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First launched in 1999, “100% Pure New Zealand” campaign has become the main marketing tool to advertise and promote New Zealand Tourism to international market. The United Nation World Tourism Organization defined: “New Zealand is widely seen as one of the world’s strongest and most admired destination brands”. On the same hand, Ms. V. Trigger, Chief Marketing Officer of Attractively has recognized the 100% Pure New Zealand campaign is one of the best marketing campaigns she have seen for a destination.
Tourism New Zealand, 2009) Brief information about the DEMO – Destination Marketing Organization: Tourism New Zealand Tourism New Zealand is the marketing organization funded by New Zealand Government and established under the New Zealand Tourism Board Act 1991, which plays a role in promoting New Zealand as an ideal tourist destination internationally. On the basis of New Sealant’s tourism marketing campaign evolving over the past decade as “100% Pure New Zealand”, Tourism New Zealand uses it as a significant tool in advertising, online marketing, international PR activities, event and sponsorship activities.
They bring New Sealant’s story to consumers, the travel trade and the global media as well as working with the tourism industry here to guarantee the promises made through the campaign. (Tourism New Zealand Official Website) General information of ‘Three Year Marketing Strategy 2014-2016’ The 2014-2016 Marketing Strategy with the purpose of “leveraging a strong foundation to accelerate growth” shows the necessity of evolution and refinement rather than a complete re-start and take advantage of opportunities to improve value outcomes if further resource was available.
In which, it articulates five main priorities to show the image of evolution and expansion of New Zealand tourism industry, including developing a market portfolio to reach future market positions, driving preference for visiting New Zealand, focusing marketing activities to define higher value visitors, partnering widely to activate conversion and extending marketing reach, and optimizing delivery capability. Moreover, target market, geographic focus, marketing channels and cross-market themes are four key dimensions which need to be changed over three years.
Through his plan, Tourism New Zealand believes to provide a strong contribution to achieve value and volume improvements for New Zealand tourism industry. (Three-year marketing strategy) Ill. Literature Review In the third part, three sub-themes of Destination Marketing which are reviewed from various perspectives of different researchers and authors include market segmentation, target market and marketing channels. 3. 1 . Market Segmentation 3. 1. 1 .
Market segmentation concept Michel and Wagner (2000) defined: “Market segmentation is an essential element of marketing in industrialized countries”. On the other hand, marketing segmentation is also a central concept in both theory and practice (Smith, 1956), which was illustrated by Smith: “Market segmentation involves viewing a heterogeneous market as a number of smaller homogeneous markets, in response to differing preferences, attributable to desires of consumers for more precise satisfaction of their varying wants”.
In terms of tourism management, tourists are heterogeneous so every single visitor has their own ideal vacations for various contexts (A. Woodside and D. Martin, 2007) so based on Smith’s concept (1956), both authors have defined: “Marketing segmentation is the strategic tool to account for heterogeneity among tourists by grouping them into market segments which include members similar to each other and dissimilar to members of other segments” 3. 1. 2. Bases of market segmentation Kettle and Bowen (1998) has pointed out that there are plenty ways to segment a market.
As Michel and Wagner (2000) mentioned, a segmentation basis classifies into four categories as a set of variables or characteristics used to assign potential customer to homogeneous groups. Following Frank, Massy and Wind (1972), segmentation bases have been separated into general and product-specific bases. Besides, Michel and Wagner (2000) have classified bases into observable or unobservable. Therefore, four categories include observable general bases and product-specific bases, and unobservable general bases and product-specific bases.
In another word, market segmentation strategy is an adaptive strategy, which helps organizations to target and achieve potential markets through the De specific marketing mixes (Sulkers Goat, 2011). Furthermore, this rep concentrate on 2 typical markets, including: consumer markets and markets. The most popular method is based on customer’s characters nonuser market can be segmented into four categories, as Geographer Demographic, Cryptographic, and Behavioral (Kettle, 1980).
Addition markets also can classify into five variables, such as geographic locate demographic or population characteristics, level of socioeconomic De cultural characteristics, and political factors (Hooray and Susan, 1972) of market segmentation Nowadays, facing with the diversity of customer bases and differentiate firms’ products and their competitors’, the focus on segmented marker company’s marketing to better match the needs of that group (Sulked
In terms of marketing a tourism destination, segmenting clear market tool to support destination’s management in focusing their resources and easily to achieve a greater chance of success. 3. 2. Target Market “A target market is a group of customers towards which a business h aim its marketing efforts and ultimately its merchandise” (Kurt, 2010). Segmentation is related to the focus on specific target-markets and e tourist (Chem., 2003; Easternmost et al, 1999).
Carmichael study (2002) spatial impact of the Barnes Exhibit (Ontario, Toronto) in a segmentation ‘out-of-town’ Barnes visitors, by using gravity models to describe the effect, while Musketry et al (2001), used multiple logistic regression a independent variables such as the nationality, household income, deed composition and trip purpose, in order to identify the destination’s m visitor segments as well as the destination’s relative ability to satisfy 3. 3. Marketing channels Put in simply way, marketing channels are the various way in which process of making a product or service available to en consumers.
In industry that means through tourism marketing channels more people known about the destination. Marketing channels are increasingly re f the most critical elements in marketing (MacAfee Usually, Daniel R. F 1993), as they can determine the attractiveness and competitiveness Therefore, marketing channels sector in tourism is significant; trade have a greater power to influence and direct demand of consumers ( E. , 2001). Functions of Tourism marketing channel (Builds D. Laws E Identify consumers’ requests, needs and expectation for experiences products from various providers according to customer demand and Facilitate the selling process by issuing and reserving travel information prices by pre-purchasing tourism products in bulk and negotiating I management by managing demand and supply Estimate the quality of facilities and products in destination Assist co suppliers with legal requirements Facilitate communications in multilingual and multicultural environs consumers and suppliers Provision of information by using brochure and CDC Take care of consumers’ guidance/advice/consultation Simplify the access to often remote tourism products, for both bookings and purchasing Spreading the commercial risk involved between channel members Arranging details and relevant services, such as insurance, visa, currency and so on Assume risk when consumers pre-purchasing tourism products Promotion of particular products or packages, in co-operation with suppliers Complaint handling for both customers and tourism industry’ Marketing Intermediaries (Distribution channel in Tourism, 201 5) IV. Tourism New Zealand Three Year Marketing Strategy FYI 2014 – PAYOFF Review 4. 1 . For a tourism destination, the main market all destination’s management aim to reach and promote their tourism products is the international market. In three-year marketing strategy, Tourism New Zealand has segmented international markets into four different priority markets, covering six core nations, five regions and countries, ND three emerging markets.
In order to understand the segmentation in this strategy, the table below will illustrate in details, as following: Destination Segmentation bases Focus segmentations International markets geographic location demographic [population characteristics socioeconomic development cultural characteristics political factors New Zealand – Priority 1 core markets: Australia, China, the USA – Priority 2 core markets: I-J, Germany, Japan – Priority 3 markets: Peninsular South East Asia, France, Rest of Europe, Korea, Canada – Priority Emerging marketing: India, Indonesia, Latin America Categories Consumer’s Characteristics Geographic Demographic Cryptographic Behavioral Priority 1 core markets Australia – Young adventures: 18-rays, active, social, adventure – Independent Professionals: early ass, seeking break from work and busy lives.