BML340 -BRANDING AND DESTINATION MARKETING

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Destination Marketing and Branding


Aims • To identify the key elements of successful destination marketing • To evaluate the complexities and current weaknesses and issues relating to destination marketing • To critically evaluate the key issues in brand development and the key attributes and characteristics of a successful destination brand • To critically examine examples of destination marketing and branding through specific case studies


Activity 1 • You have been asked by Destination X to develop a marketing strategy and brand proposition for the town • What are the key elements of a successful destination marketing campaign? • What are the key constraints/weaknesses of current approaches to destination marketing?


Elements of Destination Marketing Identification of strategic target markets, based on experience types and the needs, wants and behaviours of potential visitors

Identifying the price segments where the destination believes it can compete

Determining the most effective ways to make destination experiences available to visitors

Measuring destination image and awareness

Developing a destination brand

Destination Marketing

Defining and developing the experiences that a destination can offer to potential visitors

Establishing destination positioning in key markets

Developing logos, advertising themes and promotion efforts to support brand and positioning

Determining and implementing the timing of advertising and promotion

[Richie and Crouch, 2003, p. 189]


Elements of Destination Marketing Identification of strategic target markets, based on experience types and the needs, wants and behaviours of potential visitors

Identifying the price segments where the destination believes it can compete

Determining the most effective ways to make destination experiences available to visitors

Measuring destination image and awareness

Developing a destination brand

Where is the Destination Marketing starting point? Defining and developing the experiences that a destination can offer to potential visitors

Establishing destination positioning in key markets

Developing logos, advertising themes and promotion efforts to support brand and positioning

Determining and implementing the timing of advertising and promotion

[Richie and Crouch, 2003, p. 189]


The Complexities of Destination Marketing • The Destination Dilemma – The destination is not an homogenous product - it is a composite product therefore difficult to present simple brand images that will incorporate all elements of the product and appeal to all markets – Destinations offer different bundles of products to different markets at different times therefore creating problems in identifying the competition – Engagement and ‘buy-in’ from related stakeholders – How best to use the virtual marketing space


The Complexities of Destination Marketing • The Destination Dilemma – Destinations are not discrete entities around which it is possible to put neat boundaries that are recognised by marketers and tourists alike - there are differences between government boundaries that define places, and tourists’ perceptions of place – DMOs do not control the 4Ps (product, price, place/distribution and promotion) - only area of control is promotion


The Complexities of Destination Marketing • The Characteristics of the Tourism Product – Intangibility • The product cannot be easily evaluated or demonstrated in advance of its purchase • Emphasis given to a range of printed literature and videos to promote awareness of the product on offer – Perishability • Unlike other goods the service product cannot be stored for sale on a future occasion • A hotel bed or airline seat left empty represents revenue that may never be recouped


The Complexities of Destination Marketing • The Characteristics of the Tourism Product – Inseparability • The product is often consumed and produced simultaneously • Therefore the product can vary in the standard of delivery therefore making it difficult to ensure the overall satisfaction of consumers


The Weaknesses of Destination Marketing • Current Issues: – Marketing budgets are too small - increasing constraints on the public purse, placing greater emphasis on private sector partnerships – Destination branding is expensive – Lack of marketing expertise - too many people with general marketing experience, trying to sell a highly specialised product [the destination] – Lack of clear objectives and prompt decision- making - what is the destination trying to achieve?


The Weaknesses of Destination Marketing • Current Issues: – Poor quality marketing research - greater emphasis needed on: • Research on people who do not currently visit the destination; • Tourists’ perceptions of destinations; • Data for effective market segmentation; • Longitudinal research; • Techniques for identifying and monitoring competitors


The Weaknesses of Destination Marketing • Current Issues: – The importance of local government boundaries - continued importance to destination marketers but of little interest to visitors – Few destinations have engaged with the concept of relationship marketing - lack of communication with the customer base


The Weaknesses of Destination Marketing • Current Issues – Destination brochures look very similar to those produced 25/30 years ago - emphasis remains on providing lists of accommodation and attractions rather than specific packages – Market segmentation is still based on older and cruder methods based on demographic or geographical segmentation - more effective use needed of psychographic segmentation based on lifestyle and personality


Market Segmentation


The Weaknesses of Destination Marketing • Current Issues: – Many destinations still seem to pursue a ‘we offer something for everyone’ approach to marketing - greater emphasis on niche marketing needed – Limited expertise in measuring the effectiveness of marketing activities - lack of measurable performance indicators – A lack of ‘joined-up’ thinking - lack of measurable performance indicators – Destination marketing in the UK is quite a fragmented sector


Activity 2: Developing a Destination Brand • What is a brand? • Why have a brand? • What makes a successful destination successful brand?


Activity 2 • What is a brand?



What is a Brand? • ‘a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition’ [American Marketing Association, 2006]

• ‘A brand represents an unique combination of product characteristics and added values, both functional and nonfunctional, which have taken on a relevant meaning which is inextricable linked to that brand, awareness of which might be conscious or intuitive’ [Macrae, Parkinson and Sherman, 1995]


What is a Brand? • ‘Brands incite beliefs, evoke emotions and prompt behaviours...they speed up consumers’ information processing and learning...brands have the ability to add or subtract from the perceived value of a product’ [Kotler & Gertner, 2002, p. 49]

• ‘a brand name is more than the label employed to differentiate among the manufacturers of a product. It is a complex symbol that represents a variety of ideas and attributes...the net result is a public image, a character of personality that may be more important for overall status (and sales) of the brand than many technical facts about the product’ [Gardner & Levy 1955, cited in Pike, 2004, p. 70]



The Components of Branding

Brand Identity Mission/Vision Values Desired Brand Image

Brand Positioning Brand Name Brand Symbols Brand Slogan

Brand Image Cognition Affect Conation Consumer-based brand equity

[Pike, 2004: 112]


The Components of Branding • Brand Identity - internal organisation orientation - reflecting self-image and aspired market image • Brand Image - external market orientation - the actual image held by the customer • Brand Positioning - the interface between brand identity and brand image, the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands


The Destination Brand Benefit Pyramid Level 5: What is the essential nature and character of the destination brand? Level 4: What does value mean for the typical repeat visitor? Level 3: What psychological rewards or emotional benefits do tourists receive by visiting this destination? Level 2: What benefits to the tourist result from this destination’s features? [Source: Morgan et al 2004: 71]

Level 1: What are the tangible, verifiable, objective, measurable characteristics of this destination?


Activity 2 • What is a brand? • Why have a brand?


Why have a Brand? • To create and manage a reputation - for a company/organisation/destination/product/individual • The challenge is to manage the reputation of the destination so that the opinion people have (in the identified target markets) of ‘the product’ is positive and motivating • To identify and effectively communicate what your destination stands for • To make your destination stand out in a crowded market-place by identifying your uniqueness and differentiating your destination from your competitors


Why have a Brand? • To drive customer loyalty • To add value to your destination – to develop brand extensions e.g. South Downs Lamb, South Downs charcoal, New Forest Marque


Activity 2 • What is a brand? • Why have a brand? • What is a successful destination brand?


What is a Successful Brand? • Morgan et al (2004): – Credible, highly distinctive quality and value – Consistent delivery – Differentiating – Conveying powerful ideas – Enthusing for stakeholders and partners – Resonating with the consumer


What is a Successful Brand? • Cooke (1996): – It is unique and cannot be copied, especially by competitors – It reflects the purchaser’s self-image – It represents the intangibles of the product – It informs and influences the customer at the point of purchase – It provides the foundation/common platform for all marketing activity and to capture the synergy of the constituents that create the overall context of a destination


Successful Brands


Activity 3 – Brand Identities • What elements are portrayed in the marketing videos? • Think about: – The content and images portrayed – The target market/segment – The length and type of holiday – What makes an effective brand?



Strategies for Growth (Ansoff’s Matrix)

Existing Marketing

New Product

Market Penetration

Product Development

Penetrate more deeply into existing market

New product development for existing markets

Market Development Diversification Existing products sold to New products sold in new markets new markets

[Source: Insights.org.uk]

New Market

Existing Product


Strategies for Growth (Ansoff’s Matrix) Existing Product

New Product

Existing Marketing

Market Penetration

Product Development

New Market

Market Development Diversification

Penetrate more deeply into existing market

New product development for existing markets

Existing products sold to New products sold in new markets new markets

Market penetration offers the lowest risks for the quickest returns based on assumption that a destination wants "more of the same" type of visitors

Assumption that the product is more or less satisfactory for current markets, and that there is untapped potential in those markets – both to attract more of the same, and to sell more of the current product to the same people


Strategies for Growth (Ansoff’s Matrix) New Product

Existing Marketing

Market Penetration

Product Development

New Market

Market Development Diversification

Penetrate more deeply into existing market

New product development for existing markets

Existing products sold to New products sold in new markets new markets

Market development offers moderate risks for medium-term returns

Assumption that the product is satisfactory and that it could appeal to other markets if they only knew about it, or if it was simply positioned differently

[Source: Insights.org.uk]

Existing Product


Strategies for Growth (Ansoff’s Matrix) New Product

Existing Marketing

Market Penetration

Product Development

New Market

Market Development Diversification

Penetrate more deeply into existing market

New product development for existing markets

Existing products sold to New products sold in new markets new markets

Product development offers moderate risks for medium-term returns

Assumption that more people will come from existing markets, visit more often, and spend more – if (and it is often quite a big if) the product can be improved

[Source: Insights.org.uk]

Existing Product


Strategies for Growth (Ansoff’s Matrix) Existing Product

New Product

Existing Marketing

Market Penetration

Product Development

New Market

Market Development Diversification

Penetrate more deeply into existing market

New product development for existing markets

Existing products sold to New products sold in new markets new markets

Diversification presents the highest risk level, and necessitates a long-term perspective – moving into uncharted territory with both product and markets

Often the only option! – for example in a faded seaside resort with dying markets and outdated product, or for a post-industrial town with few visitors, but major redevelopment planned


Destination Branding • ‘Destination branding requires its own specialist skills. All brands seek to stand out from the crowd when it comes to their unique content. But destination brands can add something else to the mix: exploitation of context’ [Enterprise IG, 2005, p. 1]

• ‘Content’ - the brand attribute which brand managers deliberately embed to meet needs and attract customers: it’s under the brand managers control • ‘Context’ - ‘happenstance’ of history and circumstance, the factors giving a destination its character


Destination Branding • Rarely under the control or even influence of one individual, however by making the most of context and content, brand managers can add genuine richness and the compelling truth that makes their destination unique [Enterprise IG, 2005, p. 1]


Destination Branding


Developing a Destination Brand • The Phases in Brand Building – Phase 1: Market investigation, analysis and strategic recommendations – Phase 2: Brand identity development – Phase 3: Brand launch and introduction - communicating the vision – Phase 4: Brand implementation – Phase 5: Monitoring, evaluation and review [Source: Morgan et al, 2004, p. 69]


Destination Celebrity Matrix

[Source: Morgan et al 2004: 71]


Activity 4 – Destination Branding • Develop a branding strategy for your destination. Consider the following: – What are its values? – What are its core attributes (consistencies)? – What are its basic truths? – What are its long-term ambitions? – What are its distinct individualities? – What are its recognition signs?


Developing a Brand for Historic Cities • What are their values? – Cultural and educational leisure activity (theatre, museums, parks etc) – Hospitality and visitor experience visitors • What are their core attributes? – A cathedral, and related vernacular environment (architecture) – A concentrated city centre enclosing shops, tourism and cultural facilities – Powerful, but intangible, spiritual and historical references


Developing a Brand for Historic Cities • What are their wider characteristics? – Focal points of their regions – Key visitor destinations – Urban environment susceptible to impact – Wide range of stakeholder groups • What are their long-term ambitions? – Retain civic heritage – Conserve local culture and environment


Developing a Brand for Historic Cities • What are their distinct individualities? – Their geographical location – The status and importance of their cathedral – Secondary, non-cathedral attractions – Unique local culture (people, places and events)


Developing a Brand for Historic Cities • What are their recognition signs? – Their names (valuable brand identity but also a negative asset!) – Their symbol (the cathedral tower) – Branding slogans and promotional devices – Unique local culture (people, places and events)


Developing a Brand for Historic Cities • What are their recognition signs? – Their names (valuable brand identity but also a negative asset!) – Their symbol (the cathedral tower) – Branding slogans and promotional devices – Unique local culture (people, places and events)


Developing a Brand for Historic Cities What are its values? What are the core attributes? What are their wider characteristics? What are its long-term ambitions?

What are its distinct individualities? What are its recognition signs?

These characteristics are shared by most historic cities, and set them apart from other destinations

These characteristics give each city its unique identity


Case Studies: Wales Tourist Board









Case Studies: South West Regional Development Agency


South West England: It’s in Our Nature


South West England: It’s in Our Nature


South West England: It’s in Our Nature


South West England: It’s in Our Nature


South West England: It’s in Our Nature


South West England: It’s in Our Nature


• Brand Centre

South West England: It’s in Our Nature


Case Studies: South West Tourism





Case Studies: Devon County Council



Case Studies: New Zealand Tourism


New Zealand: 100% Pure


New Zealand: 100% Pure n

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The 100% logo incorporates an image of the north & south islands The strap line positions NZ as the ultimate, pristine thrillseeker paradise The strategy aims to communicate an untainted, unaffected, undiluted place Eventually the aim is to drop NZ for simply 100%

New Zealand: 100% Pure

[Source: Morgan et al, 2002]


New Zealand: 100% Pure n

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Launched market by market July 1999- February 2000 Focus on TV, print ads & the Internet Showcases NZ’s people, landscapes, activities & culture Clear celebrity & emotional value Key markets: Australia, Japan, USA, Germany, UK, Singapore, Taiwan

New Zealand: 100% Pure

[Source: Morgan et al, 2002]


New Zealand: 100% Pure n

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www.purenz.com has been central to the campaign 4,500 operators linked to the site Visually attractive & easily navigable Average visitor stays 13 minutes & visits over 20 pages Attracts 65,000 unique visitors per month

New Zealand: 100% Pure

[Source: Morgan et al, 2002]


New Zealand: 100% Pure n

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Successful branding is not achieved by advertising alone and includes interactive media & direct marketing (drawing on non-traditional media) The key targets are so-called interactive travellers – the young in body or spirit who enjoy travel, new experiences and adventure They are influential opinion formers who are web-wise

New Zealand: 100% Pure

[Source: Morgan et al, 2002]


New Zealand: 100% Pure

New Zealand: 100% Pure


New Zealand: 100% Pure

New Zealand: 100% Pure


Monitoring Marketing and Brand Effectiveness


Monitoring Brand Effectiveness


Marketing Lessons


Lessons Learnt • Lesson 1: Ownership • Lesson 2: Reflecting the past • Lesson 3: Volume or value • Lesson 4: Tourism must benefit the locality • Lesson 5: The strategy has to be resourced


Learning Outcomes • At the end of this session you should be able to: – Identify the key elements of successful destination marketing – Evaluate the complexities and current weaknesses and issues relating to destination marketing – To critically evaluate the key issues in brand development and the key attributes and characteristics of a successful destination brand – To critically examine examples of destination marketing and branding through specific case studies


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