TOURISM AND HOSPITALITY MARKETING

THC 3107 MODULE 5-7 REVIEWER

Prof: Myrna T. Luceño

Module 5: TOURISM PRODUCT

KEY PLAYER IN THE TOURISM INDUSTRY

1. Private and non-profit sectors – include industry associations which have been
established to protect special interest groups, such as travel agency
2. Public Sector Services – cover either national, regional, or provincial tourism
organizations. They come up with marketing programs to promote their destinations to
both intermediaries and individual tourists.
3. Suppliers
a. Transportation Industry – crucial to the success of tourism. This industry includes
airlines, cruises, buses, and railways.
b. Accommodation Sector – covers a huge part of a tourist's expenditure during travel.
There are a variety of accommodation facilities to meet the customer's needs,
preferences, and budget.
c. Food and Beverage Sector – another important supplier of the tourism industry,
Restaurants, bars, food stalls and coffee shops help shape the total travel
experience of tourists.
d. Attractions – basic requirements in having a successful tourist destination. These
can be classified as natural or man-made.
e. Events and Conferences – play a key role in attracting both leisure and business
travelers to a destination.
4. Travel Intermediaries – help bring the tourism product to the customer. These are also
known as channels of distribution.
5. Tourists – the center of the tourism industry. The tourist's satisfaction is the utmost goal
of all other key players in this industry.

PRODUCT
Product – anything that is offered in a market for use or consumption by the consumers as per
the market requirement.
In consumer marketing, a product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need.
Tourism product – is a conglomeration of different products and services both from the public
and the private sector.

Component of Tourism Product

Destination attractions – is a collection of attractions, which is the element of the tourism
product that pulls people to a destination. These are what the visitors want to see. Philippine
attractions mainly fall under the “sun, sand, and sea” category but they also include our old
churches, historical and cultural artifacts, festivals, and many others. The Filipinos, known to be
the friendliest people in the world, are also a major tourist attraction.
Destination facilities – is a wide range of tourist facilities within the destination will help the
tourist enjoy the destination attractions. These include accommodation facilities (hotels, inns
and apartelles), transportations (taxi and rent a car), food and beverage (restaurants and bars),
shopping centers, and many other support facilities.
Accessibility – refers to how available the product is to the consumer, in terms of location, hours
of operation, and ease of availing the products and services.
Image – Central to the product is its image. Destination image helps the visitor form
expectations of what they will experience. It also motivates them to make a decision to visit the
said destination.
Price – is an important component of the tourism product. It allows consumers to determine the
level of services they may receive in the destination. Pricing products highly will create an
expectation of excellence and high standards while pricing it too low might give consumers
doubts on the product’s quality.
CHARACTERISTICS
Intangibility – Intangibility is the most unique characteristic of the service industry which can be
touched and felt, are known as tangible products like consumer goods and products which
cannot be seen, tasted, or touched but can only be felt and experienced during consumption is
called intangible products.
Inseparability – Inseparability means, the product/service cannot be separate service provider.
Perishability – Are products that get spoil very fast. Ex. of these are eggs, etc. Similarly, tourism
is also perishable because every tourism product has some time limit to experience.
Heterogeneity or Variability – Tourism product is heterogeneous in nature as there are lots of
human elements are involved in the delivery of the tourism service and it cannot guarantee that
each tourist’s experience will be same. As there is a human element involved so, some
experience will be good and some experience will be outstanding.
Lack of Ownership – Lack of ownership is the typical characteristic of tourism as well as the
service industry. It means that the consumer can only use/experience the service but it does not
mean that he is the owner of the product/service.
Seasonality – Tourism is seasonal in nature and one destination cannot be popular throughout
the year.
Interdependency of Tourism Product – Interdependency means dependent on each other.
Risk – In tourism we cannot neglect the term (risk) because anything can happen during the trip.
So, we have to be careful always.
Core products – are products that the consumer is really buying.
Facilitating products – are goods and services which must be present for the guest to enjoy and
use the core product.
Supporting products – add value to the core product and help differentiate it from its
competitors. If properly planned, they offer the product’s competitive advantage
Augmented products – are factors that help the consumer consider the product over other
products.

PRODUCT CONSIDERATION
In availing of tourism products and services, consumers consider several factors.
Accessibility – refers to how available the product it to the consumer, in terms of location, hours
of operation, and ease of availing the products and services.
Atmosphere – is the over-all feel of the place. The product or service should be appealing to the
eye, soft to the ears, gentle to the touch and smelling sweetly. Another term for this is the
ambiance of the place.
Customer interactions with the service system – is inevitable for the tourism product.
Consumption happens within the destination. Hence, customer interaction with service staff
should be pleasant and memorable.
Customer interactions with the other customers – consuming the product or the service along
with them. The experience becomes highly variable depending on how consumers behave and
interact with each other.
Co-production of the product or service – involving the guest in the delivery of the service can
improve customers satisfaction, reduce expenses, and increase capacity. The presence of -
service counters, is aimed at making customers become co-producers of value.

Stages of the Product Life Cycle and the Destination Life Cycle
Product life cycle refers to the length of time a product is introduced to consumers into the
market until it's removed from the shelves.
STAGES OF PRODUCT A LIFE CYCLE
Product Development – This is when a new product is first brought to market, before there is a
proved demand for it, and often before it has been fully proved out technically in all respects.
Introduction – This phase generally includes a substantial investment in advertising and a
marketing campaign focused on making consumers aware of the product and its benefits.

Growth – Demand begins to accelerate and the size of the total market expands rapidly. It might
also be called the “Takeoff Stage.”
Maturity – The most profitable stage, while the costs of producing and marketing decline.
Decline – A product takes on increased competition as other companies emulate its success—
sometimes with enhancements or lower prices. The product may lose market share and begin
its decline some successful products stay in the business for a long period of time by employing
product modifications, market modification, and marketing mix modification, some products stay
in the market and avoid decline.
Phase Out – Without a shift in strategy to adapt the prevailing business environment, phase-out
may be inevitable. This is the stage when the production of the product or availability of the
service will be shut down or deleted from company’s product line

At this stage (Maturity Stage), to prevent decline, the company can introduce some
innovations, as follows:
Market Modification – The company may introduce innovations to the product in order to attract
a related segment Of the market and increase consumption further.
Product Modification – the company can opt to change Product characteristics such as quality,
features, and style to attract new users and stimulate more usage.
Marketing Mixed Modification – this is when the company attempts to improve sales by
changing one or more of the marketing mix elements to Attract new customers and prevent
customers from switching brands

Butler’s Destination Life Cycle

EXPLORATION STAGE – is characterized by a few adventurous tourists, close interaction with

locals, minimal effect on social, cultural, and physical environments, and local facilities are used.
This is the primary phase when Governments and local people are beginning to think about
tourism and how they could capitalize and maximize their opportunities in this industry.
INVOLVEMENT STAGE – is characterized by an increase in tourist arrivals, interaction with
locals still high, some changes in social, cultural, and physical environment.
DEVELOPMENT STAGE – tourist arrivals are fast increasing, loss of local control, rise of
foreign owned facilities, migrant laborers, and promotion of artificial attractions.
CONSOLIDATION – tourism has become a major economic factor
 tourism growth slows
 there is heavy advertising and promotions
 facilities begin to deteriorate, and growth rates decline
This may be intentional, to limit tourist numbers or to keep tourism products and services
exclusive, or it may unintentional.
STAGNATION – when the carrying capacity of the destination has been reached or exceeded
 It is also characterized by social, environmental, and economic problems
 It is during this time that we start to see the negative impacts of overtourism.
DECLINE – is characterized by a downward rate of tourist arrivals.
A destination may enter the Decline Stage for many reasons:
 natural disaster that does irreparable damage
 competition from other tourist destinations
  poor long-term planning and management
 political and economic forces beyond a destination’s control

 The decline stage can be mitigated depending on management and marketing efforts to
uplift the destination.
 Improvements in the destination such as changes in attractions, development of more
exciting products, and market modification strategies may be applied to rejuvenate the
decline of a destination.
 New attractions are added, sustainable tourism approaches are adopted or there is a
change in the target market.
If a destination has entered the Stagnation Stage and no changes in management or strategic
planning occur, decline is inevitable.
It means that the tourist destination is no longer profitable and will either close up or turn into
another type of business.
REJUVENATION – new ‘must-see’ facilities are built which attract more visitors. Area becomes
smarter and economy grows.
PRODUCT DEVELOPMENT – Is an integral part of the success of any business. Development
becomes an ongoing process to ensure profitability and sustain interest in product line.

STAGES OF PRODUCT DEVELOPMENT

Idea Generation – it is a systematic way of coming up new ideas. Sources of new product ideas
include the external environment, internal sources, customers, competitors, distributors, and
suppliers, and other sources.
Idea Screening – review of ideas. A new product committee can screen the ideas generated in a
logical and objective manner.
Concept Development and Testing – a product concept is developed and tested. Successful
products are usually those that address specific needs and issues of the end users.
Marketing Strategy – a new product should be developed to match the company’s image and
resources, which turn should be what its existing and potential markets need. There should be a
product-company-market fit.
Business Analysis – it looks more deeply into how much revenue the product could generate,
what the cost will be, how much market share the product may achieve and the expected life of
the product.
Prototype creation – it is presented to its target market for comments on which adjustments and
enhancing should be done.
Test Marketing – the product is then launched in a small geographical area to test the
components of the marketing mix.
Commercialization – this is where the product is fully launched to the entire target market either
nationally or internationally.
Evaluation – this is the stage where the company will know whether the product has gained
market acceptance, hence, if production will be continued or to be stopped.
 TOURIST ATTRACTIONS IN PHILIPPINES
TOP 3 PHILIPPINES DESTINATIONS

Coron – Nature at its finest. Coron is by far, the best destination in the country for me.I love the
scenery, the islets, the pristine waters–everthing. This is where you’ll find the Maquinit Hot
Springs which is said to be the only natural saltwater hot spring in the country.

Baler – Baler just six hours away from Manila, is growing in popularity. It’s the best place to
learn surfing for beginners. Sabang beach has tall waves even in the shallow areas of the
beach.

Bohol – Bohol is packed with adventure. Of course you have the tarsiers, the Chocolate hills,
and all that, But, there’s just so much more. This was where I felt like I was going to die when I
tried “the plunge” at Danao Adventure Park. It is just one of the many thrilling attractions there.
The firefly watching trip was enchanting. It was like a dream.

The Philippines Unique Selling Proposition

1. Warmth and hospitality. I’ve been to different countries, and based on my experience,
Filipinos are kinder; they smile more, and are warmer to tourists.
2. Rich natural resources. We’ve got lots of natural resources to attract tourists—awesome
terrains, beautiful beaches, and rich underwater marine life.
3. Adventure. A lot of companies and destinations are developing different thrilling activities
not fit for the faint-hearted.

The product development process encompasses all steps needed to take a product from
concept to market availability. This includes identifying a market need, researching the
competitive landscape, conceptualizing a solution, developing a product road map, building a
minimum viable product, etc.
Product Development Process involved ideas generation, idea screening, concept development
and testing, marketing strategy and business analysis.

6 STAGES OF PRODUCT DEVELOPMENT

1) IDEA GENERATION – Your goal should be to generate many worthy ideas that can be
form the foundation for the Product Development Strategy. The major part of this stage
should be to give significance to brainstorming sessions where solving costumer
problems is given precedence.
This phase is not about generating foolproof that are ready for implementation. Instead,
raw and unproven ideas, that can be shortlisted later.

2) IDEA SCREENING – This product development stage revolved around choosing that
one idea that has the highest potential of success. Put all the ideas available on the
tables for internal review, i.e.. turn to people with industry knowledge and experience in
the field.

3) CONCEPT DEVELOPMENT AND TESTING – Once the value proposition is ready. It is

time to present it to the set of selected costumers. How they perceive the idea is the test
of your efforts so far. Because is the idea doesn’t look promising. You’ll have to repeat
the steps to develop a new product.

4) MARKETING STRATEGY – Marketing strategy is all about drafting a way to reach out to
the targeted audience. Perhaps the best and the most straightforward method is to
follow McCarthy 4ps of Marketing for your Product Development project.

5) BUSINESS ANALYSIS – Business analysis will help you decide whether the Product
Development efforts are worth the financial investment or not. Will it create a continuous
stream of value.
Smartly strategize around the selling price by identifying the base price of the product.
The best way to identify the base product price is.
HERE’S WHAT THE 4P’s IMPLY
PRODUCT – It is about finalizing the software product based on the concept testing report.
 Product Design
 Branding Strategy
 Level of services offered.
PRICE – It involves around strategizing around product licensing cost , estimating profit margins
and creating an unbeatable marketing strategy
 Pricing Strategy
 Discounting Policies
 Payment Modes
PROMOTION – The hero point or the unique feature that distinguish your solution from another
 Balancing Advertising, marketing and public relations strategy.
 The mediums to reach out to the target audience
 Maintaining a fair-to-fair costumer communicational frequency limit.
PLACEMENT – How it solves the key problems of the costumer.
 Finalizing product distribution strategies.
 Defining the products scope local vs Global.

1) COST-BASED PRICING MODEL

Here the initial production cost is added to the markup percentage to come up with your
new product’s final price.

APPLYING THE COST–PLUS PRICING FORMULA:

Product cost = Technology cost + development cost + licensing cost = $100

Markup = 50%
Price = $150
If your business analysis team applies the psychological price trick, i.e., ending the final with
5 or 9 digits, chances of conversions increase.
So, if the psychological pricing is to play the $150 price will become $149.9

2) MARKET-FOCUSED PRICING
This pricing is inferred after a thorough analysis of the pricing model of similar products
in the target market.
The market-oriented pricing follows the trajectory.

MARKET ORIENTED PRICING

 Module 6: PRICING IN TOURISM

PRICE – Price the amount that the customer pays for the products; the amount of money
exchanged for something of value.
Price makes products available to the target market and reflects the value of the product.
It is the sum of values which consumers exchange for the benefit of having or using the product.
It goes by several other names such as rent, professional fee, room rates, tuition, fees, etc.

KEY CONCEPT RELEVANT TO PRICING

Sales – total amount that a company gets based on quantity sold multiplied with selling price. 
Revenue – total income/profit that the company keeps after all the expenses have been paid for.
Simply put: sales minus expense equals revenue. 
Find Costs – costs incurred due to the operations of the business; do not fluctuate with volume
of sales.
Profit Margin – level of income that is desired by the company. This usually comes out in
percentage form as the amount of mark-up placed on top of the fixed and variable cost of a
product.
Variable Costs – costs that vary based on volume or quantity, Bigger quantities of the same
order will cost less than smaller quantities of the same specifications. This concept is commonly
known as economies of scale.
Break-even Point – the point wherein total cost is equal to total revenue. A company incurs a
loss if cost exceeds revenue and generates an income when revenue exceeds costs. It is
important to know the break-even point especially for a new product, so that it is clear to
management at what volume of sales is the company starting to earn an income.

Key Factors Affecting Price

1) Cost – The setting of prices should incorporate a calculation of how much it costs the
organization to produce the product or the service (Hudson 2008).Both variable and
fixed costs should be included in the price.
2) Organizational and Marketing Objectives – Companies get into business for survival,
profit maximization, high rate of return of investment, brand equity growth, and an
adequate share of the market.
Some organizations such as foundations and national parks may set low fees mainly
because they are ot commercial in nature.
3) Other Marketing Mix Variables – Price is affected by the interplay of the other variables
in the marketing mix. High prices should mean higher quality products and services, elite
distribution channels, and more personalized promotions.
For products priced in the lower bracket, expectations on product and service quality,
distribution channels, and promotional strategies need to be tempered relative to the
product's price.
4) Buyer Perceptions of Value and Price – Buyers have different perceptions of product
quality and value based on branding and image. Price affects buyer perceptions. The
higher the price, the higher the buyer's expectations of quality are.
5) Competition – Knowing what competition offers is an important factor in the success of a
business. In highly price-sensitive markets, companies try to win customers by set ting a
lower price than that of competition.
6) Government Regulations and Taxes – Some government regulations and taxes can
either cause a company to maintain its low prices or increase its prices. There may be a
government regulation or ordinance that prohibits a company from increasing its prices.
However, taxes and other governmental fees may be charged by some local
governments and prices should be increased to cover for such additional expenses
7) Nature of the Market and Demand – Tourism caters to a highly segmented marketplace.
Pricing needs to address the differences in the nature of such markets as well as the
differences in the demand of each market segment.
8) Pricing in Different Markets – Different markets have different levels of price sensitivity.
Hence, a one price-fits-all market would not be recommended.
9) Price Elasticity of Demand – Price increases or decreases normally have effect on the
level of sales of the product. The concept of elasticity of demand is shown in this
formula:
Price elasticity of demand = % change in quantity demanded % change in price
If demand increases when price decreases, then the product is elastic. If demand stays
the same even if there is a price cut, the product is inelastic. In the tourism industry, as
prices fall, demand increases; hence, products are elastic. Consumer demand is highly
 sensitive to price changes. Price elasticity may be affected by customer's perception of
product uniqueness, availability of substitutes, and how consumers budget.
10) Other Environmental Factors – Other environmental factors that may be beyond the
company's control can affect pricing, These factors may include, but are not limited to,
political instability, calamities, environmental issues, etc.

Price and Its Relationship to Marketing Objectives

Tourism establishments may have different reasons for coming up with a marketing mix strategy.

Some establishments do it for survival, others for current profit maximization, market share
leadership, brand equity growth, product quality leadership, and other more specific objectives.
Survival – A company may be experiencing a deep crisis that the most basic reason for its
marketing efforts is merely to survive. A crisis may be a recession, an economic crisis, or stiff
competition.
Current Profit Maximization – Some companies seek to use marketing for short term financial
gains. Gains such as current profit maximization, improved cash flows and swift return on
investment are mostly for short-term financial gains
Market Share Leadership – Some companies build on marketing strategies that will help the
company gain a huge market share and become a market leader in its product category. This
objective seeks to enjoy low costs because of high volume which will eventually lead to long-
term gains.
Brand Equity Growth – Establishing a positive brand image leads to high awareness and
perception of quality.
Product Quality Leadership – Some companies want their brands to be associated with high
quality. Marketing strategies seek to make some brands known as the best service providers in
their category since consumers are willing to pay more for good quality.

GENERAL PRICING APPROACHES

Cost-based Pricing – Cost-based pricing is an approach that aims to cover costs and make a
profit. When using cost-based pricing, the fixed and variable costs are computed and a mark-up
is added. This kind of pricing strategy, however, does not look into the price sensitivity of its
consumers nor the pricing scheme of its competitors.
Break-even Analysis and Target Profit Pricing – This kind of pricing approach is when price is
determined using break-even price and projecting a target profit.
Buyer-based Pricing (Value-based) – Some companies base their prices on the product's value
as perceived by the consumers Perceived-value pricing uses the buyer's perceptions of value
and not the seller's cost as the key to pricing. The question marketers seek an answer to is, "At
what price are buyers willing to buy my product?"
Competition-based Pricing – This approach looks at what price competitors are putting on their
products and services. Companies base their price mainly against the price pegged by their
main competitors less attention is paid on costs, margins, and demand.
Prestige Pricing – Prestige pricing is used when the product or service is positioned to be
luxurious and elegant. Higher price (compared to prevailing market prices) projects that the
product is high-end and prestigious. This strategy seeks to attract a certain type of clientele and
project a degree of exclusivity. By its high price, it seeks to position itself as elite and hopes to
target the Class A market.
For example, El Nido Resorts caters to the Class A market. It is a classic example of a resort
which uses prestige pricing with rates for a villa, pegged at P30,500+ per night for a maximum
of three persons.
Market Skimming Pricing – Companies employ the market skimming pricing strategy when the
market is price in-sensitive. Consumers become price insensitive when demand is high and
supply is low. Hence, products and services that have high demand usually set higher prices to
achieve higher profit margins. This is an effective short-term policy since competition can easily
come in and provide more supply:
For example, diving in the Philippines is considered to be a niche area in tourism, and the rates
when it started out were presumably very high. Nowadays, since the proliferation of a lot of dive
resorts and schools, diving has become more affordable.
Market Penetration Pricing – Market penetration pricing is used when setting a low initial selling
price to penetrate the market quickly and to attract many buyers for a large market share. Some
start-up companies use this strategy since they have lower operating costs than bigger
companies. It is an aggressive way of attracting consumers to try your product because it is
cheaper than the existing products in the market. However, quality should be at par with
competition to ensure repeat sales
For example, Paradise Island Park & Beach Resort in Samal Island, Davao maintains relatively
lower rates compared to the more expensive Pearl Farm Resort, which is also on the island.
This is a strategy to attract a wider segment of the market.
Product Bundling Pricing – Is a strategy used to attract buyers to purchase because of the
reduced rate of the bundle compared the total cost of the items if purchased individually. This
kind of strategy also attracts customers to purchase a product that they may not purchase if it is
not part of the bundle.
For example, Club Punta Fuego in Batangas has summer promos that bundle together different
activities for an attractive price. The amount is cheaper than if the activities are availed
individually.
Volume Discounts – Are rates given to frequent or high volume users to attract them to
purchase the products. Some companies have a demand for a product in large quantities
through a single purchase or for a continuous period of time throughout the year. Hotels have
special rates to attract customers who likely to purchase a large quantity of hotel room.
Discount Based on Time of Purchase – This strategy addresses the seasonality of the tourism
product. A price reduction is given to buyers who purchase services out of season when the
demand is lower or when purchased way ahead of time. Airline tickets use this kind of strategy
wherein travelers can purchase one-peso fares. For example, Cebu Pacific occasionally comes
out with “piso fare” seat sales that entice the market to buy air tickets during lean times of the
year.
Discriminatory Pricing – Kotler et al. (2010) define discriminatory pricing as the segmentation of
the market and pricing differences based on price elasticity characteristics of the segments. This
addresses the high price-sensitive market segment. Hotels have special price local resident rate
wherein a hotel room, which can be sold to a foreigner at $100.00, is sold to a local resident for
only Php2,000.00.
Psychological Pricing – Psychological aspects like prestige, reference price, round figures, and
ignoring end figures are used in pricing. The consumer defines the perceived value of the
product. The use of Php999.00 instead of Php1,000.00 gives an impression that the price is less
than one thousand when it actually is just Php1.00 less. In fact, the Php1.00 is not of much a
value but it makes a lot of difference in the mind of the buyer.
Promotional Pricing – Promotional pricing offers discounts and short-term incentives especially
during the introductory stage of the product or during special activities such as anniversaries or
festivals. It gives the guests a reason to avail the product and promotes a positive image of the
property.
Revenue management is a systematic approach to matching demand for services with
appropriate supply in order to maximize revenues. Most hospitality establishments area able to
juggle all bookings and rate quotation in a way that maximum revenue potential is achieved at
any given night.
 Module 7: TOURISM BRANDING AND MARKETING

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).
Branding is about establishing the identity of a tourism offering in the minds of consumers or
visitors (Lumsdom 1997).
It is a distinctive name or symbol which identifies a product, or set of products which
differentiates it from its competitors (Cooke 1996).
Destination branding helps create a superior proposition that is distinctive from competitors and
imparts meaning above and the functional aspects of the destination (Hudson 2008).
 There are many benefits of branding destinations.
 It helps build awareness by communicating a consistent message.
 There is clarity of messaging which is important in ensuring that purchase risks of
consumers are reduced by associating the destination with a unique identity, a clear
image is created in the minds of potential, current, and repeat customers.
 A clear branding also encourages repeat visits which in turn builds customer loyalty.
 Consumers can easily identify with a destination that has a clear branding.

The tourism marketer should also keep in mind that the potential tourist should be able to easily
understand what the brand symbol and message are communicating. They should balance
creating a clever message that is not dull but rather memorable.
Today’s consumers have more product choices but less decision time than ever before. Brands
should help simplify decisions, reduce purchase risks, and create and deliver expectations.
Published research on branding of tourism destinations have been relatively sparse, especially
since the future of marketing is predicted to be a battle of the brands competing for brand
dominance. (Pike 2008)

Attributes that make a brand successful (Kolb 2006)

 Authentic
 Understandable
 Memorable
 Usable

DESTINATION IMAGE & BRANDING

The question that tourism marketers are now facing is not whether to brand or not but rather,
how to successfully brand a destination (Hannah & Rowley 2013).
According to Dr. Glenn McCartney, in a lecture he presented during the 5th Edukcircle
International Convention on Tourism and Hospitality, “Image formation is at the core of branding.
One cannot embark on branding without deliberately working on one’s image.” Creating an
image of a destination is very challenging, given the nature of destinations, which are volatile
due to political and environmental conditions as well as cultural differences.

The various stakeholders of the tourism industry contribute to how images are formed. These
stakeholders of the tourism industry contribute to how images are formed. These stakeholders
usually have preset images in their minds. They affect the image of the destination based on
how they see the destination, which in turn, affect how the image is formed with other
stakeholders. Kavaratzis (2004) asserts that the goal of the branding process is to evoke
and reinforce word of mouth, especially with regard to residents as they are the most
important advocates of the branding process.

Destination image is commonly defined as “the sum of the beliefs, ideas, and impressions that a
person has of a destination” (Crompton 1979).
 Image as “an individual's mental representation of knowledge (beliefs), feelings,
and global impressions about a destination. Baloglu & McCleary (1999)
Destination image is a bi-dimensional construct, comprised of a cognitive (perceptual) domain
and an affective (evaluative) domain. Echtner and Ritchie (1993)

1. The cognitive domain focuses on the individual’s knowledge and beliefs about a
destination’s functional attributes (Baloglu & McCleary 1999a; Pike & Ryan 2004).
2. The affective domain focuses on the individual’s feelings toward the destination and the
experiences provided there (Baloglu & Brinberg 1997; Beerli & Martin 2004a; Kim &
Richardson 2003)
3. Another domain, known as the conative domain is described as the likelihood of visiting
a destination within a certain time period (McCartney 2013). Further, the destination
image is defined as “impressions of a place” or “perceptions of an area” (Echtner &
Richie 1991).

The destination’s image, if highly positive and congruent with the tourist’s personality
and self-image, will give a high likelihood that the he will choose the destination.

IMPORTANCE OF DESTINATION IMAGE

 It influences not only the choice of destination by tourists but also their level of
satisfaction.
 The image is a fundamental element in the promotion of tourism destinations, since what
differentiates one destination from another is key to its success.

DEVELOPMENT OF BRAND IDENTITY

BRAND IDENITY AND ITS DEVELOPMENT
 Brand Identity is the central aspect of the Branding process; it defines how the
stakeholders want the place to be perceived. (Hannah & Rowley, 2013)
 Identify the basis on which to create a platform to develop a recognized differentiation.
(Aitken and Campelo, 2011)

 Aiken and Campelo (2011) argue that a place brand by nature belongs to the place and
its people, emphasizing the role of co -creating meaning and the collective experiences
of stakeholders in the development of the brand identity.
 Marzano and Scoot (2009) observe that by using their power of persuasion and
authority, stakeholders can have appositive outcome on the branding process.

Destination brand identity development essentially involves 4 stages:

1) Appointment of a brand champion – a brand champion is someone from the community
who is a leader and is responsible and accountable.
2) Identification of the brand community – the destination brand community is as important
a brand communications medium as any advertising campaign since it must deliver the
brand promise. A strong brand can be a unifying force for increased cooperation by all
stakeholders.
3) Conduct of a destination audit – host community’s values and sense of place,
community’s view of the essence of the visitor’s experience, and the destination’s
tourism resources.
4) Production of a brand charter – elements include a brand mission, brand identity or
essence, statement, brand values, and guidelines for implementation and auditing (Pike
2008).

What is Brand Identity?

 Refers to the essence of the brand, the characteristics that make “it” what it is.
 Is the central aspect of the branding process; it defines how stakeholders want the place
to be perceived.
 There is a need for stakeholders discussions to surface values and meanings that create
a sense of purpose for stakeholders and thus, harness commitment.
 Identity provides for overall coherence and therefore, serves as a platform for monitoring
means of expression and unity.
STRATEGIES FOR PROMOTING DESTINATION

1) Film tourism (New Zealand, Ireland, etc.)

2) Celebrity Endorsement (Pay of “Gangnam” Fame)
3) Hosting of Mega Events (Summer Olympic, Beauty Pageants, etc.)
4) Participation in Trade Fairs (World Expo)
5) Catchy Promotional Gimmick (Australia’s “Best Job in the world”)
6) TV, Radio, and Internet commercials

IMPACT OF FILM TOURISM IN DESTINATION BRANDING AND MARKETING

Film-induced Tourism

 According to Morgan and Pritchard (2009), placing a destination in a film is the ultimate
tourism product placement.
 Film is considered to be the most effective imaging medium (Croy 2010).
 This refers to visitation of sites where movies and television programs have been filmed
as well as tours to production studios and filmedrelated theme-parks.
The Universal Studios can be considered as the pioneering film-related theme-park. A
number of destinations have become popular because it has been featured in popular
television series and box office movies.
 A case point of a successful film-induced tourism campaign is that of South Korea and
how the Hallyu Wave has caught on globally. In a report released by the Korea
Foundation, Global Hallyu Data for 2013 reveals that there are 9.28 million Hallyu fans
worldwide with 987 fans club. 6.8 million of these fans come from Asia and the Oceania,
with the Philippines, Singapore, New Zealand, Japan, Thailand, and China having the
most number of fans. North America and South America accounts for 1.25 million and
Europe with 1.17 million.
 Psy of the Gangnam fame, has become a South Korean tourism icon. He helps promote
parts of South Korea because he is globally recognized for his popular song Gangnam
Style.

In the Philippines, over a period of ten years (2003-2013), there has been 191 Korean
telenovelas aired in major TV networks resulting to over 100 fan clubs. The report also cited the
popularity of Korean language classes, Korean films, and Korean food in the Philippines. This
explain the comfort and ease by which Filipino relate to Korean tourists visiting the Philippines.

 The New Zealand Tourism Board estimated that the exposure of New Zealand in the
Lord of the Rings film was worth over $41 million (New Zealand Institute of Economic
Research 2002). There was a 40% increase in tourist arrivals after the film was shown
and contributed a $580 million boost in New Zealand’s economy. Studies also suggested
that tourists had a strong desire to be in the actual places where scenes were shot and
wanted to step into the backdrop of the film’s character (Fronchot & Batat 2013).
The film, “The Hobbit: An Unexpected Journey” shot on location in New Zealand, is
expected to boost tourist arrivals in the coming years.

MARKETING NUGGETS: Film-induced Tourism in Caramoan Islands, Camarines Sur

The Caramoan Peninsula is a hidden paradise, with long sandy beaches, hills, mountains,
volcanoes and lagoons--secret Eden at the south of Camarines Sur. What is used to be one of
the province’s poorest municipalities is now a second-class municipality due to the economic
activity brought about by its rise to international fame through the “Survivor” series.
The most popular resort in the islands, the Gota Village Resort, was put up in three months and
was developed two years earlier than planned in order to satisfy the demand of the Survivor
series. Different Survivor edition have been used Caramoan Islands as its location. French TV
“Survivor” Show “Koh Lanta” in 2008; “Survivor” editions of Israel, Bulgaria, and Serbia in 2009;
Sweden edition in 2010; Denmark, Norway, Belgium, and India in 2011; and the 25th and 26th
episodes of “Survivor” USA in 2012.
When the “Survivor” show filmed in Gotta Village resort, they blocked of the entire resort and
used it exclusively for a period of 6 months. Local government estimates that 250 locals are
employed directly by the “Survivor” series and many more are indirectly benefit from its
presence in the island. In 2001, Caramoan played host to a measly 107, 206 tourists (103, 479
local and 3,781 foreign). Latest figure shows that in 2010, there were 2, 565, 613 tourists who
visited the islands. It shows a 2 393% growth in tourist arrivals. Local business has been
encouraged to put up accommodation facilities to respond to tourist activity.

Impacts of Rapid Development Changes in Caramoan Islands

 More jobs for the local community
 Increased investment opportunities for local businessmen
 Improved standard of living
 Improvement of infrastructure and facilities
However, some negative socio-economic impacts such as displacement, rising cost of
commodities, and reduced enjoyment of facilities by local have become evident based on
interviews with locals.
It is therefore recommended that the Caramoan’s destination development should be well-
planned and implemented to be responsive to the fast pace of tourist growth and activity in the
area with careful attention on protecting it, physical environment from exploitation and
degradation.

COOKE (1996) list the attributes associated with a successful brand:

 Can be a name, symbol or both, and is well known
 Unique and cannot be copied, especially by competitors
 Reflective of the consumer’s self-image
 Represents intangibles of a product.

TOURISM MARKETING
 Informs and influences a consumer at the point of consumption.
 Provides the foundation fro al marketing activity.
The communications mix is very important to the development of brands (Lumsdon 1997). The
brand security that a good brand image offers help secure repeat purchase and eliminates risks.
Established brands secure repeat purchase and eliminate risks.

FOUR BROAD STRATEGIES FOR ATTRACTING VISITORS

1. IMAGE MARKETING – Projecting an image that is both believable and realistic has
been a challenge to the Philippines. In 2012, the Aquino administration launched a new
slogan, “It’s more fun in the Philippines” and hopes to achieve10 million foreign visitors
by 2016. Slogan alone though, cannot achieve this target. It should be a combination of
a larger marketing strategy that will allow the Philippines to provide what the slogan
promises.

Tourism Slogan/Taglines of Countries

 ● Argentina – Beats to your rhythm
● Austria – Arrive and Revive
● Cambodia – Kingdom of Wonder
● Denmark – Happiest place on Earth!
● Georgia – For the best Moments of your Life
● Germany – Simply Inspiring
● Israel – Land of Creation
● Myanmar – Let the Journey Begin
● Nigeria – Good people, great nation
● Philippines – It’s more fun in the Philippines
● Poland – Move your imagination
● Qatar – Where dreams come to life
● Serbia – Life in the Rhythm of the Heartbeat
● Taiwan – The Heart of Asia
● Zimbabwe – A world of wonders

Five image situations where a destination may find itself:

 Overly attractive image refers to places that need little marketing and might need a little
demarketing to avoid overcrowding.
 Positive image refers to places that do not require an image change but rather a strategy
to highlight the positive characteristics and deliver them effectively to the target market.
 Weak image, on the other hand, 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
amidst competition.
 Contradictory image refers to places that have both positive and negative images. These
opposite views lead to contradicting views among potential visitors.
 Negative image is probably the most difficult to address.

The Philippines has often been referred to negatively. In the 1980's, it has been referred to as
the "sick man of Asia." Despite attempts to revive our image as the "tiger economy of Asia," the
Philippines has been projected as a haven for corrupt government officials and terrorists. Until
now, we suffer this negative image that has made the Philippines linger at near bottom as far as
tourist arrivals are concerned.

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 manmade. Bohol is one of the Philippines' top tourist
destinations with its popular beaches, the Chocolate Hills, and its centuries old
churches.
After being severely hit by a 7.2 magnitude earthquake in October 2013, Bohol can still
rise above the ruins and bounce back as one of the country's most visited places.

The Loboc Church became more popular when the Loboc Children's Choir started gaining
international recognition. Then the river beside it was developed with a River Cruise wherein
tourists can go around the river while being treated to a sumptuous buffet lunch of native dishes
and serenaded by musicians on board a colorful raft. The Loboc River Cruise has been a
popular attraction which is included in almost every tourist's tour itinerary.

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 Philippines 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 DESTINATOON BRANDING

Five Key Challenges Faced by Destination Marketers (Morgan and Pritchard 2002)
  Limited budget
 Politics
 External environment
 Destination product
 Creating differentiation

The Philippines struggle with these key challenges so more effort has to be placed in overcoming them.

Fabricus, Carter and Stanford (2007) made the point that two requirements are critical for destinations to
achieve competitive advantage over their rivals, namely:

1. Establishing a strongand unique positioning, that is offering a different kind of experience

compared to other destinations, by developing the destinations attractions and resources in a way
that highlights its unique characteristics.
2. Delivering excellent quality experiences and superior value for money, by ensuring that all
aspects of the visitor experience are of the highest standard and are coordinate.

UMANDAM KALANG HINDI KA KAPASAR KY PA TUBDON KO GID KILID MO