact Media Decisions Reach, Frequency, Impact Major Media Types Specific Media Vehicles Media Timing

Setting Advertising Objectives Informative Advertising Inform Consumers or Build Primary Demand Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product

Advertising Ideally, will accomplish: Tangibilize the service element Promise a benefit that can provide solutions to problems Differentiate the property from that of the competition Have positive effects on employees who must execute the promises Capitalize (benefit) on word of mouth

Advertising Merchandising Collateral material A tool used in the marketing communications mix to reach identified target markets Primarily an in-house marketing technique used to stimulate sales of additional products or services on premise A long-term goal is increasing customer satisfaction Collateral material Promotional materials such as brochures, direct mail, and other forms of advertising that are used to inform customers and create interest

Merchandising merchandising is any practice which contributes to the sale of products to a retail consumer replica jerseys, keychains, a wide range of clothing, sports equipment, posters and wall plaques are the examples Basic rules of merchandising: Have a purpose beyond sales projections Compatibility and consistency Practicality Consistency Simplicity

Merchandising Examples of good merchandising Business centers in hotels that cater to business travelers Pizza on finer hotels’ room service menus Mini bars in guest rooms

Major Decisions in Advertising Setting the Objectives Setting the Advertising Budget Message Decisions Media Decisions Campaign Evaluation

Media Decisions Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost Media Decisions Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors: Audience Quality & Attention, Editorial Quality Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Profiles of Major Media Types ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Messages through Marketing Channels: Direct Marketing (1) Mailings, recorded telephone messages, faxes, e-mail Potential to send personalized messages to highly targeted micro-segments Need detailed database of information about customers and prospects

Messages through Marketing Channels: Direct Marketing (2) Advance in on-demand technologies empower consumers to decide how and when they prefer to be reached, and by whom For example, e-mail spam filters, pop-up blockers Permission marketing: customers encouraged to “raise their hands” and agree to learn more about a company and its products in anticipation of receiving something of value Enables firms to build strong relationships with customers For example, people invited to register at a firm’s website and specify what type of information they like to receive via e-mail

Messages through Marketing Channels: Sales Promotion (1) Defined as “communication attached to an incentive” Should be specific to a time period, price, or customer group Motivates customers to use a specific service sooner, in greater volume with each purchase, or more frequently Provides a “competitive edge” during periods when demand would be weak

Messages through Marketing Channels: Sales Promotion (2) Speeds up introduction and acceptance of new services Interesting sales promotions can generate attention and put firm in favorable light (especially if interesting results publicized) For example, SAS International Hotels—if a hotel had vacant rooms, guests older 65 years old could get a discount equivalent to their years When a guest announced his age as 102 and asked to be paid 2 % of the room rate in return for staying the night, he received it—and got a game of tennis with the general manager!

Messages through Marketing Channels: Public Relations PR/publicity involves efforts to stimulate positive interest in an organization and its products through third parties For example, press conferences, news releases, sponsorships Corporate PR specialists teach senior managers how to present themselves well at public events, especially when faced with hostile questioning Unusual activities can present an opportunity to promote company’s expertise

Public Relations (PR) PR effort can steer in a positive or negative way Press release is a prepared document for release to selected media containing information or “news” about a firm

Public Relations Undertaking public relations An ongoing task that is an important part of the marketing planning Happens at corporate, property or unit level Employee and management belonging to public organizations contributes in some manner to PR Planning public relations Identify a purpose and know the target markets Consider the benefit to the customer Know the correct media to reach the target market prospects Establish relationships with editors and writers and other media

Major Activities of PR Departments Press Relations Product Publicity Corporate Communication Lobbying Counseling

Publicity Extensive mention in the news media or by word of mouth or other means of communication, and messages about firm disseminated through various media to attract public notice Product Related Publicity Assist in the Launch of New Products. Assist in Repositioning a Mature Product Build Up Interest in a Product Category

Publicity Publicity is created to generate continued positive coverage of a firm Have a targeted purpose and an evaluation post-publicity Publicity helps with promotions Starts with inviting media to cover a specific event Press releases of background information are made available at the event PR works the event, pitching to the media Follow-up calls and thank you Program evaluation Make provisions for the unexpected; crisis management teams

Major Tools in Marketing PR Publications Identity Media Events Speeches News Public Service Activities

Discussion Questions Find several advertisements for a hospitality or travel organisation. Then visit their web site. Is the communication provided on the web site congruent with and support their print adverstising and broadcast advertising? Explain your answers. Recently, a number of restaurants have shifted some of their promotional budget from advertising to public relations. What benefits does public relations offer that would make the restaurants spend more?

Thanks for attention Orhan İçöz