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Tourism destination marketing: approaches improving effectiveness and efficiency Marios Soteriades Tourism Industry Management Department, Technological Educational Institute of Crete, Heraklion, Greece Abstract Purpose – The purpose of this paper is to investigate the potential contribution of some approaches, i.e. value-chain, strategic marketing, electronic marketing and clustering, and to suggest a conceptual framework allowing improving effectiveness in the field of promoting tourism destinations. Hence, the paper puts forward a conceptual framework allowing attaining an integrated approach in tourism destination marketing. Design/methodology/approach – The approach adopted and implemented for this study is a desk research based on extensive literature and well-established theories. Findings – The paper provides insights into a comprehensive approach to destination marketing planning and implementation and suggests a conceptual framework encompassing approaches contributing to improve effectiveness and efficiency in the field of destination marketing. Practical implications – The factors influencing e-marketing and clustering approaches are highlighted and a set of recommendations are put forward for destination marketers. Originality/value – Destination marketing organisations all over the world have to implement innovative and appropriate approaches; and use adequate tools and techniques in order to improve their marketing activities effectiveness and efficiency. The paper successfully addresses the complexity in the field of destination marketing due to the various stakeholders involved and to the nature of tourism product/experience. Therefore, this paper successfully suggests a conceptual framework contributing to improve effectiveness and efficiency of activities of destination marketing organizations by adopting an integrated approach based on well-established theories. Keywords Tourism, Marketing strategy, Value chain, Destination marketing organization, Strategic marketing, e-marketing, Clustering, Conceptual framework Paper type Research paper Introduction Within a global and much-demanding tourism market, the aim of improving a destination’s marketing effectiveness and efficiency involves adopting the appropriate approaches and using the adequate tools and techniques by destination marketing organizations (DMOs). It is highly recommended that a strong focus on a strategic marketing approach should be adopted and implemented. However, the model’s pitfalls and limitations must be taken into account. Tourism destinations today face a set of new challenges arising from changes in consumers and the environment. It is estimated that only those destinations, which recognize the changes occurring in the marketplace and proactively respond to them, will continue to be successful in the future. Thus, strategies are necessary in order to address the more demanding competitive environment; DMOs need to be more forward thinking than ever before. The aim of this paper is therefore The current issue and full text archive of this journal is available at www.emeraldinsight.com/1757-9880.htm Tourism destination marketing 107 Received 28 January 2012 Accepted 4 February 2012 Journal of Hospitality and Tourism Technology Vol. 3 No. 2, 2012 pp. 107-120 q Emerald Group Publishing Limited 1757-9880 DOI 10.1108/17579881211248781

Tourism destination marketing: approaches improving effectiveness and efficiency

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Tourism destination marketing:approaches improving

effectiveness and efficiencyMarios Soteriades

Tourism Industry Management Department,Technological Educational Institute of Crete, Heraklion, Greece

Abstract

Purpose – The purpose of this paper is to investigate the potential contribution of some approaches,i.e. value-chain, strategic marketing, electronic marketing and clustering, and to suggest a conceptualframework allowing improving effectiveness in the field of promoting tourism destinations. Hence, thepaper puts forward a conceptual framework allowing attaining an integrated approach in tourismdestination marketing.

Design/methodology/approach – The approach adopted and implemented for this study is a deskresearch based on extensive literature and well-established theories.

Findings – The paper provides insights into a comprehensive approach to destination marketingplanning and implementation and suggests a conceptual framework encompassing approachescontributing to improve effectiveness and efficiency in the field of destination marketing.

Practical implications – The factors influencing e-marketing and clustering approaches arehighlighted and a set of recommendations are put forward for destination marketers.

Originality/value – Destination marketing organisations all over the world have to implementinnovative and appropriate approaches; and use adequate tools and techniques in order to improvetheir marketing activities effectiveness and efficiency. The paper successfully addresses thecomplexity in the field of destination marketing due to the various stakeholders involved and to thenature of tourism product/experience. Therefore, this paper successfully suggests a conceptualframework contributing to improve effectiveness and efficiency of activities of destination marketingorganizations by adopting an integrated approach based on well-established theories.

Keywords Tourism, Marketing strategy, Value chain, Destination marketing organization,Strategic marketing, e-marketing, Clustering, Conceptual framework

Paper type Research paper

IntroductionWithin a global and much-demanding tourism market, the aim of improving adestination’s marketing effectiveness and efficiency involves adopting the appropriateapproaches and using the adequate tools and techniques by destination marketingorganizations (DMOs). It is highly recommended that a strong focus on a strategicmarketing approach should be adopted and implemented. However, the model’s pitfallsand limitations must be taken into account. Tourism destinations today face a set of newchallenges arising from changes in consumers and the environment. It is estimated thatonly those destinations, which recognize the changes occurring in the marketplace andproactively respond to them, will continue to be successful in the future. Thus, strategiesare necessary in order to address the more demanding competitive environment; DMOsneed to be more forward thinking than ever before. The aim of this paper is therefore

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1757-9880.htm

Tourismdestinationmarketing

107

Received 28 January 2012Accepted 4 February 2012

Journal of Hospitality and TourismTechnology

Vol. 3 No. 2, 2012pp. 107-120

q Emerald Group Publishing Limited1757-9880

DOI 10.1108/17579881211248781

to investigate the potential contribution of some approaches in improving theeffectiveness of destination marketing. In the context of the tourist industry, the“product” is a “series of experiences” achieved through the combination of a diverserange of products and services. At this regard, the value-chain approach is verybeneficial. In the first section of this paper, the context of tourism destination marketingis outlined and the value-chain approach is briefly presented. The next section isaddressing two issues of special interest of destination marketing within a highlycompetitive marketplace: the strategic marketing approach and electronic marketing.Thus, the second section highlights the contribution of appropriate approach and use ofinformation and communication technologies (ICTs) into various areas: marketingfacilitation, regional networking; establishment of a destination management system(DMS); small medium-sized tourism enterprises (SMTEs) cooperative marketing. Thethird section investigates the main aspects of clustering –, i.e. applications, activities,contribution and benefits – and proposes a conceptual framework contributing toimprove effectiveness of destination marketing. The factors influencing e-marketingand clustering are highlighted and a set of recommendations contributing to improveeffectiveness of destination promotion are presented in the last section.

Destination marketing: context, value-chain approach and implicationsThe tourism offering is a “series of experiences” achieved through the combination of adiverse array of products and services. For visitors, the product is the total experience,covering the entire amalgam of all aspects and components of the product, includingattitudes and expectations. According to Middleton and Clarke (2001), the overalltourism offering might be defined in terms of five main components, namely: destinationattractions; destination facilities and services; accessibility of the destination (includingtransport); images, brands and perceptions; price to the visitor. Hence, destination isa provider of experiences. Destinations can increasingly be seen as “clusters” oraggregations of businesses, consisting of mainly SMTEs. Moreover, from a supplyperspective, a tourism destination is a spatial unit encompassing a complex system ofinitiatives, plans and actions; and a diversity of actors, roles, and environmental factorsthat interact to determine its performance (Lazzeretti and Petrillo, 2006). The quality ofthis system is of vital importance to destination’s performance. According to Poon (2002)tourists generally perceive and evaluate their visit as an experience, even though thevarious services are offered by different operators. In fact, their visit consists ofa structured series of services and producers, which operate separately. The value-chainof a destination illustrates the number of various actors involved in offering alltourism-related services and products; and it is a structured series of businesses,interactions, resources and knowledge streams involved in the creation and deliveryof value to the end-consumer. This creates the need for integration of supply chainactivities, from determination of consumer needs through product development,production and distribution. It is exactly because of this fragmentation that all actorstaking part in the value-chain should deal with issues such as integration, collaboration,networking of their activities (Poon, 2002). Nowadays tourists desire and expect a seriesof services that allow multiple options and experiences involving many interrelatedactors in a destination. These enterprises offer a series of services: transportation,accommodation, shopping, catering, entertainment, etc. The destination’s value-chain isthus reflected in all its elements. Moreover, Ryan (2002) suggested that it is necessary

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to add value through involving local communities in an equitable process. This approachrequires cooperation and networking between the destination’s key components. Thus,destination marketing involves many stakeholders and a complex product offer(Machlouzarides, 2010; Middleton et al., 2009). It is estimated that destinations are amongthe most difficult entities to manage and market, owing to the complexity ofrelationships between stakeholders (Buhalis, 2005; Pike, 2004). Virtually all DMOs andtourism industry enterprises have recognized their interdependence, and work togetherin some form or other to market tourism to their home countries or regions. Complexityand interdependency among stakeholders have resulted in the creation of many localtourism marketing alliances. These forms of cooperative marketing are particularlyefficient in destination marketing. Effective collaborative marketing efforts require morethan strong leadership and administrative support. A number of internal factorsincluding a shared vision, goal accomplishment, and open communication betweenmembers will contribute to effective collaboration and member satisfaction.Furthermore, there is an increased demand for destination marketing, due to risingcustomer expectations and growing competition between destinations (Middleton et al.,2009; Pike, 2004). Destination marketing partnerships are important because mostdestinations have to compete on a global level. The preponderance of small businesses indestinations and the diversity of objectives in larger organizations is an impediment tothe implementation of strategic destination marketing (Scott et al., 2000). Additionally,destination marketing functions and activities must be supported by a DMO, a structureaiming at: managing the tourism system; improving the competitiveness of the regionaltourism industry; improving destination attractiveness; enhancing destinationperformance; and increasing marketing effectiveness. Scholars stressed the crucialrole that ICTs and knowledge management could play in these partnerships and otherjoint schemes in the field of destination marketing (Bordoni, 2011; Mistilis and Daniele,2005; Pyo et al., 2002; Riege et al., 2002; Scott et al., 2000). From the above discussion, it isobvious that the strategic marketing approach makes the coordinated marketing of allactors involved feasible; and this includes inter-relating the tourist attractions, activities,facilities and services and the various and increasingly fragmented tourist markets.

Strategic marketing approach and electronic marketingTo be successful in the tourism markets, DMOs must be able to interpret the needs oftheir visitors, identify appropriate ways of segmenting the markets in which theycompete, develop and launch the appropriate products and effectively communicatewith potential visitors. These issues are closely interrelated, as they form the basis ofthe marketing interface between the DMO and its business and market environment(Machlouzarides, 2010). Tourism takes place in a complex, dynamic and constantlychanging environment that must be monitored and adapted to by all tourismenterprises. The industry today faces a set of new and increasing challenges arisingfrom changing tourist behaviour and environment conditions (Middleton et al., 2009).These challenges include:

. the reconciliation of the need to consolidate the industry’s service offerings to theconsumer and maintain a market position with the need to remain flexibleenough to respond to changes in its operational environment; and

. to design and properly deliver products and experiences corresponding to theneeds of the various markets.

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These tasks require a strategic marketing approach, as well as more reliableinformation. It should be noted that information is the basis of planning anddecision-making, and is needed in order to develop meaningful and effective strategies.Thus, a marketing information system becomes a valuable tool and an essential supportfor the decision-making process in DMOs (Machlouzarides, 2010). There are severalimportant benefits to undertaking a strategic approach to marketing. King (2002)suggested that DMOs need to get away from promoting the destination to a massmarket, and instead engage the visitor to ensure they effectively promote and providethe experience they want. It is worth stressing that the marketing strategy andpromotion programme of a destination should be comprehensive, particularly reflectingthe close relationship that must be maintained between development and marketing.The marketing strategy must be derived directly from the development strategy and theneed to project a focused and positive image. A key principle applied in formulating themarketing strategy is the maintenance of a close relationship to the developmentstrategy, which emphasizes product improvements and diversification. Scholarssuggested innovative approaches; for instance, Edgell et al. (1999) proposed an approachto strategic marketing in the tourism industry, emphasizing quality, efficiency andeffectiveness in the marketing process. The authors recommend a six-step approach tostrategic marketing planning, including needs analysis, research and analysis, creativeinfusion, strategic positioning, marketing plan development, as well as training,implementation, evaluation and adjustment. It is worth stressing that over the past twodecades, tourism destinations have implemented segmentation, product differentiationand branding strategies in response to their own maturation.

Within this framework, it is estimated that DMOs could benefit from ICTs by adoptinga strategic approach. The rapid advancement of ICTs has created challenges andopportunities for the tourism industry (Hitz et al., 2006). Evidence shows that ICTdevelopments influence nearly every aspect of marketing and the main stages in themarketing mix (Kotler, 2003; Siegel, 2003). The digital marketplace not only brings rapidproliferation of new products and services, but also new ways of marketing. ICTs areslashing marketing cost, removing intermediaries, and redefining marketing relationships(Fesenmaier et al., 2004). The contribution of ICTs to destination marketing activities hasbeen highlighted by various authors (Buhalis, 2005; Hitz et al., 2006). Electronic businessnetworks have the potential to unite local stakeholders within a local/regional network toaddress various problems. The process of destination marketing planning is characterisedby complexity due to the diverse interests of the stakeholders involved. Machlouzarides(2010) investigated the introduction of electronic marketing methods and attempted toidentify the factors that contribute to the process of destination marketing by introducingan integrated marketing model. He suggested the concept of integrated marketing as thesole enabler for DMOs to maximize the effectiveness of their marketing efforts worldwide.

At the regional level, the appropriate approach and use of ICTs could considerablycontribute to various fields: marketing facilitation, regional networking; establishmentof a DMS; SMTE cooperative marketing. These topics are briefly presented hereafter.

Marketing facilitationThe virtual marketplace is an ideal tool for all DMOs that can implement marketingfacilitation strategies, by using web sites (B2B) simultaneously for information,promotion, distribution, relationship marketing and marketing research, offering many

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advantages to DMOs with restricted budgets (WTO, 2001). Facilitation strategies areparticularly valuable for SMTEs that lack the resources to undertake marketingactivities. Doolin et al. (2002, p. 557) note that “commercial web site developmenttypically begins simply and evolves over time with the addition of more functionalityand complexity”. Middleton and Clarke (2001) reported on two examples of B2B websites designed for the tourism industries in Canada and Great Britain, indicating the waythat DMOs develop their facilitation services for the businesses that deliver tourismservices at the destination. These examples illustrate the way that businesses can besupported in marketing terms with online connectivity.

Regional networkingThe tourism industry exists as a network of interconnected subsectors,and consequently, networking is very beneficial in destination marketing. Theinternet allows the creation of virtual enterprises in which ICT provides the linkages –especially networks for micro-businesses (Braun, 2002; Palmer and McCole, 2000).SMTEs would benefit from increased information flow through regional networking, toenhance market visibility, global positioning, and strategic leverage. The developmentof the tourism portal www.purenz.com is a good example of the multilateral alliancesand cooperative effort required in order to market New Zealand as a destination (Bhat,2004). This portal catalogues attractions and activities in New Zealand so that visitorscan directly access and communicate with individual operators. By using suchweb-based marketing methods, Tourism New Zealand has been very effective in makingthe most of a limited promotional budget.

Establish a DMSDestinations have to enhance interconnectivity among suppliers at the destination,interactivity with customers, and DMOs. In this way, e-commerce and e-businessactivities throughout the network will be facilitated. Tourist businesses will be able todynamically adapt to changing consumer demands, offer value-added products, andassist travellers arriving at the destination (WTO, 2001). In several cases, DMSs havebeen used to integrate the entire tourism supply at the destination. Their contribution tostrategic management and marketing is demonstrated by their ability to integrate allstakeholders at destinations and to reach a global market at a fairly affordable cost(Buhalis, 2002; Ritchie and Ritchie, 2002). Increasingly, DMOs provide innovativeinformation that allows potential visitors to plan their itineraries and develop theirindividualised packages online. A number of DMSs are also moving to fully functionalweb sites that can support the entire range of customer purchasing requirements.Tiscover in Austria and Gulliver in Ireland have been leading these developments, andgradually other destinations are following their example (Buhalis, 2005). Hence,these systems establish a flexible and profitable communication bridge and a strategicmanagement tool; and they effectively provide the infostructure at the destination level.

SMTEs cooperative marketingGiven the variety of businesses operating from a particular destination, and thegeographic dispersal of source markets, cooperative marketing arrangements are quitecommon and offer clear advantages. A cooperative B2B portal has the potential toemulate all the benefits of a traditional cooperative and achieve competitive advantage

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through niche marketing and e-commerce procurement (Braun, 2002; WTO, 2001).As with joint marketing schemes and support for new products, a B2B web site offersthe most cost-effective means of communication for members and a DMO web siteoffers the most cost-effective means for communication and distribution to visitors.Scott et al. (2000) argued that destination level cooperation between tourism operatorscan provide mutual benefits, but pointed out that the efficiency of cooperativemarketing depends on effective leadership.

ICTs empower tourism destination marketing as they provide cost-effective tools fordestinations to target appropriate market segments and to develop strategic tools.Bordoni (2011) proposed the outline of a technological infrastructure to promote, developand exploit cultural tourism, taking the territory of Latin Latium as a local system. Thisstudy argued that the information technology infrastructure is an added-value forcultural tourism information, since it has ontology on resources pertaining to culturalassets. This makes it possible to develop applications with specific functions for visitors.ICTs also support the interaction between tourism enterprises and consumers and, as aresult, they re-engineer the entire process of developing, managing and marketingtourism products and destinations. However, it should be recognized that ICTs are not apanacea; they require a restructuring of several management practices to ensure thatDMOs achieve their strategic objectives (Buhalis, 2005). It is estimated that success ofDMOs in the information era is more about change in approach than technology itself(Middleton et al., 2009; Porter, 2001). Marketing in the digital age requires dynamic andinnovative strategies. It has been suggested (Porter, 2001) that it is necessary to adopt astrategic approach to e-marketing as a medium to accomplish organizational objectives.Such an approach allows DMOs to overcome the challenges and exploit theopportunities presented by ICTs. Soteriades et al. (2004) have proposed a methodologicalframework, which would enable tourism businesses to develop and implement theire-marketing activities. This framework reflects a strategic approach in order to integratee-commerce initiative into organizational operations as a medium serving thedestination strategy.

Clustering approachThe tourism industry is continuously faced with a highly competitive environment; andthe global market does not longer involve single businesses, but it rather consists ofgeographical or thematic destinations composed by a network or cluster of tourism-relatedoperations (Lazzeretti and Petrillo, 2006). Research suggests that clusters can be usedas framework providing SMTEs – which do not posses either the resources ororganizational capabilities to survive on their own – with opportunities to operate in acompetitive tourism environment. The most exciting development in tourism in the 1990swas new forms of partnerships which were based on shared participation in the tourismmanagement and marketing processes at destinations. The vital role for proactivepartnership between public and private sectors has been stressed by several authors(Bramwell and Lane, 2000); and for many years, these partnerships were a favouredmethod of addressing the problems faced by SMTEs. More recently, however, attentionhas been increasingly focused on the contribution of clusters/networks as a means ofgenerating positive economies for tourism businesses and regional competitiveness(Lazzeretti and Petrillo, 2006; Poon, 2002; Porter, 1998, 2000). Porter (2000) put forward theidea of “industry cluster” in which he analyzed the industry cluster from the view

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of enterprise competition force. The linkages within the whole tourism industry atdestination level are important because of the nature of overall tourism products which arean amalgam of multiple components supplied by a range of businesses. The more maturethe market the greater the incentive for the individual actors at destinations to seek thebenefits of partnership synergy. A cluster is simply a collection of businesses or industrieswithin a particular region that are interconnected by their products, their markets andother businesses or organizations, such as suppliers, with which they interact.Porter defines clusters as:

[. . .] geographic concentrations of interconnected companies, specialised suppliers, serviceproviders, firms in related industries, and associated institutions (for example, universitiesand trade associations) in particular fields that compete but also co-operate (Porter, 1998,p. 197).

Clustering is a process that enables the participants to exploit their synergies and thecomplementarities between their outputs, involving several benefits. Hence, a cluster isa progressive form of business network, which has strong business objectives focusingon improving sales and profits, and encouraging different ways of coordination andcollaboration within them (European Commission, 2003). In essence, clusters arecharacterised by a variety of participants that transcend organizational boundariesand structures, and involve commitment by cluster members to a set of common goalsand, quite possibly, the sharing of worldviews. Clusters are vital for regionaldevelopment increasing the performance, innovative capacity and local businesses’critical mass (European Commission, 2003; Porter, 2000).

Clusters and networks in tourism industryClusters and networks are said to involve several benefits including economies of scale;share of valuable marketing information; a focus on cooperation and innovation;increased synergies and productivity; resource development and knowledge transferbetween stakeholders; joint marketing; increased competitiveness and sustainablecompetitive advantage. All these create opportunities for synergy and mutualreinforcement to achieve the main aim of a destination that is a rewarding holidayexperience for its visitors (Michael, 2003; Poon, 2002; Saxena, 2005). SMTEs face thechallenges of renewing business models to maintain competitiveness in the globaleconomy, and networking and product innovations are typical responses to thesechallenges (Kokkonen and Tuohino, 2007). Research (Porter, 2000) indicates thatnetwork building is a major new source of competitive advantage and an essentialregional and global management requirement. Recent studies (Hall, 2005; Michael, 2003;Novelli et al., 2006; Saxena, 2005; Tinsley and Lynch, 2007) address in more depth theimplications of clusters and networks formations in the hospitality and tourism sectors.Michael (2003) highlights the importance of the “structure” and the “scale” of clusters,especially when applied to the tourism context. He also focuses on the:

[. . .] creation of economic and social opportunities in small communities through thedevelopment of clusters of complementary firms that can collectively deliver a bundle ofattributes to make up a specialised regional product (Michael, 2003, p. 3).

Hence, clusters are considered as being efficient management and marketing tools fordestinations. These tools, however, must be used in appropriate manner in order tocontribute at achieving sustainable tourism development and related business

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objectives (Kokkonen and Tuohino, 2007; Tinsley and Lynch, 2007). It has been stressedthat, given the inevitable structural diversity of the tourism industry and its dominationby small businesses, there is no logical alternative to the development of localpartnership involving local tourism businesses and other stakeholders. Considering thatthrough a cluster, a group of SMEs can compete globally by cooperating locally;networks and clusters in tourism have experienced a dramatic growth, bringing variousbenefits (Saxena, 2005). The purpose of tourism clusters is to get SMTEs that wouldnormally work in isolation to cooperate and build a successful tourism offering. Thechoice of a cluster approach is justified by the fact that this can be one of the best toolsavailable in fostering tourism development. As it has been already stressed thevalue-chain approach requires cooperation and networking between the keycomponents at destination level. Lemmetyinen and Go (2009) suggested that thedevelopment of tourism business networks might be considered as a system in whichevery participant contribute with its own capabilities. The authors stressed theimportance of a network approach for managing and engaging in active netparticipation, and they suggested that local tourism businesses must develop new keycapabilities in order to face global competition. Hence, the coordination of activities intourism business clusters is identified as a prerequisite for enhancing the value-creationprocess and building the brand-identity process across the cluster. Another study(Kokkonen and Tuohino, 2007) analysed SMTEs innovation processes and networkingdynamics. It was confirmed that innovation in SMTE networks was a synthetic processconsisting of product, process and resource innovation.

Clusters’ activitiesGiven that visitors are seeking a rewarding holiday experience, effort should be putinto identifying the opportunities for synergy and mutual reinforcement. The successof a destination in terms of tourists’ satisfaction is a function of several interdependentcomponents. Therefore, activities of clusters are implemented into two main areas:management and marketing (Table I). It should be noted that destination is consideredbeing the “appropriate spatial unit” for cluster formation and activation, both inmanagement and marketing areas.

Tourism clusters’ contributionThe valuable contribution of tourism clusters has been investigated and stressed inseveral contexts. First, in regional and virtual networking; the tourism industry exists as anetwork of interconnected subsectors, and consequently, networking is very beneficial indestination marketing (Soteriades and Avgeli, 2007). ICTs support the effectiveness ofbusiness networks and encourage closer collaboration. Destinations emerge as majorbeneficiaries of the ICTs, as they can take advantage of new strategic tools for planning,management and marketing through coordination of local products (Buhalis, 2005). Theinternet allows the creation of virtual enterprises in which ICTs provide the linkages,especially networks for micro-businesses. It is suggested that SMTEs benefit throughregional networking to enhance market visibility, global positioning, and strategicleverage (Hitz et al., 2006). Clusters are fundamental not only to leverage opportunities forpromoting and marketing of local industry, but also in creating the prerequisites forregional product innovation. Second, literature acknowledged the importance of buildingrelationships with other actors within the context of event tourism (Getz et al., 2007)

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and convention tourism (Bernini, 2009). Wine tourism is another context that has beencited as an example of successful development of clusters (Hall, 2005; Soteriades et al.,2009). According to Getz and Brown (2006) collaboration is needed to facilitate the winetourism experience, involving DMOs, the wine and tourism industries, cultural and otherrecreational suppliers. The “Wine Roads of Northern Greece” – a thematic andgeographical cluster – created theme products of wine tourism. These themed productsinterlink wineries and vineyard domains to tourism attractions, as well as totourism-related business creating an added-value for professionals and renderingdestination more attractive to potential visitors (Soteriades et al., 2009). A commercialcollaboration is one of the most obvious outputs of cluster, since operations are encouragedto operate in a progressive form of business network in order to work for their owninterests (improved sales and profits) and for the visitors’ benefits (improved experience).Finally, a cluster in spa and health tourism was investigated by Novelli et al. (2006). TheUK “Healthy Lifestyle Tourism Cluster” experience was employed to analyse the processand the implication of network and cluster development in tourism. Their study suggestedthat consideration should be given to the process rather than to the outcomes. However,the development of clusters should not be seen as a simple and spontaneous processdue to the nature of businesses involved, but as a very complex process linked to strongstakeholder collaboration. Moreover, Mackellar (2006) suggested that:

. in a network having stable, long-term, and trustworthy relationships theoperational uncertainty decreases and, consequently, the internal efficiencyincrease; and

. a network operating without collaboration, i.e. not working towards mutuallydesirable ends, it results in internal inefficiency.

The benefits resulting from clustering/networking are: introduction of innovativeprocedures in promoting tourism business; experience exchange and joint

Field Activities and actions

Management Clustering contributes to:strengthen backward economic linkages to reduce leakagestrengthen backward economic linkages to reduce leakageenhance collaborationdevelop local understanding and knowledge of tourismplan knowledge management activitiesshare information and expertiseinnovate andmonitor the results achieved and adapt accordingly the management techniques

Marketing All variables marketing mix and tools would be positively influenced by the synergycreated through coordinating them within one management team:

product development (value-chain and innovation)market and customer researchmarket segmentationbrandingpromotion and information servicescommunication program andrelationship marketing

Table I.Activities of clusters

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marketing actions; knowledge transfer through expertise and resources exchange;skills enhancement (i.e. customer services practice); establishing inter-linkagesbetween local produce and tourism; synergies; and efficient marketing; and branding.It is worth stressing that a common branding is beneficial to better market positioning,joint marketing and promotional activities, efficient distribution (through a centraldistribution system), and operational standards.

Based on the above analysis and discussion, this study could suggest the followingconceptual framework (Figure 1) encompassing all issues and approaches analysedand contributing to improve effectiveness of destination marketing.

It is worth stressing that a cluster is a complicated organic system fundamental tocooperating and networking between the destination’s key components(Soteriades et al., 2009). The critical fields on which effects and benefits have to beadequately managed are: innovation capacity, competition ability, attractiveness ofinvestments, and resources’ improvement.

Conclusions: implications and recommendationsTourism marketing represents the systematic, coherent and consistent effort of DMOs todevelop, formulate, and implement their strategies in order to achieve their main goal:making their tourism offering an unforgettable experience for their visitors. The study has

Figure 1.Destination marketingeffectiveness: a conceptualframework

SPATIAL UNIT:TOURISM

DESTINATIONProvider of Experiences

AIMS:- Achieve sustainable development- Provide rewarding experiences to visitors

MANAGEMENT &MARKETING

Appropriate approaches toachieve aims.

- Development plan- Development strategy- Tourism strategy- Regional tourism cooperation

APPROACHESbeneficial to Coordination,Partnership and Synergy.

- Value-Chain- Strategic Management & Marketing- Electronic Marketing- Clustering / Networking

SUCCESS FACTORSfor Effectiveness and

Efficiency

- Influence factors of tourism cluster- Formation mechanisms- Dynamic characteristics- Managing effects and benefits on critical fields.

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shown that value-chain, strategic marketing, e-marketing and clustering approachescould have an important contribution in improving the effectiveness of destinationmarketing. By developing meaningful and productive partnerships/alliances, andapproaching and using appropriately electronic tools several benefits should be resultedand destinations would attain their aims. These approaches are very beneficial, takingseriously into account all determining and influencing factors. It is estimated that factorswhich are considered as influencing the effectiveness and efficiency of e-marketing andclusters at destination level are as follows. A clear partnership structure (relationshipsand responsibilities of cluster members) is required and a common platform of interestsshould be developed. Participation of both parties/sectors is essential; the best route toeffective destination management and marketing lies somewhere between the resourceorientation of the public sector and the market orientation of the private sector. Thecharacteristics of partners, in terms of their expertise, professionalism and networkingability have important ramifications for the cohesiveness of the cluster and thedevelopment of shared views and understandings of problems. Shared commitment,collective action, and continuity must be strong features of the alliance. There is a need forproductive dialogue between the community and local industry. Cluster’s geographicalqualities have significant implications for collaboration, harmony, leadership and agendasetting in the partnership. It is suggested that a theme (e.g. wine or other distinct localproduce, experience quality) may be the driving force to attain improved outcomes. Thus,building up a portfolio of theme experiences aiming at creating value-added for visitors isan efficient strategy. There is also need for efficient management of local clusters, as wellas for a customer focus bounded by knowledge management and driven by innovationand personal service.

It is suggested that e-marketing and clustering are tools providing with opportunitiesfor energy, innovation, and clustering activities should be a prerequisite for destinationmarketing. If these tools are appropriately implemented, taking into account all theabove-mentioned factors, they would have a significant contribution into destinationcompetitiveness and marketing effectiveness. These business alliances could operatemore efficiently at local destination level, having a comprehensive approach: considerthe local economic development components (Hall, 2005), e.g. maximum of localstakeholders must be connected up (i.e. local marketing and management clusters),attract external resources (i.e. finance, skills and technology) and reach the customersoutside the region (i.e. use of ICTs).

In a strategic approach, tourism marketing has taken on new dimensions, whichincreasingly reflect the perspective of visitors and those hosting them. It is highlyrecommended to adopt an integrated and strategic approach to e-marketing as a mediumto accomplish destination’s objectives. This approach is indispensable in order tointegrate e-marketing strategy, plans and activities into organizational operations asa medium serving the destination strategy. Moreover, it enhances a much-improvedresearch effort and research-based market segmentation which are needed to providemanagement information for decision-making in order to achieve desirable marketingoutcomes. It is also imperative to adopt strategic approach to clustering in order toconsistently ensure higher standards of product delivery (experience) at destinationsand to appeal to ever more demanding visitors. This approach effectively conserves andenhances the special intrinsic qualities and character of “place” at a destination, both forits own sake and as a core element of its attractiveness to visitors.

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Bearing in mind that strategic marketing is not a panacea or a prescription forsuccess, it is worth stressing that the effectiveness and efficiency of this approachinvolves/requires:

. relevant and accurate information;

. appropriate management support; and

. an evaluation system in order to ensure that marketing objectives, strategies andtools are optimally adapted to the dynamic environment.

Thus, destination marketing becomes increasingly efficient. The main aim is “Build-upa partnership at local level aiming at attaining a competitive advantage in a globalmarket” (in other words, “act locally, compete globally”), the challenge remains tobe adapted in a global and over-demanding market. This paper, by no meansexhaustive, has attempted to consider the potential contribution of four approaches inpromoting tourism destinations. These issues should be addressed and appropriateapproaches adopted and implemented, and a series of determining factors in criticalareas must be carefully considered by DMOs. At this end, a conceptual framework hasbeen proposed, allowing at incorporate all approaches and factors contributing torender destination marketing activities more efficient and effective.

References

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About the authorMarios Soteriades is a Professor in the Tourism Business Management Department,Technological Educational Institute of Crete, Greece. He is also tutor at the Hellenic OpenUniversity, post-graduate course “Tourism Business Management”. He received his MSc inHospitality Management and his PhD in Tourism Management from the University of NiceSophia-Antipolis, Nice, France. He has undertaken a variety of research and consultancy projectsfor both public and private organisations of the tourism and travel industry. He is the author ofsix books, three distance learning manuals and three e-learning materials on aspects of tourismand hospitality management and marketing. His research and writing interests include tourismdestination and business management and marketing. He has published journal articles andconference papers in these fields. Marios Soteriades can be contacted at: [email protected]

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