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strategies in many countries (Kotler, Haider & Rein, 1993). With the highly economic
development in the past decades, the national income has largely increased in Taiwan.
Besides, the citizens have focused more on the facilities and functions of leisure activities
after the implementation of two-day weekend. Because of the emphasis on leisure tours
and the increase of recreational time, tourism has become popular. In regard to supply,
the provision of public facilities and services, the promotion of local economic
development, the enhancement of social interaction, and the solution to leisure problems
have become the common affairs and challenges for local government and local people.
In recent years, tourism has exceeded social welfare and culture and become the new
index for local marketing and village development. In order to satisfy the demands of
national tourism as well as to strive for international tourists, Executive Yuan has
included tourism in one of the national plans.
Cultural industry and tourism industry have been closely integrated in Taiwan.
According to the report of Business Next, more than one hundred festivals are taken place
in Taiwan that averagely two activities are held every week. Such festivals are featured of
the combination of culture, tourism, and entertainment to create enormous economic
benefits (Liu, 2009). The combination of culture and tourism to enhance economic
development has become a trend internationally that the visit of numerous tourists would
result in locally economic benefits. Moreover, tourism presents economic, social, and
cultural functions that people would not ignore or give up the importance. Some countries
or local governments would establish Economic Development Department (e.g., New
Zealand) or Cultural Department (e.g., Greece) to focus on the economic and cultural
benefits. Others might stress on the interactive activities among the citizens to actively
enhance the social flow and cohesion and to passively reduce social declination and
economic depression. Consequently, tourism development has become a primary
research motive.
LITERATURE REVIEW
I. Marketing Strategies
Kotler, Haider & Rein (1993) defined marketing as a social and managerial process,
with which individuals and groups could create, provide, and freely exchange valuable
products and services to satisfy the demands and desires.
Lung (2010) argued that marketing began with exchange behaviors among human
beings that the division and the production and organization methods of human were
changed, resulting in marketing activities. Kotler, Haider & Rein (1993) regarded
exchange as important phenomena and activities in the society corresponding to the
following conditions. (1) Participants should be individuals, groups, or organizations with
more than two people. (2) One party should possess some valuable article which the other
party would expect to have. (3) One party should be willing to give up the valuable
article so as to exchange a valuable article possessed by the other party, in which the
marketing transaction aimed to receive higher reward than what was paid. (4) Both
parties should be able to communicate and provide valuable articles (Tsai, 2010). Jeremy
(2006) indicated that, for media or other products, a successful marketing strategy should
experience in the following process of having right prices and right promotion to
distribute right products to right places. Based on the above marketing 4P, the strategies
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were described as follows. (1) Product Strategy, the basic Core Product for certain
demands of customers (Kotler, Haider & Rein, 1993). Product positioning was
considered as the key decision that it could be concluded as Attribute positioning, Benefit
positioning, Application positioning, User position, Competitor position, and Quality
(Price) positioning. Besides, high-technology and high-image Product positioning was
also covered (Keegan & Green, 1997). (2) Price Strategy could be divided into Pricing
strategy, Price revised strategy, and Price response strategy. (3) Channel Strategy, whose
objective was regarded as creating effectiveness for customers, according to Keegan
(1999). The major effectiveness of channel could be divided into place, time, type, and
information which were the basic sources of competitive advantages and product values.
Channel Strategy therefore was considered as an important part of Marketing Strategies.
(4) Promotion Strategy contained the dimensions of Personal sales, Sales promotion,
Advertising, and Public relationship. Public relationship was a critical marketing tool that
an enterprise had to build relationship not only with customers, suppliers, and
distributors, but also with various interested public (Peter & Olson, 2004). Walker,
Bovd, and Larreche (1995) also proposed five dimensions for Marketing Strategies,
namely (1) Scope, (2) Goals and objectives, (3) Resource deployment, (4) Identification
of a sustainable competitive advantage, and (5) Synergy.
Cravens & Piercy (2006) proposed the triangular architecture for service marketing in
which the golden triangle formed by enterprise, employee, and customer was no longer
restricted in external marketing for external customers (consumers), but the employees were
gradually emphasized. When favorable service quality was delivered among employees,
internal service quality would be enhanced; thus, the interactive marketing between the
employees and external customers (consumers) could further provide good quality service
(Marshall, 1998). External marketing was referred to traditional Marketing Strategies, 4P,
including product, price, place, and promotion; and, Internal marketing referred to
employee service trainings and encouragement of employee-customer contact in order to
satisfy customer demands. Interactive marketing was regarded as the support, which
stressed on the interactive skills between employees and customers.
According to the above data, Marketing Strategies presented the stages of
(1) Environmental Analysis, (2) Market Definition, and Marketing Mix Strategy. With the
integration of triangular architecture, proposed by Cravens & Piercy (2006), and Internal
marketing, proposed by Gronroos (1984), Environmental Analysis contained the indices of
Industry Analysis and Competitiveness Analysis; Market Definition included Market
Information Collection and Market Positioning; Marketing Mix Strategy covered Product
Strategy, Price Strategy, Channel Strategy, and Promotion Strategy; and Internal Marketing
Management Strategy contained Marketing Unit Responsibility, Customer Management,
and Sharing Marketing Vision. Total four dimensions and eleven indices were included.
II. Analytic Hierarchy Process
Key Success Factor (KSF; Critical Success Factors, CSF) has been widely applied
that it presents different names in various research fields or literatures, such as key
success factor, success factor, key result area, limited factor, strategic factor, and strategic
variable.
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With hierarchic structure to evaluate the priority of key success factors, Analytic
Hierarchy Process (AHP) was utilized for questionnaire survey and the weights among
indices.
When facing major decisions, decision-makers do not simply consider single factor.
Particularly, when the problem affects widely, the decisions are likely to appear
controversy. Analytic Hierarchy Process is regarded as a flexible decision-making tool that
it could analyze various factors in decision-making and could include quantitative and
qualitative factors to simplify complex and low-structuralized problems with hierarchic
structure. Since the development of AHP, it has been widely applied to various fields, like
public policy, project selection, resource allocation, plan evaluation, and performance
evaluation, that it could be applied to decision-making and analyzing objectives.
RESEARCH METHOD
I. Research framework
Based on the literature review, variables with high significance were listed in the
Analytic Hierarchy Process architecture for discussing Key Success Factor in
implementing Marketing Strategies in tourism industry.
Industry Analysis
Key Success Factor in Tourism industry marketing strategies
Environmental
Analysis
Market
Definition
Competitiveness
Analysis
Market Information
Collection
Market Positioning
Product Strategy
Marketing
Mix Strategy
Price Strategy
Channel Strategy
Promotion Strategy
Marketing Unit
Responsibility
Internal
Marketing
Customer
Management
Sharing Marketing Vision
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Environmental Analysis
0.277
Market Definition
0.312
0.235
Internal Marketing
0.176
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3.25
11
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