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The Tourism System 6th edition

Kendall Hunt Publishing Company

Chapter 8
Tourism Promotion

Chapter 8

Tourism Promotion

2013

Tourism Australia Copyright

Contents
Reviews the process of promotion or how tourism
organizations communicate with potential visitors.
Discusses the ways that organizations attempt to
get their messages across to customers and to form
images in people's minds.

2013

Robert C Mill and Alastair M Morrison

Tourism Australia Copyright

2013 1

The Tourism System 6th edition


Kendall Hunt Publishing Company

Chapter 8
Tourism Promotion

Purpose

Having learned about the general principles of


communications and promotion, students will be able
to describe a program for implementing a promotion
in a tourism destination or company. They will also be
able to explain the roles of destination marketing
organizations (DMOs) at all levels.
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Learning Objective 1: Promotional Effectiveness and


Visitor Buying Process Stages
Identify and describe which promotional methods are
most effective during the various stages of the visitors
buying process.

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

Goals and Types of Promotions


The ultimate goal of promotion is behavior
modification.
Three types of promotions:

Informative promotions
Persuasive promotions
Reminder promotions

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Promotion and the Visitors Buying Process

Informative promotions are most effective at the


earlier buying process stages (attention and
comprehension).
Persuasive promotions work better at intermediate
buying process stages (attitudes, intention, and
purchase).
Reminder promotions are most effective after the first
visit or use.
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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

Learning Objective 2: Informative, Persuasive, and


Reminder Promotions
Distinguish between informative promotion,
persuasive promotion, and reminder messages, and
identify when the use of these techniques is most
appropriate.

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Promotions and the Visitors Buying Process


Informative Promotions
Informative promotions: Communicate data or ideas
about the key features of destinations and other
tourism facilities or services. They are more important
during the first (introduction) stage of the product life
cycle (PLC) when a new destination or business is
entering a market.

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

Promotions and the Visitors Buying Process


Persuasive Promotions

Persuasive promotions: Aim at getting visitors to


select particular destination or company or brand
over those of competitors, and to actually make a
booking or purchase. They are more likely to be used
during the growth and maturity stages of the PLC.

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Promotions and the Visitors Buying Process


Reminder Promotions
Reminder promotions: Jog visitors memories and
help keep the tourism destination or organization in
the public eye. Are more useful in the growth and
maturity stages of the PLC. Also, reminder promotions
are more effective after the first visit to the destination
or first use of the organizations services. Reminder
promotions help stimulate repeat visits or purchases.
2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

Learning Objective 3: Elements of the Communication


Process
List and describe the main elements in the
communication process.

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The Communications Process

SENDER (Destination/Organization)

TARGET MARKET (Audience)


Promotional objectives
Promotional budget
Message idea
Message format
Promotional mix elements
Promotional media

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

The Communications Process

1.

TARGET MARKET (Receivers)


Response

Control
Evaluation

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Learning Objective 4: Promotional Mix Elements


List and describe the elements of the promotional mix.

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Chapter 8
Tourism Promotion

Elements of the Promotional Mix


Advertising
Personal selling
Sales promotion
Merchandising
Public relations and publicity
plus:
Internet marketing (or sometimes called digital
marketing)
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Elements of the Promotional Mix


Integrated

Marketing

Communications

Advertising

Public
Relations and
Publicity

Internet
Marketing Social Media
Mobile (ICT)

Sales

Sales
Promotion

Merchandising

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

Learning Objective 5: Implementing a Promotional


Program
Identify and explain the procedures involved in
implementing a promotional program.

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Procedures in Implementing a Promotional Program

1.
2.
3.
4.
5.
6.
7.
8.

Select the target market


Develop promotional objectives
Establish the promotional budget
Determine the message idea
Select the message format
Select promotional mix elements
Select promotional media
Measure and evaluate promotional effectiveness

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

1. Select the Target Market


Use secondary and primary research to pinpoint and
determine the target markets characteristics (e.g.,
demographics and geographic origins).
The target market must be accessible through one or
more promotional mix elements or specific type of
media.
The target market must include people with similar
characteristics who are the best prospects for future
business.

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1. Select the Target Market


Visitors (consumer
promotions)

Online and Traditional


Travel Trade
Intermediaries (trade
promotions)

Promotional
Target Groups

Media and Press

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Local Community

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Chapter 8
Tourism Promotion

2. Develop Promotional Objectives


Objectives must be target-market specific, stated as a
desired result or outcome, measurable, realistically
attainable, and have a deadline for achievement.
Consider target markets buying process stage and
awareness of destination or organization.

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3. Establish the Promotional Budget

Budget is based on promotional objectives using


objective-and-task budget method, which is a zerobased approach.
But must consider what the organization has
available to spend (affordable budgeting method).
Cooperative promotions (partnerships) should be
considered to expand budget amounts.

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

4. Determine the Message Idea


Pinpoint target markets perceptions (images),
needs, wants, motives, and expectations.
Determine what to communicate in the message
(message idea).
Support the positioning approach for the destination
or organization.
Pre-test message idea or ideas.

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5. Select the Message Format

Analogy, association, symbolism


Comparisons
Fear
Honest-twist
Slice of life
Testimonials
Trick photography or exaggerated situations

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Chapter 8
Tourism Promotion

6. Select Promotional Mix Elements


Advertising: Any paid form of non-personal
presentation of ideas, goods, or services by an
identified sponsor.

Personal selling: Oral conversations, either by


telephone or fact to face, between salespeople and
prospective customers.

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6. Select Promotional Mix Elements


Sales promotion: Approaches other than personal
selling, advertising, and public relations and publicity
where customers are given short-term inducement to
make an immediate purchase or booking, or to
communicate with potential visitors or travel trade
intermediaries.

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

6. Select Promotional Mix Elements


Merchandising: Materials used in-house to stimulate
sales including brochures in display racks, signs,
posters, photographs, displays, tent cards, and other
point-of-sale promotional items..

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6. Select Promotional Mix Elements


Public relations and publicity: All the activities that
maintain or enhance relationships with other
organizations and individuals. Publicity is one public
relations technique that involves non-paid
communication of information about a destinations
or organizations services.

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

6. Select Promotional Mix Elements


Internet marketing: Using the web, social network
services (SNSs), e-mail, etc. to communicate with
potential visitors.

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7. Select Promotional Media

Cost per contact


Cost per inquiry (CPI)
Cost per thousand (CPM)
Geographic selectivity
Life span
Market selectivity
Noise level

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

7. Select Promotional Media


Pass-along rate
Reach
Source credibility
Timing flexibility
Total cost
Visual quality

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8. Measure and Evaluate Promotional Effectiveness

Measure changes in awareness levels or perceptions,


responses or conversion rates.
Advertising tracking studies
Cost-comparison method
Concept testing
Conversion studies
Inquiry and lead tracking
Pre-testing and post-testing
Travel or trade show audits

2013

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Tourism Australia Copyright

2013 16

The Tourism System 6th edition


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Chapter 8
Tourism Promotion

Learning Objective 6: Roles and Activities of National


Tourist Offices
Describe the roles and activities of national tourist
offices (NTOs) related to promotion.

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National Tourist Offices


An NTO is the organization officially responsible for
the marketing and development of tourism for a
country.
Examples include the Canadian Tourism
Commission, China National Tourism
Administration, Embratur, Singapore Tourism Board,
South African Tourism, Tourism Australia, Tourism
Ireland, and Tourism New Zealand, and VisitBritain.
2013

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Tourism Australia Copyright

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The Tourism System 6th edition


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Chapter 8
Tourism Promotion

Roles of National Tourist Offices

FOCUS ON INBOUND INTERNATIONAL TOURISM


PROMOTION
Image creation and enhancement
Literature distribution and fulfillment
Marketing research and database development
Package and tour development
Partnership development
Consumer marketing and promotion
Travel trade marketing and promotion

2013

Tourism Australia Copyright

Learning Objective 7: Promotional Programs of State,


Provincial, Territorial, Regional, and Local Tourist
Offices
Describe the promotional programs operated by
agencies at the state, provincial, territorial, regional,
and local levels.

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

State, Provincial, Territorial Tourism Organizations


An STO/PTO/TTO is the organization officially
responsible for the marketing and development of
tourism for a state, province, or territory.
Examples include Tourism British Columbia,
Tourism New South Wales, Anhui Provincial Tourism
Administration (China), Free State Tourism
Authority (South Africa), Visit Florida, etc.

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Regional Tourism Organizations

Multi-country level:
Caribbean Tourism Organization, European Travel
Commission, Pacific Asia Travel Association, and
Scandinavia Tourist Boards
Within-country level:
Yarra Valley Regional Tourism Association
(Australia), Tourism Partnership of Niagara
(Canada), Christchurch Canterbury (NZ), and Travel
South USA
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Chapter 8
Tourism Promotion

Local Tourism Organizations


U.S. has developed a network of convention and
visitor bureaus (CVBs) at the county and city levels,
many funded through room taxes.
Traditional CVB role to attract MICE (meetings,
incentives, conventions, and exhibitions). Recently,
CVBs placing more emphasis on group and
individual travelers.
In other countries, LTOs tend to receive more direct
government funding (e.g., London Tourist
Board/Visit London, England).
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State, Provincial, Territorial, Regional, and Local Programs

FOCUS MAINLY ON DOMESTIC TRAVEL PROMOTION


1. Image creation and enhancement
2. Literature distribution/fulfillment
3. Marketing research and database development
4. Package and tour development
5. Partnership development
6. Consumer marketing and promotion
7. Travel trade marketing and promotion

2013

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Tourism Australia Copyright

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Chapter 8
Tourism Promotion

THE TOURISM SYSTEM


Chapter 8

Chapter
Summary Highlights
Chapter Summary Highlights
Three types of promotion are informative, persuasive, and
reminder.
The effectiveness of these three types varies by the visitors
buying process stage and the stage in the product life cycle (PLC).
The promotional mix elements are advertising, personal selling,
sales promotion, merchandising, and public relations and
publicity. Internet marketing now adds further impact to these
five traditional promotional elements.
National tourist offices focus mainly on inbound tourism.
State, provincial, territorial, regional, and local tourist offices
focus mainly on domestic tourism.
2013

Robert C Mill and Alastair M Morrison

Tourism Australia Copyright

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