Market Research Proposal on Rural Brand Management - PowerPoint by gai38562


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									 Use of Available Tourism Data
for Marketing Research & Policy
         Tyrone Clarke
        Definition of Marketing
• Marketing consists of the strategies and tactics used
  to identify, create and maintain satisfying
  relationships with customers that result in value for
  both the customer and the marketer.
• A social and managerial process by which
  individuals and groups obtain what they need and
  want through creating and exchanging products and
  value with others (Kotler, 1988,p.3)
• The management process responsible for
  identifying, anticipating and satisfying customers’
  requirements profitably (CIM, 1984)
 The need for meaningful Research
• Before committing to the complexities and costs inherent in
  exporting our tourism services, it is absolutely essential that we
  undertake some degree of research to better understand the foreign
  markets that we will be competing in and the consumers to whom
  we will be selling.
• It is important that this research is meaningful; simply compiling
  statistics and other facts about a market without any purpose, is of
  limited value.
• Any information that we collect needs to be compared, interpreted
  and conclusions drawn.
• Our marketing research activities should be planned and practical
  exercises leading to specific decisions that drive our marketing
• There is a plethora of data available
Market research versus marketing research

• Market research is about understanding the broader
  marketplace in which we intend to compete.
• Marketing research, on the other hand, is about
  understanding what 'package' of marketing elements (i.e.
  the product, price, promotion and distribution factors) the
  country will need to put together in order to meet
  customer needs and to succeed in the marketplace.
• Market research is the more encompassing/broader
  concept of understanding the market environment in
  which you will be competing, while marketing research is
  the more specific/focused view of consumer needs and
Gaining an Information Advantage

• In its role as the foundation of marketing, marketing research is
  arguably marketing’s most important task. Today marketers
  not only view research as a key ingredient in making marketing
  decisions they also consider information to be a critical factor
  in gaining advantage over competitors. Because organizations
  recognize the power information has in helping create and
  maintain products that offer value, there is an insatiable
  appetite to gain even more insight into customers and
• Marketers in nearly all industries are expected to direct more
  resources to gathering and analyzing information especially in
  highly competitive markets.
• In conducting our research we also test concepts against our
  competitors in order to gain further insights as to what sets us
  apart and play to those strengths
             Cost Implications
• While research is key to marketing decision making,
  it does not always need to be elaborate to be
  effective. Sometimes small efforts, such as doing a
  quick search on the Internet, will provide the needed
• However, for most marketers there are times when
  more elaborate research work is needed and
  understanding the right way to conduct research,
  whether performing the work themselves or hiring
  someone else to handle it, can increase the
  effectiveness of these projects.
Marketing Decision Types of Research

•   Target Markets-   sales, market size; demand for product, customer characteristics, purchase
                      behavior, customer satisfaction, website traffic

•   Product-          product development; package protection, packaging awareness;
                      brand name selection; brand recognition, brand preference, product positioning

•   Distribution      distributor interest;

•   Promotion         advertising recall; advertising copy testing, sales promotion response
                      rates, sales force compensation, traffic studies (outdoor advertising),
                      public relations media placement

•   Pricing           price elasticity analysis, optimal price setting, discount options

•   External Factors competitive analysis, legal environment; social and cultural trends

•   Other             company image, test marketing
               E/D Card
• The E/D card is a rich source of data for
  tourism purposes. Serving both the
  operational and policy aspects of the
  tourism industry.
• The Caribbean is in an advantageous
  position compared to larger countries who
  utilize passenger surveys to estimate
  tourist counts versus the Caribbean where
  our data is virtually census data.
                E/D Card
• Every permutation of data from the E/D
  card is useful.
• Apart from the tourists count, this data can
  be used for marketing purposes
                E/D Card
• Today regional governments heavily
  subsidize airline carriers into the region.
• Therefore it is imperative that
  governments understand the implications
  of their investments
• Data from the E/D cards can aid in
  determining this kind of investment
  – Airline load factors
  – Occupancies for hotels
                E/D Card
• Following trends from the E/D cards can
  also guide in the development of supply in
  terms of room stock.
• i.e if there is a heavy leaning towards a
  particular type of product then countries
  can invest in this type of product
               Survey Data
• Types of surveys
  – Visitor Exit Surveys
  – Travel agent surveys
  – Delphi pannel
  – Hotel Registration information
        The New Technology
• The Blogs (trip advisor) can also provide a rich
  source of data for both the private sector as well
  as government agencies.
• The private sector can use the feedback from
  these sites to improve on product deficiencies
• Government can use this information as a
  feedback mechanism to ensure that product
  offerings are consistent with where the country
  promotes itself
• In addition, rich content for advertising can come
  from this unsolicited source of data
        The New Technology
• The internet has facilitated competitive analysis
  which would have been very difficult years ago.
• Tour operator /travel agent websites, airline
  websites, travel sites all provide competitive
  analysis on where countries are currently trading
  compared to other destinations.
• Monitoring these sites consistently can also
  provide insight as to the state of the market at
  over time i.e a plethora of special promotions in
  the market would suggest difficult times for
  destinations and can trigger further market
  stimuli on the part of the destination
              Target Markets
•   UK total population 60.9 million
•   USA population 305 million
•   Canada population 33 million
•   CARICOM population 16 million
•   China population 1.3 billion
    Defining the target Market
• We have used segmentation studies in all
  our major markets
• EUROPE in process
• CARICOM basic data
      Segmentation Analysis
• Addresses four fundamental marketing
  – Who are the target you want to reach?
  – What are they like?
  – Where do they live?
  – How can we reach them most cost
• The strategy for identifying our marketing
  targets is based on two tried and true
  – The customers of our product are existing
  – Birds of a feather flock together
• Methodology
  – Data Collected from E/D cards
  – Names and addresses of all USA customers
  – All duplicates removed from dataset
  – All VFR travelers removed from dataset
  – Total unique households
          Who are the targets
• US visitors are predominantly upscale and live in
  neighborhoods that run the gamut from urban to
• 66.4% of all US visitors fall within 40% of US
  base household count (first 2 quintiles)
  – 42.6 % of US visitors fall into first quintile (20% of
  – Second Quintile contains 23.9% of all USA visitors to
• 1.63 times as likely to reach our target audience
  within this group
                 Game Plan Categories

Game Plan Categories:
      Core. There is a large proportion of customers in these clusters and households are more likely than average to be
      Expansion. Households in these clusters are more likely to be customers, but there are not many of them in either
the customer population or the base population.
      Conversion. Conversion clusters contain a significant proportion of customers; however, they represent an even
larger proportion of the base population. Therefore, indices suggest they are less likely than average to be customers.
Since these clusters represent a significant portion of total customers, they do have potential. However, because of their
under representation with respect to the base population, there are many households that have not been reached yet.
Target marketing strategies designed specifically for these clusters may attract or convert non-customers into the Core
             NonTarget. NonTarget clusters account for a small proportion of customer households, and indices suggest
they are less likely than average to be customers. These clusters may require further analysis for classification due to
their small numbers.
US Visitors
Tourism Authority’s-US Visitors Target Groups
Forming Target Groups
               Target groups were
               formed by selecting those
               clusters that indexed
               above (100+) and
               grouping those with
               similar demographic and
               socio economic

              Target groups account for
              65% of all US visitors to
              the island and 37% of the
              USA household counts
Where are the targets?
How can I reach them?
How can I reach Them?
         Why segmentation
• Segmentation and target marketing are
  central to our marketing strategy
  – Different customer groups require the correct
    marketing mix to suit their individual needs
  – NTAs operate on a limited budget which has
    to serve all major markets and therefore
    targeting ensures an effective allocation of
    resources in areas with a high potential for
• The effectiveness of planning the
  marketing mix depends as much on the
  ability to select the right target markets as
  on devising a product which will generate
  high levels of satisfaction.
• Tourist have to believe that the product
  offers high value.
• There should be continuous monitoring of
  product via exit surveys
      •   The BTA consistently monitors the
          competition to ensure that our
          services are amenities being
          offered are consistent with market
          norms and encourage the local
          suppliers to enhance their
          products to reflect this.
      •   Research will also develop
          strategies to lift the quality of
          products and services being
          offered on island and raising the
          national standards.
           –   ZAGAT
           –   AAA

      •   Monitor the quality of all the
          components of the product and
          provide feedback to suppliers
          falling below the standards.
      •   Duty free sector
      •   Cleanliness drive
Brand Image
          •   In order to effectively
              sell and promote a
              country we need to
              understand the
              consumers perception
              of the destination and
              determine what points of
              differentiation set the
              island apart from the
          •   Conducting brand audits
              starting with the
              perceptions of current
          •   Barbados for example
              trades on Friendliness,
              safety and security
          •   The island that works.
• Extremely challenging for a destination
  marketing organization as they do not
  control any inventory
• We cannot tell a supplier to sell his
  product at any specific price even if its
  priced above where it should be.
       What do we do with Price
• Develop structured or informal relationships with travel trade
  partners who have a ready supply of data available
• They supply relevant market intelligence regarding the pace of
  bookings and what is being offered in the market i.e value for money
• Conduct scans of the market as well as economic conditions to
  determine what national efforts need to be undertaken and what
  would constitute a compelling offer.
• Several of these initiatives have been instituted within recent years
  within the region. However, there is a function for researchers to
  determine the success rate as well as the ROI. The use of E/D
  cards as well as Exit surveys extremely important in these
• In order to determine this we have to determine the correct timing for
  the offer i.e the booking cycles of the consumer.
• In determining the offer we calculate the return on investment to
  ensure its feasibility and benefits to the country.
 Advertising &
• Consistently conduct research
  to monitor our advertising and
  PR efforts in all markets
• Consistently ‘word of mouth’
  ranks very high as a PR
  vehicle for Barbados.
  Suggesting the need to ensure
  that the product is correct.
• In recent years, use of the
  internet has been very
  important trend for Barbados.
• Traditional media have been
  diminishing in effectiveness
• Have therefore reoriented our
  communications efforts to
  reflect the changing
Testing of Concepts
            • Before launching any
              campaign it is tested
              either through focus
              groups or more
              recently we have
              embraced the new
              technologies to test
              our concepts to
              ensure that the
              message is most

• Again simple questions on the exit survey can provide
  useful insights into the distribution channels
     Website Customer tracking
• Enhanced Tracking - The Internet offers an unparalleled ability
  to track and monitor customers. Each time a visitor accesses
  our website they provide us with extensive information
  including how they arrived at the website (e.g., via a search
  engine) and what they did when on the website (e.g., what
  products were investigated).
• This information is being used in the redevelopment of our new
  site and to provide information on interest of the consumer so
  that the relevant content is added to the website
• Research Tools – A large number of Internet services have
  added options for conducting research. These include the
  ubiquitous search engines, tools for conducting online
  surveys, and access to large databases containing previous
  research studies (i.e., secondary research).
• Tourism is a highly perishable commodity. A
  room or airline seat not sold today cannot be
  sold tomorrow
• This highlights the need for accurate forecasting
  as it has implications for jobs and the general
  health of the economy as tourism is the main
  engine of growth for many islands within the
• Countries can be proactive in devising strategies
  in the event of fall off in business.
• The data from the E/D cards is useful as well as
  information from travel partners
• The BTA reported this to the government for
  planning purposes.
• This has resulted in a US$15 million fund being
  established to aid properties and attractions in
  distress due to the economic fallout
• This will minimize job losses and to try to
  prevent any major downturn in the economy
  from the tourism sector as it is heavily tied to the
  other sectors of the economy
         Rationale for Events
• In order to maximize the marketing spend it is
  felt that events with significant television
  coverage can provide a destination with
  advertising and promotional opportunities which
  we could not have otherwise afforded.
• The combined effect of a number of these
  events in the right segments can raise the
  destination profile.
• Finally, the additional visitation for the events
  can boost the immediate needs of the industry.
      Evaluation of Proposal
• The evaluation of all proposals should be
  conducted based on the information
  sources available
• This should be done with a ROI on these
  events in mind.
  – Must provide a minimum return of 20:1 to be a
    viable option
  – Coverage of the event must be significant
    band in line with the image and profile of
          Event Evaluation
• Focus testing and surveys of participants
  to help with future events
            ICC World Cup
• Delivered in numbers for the island
  surpassing the ROI required
• Significant coverage but in areas where
  the number of tourist not significant to
             Other Events
• At this time not viable as the profile of
  clients not necessarily Barbados clients
• Destination marketing and planning for the
  Barbados Tourism Authority involves interaction
  with various publics from the both from the
  supply side and the demand side and protecting
  their interest.
• It is imperative that the relevant information to
  make sound decisions is available and that
  actions are taken in the most cost effective way
  to the benefit of Barbados as a whole.

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