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Copyright © 2009 by Nelson Education Limited. Chapter DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business Simon Hudson, Haskayne School of Business University of Calgary University of Calgary and and Marion Joppe, University of Guelph Marion Joppe, University of Guelph

Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

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Page 1: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

DESTINATION MARKETING

12

12-1

Prepared by

Simon Hudson, Haskayne School of BusinessSimon Hudson, Haskayne School of Business

University of CalgaryUniversity of Calgary

andand

Marion Joppe, University of GuelphMarion Joppe, University of Guelph

Page 2: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

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

12Destination Marketing

12-2

Page 3: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• DestinationsDestinations– 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

12-3

The Principles of Destination Marketing

Destination Marketing

Page 4: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter 12

12-4

Characteristics of Destinations

Destination Marketing 12

12-4Table 12.1

Page 5: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

Classifications of Destinations

Destination Marketing

Table 12.2

12

12-5

Page 6: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

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

12-6

Destination Marketing

Page 7: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• 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

12-7

Objectives of Destination Marketing

Destination Marketing

Page 8: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Destination Marketing Organizations Destination Marketing Organizations (DMOs(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

12-8

The Role of Destination Marketing Organizations (DMOs)

Destination Marketing

Page 9: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Convention and visitor bureaus (CVBs)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

12-9

Destination Marketing

The Role of Destination Marketing Organizations (DMOs)

Page 10: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Destination Marketing Association Destination Marketing Association International (DMAI)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

12-10

Destination Marketing

The Role of Destination Marketing Organizations (DMOs)

Page 11: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Tourism area life cycle (TALC)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

12-11

Tourism Development

Destination Marketing

Page 12: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter 12

12-12

The Tourist Area Life Cycle

Destination Marketing

Page 13: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Destination brandingDestination branding

– A method of establishing a distinctive identity for a destination based on competitive differentiation from others

– Snapshot: Capitals of Canada

12

12-13

Destination Branding

Destination Marketing

Page 14: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Limited Budgets

• Politics

• External Environment

• Destination Product

• Creating Differentiation

12

12-14

Challenges of Destination Branding

Destination Marketing

Page 15: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Market Investigation, Analysis, and Strategic Recommendations

• Brand Identity Development

• Brand Launch and Introduction

• Brand Implementation

• Monitoring, Evaluation, and Review

12

12-15

Stages of Brand Building

Destination Marketing

Page 16: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter 12

12-16

Destination Brand Benefit Pyramid

Destination Marketing

Page 17: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Promotion strategyPromotion 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

12-17

Destination Promotion

Destination Marketing

Page 18: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

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

12-18

Destination Promotion

Destination Marketing

Page 19: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Marketing CooperationMarketing Cooperation

– creates marketing bridges between a DMO and individual operators in the tourism industry; and between “umbrella” campaigns and industry marketing expenditure

12

12-19

Destination Promotion

Destination Marketing

Page 20: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

• Events and festivalsEvents and festivals

– Often introduced to cope with seasonality and to boost tourism receipts during normally quiet times of the year

• Conferences Conferences

– Includes conventions, exhibitions, trade shows, meeting and incentive travel

12

12-20

Marketing Events and Conferences

Destination Marketing

Page 21: Chapter Copyright © 2009 by Nelson Education Limited. DESTINATION MARKETING 12 12-1 Prepared by Simon Hudson, Haskayne School of Business University of

Copyright © 2009 by Nelson Education Limited.

Chapter

– 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

12-21

Marketing All-Inclusive Resorts

Destination Marketing