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Marketing your Tourism Business

Marketing your Tourism Business. Desert Knowledge Australia Tourism Network Outback Tourism Talks. Adam Gordon Catalyst Consulting. What we will discuss. Examples of tourism and other business networks What is marketing? Developing a marketing strategy. Tourism and other networks.

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Marketing your Tourism Business

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  1. Marketing your Tourism Business Desert Knowledge Australia Tourism Network Outback Tourism Talks Adam Gordon Catalyst Consulting

  2. What we will discuss • Examples of tourism and other business networks • What is marketing? • Developing a marketing strategy

  3. Tourism and other networks • Tasmanian B & Bs • Australian Conference & Events Bureau (ACEB) • Some non-tourism examples

  4. Types of cooperation • Clusters • Networks • Alliances – e.g. Joint-ventures Co-opetition

  5. Collaboration Options - Differences • Clusters - more than firms: community wide, open participation • Soft networks - more commercial, with a membership fee • Hard networks - smaller self selecting groupings …profit focus. • Joint ventures - can be only 2 firms separate organisation, profit focus • Strategic alliances - need not be formal, profit focus

  6. Collaboration Options - Business Networks Company A “Binding, lasting co-operation between at least three independent business activities” • Horizontal networks - co-operating companies with complementary or competing products • Vertical networks - co-operation that follows purchasing lines upstream and/or supply or marketing downstream Company B Business Network Company C

  7. Soft Networks • Focus • Usually market development • Some capability development e.g. training • Membership is relatively open • Soft networks facilitate ‘harder’, more commercial linkages E.g. Industry Associations

  8. Hard Networks • Small groups of firms cooperating under formal agreements • Private, commercial arrangements • Common activity • joint marketing • joint operations • joint purchasing

  9. Tasmanian B & Bs

  10. Australian Conference & Events Bureau

  11. Non-tourism Co-opetition in practice • Clusters • AIDN-NT SBECP • Hard Networks • RANms • TPMA • Alliances/Soft network • The Training Consortium

  12. What is marketing? • Some definitions & some quotes • The importance of market segments? • Narrowing your target market • Developing a customer profile • Your core marketing message

  13. A Definition “Marketing is the ability to identify and satisfy customer needs,at a profit.” Marketing is meeting customer needs with the right product, at the right place, at the right time.

  14. Market Research The Marketing Process Target Market/s Objectives & Position Develop a Market Strategy Marketing Mix Products / Services Place options Pricing techniques Process options Promotion options People factors Evaluation

  15. Market Segmentation • Geographical • Demographic • Psychological • What is purchased • Type of organisation

  16. Car Parts Product Segmentation

  17. Car Parts Product Segmentation

  18. Car Parts Market Segmentation

  19. Car Parts Matrix

  20. Car Parts Matrix with GP

  21. Segmenting: Different Market, Different Approach. THE BDA POSITIONING MAP Tertiary Professional High Status Attitude Low Ed. Low Skills Visible Achievers 15% Socially Aware 10% Young Optimists 7% Traditional Family Life 18% Something Better Look at me 14% Real Conservatism 5% A fairer deal 7% Basic Needs 4% Young/Single Family Life Old Age

  22. Exercise 1

  23. How to position your product • Positioning is the foundation that you build the rest of your marketing strategy upon • Once you determine where you want to be positioned in your target market, then the strategies and supporting tactics will follow What is your Core Marketing Message? The Training Consortium

  24. Positioning - Developing a Core Marketing Message • Target Market - what clients do you serve? Develop a profile. • Problem- what problem, issue, pain, predicament or challenge are your clients facing that would make them seek assistance? • Solution- What results do you produce when working with clients? • Proof- What do you have that can prove you can in fact deliver that solution - references, testimonials, case studies? • Differentiation- What makes you stand apart from your competitors? What makes you unique, special, memorable?

  25. Where is the benefit in this information? • Knowing who and where your customers are empowers you to target more effectively. • Merchandise & service offering • Pricing • Best media mix • Access

  26. Right Product, Right Price, Right Place, Right Time, Right Person = INCREASED SALES.

  27. Developing a marketing strategy • 4, 5, 6, 7 Ps • Product Strategy • Pricing Strategy • Promotional Strategy

  28. Marketing Strategies & Goals

  29. So what are your goals? • Set clear, measurable goals • If it is not measurable, it is not a goal

  30. Market Research Some Ps Target Market/s Objectives & Position Develop a Market Strategy Marketing Mix Products / Services Place options Pricing techniques Process options Promotion options People factors Evaluation

  31. Product A bundle of benefits you design to satisfy buyer’s needs or solve a problem Branding Attraction Accommodation Tour Operator Retail Packaging Product Life Cycle What are the results the customer will get from using your product or service? So what!

  32. Price Techniques • Pricing principles • Gross profit vs mark up • Penetration pricing • Bundling / packaging • Going rate or hourly rate $/hr • Loss leader • As a positioner qqqqqqqqqqq q q qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq

  33. The bottom line effect! • Do you want to increase the volume of sales, or the value of sales? • The key to profitability is the volume of Gross Profits you achieve, not the volume of Sales

  34. Promotion options • Media, radio, TV, papers etc • WWW • Word of mouth • Directories • Signs • Networking / personal selling • Company profiles A I D C A

  35. The Yellow or Blue TestIs your promotion “Me, Me” • Yellow- “you” words (that talk about your product or your company or something else about you) • Blue - “them” words (that talk about the needs and problems of your marketplace, or something else about them) Source – “Do You Have Marketing Myopia?” Michael Fischler

  36. Match the bait to the fish! • Does your message match the market? • Does the media match the message, and the market? • Newspapers, magazines, Yellow Pages, radio, TV, web sites, inserts, letter box drops, flyers, brochures, coupons, tele-marketing, postcards, e-mails, faxes, catalogues, telemarketing, billboards, vehicle signs, promotional products, sales letters, and on and on….. • Promoting too broadly, that is, not marketing to a specific target market, is the most common mistake most SMEs make.

  37. What is the ROI from your promotion? “A common oversight made by many small business owners is that they simply don’t measure their advertising. Even fewer actually know what they want to advertise.” Small Business – Big Opportunity” Sensis in partnership with Rob Hartnett Ineffective advertising is expensive

  38. So What is eMarketing? Using… online technologies … (web, e-mail, databases, mobile) to… attract and retain customers and return a profit by… delivering targeted communications and solutions that match their individual needs.

  39. The “S”s of eMarketing Sell – Product and People Speak – Promotion and Communication Serve – Place and People Save – Price and Cost Sizzle – Promotion and Branding

  40. Why do people go to a Web Site? • FIND A SOLUTION • FIND THE BEST DEAL GATHER INFORMATION

  41. So WHO is looking for you? Identify your target market Understand their problem Offer the best solution

  42. Website Design Packaging + content • Site design – packaging – attraction • Site content – conversion The Training Consortium 43

  43. Packaging vs Content Packaging is an attractor Content leads to conversion & consumption – but some content is first an attractor

  44. ATTRACTION — core factors? Education – the biggest attractor of all. Educate not sell but to attract – expertise WIIFM – your website should reflect what the customer wants! Packaging – content is king, but packaging is emperor! Personality – to be unique, be yourself. People look for someone they can trust

  45. Purpose • Why do we have each page? • What do you want the viewer to do on this page? Lack of purpose makes the customer confused. If they are confused they’ll make random decisions, bounce around and leave. Sequential information makes it easy to make decisions.

  46. Getting people to your site • Off-line promotion • Driving to your site – viral marketing, watering holes, affiliates • Search Engine Optimisation – SEO

  47. Marketing Mix

  48. Marketing Fundamentals 1. SEGMENTED the market into customer groups; 2. LISTENED to the different customers; 3. LOOKED at the competition; 4. IDENTIFIED the "ground" you can own. DO NOT ACT UNTIL YOU HAVE:

  49. What is marketing? "The key to success in business is making sure that you understand the power of marketing. Marketing is not ads, a logo, a website or brochures. Branding and 'brand recall' is a myth. Marketing is using effective strategies to increase the number of inquiries into the business, to improve the average transaction and to retain existing customers." Tony Gattari

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