Destination Marketing Into the Next Century, Essay Example

Executive summary

This work is a formal presentation and contains information that it contains facts and reliable information. The study of London destination marketing is at this moment described to have an understanding of the various things that influence a destination’s progress in its marketing. The London destination is the sine of the most popular destinations of the United Kingdom, and it has remained competitive over the other rival destinations such as Liverpool over time. The success of London destination in marketing its products and services and having many visitors visit the region can be attributed to several factors such as functional communication networks and infrastructure as well as good policies set by the government which acts as a motivator to enlarging its market. However, several factors such as the use of out-dated technologies and high cost of living and products impact the business negatively. For instance, the high charges of London television channel limit the number of cities that may want to link with it and partner in firm hence limiting the number of visitors. Although London destination has been famous over time, it does not have perfect communication channels to counter the increasing dynamics in technology and linguistics all over the globe. The SWOT analysis shows that there is a need to improve on various aspects of marketing communication despite the several benefits that it holds to itself. Branding of the destination among other laid strategies will help the London destination thrive and sustain its success in the future.

Introduction

Destination marketing has been on the rise in the recent past, and many issues have been brought up concerning it both positive and negative. Destination marketing is a type of marketing that aims at increasing the number of visitors by focusing on a particular destination be it a region, country city or a town. It entails the marketing of a place which embraces managerial processes which are initiated by the need for research in a particular area, focusing on potential customers who are external and they are aimed at through advertising and communication. Destination marketing in most cases focuses on attracting visitors be it investors, tourists or skilled labor force. It is tourist advertising for a specific region or location. In this case, the country communicates who they are to a target market. The main aim of destination marketing is turning tourism to be a key driver of socio-economic progress by gaining revenues through exports, development of infrastructure to enhance the movement of the tourists and to enhance the creation of new jobs and enterprises.

Destination marketing entails consumers traveling to the destinations where the products or services they want are available. Through destination marketing, a country, region, city or town is able to show to its customers where they should be preferred at the expenses of the others, they create and share what their destination is all about, design their website in a manner that attracts potential customers by showing that they care about their consumers. Destination marketing has enhanced destinations position themselves competitively into the global market as well as improving the satisfaction of all stakeholders (Campos, 2012 p 36). Destination marketing in London is focused on attracting tourists to their destination. Tourist destination marketing may be somehow challenging (Bennett, 1999) thus should be handled well-developed techniques to deal with it.

Micro and macro environments

The marketing environment is continuously changing thus there is a need for London to continuously monitor the internal and external settings that surround their destination markets to understand the consumer needs and satisfy them accordingly and to enhance success in a business operation (Camilleri, 2018 pp. 51-68).

The microenvironment

This environment entails factors that are closely related to the business, and the business can have control over them. These factors involve all the destination marketing organization’s stakeholders which may include the destination marketing organization itself, management personnel and other staffs, organization’s resources and capabilities, the customers or visitors, intermediaries among different stakeholders.

The destination marketing organization

This will entail how the state is structured, its departments and units, the chains of authority and command and the roles of the various people are expected to play. This plays a significant role in determining if the country will succeed in its marketing and also determines how resources are distributed to the various units.

The management and other staffs

This section entails the human resource available in the organization that is involved in steering the country towards becoming a destination market. The management and other staffs play a vital role in directing a country’s resources towards the set objective of becoming a destination market.

Resources and other capabilities

This section entails the assets that the country has and specifically those that are directed towards making the place a destination market. These resources may include personnel, intellectual rights that is patents, copyrights and trademarks, a good reputation, equity and customer share in the market.

Capabilities entail the ability to use those resources effectively and efficiently towards achieving the set goals and objectives. For a strategy to succeed, a country should have unique capabilities that cannot be copied by others to give them a competitive advantage.

Intermediaries

These will entail all the firms that will be required to help the country in establishing an active destination market. In this case, as we are focusing on the tourism industry, the intermediaries may include travel agencies and tour operators.

Customers/visitors

This section entails who the target market is, how to access them and how to gain a strong customer base as well as come up with strategies that shall be used in positioning themselves in the minds of their potential customers.

SWOT Analysis for London

Conducting a SWOT analysis will be necessary for analyzing the strength, weaknesses, opportunities, and threats that the business will be exposed to so that the right strategies to cope with the outcomes.

Strengths

Fashion London has very much advanced in style and pops up culture, and everything in it is interesting. London is a fashion capital for independent and upcoming fashion designers. Tourists will be attracted to London to get their new fashions, designs, and styles which may not be available elsewhere.

Entertainment London is also very advanced in all forms of entertainment with many available events that are world-class where people can choose from. There is the Theatreland present in London which is considered the “theatrical capital” of the world. Thus, people will be attracted to visit London to enjoy the entertainment.

Education London has been indicated to be one of the leading educational centers across the globe which has the most significant number of students from overseas. It promotes excellence and innovativeness through its education systems which attract many students from different nations who want to visit the place to acquire education. London has also gained a good reputation from the education it offers which may also serve to attract many people to visit the site. This will encourage its destination marketing, and the students among other visitors will serve as the potential target market for London.

Presence of ethnic and cultural diversity where many people will have different cultural backgrounds and from different ethnic groups live together making productive the culture in London. This was as a result of the industrial revolution that took place enhancing immigration thus bringing people with diverse cultures and from different backgrounds together. London is also keeping on growing in terms of religion, ethnicity, and races. Many people will, therefore, be willing to visit London to enjoy diversity.

London is also known due to its rich history with the Thames which has become a multicultural city. Its history which can be traced back to the Roman Empire has grown to be a multicultural city. It is also famous for the great people it housed, for example, Isaac Newton. London is also a wealthy nation in terms of culture and architecture which encourages tourists.

Weaknesses

London is very expensive and was ranked as the third most expensive city in the world. This may be a source of discouragement to the tourists.

London is also known for its high rates in crime ranging from those crimes carried out with guns to issues of homosexuality among other evils which may also discourage tourists.

Pollution is also a significant issue of concern in London that their high rates of contamination are even affecting other cities like the UK. It also has a lot of constructions that people living there say there are many street works taking place there.

Opportunities

The economy of London can be a great opportunity that London can take advantage of. It is a favorable economy to invest in destination marketing. There is excellent potential for London to expand and grow its business.

London also has an excellent chance to protect the environment by practicing waste management by creating less waste, recycling of the waste and developing ways of dealing with the remaining waste to conserve the environment.

Threats

London is facing a lot of competition from other cities that are involved in destination marketing in its attempt to attract tourists.

It is also exposed to the threat of terror attacks which threatens both the inhabitants and the tourists who may be willing to visit the city.

The macro environment and PESTLE analysis

The tourism industry is highly influenced by factors like technological forces, social forces, legal, economic, political and economic factors that should be addressed to enhance success. Competition as an external factor for example substitute products, new market entrance among others plays an essential role in the marketing environment (Kotler, Armstrong, Frank & Bunn,1990) should also be addressed to develop ways of dealing with it. The macro environment should be continuously analyzed and scanned to enhance the achievement of the set economic goals.

Political environment

Analysis of the political climate involves how the government will influence the operations and strategies put in place. Evaluating the political environment surrounding any business may be very complicated; thus people are forced to focus on the political risks they are exposed to in the course of their operations. Political risks deal with the changes that take place in the political environments, and they may have adverse effects on business and they may either be governmental or non-governmental for example political instability. Thus, in establishing a destination market in London, all the political issues at play should be considered to analyze the possibilities of success in business.

Economic environment

This part involves an analysis of the economic, fiscal and monetary policies in a country. Consumers in their attempt to acquire a product or service may be affected by their levels of income and their spending habits. Per capita income and spending patterns may be influenced by restrictions in currency, discretionary incomes, the balance of payment, inflation, price fluctuations among others. In setting up a destination market, all these factors should be evaluated because they will affect the success of the market. For example in the case of a destination market which focuses on tourism, when the economic conditions are right, the establishment of this market will be encouraged because customers will be able to travel to the destination.

Social environment

The behaviors of the target market, their beliefs, customs lifestyle, norms and preferences and those of the area a business activity is set are likely to influence or hinder the success of business activity. The characteristics of the target population are also bound to affect business, and they keep changing with time. Thus, in developing a destination market regarding tourists, the social needs and characteristics of the target population should be considered. The market should also be changed as consumer needs, and features vary to enhance customer satisfaction.

Technological environments

To enhance the success of a destination market, the marketers should ensure that they are up-to-date with the technology in play at the market. Tourist companies are also affected by changes in technology, and they can use new technologies to create new markets and new opportunities (Tussyadiah & Inversini, 2015). Technology will enhance better customer service and will enable a business entity to success and handle competition that may result from technology.

Legal environment

The viability of the destination market that deals with tourists will be affected by the legal environment which governs the operations. Business activities are likely to grow and expand when their national laws are favorable and are supportive of business activities. If the legal systems of a country keep on shifting, the businesses are likely to be hindered. When the government changes the rules and regulations at play, in some cases, markets may be closed while others may be opened.

Branding and Marketing Communication Strategy: strengths and weaknesses

Branding

The advancement of globalization today has led to a competitive evolutionary market where numerous destinations from all over the globe compete with each other. Due to this competition, it is essential for London to work effortlessly more than ever before to ensure that it stands out among other destination countries that compete with it. Several things, however, should be done to ensure that London as a tourist-oriented destination maintains a high level of visits into the country more than any other country. To distinguish between destinations, destination branding has become one of the essential strategies in destination marketing. The World Travel Organization (2002) defined destination branding as a physical state in which a visitor spends at least overnight, and it includes products of tourism such as attractions, support services, tourism resources among others within the time frame of travel and returns. Destination branding is bound by administrative and physical boundaries which define its image, management, and perceptions of market and competition.

London distinguishes itself from other destinations such as Liverpool in various ways. Over time, London is known all over the globe as the capital of the United Kingdom (UK) whereas the Liverpool destination is less recognized. The London Official City Guide 2011 revealed that branding position and social context is apt to have a significant impact on destination marketing. This guide’s hypothesis was drawn by the Destination Management Organizations whereby the communication was evaluated through the textual analysis and persuasion of various aspects.

The guide provided the analysis framework about destination branding whereby several terms of branding were defined and some strategies outlined for the branding. However, the Liverpool guide was more communicative than the London Guide since it went to more important details of describing the city inhabitants than the London Guide did. The destination branding theory suggests that the destinations could be placed at different stages and that the Destination Management Organizations should foster their communication towards brand positioning. The concept of destination is comprehensive and sophisticated (Moilanen & Rainisto 2009:112).  The destination may refer to a one-day visitor may entail holiday visits either short or long. Moilanen & Rainisto 2009:112) also defined a brand as an impression that a client perceives about a product or service and it is the total amount of all tangible elements as well as the intangible elements which makes a selection unique. The attributes that come into the consumers’ minds regarding the product or service adding to the typical character of uniqueness can be used to define a brand. Branding can also be termed as the process of planning, designing and communicating (Anholt 2007.4).

Destination Market Research and Marketing Plan

London destination marketing plan indicates a significant focus on the City area where the management of the destination market fosters the development of the city center as the first place of visit. Since 2007, the City Corporation in London has had a visitor strategy. However, the management intends to extend their focus and connect with the neighbors of London especially those from the east. To achieve this, there is a need to expand the road infrastructure whereby there is the aim of driving two-way traffic between the visitor hubs and delivering benefits to all the involved parties. Also, there is a plan to connect with the City Corporation beyond the city by securing recognition for London’s broader role and remit in the open spaces. Also, at the national level, the strategy is a reflection of the Government Tourism Policy (DCMS, 2011) and the plans and strategies of other departments and London tourism bodies which provide a strategic framework for tourism in England and target cities of 5% annual growth. London intends to partner with other countries such as England to expand its destination market share. The strategy for marketing is associated with three significant facets which include; visitors, culture and communication as shown in the diagram below.

The national policies have forged a plan on how to approach various cultures whereby visitors of different cultural beliefs need to feel comfortable and appreciated when they visit London. Also, there is a need to improve the communication networks with other target countries which offer a significant number of visitors to London. Besides, the connection with neighbors and new countries is intended to increase the number of visitors touring London, and hence the three facets are intertwined for the wholesome expansion goal achievement.  The London destination targets various markets such as BRIC markets whereby the global tourism to London is expected to grow by 60% by 2020 with half of this is likely to come from BRIC countries such as China. (Visit the City, 2013). Also, the strategy focuses on traditional overseas markets, domestic markets, day-trippers, weekend markets, business visitor markets, and strategic markets

Digital Marketing Campaigns

London destination aims at engaging and fostering visitor community and developing new audiences through the use of social media among other digital broadcasting media. This will reduce the reliance on print media and delivery cost thereby making the marketing more economical. The destination has also pressed campaigns to engage the domestic market through the commission of press agency mainly targeting the local consumers for the high-value markets such as the LGBT among other weekend activities.

Online Advertising

London destination marketing can only thrive and maintain competency if it lays a strategic plan for advertising and promoting itself. The London destination has plans to explore the options for generating the City-Visitor content on foreign language Wikipedia sites to raise the City’s profile globally. Also, it aims at creating an English reference for visitors who speak English. There is also a plan of expanding the social media advertising platform by fostering discussions through blogging sites. Also, the use of TV and the YouTube platforms in advertising the London destination is among the online-based forums as well as London visitor apps and solicit user-generated content on travel sites such as Trip Advisor. During the 2012 press briefing by Mayor Boris of London, there was the mention of the need to develop a website for London city where prospective travelers and business people would find information on London, including maps and guides and popular tourist sites, London values, economic development, mission statement and relocation plans for businesses and their meaning to the city.

SWOT Analysis of Marketing Communication

Rebranding of London destination requires an increase in the marketing objectives which should touch across the communication. In 2009 London press conference, Mayor Boris Johnson explained what he was looking for in the rebranding of London destination market whereby he stated that he was projecting a 20% increase in tourism and 10% in the amount of business based in London within the next five years. Targeting the London Olympics in 2012, Mayor Boris said that London would have an excellent opportunity to showcase its many fantastic art, culture and sporting assets (Buttafarro et al.,2009.11). This would communicate widely all over the globe since the Olympics were to be watched around the world.

Strengths

London destination enjoys the benefits of city arts card and discount schemes that are given to visitors as a way of retaining their identity and recognition upon subsequent visits. When the visitors are recognized and given discounts, they are more likely to visit again and hence making the London destination a preference tourist hub. Also, the support from the government officials such as the Mayor in the creation of the City website enables the city to communicate of its values, culture, and talents to the world (Buttafarro et al.,2009.12). There are well-established formal channels of communication which are aimed at persuading prospective customers which include; the internet, brochures, sales promotion techniques, and public relations

Weaknesses

The communication media are costly in London due to the high life in the city. The research sector is not very innovative in terms of technology, and therefore communication technologies have slow advancement.

Opportunities

London destination has excellent prospects in partnering with other countries such as England. The partnership allows more visitors to tour the place. The London Olympics in 2012 were also an opportunity to convey information concerning London destiny and market its products and services (Middleton et al., 2009)

Threats

London destination faces competition in terms of communicating to its potential customers. For instance, the Liverpool guide 2011 was regarded as more efficient in detailed communication and advertising its products and services.

Future Marketing Communication Strategy

Goals and Strategies for Future Tourism Promotion

According to Dawyer et al.,(2009), the future marketing of London destination requires to go beyond the description of the diverse and individualized captivations of the destination to emphasize the emotional benefits associated with a value set of experiences. “Tourism is the greatest generator of experiences” (Binkhorst & Decker, 2009). London has also signed a partnership in tourism with Paris which is also aimed at expanding the US market. The tourism boards hope that Hamilton will help to boost the visitation during the colder season in London. There is a need to increase the number of travelers who can be accommodated per year. Collaboration in destination marketing has become one of the essential concern in the research sector (Wang, 2008). The London and partnership collaboration will, therefore, foster this growth and hence result in high revenue generation (Bramwell, and Lane, 2000). The government of the UK is taking charge to enhance the implementation of plans set for the future growth of the London destination market. Better oversight is needed to quantify the economic effects of projects in the transport sector regarding tourism. Also, the government aims at amending the tax policy to relief the visitors of the heavy burden of taxes thereby encouraging more visitors to tour London. There is also a plan to embrace the new technology and engage in information technology as part of enhancing communications with the target markets (Cooper and Ruhanen, 2004).

Proposed future Marketing Communication Tools, Channel and Media

London has the aim of attracting new visitors and retaining regular visitors. To sustain this popularity, the destination targets first-time visitors whereby the focus will be on families and young adults. Communication will be enhanced through sales promotion. Besides, London destination aims to provide practical information to enable visitors to navigate into London thus saving on the cost of communication. The visitors will be provided with up-to-date information on congestion levels during the peak season through the use of social media and newer technologies to make communication effective and fast. Also, there is an aim to the curated content into seasons to create incentives to travel during off-peak periods.

London aims at building awareness of food and drink-related tools that provide visitors with information that will help them decide what to eat. Also, there is a plan to digitize all its information by joining up Wi-fi services which will be provided by the NFL, the local authorities and other bodies which will be accessed by all visitors and therefore they will be able to learn more about the city (London & Partners, 2016. 38). According to Dore and Crouch (2003), destinations need to pull resources together towards developing an integrated delivery system and marketing mix. In previous years, London has not been able to communicate consumer trends effectively and desired experiences. Also, the pooling of resources and integration of management and delivery systems (Fyall and Garrod, 2005; Blumberg, 2005). This is supported by King (2002) who suggested that collaborative efforts should be used to harness communication in the future. More visitors are touring London, and they demand more varied communication efforts and therefore, London aims at educating its locals on emerging communication technologies to enhance effective communication in future (Dore and Crouch, 2003; Foley and Fahy, 2004). There is a need to provide further attention to the creation and communication of holiday experiences which show the significant and essential values and assets that correspond to the customer needs (Fyall et al ., 2006).

London also aims to lower the charges for its television channel to ensure that it is affordable in many cities around the world to enhance a multi-channel approach to the assessment of its markets (Fyall et al.,2006). There is also a target to use cyberspace which is termed to be more than a medium for online communication. According to Buhalis and O, Connor (2006), the dynamics in production and consumption patterns is high and therefore, communication will enhance the monitoring of the ex-revolutionary tourism

Conclusion

In conclusion, London destination marketing can be improved and made better considering the strengths that London has and the opportunities it is exposed to. Thus, to ensure that the destination marketing succeeds it should develop better ways of dealing with competition and also address its internal and external environments and direct all its effort to the success of the destination markets thus attracting more tourists.

References

Bennett, O., 1999. Destination marketing into the next century. Journal of Vacation Marketing, 6(1), pp.48-54.

Binkhorst, E. and Den Dekker, T., 2009. Agenda for co-creation tourism experience research. Journal of Hospitality Marketing & Management, 18(2-3), pp.311-327.

Bramwell, B. and Lane, B. eds., 2000. Tourism collaboration and partnerships: Politics, practice, and sustainability (Vol. 2). Channel View Publications.

Buhalis, D. and Connor, P., 2006. (2006) Information communication technology-revolutionizing tourism. Tour Recreat Res, pp.7-16.

Camilleri, M. A. (2018). The Marketing Environment of Tourist Destinations. The Branding of Tourist Destinations: Theoretical and Empirical Insights (pp. 1-14). Emerald Publishing Limited.

Camilleri, M.A., 2018. The marketing environment. In Travel Marketing, Tourism Economics and the Airline Product (pp. 51-68). Springer, Cham.

Campos, A.C., 2012. Marketing the Destination Experience. Nº10, p.20.

Cooper, C. and Ruhanen, L., 2004. Enhancing destination competitiveness through the use of strategic visioning approach tourism planning. Revista Turismo & Desenvolvimento, (1), pp.27-34.

Dore, L. and Crouch, G.I., 2003. Promoting destinations: An exploratory study of publicity programmes used by national tourism organizations. Journal of Vacation Marketing, 9(2), pp.137-151

file:///C:/Users/user/Downloads/2013-7%20‘Beyond%20London’%20Research.pdf

file:///C:/Users/user/Downloads/london_tourism_vision_aug_2017.pdf

file:///C:/Users/user/Downloads/rebranding-london.pdf

Foley, A. and Fahy, J., 2004. The inconsistency between expression and experience: The role of imagery in supporting the positioning of a tourism destination brand. Journal of Brand Management, 11(3), pp.209-217.

Fyall, A. and Garrod, B., 2005. Tourism marketing: A collaborative approach (Vol. 18). Channel View Publications.

Fyall, A. and Leask, A., 2006. Destination marketing: Future issues—Strategic challenges. Tourism and hospitality research, 7(1), pp.50-63.

https://www.promodo.com/blog/what-is-destination-marketing/

https://www.ukessays.com/services/example-essays/marketing/marketing-plan-tourist-attraction.php

https://www.visitbritain.org/sites/default/files/vb-corporate/Documents-Library/documents/industrial_strategy_-_sector_deal_bid_submission.pdf

King, J., 2002. Destination marketing organizations—Connecting the experience rather than promoting the place. Journal of vacation marketing, 8(2), pp.105-108.

Kotler, P., Armstrong, G., Franke, G. and Bunn, M.D., 1990. Marketing: an introduction (Vol. 1). Prentice-Hall.

London & Partners; London Visitor Survey, 2016,

Middleton, V.T., Fyall, A., Morgan, M., Morgan, M. and Ranchhod, A., 2009. Marketing in travel and tourism. Routledge.

Tussyadiah, I. and Inversini, A., 2015, February. Information and Communication Technologies in Tourism 2015. In Proceedings of the International Conference in Lugano, Switzerland (pp. 3-6).

Visitor the City: 2013. Visitor strategy and action plan for the City of London

Wang, Y., 2008. Collaborative destination marketing: Understanding the dynamic process. Journal of Travel Research, 47(2), pp.151-166.