The good, the bad and the totally useless: An analysis of adventure marketing in Ireland Antonie Bauer Research questions How do adventure providers market their activities? Which marketing strategies work best for the soft adventure industry? How rational are the companies’ and the tourist boards’ marketing strategies? Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 2 What the literature has to say Very little research on marketing of adventure providers, somewhat more on adventure tour operators, destinations and the adventure tourist Schott: distribution mainly at destination; Swarbrooke et al.: brochure main instrument Ateljevic: marketing of small tourism firms rather inconsistent Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 3 Data collection Based on audits conducted for Fáilte Ireland 70 members of Fáilte Ireland’s adventure hubs in Cork and Kerry Almost all of the market leaders In-depth interviews with senior management or owners Structured questionnaire Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 4 Data collected Time and money spent on marketing Details on all marketing activities Evaluation of marketing activities Main sources of new business Profit and year-over-year growth Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 5 The companies Providers of soft adventure – usually low risk, suitable for families hill walking, horse-riding, diving, surfing, fishing etc. Mostly owner-run micro-businesses median revenue € 90 000 Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 6 The companies Grouped into clusters for analysis: growing (17) vs. shrinking (32) profitable (38) / breaking even (17) / loss-making (15) Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 7 Results Marketing budgets: On average 6.85% of revenue Time spent on marketing: On average 7.4 hours/week Strong correlation with company size Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 8 Who does what? Growing firms tend to spend more money and less time on marketing than shrinking ones and to use more marketing instruments Profitable firms tend to spend less time on marketing and to use more instruments than lossmakers. Strongest difference between marketing strategies of managers with and without marketing training Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 9 Professionality of marketing Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 10 What the professionals do No marketing training At least some training Marketing budget as % of revenue 6.3 7 Short-term planning 64% 88% Hours spent per week (median) 1.5 6 Long-term planning 41% 73% No of marketing activities (median) 7 12 Median revenue 47,500 122,500 % profitable 55 the totally useless Antonie Bauer, The good, the bad and 58 17 February 2012 2012 Adventure Conference 11 Size matters (sometimes): communication tools by company size Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 12 o M pti ar m k e is t r ati es on ea r In ch te rn Fl e t y M e rs ai lin gs O Cr ffe o rs ss- PR + s S p a ellin al e ck g V s c age ira ha s l m nn a r els ke ti S Po n g oc s ia ter lm s B ed ro ia ch u TI Ad r es ca wo r Tr mp ds a a C de ign la s s s h M sic o ws at m ch e d f u ia nd in g W eb si te Frequency (red) and average rating of activities (blue) 70 60 50 20 10 0 Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 4,5 4 3,5 3 40 2,5 Frequency 30 2 Ratings 1,5 1 0,5 0 17 February 2012 13 Business generated and perceived effectiveness 50 45 4 44 3,5 40 36 3 35 2,5 30 25 2 20 1,5 14 15 10 10 1 10 6 5 2 0,5 1 0 0 Word of mouth Internet Flyers Editorial content Sales channels Print Trade shows advertising and radio How often named as source of business Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference Posters Average rating 17 February 2012 14 Comparison to ratings Negative evaluation of activities is confirmed; some of those with positive evaluations may be overrated (posters, brochures) Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 15 Is the marketing mix right? High rating + performance Low rating + performance High usage Flyers Radio and print ads Trade shows Low usage Internet / Website optimisation TI campaigns Match funding campaigns Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 16 Marketing mix still contains too many high-cost, low-impact activities like newspaper advertising and trade shows Too few low-cost, high-impact measures like website optimisation and viral marketing. The campaigns of the Irish tourist boards do not meet the needs of the providers at all. Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 17 So do the professionals know better? The good % using instrument 1 0,9 % using instrument 0,8 0,7 0,6 No training 0,5 Training 0,4 0,3 0,2 0,1 0 Internet PR Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference Viral marketing 17 February 2012 18 The useless 1,2 % using instrument 1 0,97 0,94 0,81 0,8 0,73 0,67 No training 0,6 Training 0,41 0,4 0,2 0 Posters Radio + print ads Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference Trade shows 17 February 2012 19 Conclusions The marketing activities chosen by adventure providers in the Irish Southwest depend on company size and marketing training vary widely in effectiveness and tend to be rather inconsistent => Clear upside potential for individual providers and the tourism boards’ activities. Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 20 Thank you for your attention Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 21 Key references Ateljevic, J. (2007) Small tourism firms and management practices in New Zealand: The Centre Stage Macro Region. Tourism Management, 28, p. 307-316 Buckley, R. (2010) Adventure tourism management. Oxford: Butterworth-Heinemann Schott, C. (2007) Selling adventure tourism: A distribution channels perspective. International Journal of Tourism Research, 9, p. 257-274 Swarbrooke, J., Beard, C., Leckie, S. and Pomfret, G. (2003) Adventure Tourism: The new frontier. Oxford: ButterworthHeinemann Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 22 Details on what On a scale of you do/have done 1=totally useless to 5 What marketing activities do you = very effective, how engage in? would you rate the effectiveness of this marketing instrument? Market research Product and pricing (e.g. special offers + packages) Sales channels Communication (lines a to i) a) flyers b) brochures c) posters d) advertising in classic media: magazines, newspapers, radio. Which? d1) advertising in Kerry Gems e) online advertising/search engine optimisation f) Mailings/emails Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference 17 February 2012 23 Percentage of firms using instrument 1,00 0,90 0,94 0,88 0,86 0,84 0,80 0,80 0,66 0,66 0,64 0,64 0,70 0,54 0,54 0,51 0,60 0,50 0,45 0,43 0,40 0,25 0,25 0,22 0,20 0,30 0,20 0,10 C P ro R ss -s el lin g M M ai ar lin ke gs O tr ffe es rs ea + r p a ch ck ag es In te W T e b ra d rne t e si te sh op o tim ws S is al es atio n ch an S oc n el s ia lm ed B ia ro c M hu at ch r es fu nd TI in ca g m pa ig ns A dw V ira l m o rd s ar ke tin g Fl ye rs P o C st la er ss s ic m ed ia 0,00 Median rating = 4 Median r. = 3 Antonie Bauer, The good, the bad and the totally useless 2012 Adventure Conference Median r. = 2 Median r. = 1 17 February 2012 24