Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases

Marketing Communications in

Tourism and Hospitality

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Marketing Communications in

Tourism and Hospitality

Concepts, Strategies and Cases

Scott McCabe

AMSTERDAM • BOSTON • HEIDELBERG • LONDON • OXFORD • NEW YORK

PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO

Butterworth-Heinemann is an imprint of Elsevier

Butterworth-Heinemann is an imprint of Elsevier

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The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK

First edition 2009

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British Library Cataloguing in Publication Data

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Library of Congress Cataloging-in-Publication Data

A catalog record for this book is available from the Library of Congress

ISBN: 978-0-7506-8277-0

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09 10 10 9 8 7 6 5 4 3 2 1

To Lisa, Kieran and Harry.

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vii

Contents

List of Figures xiv

List of Tables xvi

List of Plates xvii

List of Case Studies xviii

Acknowledgements xix

Chapter 1: Positioning Marketing Communications for

Tourism and Hospitality 1

Introduction – Defi ning Marketing Communications

for Tourism and Hospitality 2

Defi ning Tourism 2

Defi ning Hospitality 4

Marketing Communications in Tourism and Hospitality 5

Integrated Marketing Communications 8

Marketing Communications Characteristics

in Tourism and Hospitality 9

Tourism and Hospitality Marketing Communications:

Concepts, Strategies and Cases 11

Summary 14

Part 1 19

Chapter 2: Communications Theory and Applications 21

Introduction 22

Models and Concepts of Communications Theories 23

Early Mass Communications Theories 24

Contents

viii

Marketing Communications Transmission Models 28

Criticisms of the Transmission Models of

Communication 29

Multi-modal Communications Models 30

Relational and Network Models of

Communications 32

Communications Effects 34

Semiotics and the Communication of Meanings 37

Summary 41

Chapter 3: The Marketing Communications Environment47

Introduction 48

The Global Context of Tourism and

Hospitality Services 50

The Function of the Marketing Department 52

Strategic Function 53

Operations Function 53

Research Function 54

Processes of the Marketing Department 54

The Marketing Planning Process 55

Environment Scanning 56

Political and Legal Factors 58

Economic Factors 59

Sociocultural Factors 61

Technological Factors 62

Environment (Natural/Physical) 63

Media Environment 66

Marketing Communications Industry 66

Marketing Communications Industry Operations 67

The Regulatory Framework of Marketing

Communications 69

Organisational Ethics 69

Advertising Standards and Miscommunication 70

Regulation in Advertising 72

Summary 74

Chapter 4: Consumer Roles in Marketing Communications 79

Introduction 80

Consumer Behaviour Theory 82

The Cognitive Paradigm 84

The Reinforcement Paradigm 84

The Habit Paradigm 85

Consumer Behaviour and Tourism and

Hospitality Services 85

Consumers and Markets for Tourism and

Hospitality Services 86

Generic versus Variant Service Markets 86

Marketing Analysis 87

What the Organisation Needs to Know about

Consumers’ Behaviour 88

Consumer Characteristics – Who? 90

Decision and Purchase Characteristics – When? 93

Consumer Motivations – Why? 94

Buying Behaviour Patterns – What? 99

Distribution and Access – Where? 100

Purchase Characteristics – Which Methods? 101

Summary 101

Part 2 111

Chapter 5: Marketing Communications and Organisational

Strategy 113

Introduction 114

Organisational Strategy Formulation 114

Marketing Orientation 117

Competing Approaches to a Marketing Orientation 119

The Services Marketing Triangle 121

Enabling the Promise 122

Making the Promise 122

Delivering the Promise 123

Competitive Strategies 123

Cost Leadership 124

Differentiation 125

Focus 127

Stuck in the Middle 128

Generic Competitive Issues in the Tourism and

Hospitality Sector 128

Value Chain 130

Position in the Market 132

IMCs as Strategic Choice 133

Summary 134

Chapter 6: Segmentation, Targeting and Positioning 143

Introduction 144

The Segmentation, Targeting and Positioning Process 145

Marketing Planning and the STP Process 145

Market Segmentation 147

Defi ning Segmentation 147

Contents

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Contents

x

Bases of Market Segmentation 148

Demographic Segmentation 149

Age and Life Stage 149

Gender 149

Sexual Orientation 149

Ethnicity and Cultural Background 150

Socio-economic Variables 150

Geographic Region 152

Behavioural Segmentation 154

Benefi ts Sought from the Experience 154

Defi ning Service Benefi ts 154

Attitudes, Perceptions, Values, Beliefs 155

Decision-making Processes 156

Usage Patterns/Frequency of Use 156

Psychographic Segmentation 156

Personality and Identity 156

Lifestyle 157

Target Marketing 157

Criteria for Assessing Segments 158

Targeting Criteria 159

Self-selection 159

Market Positioning 160

Importance of Market Segmentation 163

Segmentation Options 163

Issues in the Segmentation Process 165

Summary 166

Chapter 7: Marketing Communications Planning 177

Introduction 178

Marketing Communications Planning 179

Marketing Communications Plan Context 180

Marketing Communications Context 180

SWOT Analysis 181

Communications Objective Setting 182

Formulating Objectives 182

Integrated Marketing Communications Objectives 183

The Marketing Mix for Tourism and Hospitality 184

Product Strategies 184

Product Portfolio Analysis 184

Product Strategy Decisions 185

Standardisation/Adaptation Strategies 185

Product Formulation Decisions and the

Communications Strategy 187

Branding 189

Contents

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Destination Branding 190

Hotel Branding 192

Marketing Communications Strategy 194

Push Strategy 194

Pull Strategy 195

Profi le Strategy 196

Communications Mix Decisions 196

Marketing Communications Evaluation

and Control 197

Summary 198

Part 3 205

Chapter 8: Advertising Strategies for Tourism and Hospitality 207

Introduction 208

What is Advertising? 208

How Advertising Works 209

Media Strategies 213

The Range of Advertising Channels 214

Tourism and Hospitality Media Channels 215

Campaign 215

B2B Sales Missions 215

Print Advertising 216

Online Advertising 216

Direct Mail/CRM/Newsletters 216

Brochure Distribution 216

Agent Training Programmes 217

Lead Generation Research 217

Message Design 217

Creative Development 220

Balance 221

Message Structure 222

Message Appeal 223

Credibility 224

Advertising Value and Trends 225

Current Issues in Tourism and

Hospitality Advertising 230

Summary 231

Chapter 9: Other Communications Strategies 237

Introduction 238

Sales Promotions 238

How Sales Promotions Work 239

Sales Promotions Techniques 239

Types of Sales Promotions in

Tourism and Hospitality 241

Personal Selling 242

Familiarisation Trips 243

Sponsorship 245

Creation of Favourable Brand Associations 246

Creation of Promotional Opportunities 246

Creation of Additional Publicity 246

Creation of Corporate Hospitality Opportunities 246

Creation of Corporate Social Responsibility Profi le 246

Publicity and Public Relations 247

External 248

Internal 248

Events and Exhibitions 250

Direct Marketing 252

Summary 254

Chapter 10: Interactive and E-communications

Issues and Strategies 259

Introduction 260

Growth of the Internet 260

Growth of Online Advertising 261

The Value of Online Advertising Spend

to the UK Market 262

Online Behaviour 263

Online Behaviour and Marketing

Communications Strategy 265

Types of Online Advertising 265

Classifi eds 266

Display Advertising 266

Search Marketing 266

Email Marketing 268

Viral Marketing 269

Affi liate Marketing 269

Sponsorship 269

Tenancies 270

Podcasting 270

Online Advertising Applications 270

User-generated Content 271

Blogging 271

Online Community 272

Issues with User-Generated Content 274

Virtual Worlds 274

Contents

xii

Contents

xiii

Issues of Online Developments on Marketing

Communications 276

Summary 277

Chapter 11: Conclusions and Future Issues in Marketing

Communications 283

Introduction 284

The Importance of Marketing Communications to

Tourism and Hospitality Organisations 285

Future Challenges 289

The Changing Structure and Nature

of the Advertising Industry 289

The Changing Structure of the Tourism

and Hospitality Industry 290

The Emergence of New Markets 291

The Challenge of Climate Change 292

The Challenge of the External Media Environment 293

Summary 294

Index 295

List of Figures

Figure 1.1: Basic elements of marketing communications. 8

Figure 2.1: Schramm model of mass communication. 25

Figure 2.2: The Shannon–Weaver (1962) model of

communication. 26

Figure 2.3: The Osgood–Schramm model of communication. 27

Figure 2.4: Fill’s adaptation of the Schramm and Shannon and

Weaver model. 28

Figure 2.5: Two-step model of communication. 31

Figure 2.6: Multi-step process of communication. 31

Figure 2.7: Adapted TALC model. 35

Figure 2.8: Buyer readiness states. 36

Figure 2.9: The relationship between the sign, signifi ed

and signifi er. 38

Figure 2.10: Example 1 of the signifi er/signifi ed relationship. 38

Figure 2.11: Example 2 of the signifi er/signifi ed relationship. 39

Figure 3.1: Factors impinging on the marketing function. 49

Figure 3.2: The triangular function of the marketing

department. 53

Figure 3.3: Relationships between marketing strategy and

organisational strategy showing the marketing

planning process. 56

Figure 3.4: Marketing communications industry organisation. 68

Figure 4.1: Relationship between market analysis and

communications strategies. 88

Figure 4.2: The open system of consumers and organisations. 89

Figure 4.3: Emotional and rational communications drivers. 104

xiv