R. Cleverdon 2. Marketing Strategic Approaches World Tourism Organization Manila, 20 – 22 March 2006

R. Cleverdon SESSION COVERAGE Marketing policy central to overall tourism development policy – so need for a strategic marketing planning approach Characteristics of tourism that affect marketing strategy Process of strategic marketing planning within overall planning Strategic marketing planning based on differentiation & resource: market matching Taking account of priorities of different stakeholders Marketing tools & techniques - introduction MARKETING STRATEGIC APPROACHES

R. Cleverdon UNDERSTANDING TOURISM DESTINATIONS What is a tourist destination? * one product – but also many * many stakeholders with different goals * both physical & socio-cultural aspects * mental concept for potential visitors * subject to a wide range of influences * subject to historical, real & fictitious events * evaluated subjectively for value-for-money * no two destinations the same!! MARKETING STRATEGIC APPROACHES

R. Cleverdon TOURISM’S SPECIAL FEATURES Huge range of impacts – economic, socio-cultural, environmental? Special facilities, training, institutions, laws etc WHY – because tourists represent an addition to the resident population with all the needs of any population and more What is perception? – what is reality? YOU CANNOT TEST DRIVE A HOLIDAY IN TOURISM, THE PERCEPTION IS THE REALITY MARKETING STRATEGIC APPROACHES

R. Cleverdon KEY TOURISM MARKETING PROPOSITIONS 1. Marketing – products are designed, adapted & promoted to meet the long-run expectations & interests of prospective customers 2. Services marketing – peculiar characteristics of inseparability & perishability call for a different application of the traditional marketing mix 3. Tourism marketing – shaped by the nature of demand and operating characteristics. Forms of promotion have their own characteristics, distinguishing their use from other sectors. Middleton, V.T.C. & Clarke, J Marketing in Travel & Tourism MARKETING STRATEGIC APPROACHES

R. Cleverdon UNDERSTANDING CONSUMERS’ NEEDS Characteristics of Tourism with Implications for Marketing * fragmentation of supply * interdependence & complementarity * rigidity of supply * fixed in time & space * intangible: “expectation-experience-memory” * price elasticity of demand * seasonality * consumer part of the product * importance of intermediaries MARKETING STRATEGIC APPROACHES

R. Cleverdon PROCESS OF MARKETING PLANNING Marketing plan is a navigational chart – enabling the organisation/destination to realise its goals Typical plan structure: executive summary, situation analysis, objectives & goals, market segments, marketing strategies, marketing mix, resources, implementation, assessment MARKETING STRATEGIC APPROACHES

R. Cleverdon PRODUCT >< MARKETING In a marketing mix, the product comes first BUT - in tourism the role of marketing can precede the development of the product – remember the importance of mental concepts Marketer gathers information on the expectations of customers For a destination, the customer can be: * its citizens * investors * tourists * the travel trade * others? MARKETING STRATEGIC APPROACHES

R. Cleverdon PRODUCT >< MARKETING Marketer’s task – to communicate to statal decision makers the features & benefits each of the customer groups want & how to reconcile their often competing & contradictory needs Marketer participates in the design of the destination’s products; * branding & PR campaign * investment laws & regulations * development & presentation of attractions * promotion of export products * fostering of positive relations with neighbours, NGOs & international organisations MARKETING STRATEGIC APPROACHES

R. Cleverdon DESIGNING PRODUCTS Leverage factors: * natural endowments * acquired endowments, public goods, externalities * risk mitigation * economic prowess Products & brands not fixed & unalterable Maintaining the destination’s brand & promoting its products are ongoing tasks R & D needed – just like a corporate entity MARKETING STRATEGIC APPROACHES

R. Cleverdon STRATEGIC MARKETING PLANNING Strategy – long term * where are we now? * where do we want to get to? * how do we get there? Key components of strategy: * goals & objectives * images, positioning, branding * strategies & programmes * budget * review & evaluation MARKETING STRATEGIC APPROACHES

R. Cleverdon TACTICAL MARKETING PLANNING Tactics – short term Respond to market conditions & competitors’ activities Tactical marketing incorporates: * objectives & targets * mix & budget * action programmes * monitoring & control MARKETING STRATEGIC APPROACHES

R. Cleverdon DISTINGUISHING: STRATEGY & TACTICS Three strategic concepts absent in tactical marketing: 1. Strategic business units & business portfolio analysis 2. Product: market growth models 3. Corporate & product positioning MARKETING STRATEGIC APPROACHES

R. Cleverdon STRATEGIC MARKET PLANNINGPROCESS 1. Place audit – expanded SWOT analysis 2. Vision & goals 3. Strategy formulation 4. Action plan 5. Implementation & control MARKETING STRATEGIC APPROACHES

R. Cleverdon COMPETITOR ASSESSMENT SUPERIOR COMPETITOR – protect position, avoid overpopularity PEER COMPETITIOR – intensified competition, or coopetition WEAK COMPETITOR – establish new strategy & positioning Assess competitive position according to: STRENGTHS – major or minor NEUTRAL WEAKNESS – major or minor MARKETING STRATEGIC APPROACHES

R. Cleverdon PERFORMANCE:IMPORTANCE MATRIX LowHigh Importance VV <<Performance High 10 A. Concentrate B. Keep up the 9 here good work Low 5 C. Low priority D. Possible overkill MARKETING STRATEGIC APPROACHES

R. Cleverdon OPPORTUNITIES & THREATS Overall attractiveness of a destination one of four: 1. Ideal – high in opportunities, low in threats 2. Speculative – high in both opportunities & threats 3 Mature – low in major opportunities & threats 4. Troubled – low in opportunities but high in threats MARKETING STRATEGIC APPROACHES

R. Cleverdon STRATEGIC VISION Overall growth path BUT also * unique combinations of attraction factors to be targeted * target markets * short- and long-term goals * operative prerequisites MARKETING STRATEGIC APPROACHES

R. Cleverdon STRATEGY & IMPLEMENTATION Four abilities matrix (Kotler, Hamlin, Rein & Haider, 2002) Strategic ability High Frustrators Expanders V Losers Gamblers Low/Low>>>> >>>>High Implementation ability MARKETING STRATEGIC APPROACHES

R. Cleverdon BCG MATRIX Product: market growth High Star Problem V child V Cash cow Dog Low High>>>> >>>>Low Market share MARKETING STRATEGIC APPROACHES

R. Cleverdon ANSOFF MATRIX PRODUCT New Product Diversification Vdevelopment V Penetration Market development Existing Existing>>>> >>>>NewMARKET MARKETING STRATEGIC APPROACHES

R. Cleverdon COMMUNICATING MARKETING STRATEGY MARKETING MIX – THE 4 Ps * Product = customer value * Promotion = communications * Place = convenience of access * Price = cost MARKETING STRATEGIC APPROACHES

R. Cleverdon THE COMPETITIVE CONTEXT LET’S QUICKLY TAKE STOCK…. Does your destination have a competitive strategy….? Are you clear about the most important challenges facing your destination? What are they? Do you know who your competitors are…..more importantly do you know how they are performing and what their plans/actions are? Do you know who your key customers are…more importantly what they like, dislike, do, read, how old they are, etc. etc. Do you know how your destination will distinguish itself…and whether it is achieving this?

R. Cleverdon Thank you!