DESTINATION BRANDING: A NEW CONCEPT FOR TOURISM MARKETING

Derrick D. Deslandes, University of the West Indies

Ronald E. Goldsmith, Florida State University

ABSTRACT

This paper describes the emerging concept of destination branding, which although it is not yet widespread,
holds tremendous potential for both new and existing tourism destinations. While researchers have recognized the
possibility of branding destinations, the concept has never been formally proposed or clearly delineated, nor have
the difficulties of doing so been explicated. One of the major issues of concern to tourism managers has been the
issue of control of the destination brand given the complexity of the tourism product and the numerous parties
involved in its operation. This paper begins the process of developing an understanding of the destination branding
process as well as the factors influencing its applicability.

INTRODUCTION

For centuries producers have used marks or brands to identify their products and to distinguish them from
the products of others. By identifying their products, they provide consumers with a means of recognizing and
specifying them to facilitate repurchase or to recommend the product to others (Murphy 1987). A brand has been
variously defined as:
• "An identifiable product, service, person or place, augmented in such a way that the buyer or user
perceives relevant unique added values which match their needs most closely" (de Chematony and
McDonald 1992).
• "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" (Kotler
2000, p. 404).
• A brand is also regarded as "representing a unique combination of product characteristics and added
values, both functional and non-functional, which have taken on a relevant meaning, and which are
inextricably linked to that brand, awareness of which might be conscious and intuitive" (Morgan and
Pritchard 1998).

Although these definitions suggest that virtually anything can be branded, traditionally the focus in
marketing has been on branding tangible products. More recent innovations over the last 25 years (Taylor 1987)
have, however, seen the concept of branding being applied successfully to intangible products such as financial,
retail and other types of services such as hotel and airline services. Taylor notes that one of the reasons for this
growth has been the general acceptance by consumers of the view that services can be packaged, branded,
advertised, and promoted in the same way as tangible products, despite the variability of the human component. As
Keller (1998, p. 14) notes, "some ofthe greatest branding successes has come in services."

According to Murphy (1987), branding has increasingly embraced non-tangible factors in addition to
tangible factors as elements of differentiation in order to distinguish one producer's product from another. This has
had the effect of increasing the subtlety of the qualities on which brand choices are made and has shifted branding
activities to a product's "gestalt" (Murphy 1987), an imagery involving concrete sensory representations of ideas,
feelings, and memories (Macinnis and Price 1987). The idea of a gestalt is that the unique properties of a product or
service do not necessarily result from the sum of its parts (Knapp 2000), which allows a brand to deliver exceptional
perceived value to its customers. This change has had the effect of blurring the lines of differentiation between
traditional physical products and their service counterparts, since both types of products are increasingly using both
tangible and non-tangible cues in their respective marketing and branding programs.

With the acceptance by consumers of service brands, the last decade has seen more and more tourism
marketers beginning to examine and to explore the possibility of branding destinations, and although this is possible

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as the definitions suggest, there is a concern of how to translate this nascent idea into meaningful marketing
programs. According to Morgan and Pritchard ( 1998), one of the major factors behind this examination is the strong
branding success of several tourism products, such as hotels and airlines. They point out examples such as Virgin
Airlines and Hilton Hotels and resorts, suggesting that these entities have managed to evoke strong emotional
commitment and brand loyalty and suggest that the potential to evoke such emotional commitment would be even
greater for a tourism destination such as a resort, city, or even country (Morgan and Pritchard 1998). If this is so,
why then have we not seen an explosion of destinations engaged in destination branding activities?

The purpose of this article is to examine this question and to suggest possible ways in which a destination
might be successfully branded. The paper will examine prior research on branding, but within the context of its
applicability to resort destinations. The paper will also examine some of the obstacles to destination branding,
particularly some of the factors that differentiate the branding of products from branding destinations as well as
those that differentiate branding services.

RATIONALE FOR BRANDING DESTINATIONS

The tremendous interest and growth in branding that we have seen in recent times has been driven by a
number of factors as well as perceived benefits. A major factor driving the branding of products and services has
been the growth of competition. This is no less important for tourism management. The last half of the 20th century
witnessed tremendous growth in the number of companies, towns, cities, and countries engaged in the production of
consumer products and services, not only from the traditional developed regions of the world, but even more so
from the lesser developed countries of Latin and South America, the Caribbean, Africa and Asia as well (Mowforth
and Munt 1998). As Kotler, Haider, and Rein (1993) point out, in the new world economy every place (city, town,
and country) must compete with other places for economic advantages. The also argue that places are products
whose identities must be planned, designed, and marketed if they are to be successful.

The increasing production of goods and services has led to overcapacity, leading to an increased emphasis
on price as a major decision criterion for value conscious consumers as well as increasingly powerful retailers and
middlemen (Aaker 1996). In the case ofthe tourism industry, the development of a tourism sector in virtually every
country of the world, offering services largely undifferentiated from those offered by their competitors, represents a
major competitive challenge. In addition, destinations also face increasing competition from cruise ships, which can
be regarded as huge floating destinations. Faced with such challenges, tourism officials seek ways to differential
their products. In this context, branding if successful, can provide a point of differentiation allowing companies and
destinations to insulate themselves to some degree from competition, particularly that driven by price.

Successful branding generates customer equity, which is defined by Knapp (2000, p. 3) as '"the totality of
the brand's perceptions including the relative quality of products and services, financial performance, customer
loyalty, satisfaction, and overall customer esteem towards the brand." Keller (1998) argues that brand equity can be
both negative and positive and points out that positive brand equity results in a more favorable response to a product
that is branded than one that is not. Brand equity is also regarded as an asset that has value, the presence of which is
viewed as resulting in better earnings and profit performance for firms and creates greater value for shareholders
(Keller 1998).

Branding also helps to reduce the risk associated with purchasing products or services (Tepeci 1999). In
addition, as Aaker (1991) states, brands introduce stability into businesses, help guard against competitors, and
allow customers to shop with confidence in an increasingly complex world. Brand creation also enhances the ability
of firms to create customer loyalty, which although counted as a key element of brand equity (Aaker 1996; Kapferer
1992; Keller 1998), is important in its own right. Tepeci (1999) argues that within the tourism and hospitality sector
Joyal customers are preferred because they are easier to serve. Reichheld (1996) lists several advantages of brand
loyalty:
• Long-term profits
• Reduced marketing cost

2002 AMS Coliference Proceedings, Volume XXV 131