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1 THE FUTURE OF DESTINATION MARKETING Why all marketing is social marketing Anna Pollock DestiCorp Presentation to BIT Reiseliv Oslo, 2009

The Future of Destination Marketing Why all Marketing is Social Marketing

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Page 1: The Future of Destination Marketing Why all Marketing is Social Marketing

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THE FUTURE OF DESTINATION MARKETING

Why all marketing is social marketing

Anna Pollock DestiCorp

Presentation to BIT ReiselivOslo, 2009

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THE FUTURE OF DESTINATION MARKETING

Why all marketing is e‐marketing

Anna Pollock DestiCorp

Presentation to BIT ReiselivOslo, 2009

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My Purpose TodayTo help you survive the next decade

From the Five Ps to Five Cs

Why all marketing is social in nature

The Importance of Content

… Relationships: The Power of Community

What to do now?

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1. Being Relevant  and Effective 

Reducing the PAIN!

Your Survival depends on: 

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If the Destination Management Company does not reduce the 

pain experienced by 

guest, supplier or host, 

it won’t survive!

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Supplier Members

CustomersGuests

HostCommunity

Who’s Pain?

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What pain exists for Guests? Risk

Unique experience

Planning their trip

Online products are not representative

The small, unique and unusual is particularly hard to find. This is what the high yielding tourist seeks!

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What pain exists for the Supplier? Suppliers sell just one element

Distribution costs are high (25‐40%)

The product is perishable 

Difficult to unload distressed inventory.

Distress leads to discounting. 

Discounting leads to paper thin margins

At the same time, suppliers must deal with…..

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• Video games• Email• XBox LIVE• Websites• IM• Search

• Radio• DVD• Ring Tones• TV• Blogs• Magazines

• Satellite Radio• TiVo (Starhub PVR)• Video On-Demand• Newspapers• Podcasting• Cell Phone

Access Proliferation

Source: Darwin Day Conference, Google

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133,000,000 blogs

1.8 million residents

78 million videos(200,000 publised/day)

www.ebay.com 21 Nov 200614,463,346 auctions

Almost 10,000,000 articles(10 languages)

33,347,000 profiles

139 million +members

More New Channels

2 billion page views daily 2008

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What pain exists for the Host? Politicians want re‐election

They want people talking about them

They want people believing they’ve made a contribution

That’s why they like tangible things

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2. Understanding the world you live in 

Harnessing the Change Drivers

But Survival also depends on:  

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Human organizations are slow to change

Evidence that the old model still being used 

Our organization structures

Our language

What we count

What we value…….

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From Heirarchies

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From Functional Boxes

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To Networked Teams

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From Value Chains

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To Value Networks - Ecosystems

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To Value Networks - Ecosystems

Host Community

Providers

Suppliers

Agents

Channels

Partners

GUEST

Destination

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Me and My

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Back to Familiar Ground!

Marketing

How Far We’ve Come!

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Marketing: A Quick History

1930-1960s•ONE TO MANY 

•Products Pushed at Targets

•Blitz campaigns through limited media

•Print – newspapers and magazines

•Radio & TV – broadcast channels

•Call to action: the BROCHURE

•Glorious days for advertising

•Enormous reach and influence

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Marketing: A Quick History

1960-1990•ONE TO FEW 

•Beginning of individualism 

•From mass markets to market segments

•Growing variety of media 

•Magazines and Cable TV –focused TV channels

•Pushy

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Marketing: A Quick History1990-2000•ONE TO ONE 

•Customer RelationshipMarketing CRM 

•WEB SITES!

•Plethora or Brochures to Plethora of Web Sites

•Still PUSHING – Banner ads and phone calls

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Marketing: A Quick History

BUT DID ANYTHING REALLY CHANGE?

Still Pushing

Still interrupting

Still Product Centric

Still Transaction Oriented

1950-2000

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the Millennium Bug didn’t strike but

SHIFT HAPPENED!

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Marketing: A Quick History

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So What Happened? Information & Choice Overload

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So What Happened? Information & Choice Overload

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MARKETERS

MEDIA

TRADE ORGS

EMPLOYEES

NGOs

CUSTOMERS

ANALYSTS

INVESTORS

GOVERNMENT

The new cacophony.

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But Something else was happeningBreak Down of Trust

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With so many voices in the mix…People turn to peers for 

recommendations.

They also do this when:Risk is higher

More choices to review and filter

They have less time to research

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In fact, PEERS are the most credible source of company/product info

58% believe 

what “a person like me” says about an organization

(up from 51% in 2007) LEAST CREDIBLE (IN THE US): corporate or product advertising (22% of ages 25‐34)

SOURCE: 2008 Edelman Trust Barometer

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56‐63% were “likely to share their opinions and experiences about companies they trust or distrust on the web.”*

when you put it on the web, it stays forever….

*SOURCE: 2008 Edelman Trust Barometer

Peer recommendation isn’t just influential. Trust and distrust are widely shared.

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And trust drives preference.

88% of opinion elites choose to buy from companies they trust. 85% refuse to buy from companies they distrust.*

*SOURCE: 2008 Edelman Trust Barometer

The bottom line:Trust drives transactions.

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SOURCES OF INFORMATION USED BY TOURISTS FROM VARIOUS COUNTRIESSource: Phocuswright

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So What Happened? Open Source  + Web 2.0 Machines can talk with one another; People can interact; web services & widgets

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So What Happened? Proliferation of Online Communities; sites that enabled sharing of pictures, papers, videos,  and personal details……..

Social Media emerged as the “next big thing”Another FAD or something deeper?

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PUSH to PULL

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•Power to Search•Power to Express & Publish•Power to Participate•Power to Choose•Power to Share

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Power of Self ExpressionAnyone can now be: 

Author

Journalist

Film maker

Reviewer

Marketer

Intermediary, or even a

DMO or DMC !

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Power of InfluenceConsumers decide what’s valuable or important

Amazon ratings

E‐Bay ratings

Trip Advisor ratings and reviews

Content Tags

People who bought this, also bought……..

So customers shape your brand, influence others, and….

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BECAUSE CLIENTS TALK andTALK INFLUENCES PURCHASE DECISIONS

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There is only one metric!*

Will your customers

recommend your brand/product to

their friends?

Fred Reichfeld in Driving Good profits and True Growth

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ALL MARKETING IS SOCIAL  MARKETING 

MARKETING IS NOT A BATTLE 

IT’S A DANCE!

AND THE CUSTOMER TAKES THE LEAD…

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Customers

Connections

Conversations

Content

Community

Product

Position

Price

Promote

Place

PUSH to PULL

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THE NEW BASICS!

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CUSTOMERS

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How well do you know your customers?Norwegians or International? 

Repeats or First‐timers?

Single, couple or in a group?

Weekend Escape or Annual Vacation?

Touring (passing through) or Staying Put

Activity or relaxation focused? 

Special interest? ??????????

How do you connect with them?

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Do you Know Where They Are?

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1.4 billion prospects can now potentially be reached via the web.

Do you Know Where They Are?

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Brits spend 164 minutes a day online

Do you know where they are?

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Do you know what your guests are trying to achieve when they “ask you to dance”? 

Decide where to go? 

Decide when to visit? 

Plan activities?

Find a good deal? 

Learn about the destination? 

Read other visitors’ reviews and impressions? 

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Where are they in their experience cycle? 

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What media are they using?

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How are you Connecting with your visitors?

Through a screen?

Face to Face, Voice to Voice?

There’s a technical answer….

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The 3‐Screen world

TV

Computer Monitor

Handheld

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How are you Connecting with your visitors

Through a screen?

Face to Face, Voice to Voice?

There’s a human answer…….

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Markets are CONVERSATIONS!

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Features of a Good ConversationTwo‐way dialogue

Active Listening

Let your partner hog the limelight

Good Content makes for good conversations

As trust builds…..

So will more content be exchanged

The conversation can be continued later…

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Where do Good Conversations Occur?Homes

OfficesRestaurants, bars

Dinner parties

Travel agencies

At the gym

On the way to work

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LOCATION OF ONLINE CONVERSATIONS

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When do Good Conversations Occur?

Where and when the partner wishes to initiate it…..

They may knock on your front door

They may come in through the back door 

They maybe “hanging out with friends” 

RememberIt’s rude to shout & brag

Don’t interrupt

Success is to become the topic of conversation

Don’t be shy – join in; be where your customers are; but don’t interrupt.

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NOT about pulling levers

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NOT about exploiting new channels!

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Not About Shouting

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It IS about becoming your customers’ Topic of Conversation

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And You Do This By..Listening

Helping

Supporting

Being present

Being alert

Being creative

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So, do You Need a Social Media Strategy?NO!

You need to re‐think your entire role and your entire marketing strategy

Ensure it reflects the realities of your marketplace

Is active in the places your customers meet

Acknowledges the new rules and realities

Learn the power of CONTENT and COMMUNITY!

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The Power of CONTENTIn tourism, content is your currency.

Conversations are fuelled by content

ContentEnables choices

Reduces risk 

Stimulates emotions

All content is digital 

All marketing is publishing

DMOs are the ideal content brokersClose to the supplier, the setting, the place

Closest to the customer’s experience

Content comes in different forms and performs different functions

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http://www.newzealand.com/travel/USA/INSPIRE

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http://www.classicbritain.no/ENGAGE

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http://www.classicbritain.no/ENABLE A SEARCH 

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ENABLE A SELECTION 

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Good Content is created by: The DMO

Third PartiesSuppliers

Other travel companies

Film and TV producers

Users

It doesn’t matter who created it so long as

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Good Content isRelevant

Reliable

Comprehensive

Compelling

Consistent

Portable

Ubiquitous = Everywhere

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Why Everwhere?

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Content Has to Be Everywhere!

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Supplier Web Site & e‐newsletters

Destination Portals 

Third‐party web sites and portals:Online agencies: Expedia, Travelocity, Hotels.com

Other suppliers (tour, ferry , airline, train companies)

Media: newspapers and magazines – on and offline

Banner and classified advertisements

Directories (Yellow pages)

Travel Community Sites (Trip Advisor, Real Travel, WAYN)

Social Media Sites (Facebook, MySpace)

Kiosks

Hotel, airline  TV

Mobile phone channels 

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You Can’t Do This By Yourself!

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But that’s impossible!

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It is impossible unless….

You engage your community!

Everyone is an intermediary 

Guest, Suppliers, Residents are doing the inviting!

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Your NEW role as DMO is toEnable

Facilitate

Support

Encourage

Seed

And all in a digital world!!

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In summaryRethink your entire marketing approach, from outbound monologue to full engagementGo DIGITAL, think DIGITALBuild trust by being found, providing value, and not interrupting consumers on their journey to find what they wantEngage and support your Community  in their conversations about your destination

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CREDITS AND SOURCES:This slide deck is a “mash-up” – a blend of author’s observations, insights and learning. I have attempted to indicate sources either on the slides or below and and express gratitude to the generosity of those who have shared their insights on the web.

Slides 1-2 Image of boat: http://www.flickr.com/photos/good_day/236094065/Slide 9: http://www.slideshare.net/wah17/social-media-35304Slide 10: More new channelsSlides 14:17 – still searchingSlide 25: David Armano – see slideshareSlide 25: David Armano – see slideshareSlide 28:34 Background: The Changing media Landscape: http://www.slideshare.net/Cscout/cscoutmarketing-innovation-presentationSlide 37, 40, 41, 43,44 - http://www.slideshare.net/Weave/trust-drives-transactions-why-marketing-must-go-social-presentationSlide 45: PhocusWrightSlide 52, 54: http://www.slideshare.net/Weave/trust-drives-transactions-why-marketing-must-go-social-presentationSlide 78: http://www.slideshare.net/howardgr/greenstein-landsman-social-media-jungle-presentationSlide 89: http://www.slideshare.net/socialmediainfluence/social-media-comes-of-age-radar-ddb-uk-at-social-media-influence-conference

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GOOD LUCK!

Thank You

Anna Pollock

[email protected]

+44 01544 388 910