1. Role of Communication in Destination Marketing

2. 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

3. 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;

4. 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.

5. 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Setting Communication Objectives

15. 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?

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

17. 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

18. The Marketing Communications Mix

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

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

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

37. 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

38. 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

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

40. 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

41. 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

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

43. 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

44. 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

45. 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

46. 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

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

48. 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

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

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

51. 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, 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

52. 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

53. 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!

54. 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

55. 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

56. 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

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

58. 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

59. 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

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

61. 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?

62. Thanks for attention
Orhan İçöz