Chapter 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. Destination Marketing Chapter 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 Characteristics of Destinations Table 12.1 12-4 Copyright © 2009 by Nelson Education Limited. Destination Marketing Chapter 12 Classifications of Destinations Table 12.2 12-5 Copyright © 2009 by Nelson Education Limited. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 The Tourist Area Life Cycle 12-12 Copyright © 2009 by Nelson Education Limited. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 Challenges of Destination Branding • • • • • Limited Budgets Politics External Environment Destination Product Creating Differentiation 12-14 Copyright © 2009 by Nelson Education Limited. Destination Marketing Chapter 12 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 Marketing Chapter 12 Destination Brand Benefit Pyramid 12-16 Copyright © 2009 by Nelson Education Limited. Destination Marketing Chapter 12 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 Marketing Chapter 12 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 Marketing Chapter 12 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. Destination Marketing Chapter 12 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. Destination Marketing Chapter 12 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.