CHAPTER 7

TOURISM PROMOTION 2

Introduction

Public Relation (PR) is the process of creating a positive image and customer
preference through third party endorsement. This can be done using various activities all aimed
to generate a positive image through what others say about one’s establishment. PR banks on
the idea that if a credible person - not related to your business - says something good about
your product or service, then consumers may be more certain that it is really good.

Communicating to the company’s public image includes both its internal and external
audience. The internal audience includes employees and investors. Employees should maintain
a positive outlook for the company that they work for. They should be the primary believers of
their products. The external market, on the other hand, includes guests, potential guests, media,
local community, and the government.

Major Public Relations Activities.

1. Press/Media Relations. Mass media channels help generate publicity and awareness for
huge audiences. If managed well, news about the product or service can be made
available to the mass market with very minimal expense.
2. Product Publicity. This involves efforts to introduce or publicize new products, special
events, new developments within the business through product endorsements or
mentions in various channels.
3. Corporate Communications. This covers internal and external communications that
promote understanding of the organization using tools such as newsletters, bulletins,
and email blasts. Corporate communications address various audiences such as
employees, stockholders, and clients.
4. Lobbying. PR also includes building good relations with the public sector namely, local
government units where your business operates and legislators who may pass bills that
will have an impact - whether positive or negative - on one’s business.
5. Counselling. Employees involved in PR play the role of adviser with regard to public
issues that may have an effect on the company’s position and image. In times of crisis,
the PR manager serves as the official spokesperson of the company.

Public Relations Process.

1. Understanding the firm’s mission, culture, and target market. A thorough understanding
of the firm’s mission and culture will help one come up with an effective PR plan. This
can be achieved through research.
2. Setting of objectives. Marketing objectives need to be established prior to the creation of
a PR plan. These objectives can either be to build awareness for the new product, build
credibility for the brand, stimulate the sales force, and channel intermediaries or lower
promotion costs.
 3. Defining the target market. Identify a specific target market and get to know how the
behavior of this specific segment of the market. Understand how this market
communicates and what major factors can influence its purchase behavior.
4. Designing the PR message. Create a strategy by which your PR campaign will be
designed and what the communication channels would be effective to achieve your
objectives and attract your target market.
5. Implementing the PR plan. This means putting the plan into action.
6. Evaluating the results. Evaluating the results of the PR campaign can come in the form
of:
● Exposure of the brand.
● Awareness, comprehension/ attitude change within the target market; or
● Sales and profit contribution.

Sales Promotion Tools

1. Samples - are offers of a trial amount of a product. Some samples are free, others
charge a small amount to offset its cost while inducing product trial. Sampling can also
be made to influential decision makers such as company executives and sales people in
the belief that trial will improve product knowledge, which will eventually lead to a sale.
2. Coupons - are certificates that offer buyers savings when they purchase a product. It is
used to stimulate sales of a mature product as well as promote trial of a new product.
3. Packages - involve putting together a set of complementing products to come up with
one bundle at a special price. If the products are sold separately, the total cost will be
more expensive. This helps in increasing per capita revenue and selling products that
may otherwise be unsold.
4. Premiums - are goods offered either for free or at a low cost to provide incentive for
consumers to purchase a product. Some establishments create novelty items that can
be brought home as a symbol of the product such as a mug that goes free with coffee.
5. Patronage rewards - are bonuses in the form of cash or items of value that can be
redeemed for a regular purchases made.
6. Point of Purchase Promotion - includes displays and promotions that take place at the
point of sale. Some hotels display brochures of their branches at the lobby or front desk.
Some souvenir items are positioned near the cashier for easy, random, and impulse
purchase.
7. Contests and games - give consumers a chance to win something such as a trip or cash
upon purchase of products and services.

Comparison of Promotional Tools’ Characteristics, Uses, Strengths, and Weaknesses.

Tool Characteristics Uses Strengths Weaknesses

Advertising Public, pervasive, Promotes to a large Efficient way to reach Requires a large budget.
dramatic, impersonal heterogeneous market. numerous geographically Requires creativity for ads
Helps build up long-term dispersed markets. to stand out. Lacks
image. feedback.
Direct Marketing Targeting efficiency. Niche markets. Highend Superior targeting. Effects Higher costs per person
Message customization. markets. Availability of are measurable. than any other tool.
Interactive quality. database. Build
Response measurement. relationships.

Tool Characteristics Uses Strengths Weaknesses

Sales Promotion Communication. Provides Induce immediate sales. Facilitates quicker Effects are short tem.
incentives. Invitation to Boost declining sales. response. Does not build lasting
engage. place preference.

Public Relations Third-party endorsement.
Indirect promotion.
Dramatic. Not directly paid
for but is not cost-free.
Builds good relations. Highly credible. Creates Uncontrollable.
Builds good public image. memorable impact.
Manages unfavorable
stories, rumors, and
events.

Personal Selling Interactive relationship Builds up preference and Facilitates relationship High cost of maintaining a
between buyer and seller. conviction toward product. building. sales force.
Cultivates relationships.

Tool Characteristics Uses Strengths Weaknesses

Internet Marketing Personal yet public. Cultivates relationships. Wide reach. Easy access. Selective audience.
Pervasive. Ubiquitous. Informative Interactive. Immediate Passive medium.
feedback. Global nature.
Multimedia.

Medium Uses Strengths Limitations

Television Advertising. Public relations. Appeal to the senses. High Absolute high cost. Fleeting
attention. High tech. exposure. Less audience
selectivity.

Radio Advertising. Public Relations. Mass use. High geographic and Lower attention than television.
demographic selectivity. Low Fleeting exposure.
cost.

Internet Advertising. Direct Marketing. High Selectivity. Targeted High volume of information.
Sales promotions. Public marketing. Interactive. Relatively Credibility of information
Relations. Personal Selling. low-cost. trustworthiness.

Medium Uses Strengths Limitations

Telephone Direct marketing. Personal Many users. Personal Lower attention. No visual cues.
selling. communication.
Newspapers Advertising. Public relations. Timely. Local market coverage. Short life span and poor
Sales promotions. reproduction quality. Limited
audience.

Magazine Advertising. Public relations. HIgh geographical and Wasted circulation. Long
demographic selectivity. High advertisement lead time.
prestige and credibility. High
quality reproduction.

Newsletters Public relations. Sales promotion. High audience selectivity. Full Distribution concerns.
message control.

Medium Uses Strengths Limitations

Brochures Sales promotions. Direct marketing. Flexibility. Full control. Can Quality of brochure balance with
dramatize messages. Portable. cost of printing. Distribution
concerns.

Direct Mail Direct marketing. Personal selling. Very high selectivity. High per person cost “junk mail”
Measurable. Offer not visible to image.
competitors.

Billboards Advertising. Sales promotions. High repeat exposure. Low cost. No audience selectivity.
Customization based on
location.

Transit Ads. Advertising. Sales promotion. High repeat exposure. Low cost. No audience selectivity.

Events Advertising. Personal selling. Sales promotions. High audience selectivity. High cost per person.
Direct marketing. Public relations. Customization.
CHAPTER 8
DISTRIBUTION CHANNELS IN THE TOURISM INDUSTRY

Introduction
Coming up with a good product, pricing it in a level that is acceptable to the target
market and letting prospective customers know about the product through promotion is not
enough. A well thought-out distribution strategy shall complete the marketing mix. The product
has to be made available to its target market.

DISTRIBUTION SYSTEMS
Nature and Importance.
A distribution system is the “place” aspect of a company’s marketing mix. It provides an
adequate framework for making a company’s products or services available to the consumer
(Hudson 2008).

Distribution systems are often used to move the consumer to the product. It provides a steady
flow of products to the customer.

Factors that Increased Distribution Importance.

- Focus on an effective distribution system has been affected by factors. This factors have
actually led to the increased of selecting channel members and coming up with an
effective distribution system.

1. Competition. There is a growth of both local and international competition. Tourism

products and destinations cannot just wait for people to come, they should be able to
invite them to come.
2. Globalization. With globalization and the growth of foreign partnerships, systematic
distribution networks need to be developed to enhance competitiveness in the global
arena. With the Southeast Asian mutual recognition agreement in 2016, more efforts
 need to be exerted by the Philippines to be ready for the opening up of the market within
the region.

3. Electronic Distribution Techniques. The growth of technology has given rise to

international reservation systems which give consumers better access to travel products
and services.
4. Perishability of the Product. The concern on tourism product perishability may be
addressed by easier access to its purchase through the availability of distribution
channels.

Distribution Channels and Its Functions.

● A distribution channel is a delivery arrangement used by a supplier, carrier, or
destination marketing organization.
● Direct distribution channels are those the company uses on its own without the
assistance of independent intermediaries.
● Indirect distribution channel, uses the assistance of independent intermediaries to
distribute its products.

1. Information. Distribution channels are exposed to information about what the market
needs and wants. They gather marketing research and intelligence information about the
marketing environment.
2. Promotion. Distribution channels help in developing and spreading persuasive
communications about a company’s current offer.
3. Contact. Distribution channels are the company’s finding and communicating with
prospective and current buyers.
4. Matching. Distribution channels know what the product can do and what the buyer
needs; hence, they can shape and fit the offer to these needs.
5. Negotiation. Distribution channels represent the company to the consumer during
negotiation. Hence, they are equipped to settle on pricing and other terms for purchase
and acquisition of products and services.
6. Physical Distribution. Distribution channels handle the physical transport of goods and
services to its consumers.
7. Financing. The distribution channels should cover for the costs involved in the actual
distribution of the products. Channel work entails resources to pursue it effectively.
8. Risk-taking. The distribution function comes with financial risks such as the inability to
sell inventory at full margin, losses, pilferage, etc.

The Role of the Internet.

1. Reservation, purchases and payments can be made online.

2. Companies are not subject to office hours; can be accessed 24/7.
 3. It is able to access a wider market who are money rich but time poor. They are the ones
who have access to technology and are tech-savvy.
4. It is able to cut the queueing process or waiting time.
5. It saves on labor costs.
6. Product comparisons and evaluation of alternative can be facilitated using the Internet.

Marketing Intermediaries.
1. Travel Agents - These are the most widely used marketing intermediary in the tourism
industry (though the Internet is now becoming vastly popular as well). Travel agents offer
a wide array of products and services from transportation to accommodations and tour
packages.
2. Tour Operators/ Wholesaler - Tour operators are a key factor in the success of the
tourism industry. Tourists count on tour operators to turn their dream vacations into
realities.
3. Travel Specialist - Travel specialists are organizations that focus on one or more
functions of the distribution system. Example of such tour specialists are educational
tour specialists who focus on schools, colleges, and universities in servicing educational
field trips.
4. Hotel Sales Representatives - They sell hotel rooms, and other services in a particular
area. Hotel have found it more efficient to hire local hotels sales representative in
profitable key cities instead of sending its hotels sales executives to do personal selling
in the area.
5. Government Tourist Associations - National, regional, and local tourism agencies or
offices are an excellent way to bring information to the market and gain bookings. They
usually market their locality to tourists and carry with them the different establishments,
properties, and attractions within their territory.
6. Consortia - is a group of hospitality organizations that is called for mutual benefit of the
member (Kotler et al. 2010). It allows a property to be independent in ownership and
management while gaining advantages of group marketing.
7. Reservation Systems - are entities that provide a central reservation system for hotels.
They provide the system for small chains by providing overseas reservation service
through a local number. These companies earn revenue by charging for each
reservation they book.
8. Global Distribution System (GDS) - Global Distribution System such as Amadeus and
Galileo are computerized systems that serve as product catalog for travel agents and
other distribution.
9. Concierges - The hotel front office staff are usually the most frequently asked hotel
employees about the nearest restaurants, shopping malls, or attractions.

Selecting Channel Members

 - Not because all distribution channels are available means you need to use all of them.
Carefully selecting the type of intermediaries you will need for your business will
increase your efficiency and reduce possible conflicts that may arise.
1. Knowing the needs of your customers. Know and understand what your customers need
and look for an entity that can supply that need at the right cost.
2. Attracting channel members. Look for reputable entities they will represent you and will
be partially responsible for the company’s image.
3. Studying economic feasibility. Each channel will produce different levels of sales and
costs. The business they bring in must offset the cost of paying them. The company
should limit the size of their distribution system to one that they can support.
4. Maintaining control. The company should be able to establish control over each
channel. It should maintain a distribution network that it could manage and control
properly.

FRANCHISING
- Has been a fast growing retailing form of business in recent years. Hotels and
restaurants have used franchising as a popular form of distribution. A franchise is
a method of doing business by which a franchisee is granted the right to engage
in offering, selling or distributing of goods or services under a marketing format
which is designed by the franchisor.
- A franchise agreement is an authorization granted to someone to sell or
distribute a company’s goods and services in a certain area, or a business
established or operated under such authorization
- A franchisee is an organization or person that purchases a brand name to
distribute a product or service.
- A franchisor is the parent company of a franchising distribution network.

CHAPTER 9
RELATIONSHIP MARKETING

Introduction
- Berry (1983) first coined the term relationship marketing (RM) and defined it as
attracting, maintaining, and enhancing customer relationships.
- Traditional marketing (also called transactional marketing) ideas centered on the
acquisition of new customers and focused on transactional exchanges with anonymous
customers.

Relationship Marketing Defined

- Relationship Marketing involves creating, maintaining and enhancing long-term
relationships with customers as well as other stakeholders for mutual benefit.

- RM sees the customer as an asset. Its function is to attract, maintain, and enhance
customer relationships. The goal is not only to encourage guests to return but to get
them to tell their friends and relatives how good the product or service is.
 - According to Achrol and Kotler (1999), now is the time to shift from agent of the seller to
an agent of the buyer, and from being marketer of goods and services to being a
customer consultant and manager of his or her products.

Relationship vs. Transactional Marketing

Relationship Marketing Transactiona

l Marketing

Sales Orientation Repeat Sale Single Sale

Communication with Constant Contact Limited,

Clients episodic
contact

Emphasis on Customer High Little

Service

Meeting Customer High Commitment Limited

Expectation Commitment

Quality Concern By all members By production

staff only

The popular Filipino term for regular client is “suki”. What is the “suki” mentality? If there is a
regular stall in the market you buy your vegetables from “tindera” would call you “suki”.

Applying the “suki” concept to tourism industry is like establishing loyalty and building
relationships with your customers. When the buyer-seller relationship deepens, trust and
commitment are established. Seller commits to providing quality service at a reasonable price
while the buyer trust that quality service and reasonable prices are provided in turn. The service
provider becomes top of the mind as far as the buyer is concerned.

Levels of Relationships

To further understand how relationships can develop between tourism providers and their
clients, let us discuss the five levels of relationships.

1. Basic - Sells a product and does not follow up after the sale.
2. Reactive - Sells a product and encourages customer to call if he has concerns or
questions but will not make the first move to ask.
3. Accountable - Representative gets in touch during and after the event to solicit customer
feedback.
 4. Proactive - Salesperson phones customer form time to time to update on product
innovation in the prospect of future sales.
5. Partnership - Company works continuously with the customer to discover ways to deliver
better value.

Dimensions of Relationship Marketing.

I. Customer Retention.
In order to retain customers, the following have to be understood by the tourism marketer:
1. The value of customer satisfaction. Customer satisfaction measures how much a
customer’s expectations are met. Customers purchase products and services with a
level of expectations in mind.
2. The cost of lost customers. Companies should know that when a customer defects, the
company loses the customer’s lifetime value.
3. The importance of resolving customer complaints. This is a critical component of
customer retention. Unresolved customer complaints may result in negative word of
mouth and loss of future sales.

II. Customer loyalty

Customer loyalty is the likelihood that customer are to return and are willing to perform activities
with the organization. Customer spend more money while within the company premises and tell
management when things go wrong instead of just walking away.
Some satisfied customers do not become loyal for the following reasons:
1. They never return to the same area.
2. Customers like to experience different service providers.
3. Customers are price sensitive and will shop for the best deal.

III. Referrals from satisfied customers.

Positive word of the mouth will be most generated by satisfied and loyal customers. This
amounts to high level of positive reinforcement on the purchase of prospective customers. With
the advent of social media, electronic word of the mouth creates a wider range of positive
reviews. With the intangibility of tourism product, there is heavy reliance on the experience of
others.

IV. Complaint Management System.

One of the most challenging tasks of a service industry is handling complaints. The variability of
the tourism product sets the precondition of unavoidable differences in the delivery of services.
One cannot expect to deliver tourism products and services perfectly every time.

Internal Marketing.
In relationship marketing, quality should be the concern of everyone in the organization. Quality
cannot be established by just the frontliners or guest contact employees, it should also be
embraced by non-guest contact employees. The key to building relationships with customers
would be the organization’s employees. It is therefore imperative for management to devise
ways by which there will be very low employee turnover and very high employee morale.

Resistance to Relationship Marketing.

- Some tourism marketers have expressed resistance to the shift to relationship marketing
mainly due to the following reasons, cited by Li and Patrick (2008).
1. Novelty-seeking behavior of tourist. The novelty-seeking behavior of many tourists leads
to the constant tendency of tourists to seeks change and switch brands.
2. Challenge to work closely with customers. There is a need to focus on a better
understanding of the needs of the customers. But he pervasive of technology, many
functions of traditional intermediaries are bypassed and these roles are assumed by the
customers using online means. Thus interaction between seller and buyer becomes
minimal.

Reasons People Fail to Build Customer Relationships.

1. Ignore inquiries.
2. Ignore customer emails.
3. Do not return calls within a reasonable amount of time.
4. Fail to satisfy the customer
5. Fail to get to know the customer
6. Fail to deliver what was promised
7. Do not act on complaints
8. Find fault in the service delivery by pointing fingers at everyone else except oneself.

CHAPTER 10
Branding and Marketing

Introduction
According to the United Nations World Tourism Organization (UNWTO), Tourism
Highlights 2013, international tourist arrivals (overnight visitors) worldwide exceeded the one
billion mark for the first time ever in 2012, with 1,035 million tourists crossing borders, up from
995 million in 2011.

Branding
a. Branding is the process of creating a slogan from a message and then designing a
symbol or logo; that together, will communicate to potential visitors the image of the city
along with the features, benefits, and values it has to offer. (Kolb 2006).
b. Branding is about establishing the identity of a tourism offering in the minds of
consumers or visitors (Lumsdom 1997).
c. It is a distinctive name or symbol which identifies a product, or set of products which
differentiates it from its competitors (Cooke 1996).

There are many benefits of branding destinations. It helps build awareness by communicating a
consistent message. There is a clarity of messaging which is important in ensuring that
purchase risks of consumers are reduced. They should balance creating a clever message that
is not dull but rather memorable. A clear branding also encourages repeat visit which in turn
builds customer loyalty.

Brands should help simplify decisions, reduce purchase risks, and create and deliver
expectation.

Brand Identity
Brand identity refers to the essence for the brand, the characteristics that make it what is it.
Brand identity is the central aspect of the branding process, it defines how stakeholders want
the place to be received (Hannah & Rowley 2013). Identity is the basis on which to create a
platform to develop a recognized differentiation.

The Philippine campaign, “It’s More Fun in the Philippines” to be successful, the local
community needs to buy in to the idea.

Strategies for Promoting Destinations

1. Film Tourism
2. Celebrity Endorsement
3. Hosting of Mega Events
4. Participation in Trade Fairs
5. Catchy Promotional Gimmicks
6. TV, Radio, and Internet Commercials

Strategies for Attracting Visitors

1. Image Marketing
2. Attraction Marketing
3. Infrastructure Marketing
4. People Marketing

1. Image Marketing
There are thousands of competing destinations that attract potential buyers by projecting a
strong image. Projecting an image that is both believable and realistic has been a challenge to
the Philippines.

Some Slogan used in Asia.

Laos Simply Beautiful

Cambodia Kingdom of Wonder

 Thailand Amazing Thailand

Malaysia Truly Asia

Vietnam Timeless Charm

Brunei The Heart of Borneo, A Kingdom of

Unexpected Treasures.

Indonesia Wonderful Indonesia

Philippine It’s more fun in the Philippines.

s

There are five situations where a destination may find itself.

1. Overly attractive image - Refers to places that need little marketing and might need a
little demarketing to avoid overcrowding.
2. Weak Image - Refers to places that do not have a clear message. They may possess
attractive features but lack a messaging of what makes them stand out number amidst
competition.
3. Contradictory image - Refers to places that have both positive and negative images.
4. Negative image - Is probably the most difficult to address.

Philippines as (Negative image).

“ Sick man of Asia” from “Tiger economy of Asia”.

2. Attraction Marketing
Improving an image through marketing communications efforts is not enough to increase
arrivals. Destinations need to invest in developing attractions, both natural and man made.
Bohol is one of the Philippines’ top tourist destinations with its popular beaches, the Chocolate
Hills, and its centuries old churches.

3. Infrastructure Marketing
Infrastructure plays a crucial role in the holistic development of a place. Most important
infrastructures that should be set in place include streets, highways, effective transport system,
airports and seaports, and telecommunications networks.

4. People Marketing
Human capital is what the Philippine has. We are a country of smiles. Our people speak
English, the universal language. We are touted as the world’s most hospitable people. Our
overseas Filipino workers are known as the best. Filipino nurses are chosen over foreign
counterparts. This is our strength - our people.

Challenges of Destination Branding

1. Limited budget.
2. Political unrest.
3. External environment
4. Destination product.
5. Creating differentiation