Deakin University T2 2019 MPK736 International Marketing Report

This report examines the impact of a AU$5 million marketing agreement between Tourism Western Australia (TWA) and Singapore Airlines (SIA), focusing on its implications for international marketing and the global economy. The report analyzes the agreement as a response to a drop in international visitors to Western Australia and discusses how the partnership will promote the region as a tourist destination in key international markets. It explores international marketing strategies, the influence of globalization, and the importance of tourism to the Australian economy. The report highlights the significance of SIA's global presence and promotional offerings in attracting tourists, ultimately aiming to boost TWA's international marketing efforts and contribute to Australia's economic growth. The analysis references the key elements of international marketing, including product, price, place, and promotion, and emphasizes the importance of adapting strategies to the demands of the target clientele. The report also delves into the volatile nature of the global economy and how Australia, as a mixed-market economy, is affected by international market trends. The conclusion emphasizes the potential of tourism to strengthen the Australian economy, especially in light of declines in other sectors.

Running head: INTERNATIONAL MARKETING
Tourism Western Australia enters into a AU$5 million marketing arrangement with
Singapore Airlines
Name of the Student
ID Number
Email Address
Author’s note

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Executive Summary
Australia’s Minister for Tourism Mr Paul Papalia has signed a three-year contract for global
cooperative marketing agreement worth AU$5 million with Singapore Airlines. ABC News
reports this event describing the contract as an endeavour to promote Western Australia as a
tourist destination. Minister Papalia remarks that Australia has a partnership with Singapore
Airlines since 1999 and this initiative will attract more tourists to Western Australia.
The initiative will operate in sales and marketing campaigns in the major countries such as
China, UK, USA, Japan, Malaysia, Hong Kong, Indonesia, Germany, Switzerland, Singapore
and India. The initiative will include promotional airfare and travel packages that will be
promoted through digital and print media, along with print and television advertisements.
Papalia also says that this contract will help Australia benefit from overseas business by an
estimated AU$12 million increase. (Mumbrella Australia 2019)
This report discusses the impact of this contract in increasing Australia’s international
marketing with reference to international marketing strategy and global economy.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
TWA and SIA........................................................................................................................3
International Marketing and Globalisation............................................................................4
Tourism and Economy...........................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Tourism is a key component of Australian economy. The country, being a mixed-
market economy, is primarily controlled by service sector, comprising 61.1% of the GDP and
employing approximately 79.2% of the nation’s workforce as of in 2016. In the fiscal year
2017-18, tourism provided 3.1% of Australia’s GDP contributing AU$57.2 billion to the
national economy (Corrie et al. 2013). Although, domestic tourists are a majority in TWA’s
business, it aims to fly in more international visitors to increase international business.
Tourists from New Zealand comprise a significant part of Australian tourism. In the
year 2015, the New Zealand tourist footfall alone was recorded as high as 1309000.
However, there are a significant number of tourist that visits Western Australia coming from
China, Malaysia, India, UK, USA, Singapore, Hong Kong and Japan (Oecd.org 2018).
Therefore, entering a marketing campaign together with SIA may prove to be effective, as the
organization is a giant player in the airlines service sector of the countries aforementioned.
Discussion
TWA and SIA
Tourism Western Australia is the statutory agency to promote Western Australia as a
tourism destination. Playing a major role in the overall tourism economy of the country.
TWA complies with the policies and strategies of Tourism Australia, the government
authority of promoting Australia as a business and leisure destination to tourists from all over
the world. Tourism Australia’s purpose is to enhance the economic benefits of Australian
tourism, supporting the Tourism 2020 strategy taken up by the industry. Tourism Western
Australia, following the strategy, has struck a deal with Singapore Airlines (SIA) signing a
AU$5 million cooperative marketing agreement to promote marketing campaigns for TWA.
Under this 3-years agreement, TWA and SIA will jointly fund campaigns and promote

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tourism in Western Australia in 10 major international markets including China, India,
Germany, Hong Kong, Malaysia, Indonesia, Switzerland, Japan, the United Kingdom and the
USA (Mumbrella Australia 2019).
TWA is facing a continuous downfall in international market. According to the latest
data by Tourism Research Australia, there is a 1% drop in international visit and 2% drop in
expenditure for the last 12 months till March 2019 (ABC News 2019). In this scenario, the
authority’s step in entering into the agreement with SIA marks a global impact on Australia’s
tourism economy.
SIA is one of the most influential airlines in the global service industry. It is ranked as the
world’s best airline by Skytrax (Skytrax 2019) in 2018. It is also ranked top of the line by
Travel and Leisure Magazine for over last two decades (Travel + Leisure 2019). Eventually,
SIA’s offer of promotional airfare and package trips for TWA as part of the initiative may
attract more tourists. Hence, tying up with an organization of such profile assumedly will
provide a larger and effective impact on TWA’s global market campaigning.
International Marketing and Globalisation
International marketing is understood as undertaking marketing strategies and
activities of an organization in aiming for several nations. It is also known as global
marketing. In this regard, an organization has to develop and redesign the four primary
aspects of theirs, namely, product, price, place and promotion according to the demand and
preference of the target clientele (Cavusgil et al. 2014)
Globalisation has huge influence on international marketing. The concept of
globalisation impacts the policies and functions of organizations in various ways.
Revolutionized technological advancements and scientific discoveries are key factors in
marketing strategies and operations. With the presence of social media and platforms, people

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are exposed to international news and trends very easily. Besides, political and environmental
factors also play a major role in international business scenario (Czinkota & Ronkainen
2013). Keeping these factors in mind, the cooperation agreement between TWA and SIA can
be viewed as a significant step as part of Australia’s involvement in international marketing.
Tourism and Economy
Global economy is of volatile and uncertain nature. There are several factors that may
impact global economy. International market largely depend on the fluctuating trends and
developments of the global economy. Australia, like many other developed nations, is also
subject to these changes and fluctuations in the international market arena. However, unlike
many other countries, it has fared quiet well since the 2008 global recession. As a mixed-
market economy, Australia focuses on both services and production industries as its source of
national revenue. Tourism in Australia, however, is a growth industry. Experts recommend
that by 2019, tourism can employ approximately 6 million labour force and can generate
more than 3.1% of Australian GDP (Corrie et al. 2014). Although, political and economic
instability is a major factor in international economy, Australia is by far immune to market
fluctuations in this regard.
With the current trend of Open Economy worldwide, Australia also aims to achieve a
globally integrated economy based on foreign trade, investment and partnership. China,
Japan, USA, Korea and India are top 5 trading partners of Australia in the present times.
Hence, the domestic market of this countries can be useful to Australia’s economy if
expanded into theirs. As for tourism industry, these countries mark a significant amount of
business as well. Current reports suggest that the largest amount of tourists are coming from
China and New Zealand. Therefore, promoting business in this countries may increase the
chance of international revenue (Oecd.org 2018)

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Conclusion
Western Australia is a potential hot-spot for tourism. With Perth at its focus, Western
Australia offers a wide range of diversity to tourists from different parts of the world.
However, the responsible agency for promoting tourism in this part, TWA is lacking
international visitors for a while now. This is a negative impact on Australia’s tourism
business. As per Tourism 2020 target, the country strives to reach AU$ 115-140 billion worth
business (Oecd.org 2018). In this regard, the contract between TWA and SIA is an
instrumental one. With SIA’s market hold over the potential countries, TWA can reach
bigger target clientele though marketing campaigns and promotions. With the help of SIA’s
efficiency and popularity, TWA can rely on their influence on global market. Hence, it can be
a huge boost for TWA’s international marketing operations to reach the target by 2020. Thus,
with the decline of other prominent sectors, especially in mining and construction, tourism
can be a key factor for retaining Australian economy and help prevent it from sliding into
recession.

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References
ABC News. 2019. Tourism enjoys a $1.5 billion rebound as domestic visitor surge bucks
downward trend. [online] Available at: https://www.abc.net.au/news/2019-07-17/wa-tourism-
enjoys-billion-dollar-rebound-as-numbers-surge/11317720 [Accessed 28 Jul. 2019].
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. & Rose, E.L., 2014.
International business. Pearson Australia.
Corrie, K., Stoeckl, N. & Chaiechi, T., 2013. Tourism and economic growth in Australia: an
empirical investigation of causal links. Tourism Economics, 19(6), pp.1317-1344.
Czinkota, M.R. & Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Mumbrella Australia. 2019. Tourism Western Australia enters into a AU$5 million marketing
arrangement with SIA. [online] Available at:
https://www.mumbrella.australia/2019/07/tourism-western-australia-enters-into-a-5-million-
marketing-arrangement-with-sia [Accessed 28 Jul. 2019].
Oecd.org. 2018. The Impacts of Globalisationon International Air Transport Activity.
[online] Available at: https://www.oecd.org/greengrowth/greening-transport/41373470.pdf
[Accessed 28 Jul. 2019].
Skytrax. 2019. Singapore Airlines 5-Star Airline Rating - Skytrax. [online] Available at:
https://skytraxratings.com/airlines/singapore-airlines-rating [Accessed 28 Jul. 2019].
Travel + Leisure. 2019. https://www.travelandleisure.com. [online] Available at:
https://www.travelandleisure.com/airlines-airports/worlds-best-airlines-customer-service
[Accessed 28 Jul. 2019].