1. Tourism Marketing for small businesses
Chapter 9 Promoting Tourism Services to Consumers

2. Chapter learning aims To enhance your understanding of:
the role of promotion in the marketing plan
the six-step marketing communications process
the main approaches used in promoting tourism services to consumers

3. Key terms
Promotion
Promotions are communications in the market, aimed at stimulating demand to generate customers (sales).
Marketing communications
Also referred to as MarComs or Comms, and often used interchangeably with the term promotion, this represents the integration of the message and the media used in the promotional mix to communicate with target consumers.
Hierarchy of needs/AIDA
A theory proposing advertising should lead consumers through a process from reminding them of their needs though to making a purchase. A variation of this is the AIDA model of enhancing Awareness, stimulating Interest, creating Desire, which leads to Action (purchase).

4. The role of promotion
To stimulate demand and generate customers (sales)
Key goals involve informing consumers (awareness), and then persuading and reminding them to act (purchase)
Effective marketing communications require creative ideas to be developed from the critical objective setting in the marketing planning stage
Eg What objective will this promotion achieve?

5. Promotion budget setting approaches
Affordability. The simplest approach is to set a budget based on what the business can afford. Most small tourism businesses operate with an uncertain future cash flow and so this approach does actually represent reality rather than what might be ideal.
Industry average. This approach results in a promotion budget based on analysis of what competitors are spending. Similar to going rate pricing, where prices are set to match the competition, the assumption is there is a collective wisdom within the sector.

6. Promotion budget setting approaches
Ratio of sales. This is based on a percentage of past or projected sales, and might be flexible to adjust to actual sales on a monthly basis for example. In this way promotion budget levels are a result of sales, as well as the cause.
Marketing objectives. An assessment is made of the range of initiatives best suited to achieve the objectives, and these are then costed. If there are clear performance measures, this approach makes the most sense, particularly in terms of justifying the budget rationale to stakeholders such as financiers and investors.

7. The marketing communication process
1. Select the marketing objective being addressed
The situation analysis (where are we now?) enables the development of the marketing objectives (where do we want to get to?). The first step in designing a specific promotion is to determine which marketing objective is being addressed.
2. Specify the target segment
Most businesses cater to more than one segment, which by definition means groups of consumers sharing similar needs and/or characteristics. The differences between segments influence the type of message to be communicated, and the media to be used.

8. The marketing communication process
3. Determine the desired response
The overall aim of promotion is to stimulate demand to generate sales. However, different objectives might be related to leading different segments through varying stages of a process based on the Hierarchy of Needs theory (see Lavidge & Steiner, 1961:
Stimulating recognition of their needs, to create a want for our type of service.
Increasing brand salience, which represents top of mind awareness of our service when a tourism situation is being considered to satisfy a want.
Enhancing the brand image, so they develop a favourable attitude towards our service, relative to competitors.
Stimulating intent to purchase, through a call to action.

9. The marketing communication process
4. Design the message
All marketing communications should be aimed at stimulating purposeful dialogue with the target consumers.
Therefore the message must be meaningful to them, by communicating a value proposition that addresses their needs and wants.
To cut through the clutter of the noise of competing tourism services and substitute products means messages must be distinctive, and focused on stimulating the desired response.
The message also needs to be easily understandable, realistic and believable. No matter how incredible the offer, if it’s not backed by a good service at a good price it’s not going to work in the long term.

10. The marketing communication process
5. Select the type of promotion
Different objectives related to the AIDA process require different promotional tactics and media. For example, advertising can be effective in enhancing awareness, whereas personal selling is more effective at closing a sale.
6. Monitor the impact
How will we know if we have achieved the objective? The results of some types of promotions (eg coupons) are easier to monitor than others (eg roadside billboard). This topic is discussed fully in Chapter 14 – Tourism Marketing Performance Measurement.

11. Advertising One big idea Reinforce the brand identity Well scripted
Attention grabbing, with a meaningful value proposition
Reinforce the brand identity
The image aspired to in the market
Well scripted
To the point, short and snappy
Call to action
Let the target know how you want them to respond

12. Potential disadvantages
Advertising
Potential advantages
Potential disadvantages
High reach at a low cost per reader
Enables visual creativity
Useful for enhancing brand salience and brand image
Opportunity to reach new consumers
Opportunity to include a call for action
Non-invasive contact
Many available media formats
Ability to target segments through niche media
Short lead times possible
Lower credibility and believability
Easy for consumers to not pay attention
Difficult to get noticed in the advertising clutter
Difficult to close a sale
Difficult to measure effectiveness
High wastage
High cost of prime media space
Short life span

13. Sales promotions Essentially incentivised offers
Eg discount coupons
Short term initiatives when there is an urgent need to boost sales and cash flow
A key advantage is the ability to track responses
A disadvantage is stimulating potential price war with competitors

14. Personal selling
The most effective means to build trust, reduce perceived risk, and close a sale
Eg at consumer expos
The art of selling is to take the fear out of saying yes
Ability to hold the consumer’s attention and gain feedback
Ability to measure effectiveness
One of the most expensive forms of promotion

15. Direct (e)mail
Communicating directly with consumers via mail, and SMS
Enables high audience selectivity
Eg a data base mailing list
Messages tailored to appeal to the needs of target audience
Useful for following up after other forms of promotion
Ethical and legal implications
Difficult to stand out from the clutter of other direct marketers
Ability to monitor responses

16. Point of sale Situated on-site at the point of payment
Eg cash register, restaurant table
Aims to stimulate impulse buying
Typically sales promotion offers
Eg competition, bundle discount, giveaways
Often offers are made for certain times of the day/week
Eg daily happy hour, mid-week specials

17. Consumer expos Manning a physical presence at:
Travel expos
Lifestyle expos eg boating, camping, fishing, food & wine, home & garden
Cultural festivals
Major sporting events featuring expos eg major marathons
Participation can be expensive
Ability to combine personal selling with other forms of promotion
Eg sales promotions, brochures
Ability to gain contacts for direct mail database eg through a competition
Difficult to monitor effectiveness

18. Experiential AKA events marketing and engagement marketing
Staging promotional event in high traffic areas
Passers-by encouraged to participate in an activity
Aim is to get consumers to engage with the brand
Creative promotions can attract media publicity on viral publicity on social media
Difficult to monitor effectiveness

19. Networking and cooperating to compete
A key aim of DMOs is to foster a spirit of cooperating to compete
Small businesses, who might compete locally, working together to attract more visitors
To stretch promotional resources
To create a bigger market impact than could be achieved by individual businesses working in isolation
Particularly effective at consumer expos
Networking events enable information sharing

20. Discussion questions What is the purpose of promotion?
What is the difference in meaning between the terms promotion and marketing, and why is promotion sometimes incorrectly referred to as marketing?
With so many different forms of promotion and types of media channels, on what basis should a particular approach be selected?