General Overview

Marketing and promotion are essentially figuring out what message(s) you need to sell a product and how to communicate to potential buyers. To use the famous quote from the 1989 movie Field of Dreams “if you build it they will come” is NOT how tourism works, marketing and promoting is essential to be successful. But, marketing and promoting tourism is very different than other tangible products and services. Destination CVBs are marketing and promoting an entire destination with numerous “products” and services.

Tourism Marketing

The American Marketing Association (2022) indicates “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (https://www.ama.org/the-definition-of-marketing-what-is-marketing/). There are common elements of marketing used for all products, but tourism marketing is unique. In marketing in general there are the common 4-Ps:

• Product – Whatever is being sold (in tourism it is the experience).
• Price – Cost of the product (in tourism it includes everything you purchase for the experience).
• Place – Where you purchase the product. Also known as how the product is distributed.
• Promotion – How the company or organization communicates the product to the consumer(s).

Marketing tourism is very unique compared to other products. Shoemaker and Shaw (2008) provide four primary ways marketing tourism is different than other products:

• Intangibility – Tourism is an experience, not a physical product (e.g., computer). Tourists will have memories of the experience they may share with others (e.g., family, friends).
• Perishability – The supplier cannot stockpile the product and resell it. For example, an empty seat on an airplane cannot be resold on a different flight. Each plane has a limited number of seats. An airline cannot add a seat unsold on the first plane to the second plane.
• Heterogeneity – The experience is not likely to be the same for consumers. Unlike physical products (e.g., computer), tourism experiences cannot be mass produced.
• Inseparability of production and consumption – Tourism experiences are consumed as they are produced. Other products can be produced in one city, state, etc. and sold in another. In tourism, the consumer (tourist) has to go to the product (i.e., destination). With tangible goods they can be purchased in a store and taken home or shipped to the consumer.

For tourism marketing there are an additional 4-Ps (Morrison et al., 2018):

• Packaging – A way to purchase some, many, all of the tourism product together (often through intermediaries such as Travelocity, Expedia, etc.).
• Programming – Ability of the destination to change themes, delivery of the product, and when the programs are available (e.g., destinations may have a special program around certain holidays).
• People – Tourism focuses on people. Destinations strive to provide a good experience and people are needed who can provide the experience. Although technology is changing some aspects of tourism, people will likely always be required.
• Partnerships – When businesses, organizations, etc. work together or collaborate deliver the tourism experience.

Marketing Orientation

Marketing orientation is essentially a guide for marketers. Morrison et al. (2018) suggest the following orientations

• Production – Focuses on what the product is and how it might fulfill needs and expectations of tourists.
• Sales – Focuses on selling more. So, increasing the volume of travelers, getting day-trip tourists to stay overnight are two examples of selling more.
• Marketing – First the needs and expectations of tourists are identified. Then, marketing tries to find a way to fulfill those needs and expectations.
• Societal – This orientation considers the society and local community and finds sustainable and/or responsible ways to market. This is a perspective or orientation that can minimize the negative social/cultural impacts.

In addition and similar to other topics covered (e.g., planning, development), marketing needs to be adaptable. Remember, tourism is season in many destinations, which might mean different target markets, different programming and events, and other issues to consider. As discussed from several perspectives, marketing needs to be adaptable because of challenges such as the economy, natural disasters, and other challenges.

Market Segmentation

Market segmentation in tourism is a way to group tourists according to characteristics they have in common since they are not exactly alike (Morrison, 2010). Some of the simple ways to segment the tourism market includes by demographics (e.g., age, household income, education, marital status). However, by combining such variables and looking at life cycle tourism marketers can be much more targeted and strategic. Another important consideration is geographic, or where actual and/or potential tourists reside. Another option is purpose of trip (e.g., business or leisure; group, family, individual). Behaviors of travelers can also be used to segment tourists. For example, marketers might segment based on travelers’ motivation or benefit they seek from taking a leisure trip/vacation. Psychographics (e.g., attitudes, interests, opinions) is a valuable segmentation tool which Strategic Business Insights (2009-2023) uses to group travelers into lifestyles (there is a survey you can complete to find out what type of VALS traveler you are) .

An example of segmenting a group of travelers is Shoemaker’s (1989) study that segments based on senior travelers reasons for traveling using cluster analysis, which is a statistical technique to segment a sample into groups based on a set of survey questions (Brochado, 2021). Shoemaker (1989) segmented based on reasons seniors traveled, including rest/relaxation, festivals/special events, experience new things, visit new places, escape daily routine, intellectual, and a number of other items. This study identified that there are sub-markets of the broader senior travel market. For example, Shoemaker (1989) identified three clusters: “Family Travelers” who enjoy spending time with immediate family; “Active Resters” travel to escape daily routine, intellectual enrichment such as visit historical sights, and participate in physical activities; and “Older Set” whose main differentiating characteristics is they are older then the other two groups and enjoy staying at all inclusive resorts, and participating in activities such as visiting historical sites.

When selecting target markets there are several criteria to consider according to Morrison et al. (2018). First, the need to be measurable, meaning you can estimate how many exist in the target market. This is essential because you want your broad or mass marketing to reach a sizable number of potential visitors. Next, the target market(s) need to be accessible, meaning you can reach them with your message. The next criteria is they need to substantial enough to justify the time and money that will be spent. Fourth, the target market(s) need to be defensible or make sense that they are likely to visit. The defensible criteria includes recognizing if they are a separate target market than other target markets or are they enough alike another that they are not truly distinct. Durability of a target market implies they will continue to exist over time and not just be a short-term or one occurrence. The destination also needs to ensure they can compete with other destinations for the target market. Homogeneity of the target market is the criteria that there are enough similarities with the target market. Finally, each target market needs to be compatible with the other target markets, as well or residents or locals to minimize negative social/cultural impacts.

Morrison et al. (2018) also identifies concerns the destination needs to consider when identifying target markets. First, do they have enough income to travel now and in the future and will they potentially spend enough money at the destination to make they a worthwhile target market. The destination also needs to be confident they can be competitive with other destinations marketing to the same or similar target markets. Another important concern is to ensure the investment needed to offer the product(s)/service(s) to attract the target market and to market/promote to them is worthwhile. Finally, does the destination have sufficient financial and other services to design and promote at necessary levels.

Destinations should also consider internal marketing within the destination. This includes to members of a CVB and/or other businesses within the destination system. Other internal stakeholders should be included such as politicians and community leaders, service providers (e.g., police, fire, EMT/healthcare) who are included in the important infrastructure component of a destination system. External marketing should not only done for visitors, but also intermediaries, suppliers, media, and other potential groups who can help with a destination’s efforts.

Branding and Positioning

Branding is applied quite a bit for products and services. However, in tourism it is more complex to brand a destination. Until relatively recently, CVBs would use the full phrase and/or acronym in the name of the organization (e.g., Greater Houston Convention and Visitors Bureau). These long and often similar names for the organizations could make it difficult to differentiate from other destinations. Many CVBs began developing shorter, more attractive names such as Visit Houston and have various logos and other branding to differentiate themselves from competitors.

A key element of branding, logos “can facilitate many DMO marketing activities to establish brand image and identity, particularly relevant before the actual visitor experience” (Blain et al., 2005). Branding is critical for developing a destination’s image because of increased competition among destinations (Jetter & Chen, 2011). Branding and brand identity help a destination position themselves or establish an image as a travel destination.

All brands have a value generated by the name, icon, or other identification, which represent brand equity. Williams (2021) the brand equity concept is complex. For tourism with so many stakeholders involved it is way more complex than single brands. So, destinations need to figure out what represents the overall  tourism product of their destination. Kim and Lee (2018) found that characteristics such as price and work of mouth influence perceptions of perceived quality, brand awareness and image, which then help a destination’s brand equity.

Marketing Plan

Within a destination’s marketing plan should be both strategic and tactical elements (Morrison et al., 2018). Strategic activities are more related to long-term goals, which might include developing relationships and or partnerships with and between tourism related organizations (e.g., CVB, sports commission, hotel association, etc.). These types of strategies help a destination be cohesive and develop long-term value, which can lead to repeat visitation. The relationships and partnerships can help a destination manage the impacts (i.e., economic, environmental, social) as well. The tactical elements are shorter term, but help the destination with long-term goals. Examples include public relations campaigns, social media efforts, and the foci of convention and meeting sales, which can include booking short-term meetings to fill in the gaps for the destination around larger conventions, trade shows, and other large events that are booked and confirmed much further in advance.

The marketing planning process as explained by Morrison et al. (2018) should address the following questions:

• Where are we now?
  • Use situation and or SWOT analysis (i.e., strengths, weaknesses, opportunities, threats). This analysis(es) should consider who current visitors are, what the destination offers. To reflect how all of the modules for this class interact, a destination might identify an opportunity to develop a new attraction. Also consider environmental scanning, which assesses legal (e.g., travel restrictions), technological (e.g., smartphones), accessibility to and within the destination, economic, and macro-level competition for consumers discretionary income.
  • Evaluate the entire tourism system components (i.e., attractions, facilities, infrastructure, transportation, hospitality)
  • Assess visitor market, including current target markets, as well as potential target markets.
  • Compare and contrast the destination with competitor destinations, which can include but not limited to their image and their marketing plan.
  • Through out all this process strengths and weaknesses should be clearly identified. Through weaknesses a destination might identify opportunities or things that can be done better.
• Where would we like to be?
  • Vision and mission statement. The vision statement is very much future oriented. The mission statement is essentially what the organization does and its’ values.
  • Establish marketing goals to get to where the destination would like to be, which might include number of visitors, economic impact, visitor satisfaction, and/or various other possible ways to measure if the destination gets there. Remember, most or all CVBs are at least partially funded by the hotel occupancy tax, so hotel tax might be a goal to set.
  • Using the segmentation ideas and criteria (e.g., measurable, accessible, etc.) above, the destination needs to identify target markets.
  • Create positioning approach which will hopefully portray the desired destination image. This could include one of the following:
    • Create – if destination does not have a positioning approach.
    • Change – if positioning has not resulted in the desired image the approach likely needs to be changed.
    • Reinforce – perhaps target markets have forgotten or the image they have of the destination is not as strong as it used to be. In this case finding a way to reinforce or remind visitors is needed.
  • Establish objectives that the destination can measure, including within target markets. These should be very specific and result from all the analysis performed throughout the marketing planning process.
• How do we get there?
  • By implementing the marketing plan. Typically have sub-marketing plans for each target market because of various potential differences between them. The differences would include the marketing mix or 4-Ps of marketing (i.e., product, place, price, promotion).
• How do we make sure we get there?
  • Monitor along the way so the destination can adapt if needed. Remember the objectives are stepping stones toward the longer term goals. So, if objectives are not being achieved something(s) likely need to be adapted.
• How do we know if we got there?
  • Research and statistics. It depends on what the measurable goals (and objectives) are as to how to measure.

Tourism Promotion

Promotion is essentially communicating or making consumers aware of a product, which can be verbal, written, and/or visual. Walker and Walker (2018) provide sequential steps of how promotion affects the buying process labeling each with one word descriptions:

• Provider creates awareness of the product to consumers (awareness).
• Consumer needs to become aware of how the product will fulfill or affect their needs (knowledge)
• Hopefully this knowledge creates a positive disposition for the product (liking).
• Hopefully the positive disposition lead to the consumer preferring the product over those of the competitors (preference).
• Finally, this should increase the probability of the consumer purchasing the product (probability).

Remember, the tourism product is very different and more complex than other products. One, the product is intangible and two it is derived of many aspects (i.e., attractions, accommodations, built facilities, transportation, infrastructure, hospitality).

Since promotion is a communication tool, there is a sender and a receiver. The sender for destinations as a whole are typically the CVB or DMO and the receivers are potential travelers/consumers. Messages/promotions can be sent through a variety of channels (e.g., billboards, television, newspaper, magazines, internet, email newsletters, etc.). However, not all promotions reach the intended recipient(s). Morrison et al. (2018) explains the following issues related to promotions and reaching the intended recipient(s):

• Barriers – ways consumers can block messages, such as Do Not Call Registry and recording television shows to be able to fast forward through commercials.
• Filters – deleting emails from companies and people not known to the recipient.
• Noise – any distraction keeping the recipient(s) from the promotional message.
• Permission – can be explicitly or implicitly. An example of explicitly is subscribing to a CVB e-newsletter. An example of implicitly is the organization pays for a message, such as on Facebook or a television commercial.

Morrison et al. (2018) also suggest even if the intended recipient(s) receives the promotion, it does not mean they hear, understand, and/or believe the message. It is important to send a message that people can understand and is realistic or believable. Ideally, the sender of messages will be able to receive feedback from the recipient(s). For example, number of recipients who click a link to get more information, number of sales of the product, a follow up survey to find out what the recipient(s) thought of the promotion to name a few.

Promotion Goals and Types

There might be various goals a CVB or DMO has for their promotions. One very obvious goal is to get consumers to purchase or book a trip. Other potential goals would be to entice travelers to upgrade to more expensive packages, stay longer, convert day visitors to overnight tourists, and be repeat visitors. In order to potentially achieve these goals it is important to understand the visitor buying process in order to establish goals and to influence purchasing behaviors. Inherently, consumers need information to consider any purchase, including travel. The general consumer decision-making process according to The Sales Optimization Company. (2009-2022) includes the following stages:

1. Awareness – consumer becomes aware they need a product, in the case of leisure tourism it could be a weekend getaway, family vacation, a day trip to a community event or other activity in another destination than where they reside, and many other possibilities.
2. Research – the consumer will search for information about possible options. A destination should have their promotional materials in multiple sources to be as visible as possible.
3. Consideration – the consumer through the research stage may have numerous possibilities to consider.
4. Conversion – the purchase decision is made. This could include deciding not the take the trip, perhaps for various reasons (e.g., do not have enough money for the desired trip).
5. Re-purchase – consideration if the trip or product fulfilled their need and would buy again, or take a trip to the same destination again.

Morrison et al. (2018) suggest thee are three goals of promotions. You might also consider these strategies to try to modify consumers’ behaviors. The first is inform, which is relevant for the awareness and research stages of the consumer decision-making process. Next is persuade, which is relevant to the consideration and conversion stages of the consumer decision-making process. Last, remind is a strategy to use as consumers contemplate the potential re-purchase stage of the consumer decision-making process.

Promotional Tools

The ‘place’ component of the 4-Ps of marketing provide what Morrison et al. (2018) refer to as ‘the promotional toolbox’. Many references (e.g., Morrison, et al., 2018; Walker & Walker, 2018) regarding promotional tools highlight and explain the following

• Advertising -primary source for promoting to the mass market for leisure travel (e.g., television, magazines, newspapers, billboards, internet (banner ads).
• Personal selling – primarily used to promote a destination for the meetings and events sector where a small number of people decide on the destination and venue, but the event brings many people.
• Merchandising – travelers may purchase souvenirs when they travel. This is a good promotional tool where the traveler pays for it and is a reminder of the trip later one. For example, someone might use a coffee cup from a trip and be reminded of their experience. If it was a good experience it might influence them to consider visiting again. Another example, someone might wear a shirt or hat they purchase from a destination. A friend or even someone they do not know might ask them about their experience. This is free word-of-mouth promotion that a business or organization benefited financially since the tourist paid for it.
• Digital marketing – websites, social media, e-mail, e-newsletters.
• Sales promotion – a form of promotion that is typically separate from the broader advertising that takes place pretty much all of the time. Sales promotion offers an extra incentive to purchase and is more likely for a limited time.
• Public relations – this promotional tool is important because they deal with the media. Think about when large events have been announced for a city, like the Super Bowl or FIFA World Cup. The local news channels might interview someone from the planning committee. A public relations person would handle arranging that and any inquiry from the media.

Planning Promotions

Morrison et al. (2018) suggest there is a “big P” and “little p(s)”. The big P is the overarching promotional plan for the organization, which is derived of the little ps. Examples of little ps will be the convention sales team’s plan, the leisure sales plan, sporting events, any other categories a destination provides or focuses on. Convention sales might be trying to promote a period of time where they currently do not have conventions or meetings and need to fill in the gap. Sporting events might focus on a specific sport.

Promotions Planning Process

Tourism promotions planning process asks the same questions as marketing planning process. Essentially at this stage, you are implementing the marketing plan:

• Where are we now? – this question is guided by identifying target markets and the promotional tools a destination will use to promote to specific target markets. The target markets should include not only different visitor groups, but also travel trade intermediaries, local community, and media/press.
• Where would we like to be? – this question is used to identify or establish measurable objectives (e.g., number of people to click on the promotion icon, number of overnight stays generated). These objectives are specific to the little ps and include goals of the promotion (i.e., inform, persuade, remind).
• How do we get there? – this question entails specific promotion activities and objectives that are measurable. Examples of specific promotion activities could include using banner ads to promote a summer campaign to drive overnight stays.
  • This question also identifies the budget for the specific promotion and potential partnerships to pool resources (e.g., funding, talent and knowledge of people).
  • This question also helps determine the message idea, which may require research, focus groups, and other forms if feedback to assess consumers’ interest and refine the promotion.
  • The message format needs to be created to ensure it is understandable, distinct from competitors, and believable (i.e., destination really can provide what it is promoting).
  • The promotional mix (e.g., personal selling, advertising, etc.) needs to specific to the target market, which should be based on research or good information of the best way(s) to reach the intended target market. This can developed through the development of target markets. For example, if geography is a variable the destination puts promotions in those geographical areas. Destinations also need to consider all of the other variables discussed when identifying target markets.
    • It is also very important to identify and consider available resources, such as financial, intellectual, and artistic.
      • In terms of financial resources, there are various measures that help to determine the promotional reach (e.g., cost per contact, cost per inquiry, geographic – how many people in a designated market area you might reach). (There are various others in the PowerPoint we will discuss in more detail, including tradeoffs with specific promotional tools.)

References

American Marketing Association. (2022). Definitions of marketing. https://www.ama.org/the-definition-of-marketing-what-is-marketing/

Blain, C., Levy, S. E., & Ritchie, J. R. B. (2005). Destination branding: Insights and practices from destination management organizations. Journal of Travel Research, 43, 328-338.

Brochado, A. (2021). Cluster analysis. In R. P. S. Kaurav, D. Gursoy, & N. Chowdhary (Eds.), An SPSS guide for tourism, hospitality and events researchers (pp. 284-303). Routledge.

Jetter, L. G., & Chen, R. J. C. (2011). Destination branding and images: Perceptions and practices from tourism industry professionals [Article]. International Journal of Hospitality & Tourism Administration, 12(2), 174-187. http://ezproxy.lib.uh.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=hjh&AN=60294280&site=ehost-live

Kim, H.-K., & Lee, T. L. (2018). Brand equity of a tourist destination. Sustainability, 10. https://doi.org/10.3390/su10020431

Morrison, A. M. (2010). Hospitality & travel marketing (4th ed.). Delmar.

Morrison, A. M., Lehto, X. Y., & Day, J. G. (2018). The tourism system (8th ed.). Kendall Hunt.

Shoemaker, S. (1989). Segmentation of the senior pleasure travel market. Journal of Travel Research, 27(3), 14-21.

Shoemaker, S., & Shaw, M. (2008). Marketing essentials in hospitality and tourism: Foundations and practices. Pearson Education, Inc.

Strategic Business Insights. (2009-2023). http://www.strategicbusinessinsights.com/vals/ustypes.shtml

The Sales Optimization Company. (2009-2022). Understanding the consumers decision-making process in sales. https://www.socoselling.com/understanding-the-decision-making-process/

Walker, J. R., & Walker, C. J. (2018). Tourism: Concepts and practices (2nd ed.). Kendall Hunt Publishing Company.

Williams, A. (2021, December 8). What is brand equity? The Branding Journal. https://www.thebrandingjournal.com/2021/02/brand-equity/