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Sports & Entertainment

Marketing

Module 3
Leisure
Leisure/Destination Products
• Cities/Spots
• Cruises
• Theme Parks
• Hotels
• Restaurants
• Casinos

IIM Ranchi MBA 2019-21


Characteristics
• Dependence on WOM
• Integration with other industries
• Hospitality, food, transport, travel agents
• Challenges of inconsistency
• Weather
• Global terrorism
• Political/military upheaval
• Crime
• Forex rates
• Squalor, poverty

IIM Ranchi MBA 2019-21


Consumer Behaviour
• Motivation
• Visit someplace exotic
• Stimulation
• Gathering new knowledge
• Hobby
• Decision-making
• Planning
• Dreaming
• Impulse
• Post-purchase
• Intention to revisit
• WOM
• Travel blogs, social media
• Travel portals
IIM Ranchi MBA 2019-21
Consumer Decision Making
Take time off? Recreation or relaxation?
Travel or stay at home?
Take a trip?

How long do we have?

How much to spend?

Why are we going to this place? The impact of the destination brand

Where do we like to go? Consideration set of the destinations

Where have we gone before? Previous emotions and memories

Should we do it again? Summarising values to be expected from the previous questions

With family? Might depend on the destination

Where should we go?

What must we do?

What else we would like to do?

How should we go? Mode of transport


IIM Ranchi MBA 2019-21
Place Promotion
T h e co n s c i o u s u s e o f m a r ke t i n g
to co m m u n i cate
s e l e c t i ve i m a ge s o f s p e c i f i c ge o g ra p h i c l o c a l i t i e s o r a re a s
to a ta rge t a u d i e n c e ( G o l d a n d W a r d , 1 9 9 4 )
i nvo l v i n g
n o t o n l y a d ve r t i s i n g a n d P R
b u t a l s o ‘ f l a g s h i p ’ d e ve l o p m e nt s a n d ‘ s p o t l i g ht ’ e ve nt s
i n a r t s , m e d i a , l e i s u re , h e r i ta ge , re ta i l i n g , s p o r t s ( W a r d , 1 9 9 8 )

IIM Ranchi MBA 2019-21


Marketing challenges
• Large number of constituents who will assess/approve the marketing
strategy
• Government departments – Tourism (client), PR, Finance
• Advertising agency
• Evaluation by management with little/no experience in marketing
• React to several external and uncontrollable issues
• Expectation management

IIM Ranchi MBA 2019-21


Research
• Know thy destination
• Fam trip
• Conde Nast – readership surveys
• Travel magazines
• Ancillaries – hotels, cruise lines, airlines, travel agencies, time-share companies
• Advertising agencies, MR firms
• Academic journals – Journal of Vacation Marketing, Journal of Travel Research
• Targeting
• Lifestyle
• Discretionary budget
• Frequented media
• Special needs (?)
IIM Ranchi MBA 2019-21
Positioning Puzzle
• Image: sum of beliefs and impressions held by people
• Dated
• Stereotypes, extreme simplifications of the reality (not necessarily accurate)
• Based on exceptions than patterns, on impressions than facts
• The Supertanker (Kotler and Gertner, 2002)
• Identify and isolate the existing positive perceptions
• Calculate how to enhance these in the external communications
• Downplay anything that does not

IIM Ranchi MBA 2019-21


IIM Ranchi MBA 2019-21
Vegas Vice?

• “Sin City”
• Adult-oriented entertainment centre
• Effort in broadbasing – family-oriented entertainment place

IIM Ranchi MBA 2019-21


IIM Ranchi MBA 2019-21
Positioning
• Increased focus on differentiation through relationships and
emotional appeals, rather than through discernible, tangible benefits
• Develop unique associations for the consumer which can be
articulated as a clear point of difference
• One or two attributes for associations (Aaker and Shansby, 1982)

IIM Ranchi MBA 2019-21


Impact of Internet

Consumers Businesses
• Use of smartphones while • TripAdvisor (Zomato…)
travelling • New businesses
• Search • B&B
• Upload content • Small resorts
• Checking-in • Niche tour operators
• WOM • Travel agents in peril?
• Post and study reviews • 77% cruise bookings
• TripAdvisor • 73% package bookings

IIM Ranchi MBA 2019-21


IIM Ranchi MBA 2019-21
Marketing Strategy
• Destinations are ‘multi-sold’
• Lack of frequency of purchase, yet high level of involvement per
purchase
• Less product, more way of life
• Merchandising
• Tourist places
• Hotels

IIM Ranchi MBA 2019-21


IIM Ranchi MBA 2019-21
Destination Celebrity Mix
High Emotional Pull
•India •Bahamas
•South Africa •Paris
•Iceland •New Zealand
•Dubai
Potential
Celebrities
Stars

Low Celebrity Value High Celebrity Value

Problem
Losers
Places
•Poland •Antarctica
•Ukraine
•Gulf countries Low Emotional Pull IIM Ranchi MBA 2019-21
Destination Brand Fashion Curve

1. Chic and exclusive in spite of (or


owing to) lack of advertising activities
• Tourists are trendsetters, influential
opinion formers
2. Famous: loses its appeal
• Tourists move to the next new place
• Consumers are loyal and affluent, brand
values may become irrelevant anytime
3. Familiar: everyone knows about the
destination, but has lost its appeal
4. Fatigue: difficult to attract lucrative
market segments
IIM Ranchi MBA 2019-21
Thank You!!

IIM Ranchi MBA 2019-21

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