Significance of Marketing in London Tourism: A Report

This report, focusing on London as a case study, investigates the significance of marketing strategies in international tourism management. It examines how Destination Management Organizations (DMOs) utilize marketing to promote London, aiming to enhance its image and attract visitors. The repo...Read More

Contextualising
International Tourism
Management
1

Executive Summary
Travel and tourism industry is one of the primary sectors in UK, largely because of
reason that it contributes in significant amounts to national income, development, growth and
prosperity. But for this industry, just like any other industries in the country, marketing holds
great value in all operational aspects. Through it, administration at travel and tourism companies
intend to fulfil organizational goals and objectives, thus helping the firm to sustain for a longer
period of time in the industry. Marketing and other promotional activities help these enterprises
to sustain market’s competitive nature and also to make as well as cement its position in the
sector.
The present study focuses assessing the significance of marketing in promoting the
destination as marketing strategy is consider as an effective form that support the DMO in
promoting and aware the image of London destination in the international marketplace. The key
aims and objective behind marketing implication for tourism destination results in enhancing the
economic condition of the local people residing within the tourist destination. However, another
aim is to delight the visitors by maximizing their satisfaction level through providing different
leisure and luxurious services. Furthermore, it has also discussed the different external factor that
impact or affect the tourism industry as well as marketing strategies of DMO.
2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
DISCUSSION AND ANALYSIS...................................................................................................8
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................11
REFERENCES..............................................................................................................................12
3

Aim: “To measure the significance of marketing strategies on the image of tourist destination- A
case study on London, UK”
Objectives:
 To measure the importance of marketing in promoting the destination among the
international visitors.
 To assess the relationship between marketing strategies and growing perspective of
London in terms tourist destination.
 To recommend ways through which Destination Management Organization (DMO) can
maintain the positive image of destination.
Research questions:
 Why marketing is considered as a significant tool in promoting the destination?
 What is the relationship between the marketing strategies and growing perspective of
tourist destination?
 What are the ways through which DMO can maintain the positive image of destination?
INTRODUCTION
In the contemporary market, destination marketing organizations within the UK have
viewed that activity of segmenting the different tourism marketplace is considered as a critical
step within the procedure of destination marketing (Weaver and Lawton, 2006). However, this
will benefit in gaining information about the different perspectives in the respect to the specific
destination as well as it also result in understanding or predicting the behaviour of traveller and
visitors. Therefore, it has been widely recognized that marketing and promoting the international
destination play an important role in deciding that whether a destination is going to be visited or
not by potential and actual visitors. For carrying out the present report, selected destination is
London that is one of the most popular tourist destinations in the world. However, this city is
famous and has charismatic tourist attraction and places, that's why it is awarded as one of the
most visited places in terms of international visitors. The present report focuses on analysing the
significance of marketing in the context of tourism destination as it assists in enhancing the
image of destination through focusing on the different attractions existing within the destination.
Furthermore, this report will also proposes various strategic recommendations to Destination
4

management organization (DMO) for maintaining the positive image of chosen destination in
order to encourage the tourists and visitors to visit the destination.
LITERATURE REVIEW
Significance of marketing in promoting the destination
Tourism marketing is determined as a crucial aspect that focuses on anticipating the
requirement of tourist and providing them required facilities and services that result in
motivating them to visit the destination. As per the view of Fyall and Garrod (2005) in the
contemporary prospect, heritage and cultural tourism industry plays a significant role in growing
the economy (Fyall and Garrod, 2005). As now days, tourist demands for visiting the natural as
well as heritage and cultural land site. Thus, Destination management organization within the
famous destination needs to focus on effective marketing strategies for promoting the cultural,
heritage as well as entertainment aspect of the destination so visitors can visit the places.
Morrison (2012) has also asserted that significance of marketing is increasing day by day
because DMO is focused on providing a range of information regarding the specific destination
to the potential visitors and also boosts them to visit the place (Morrison, 2012). According to
Kotler Haider and Rein (2002)tourism business is constantly increasing at all the levels because
of the emergence of new travel destination, Eco-tourism etc (Kotler, Haider and Rein, 2002).
However, tourism is considered as one of the competitive industries so it mainly requires
collaborative approach with the different governmental bodies and local agencies so that they
can significantly promote the destination in the international market.
According to Kozak and Baloglu (2011) main aim of promoting destination in the
international market is related to enhance the growth of economy in terms of national income
(Kozak and Baloglu, 2011). For that, organizations have to render proper value to both the
international and domestic tourists. Key aim and objectives behind marketing implication for the
tourism destination are as follows:
 Enhancing the economic condition of the local people residing within the tourist
destination.
 Attracting visitors by maximizing their satisfaction level through providing different
leisure and luxurious services.
5

 Enhancing the profit margin of local establishment and organization through
rendering international customers to serve.
As per the view of Wang and Pizam (2011) marketing or promoting of the destination also plays
a vital role in influencing customers to visit that place (Wang and Pizam, 2011). However, it
assists in influencing the choices of visitors as well as it directly impacts the length of stay in the
particular destination. In order to promote the destination in the international market, social
media sites can be used that have been emerging with a fast pace. Schubert Brida and Risso
(2011) has also asserted that now days, travellers are using online sites for gaining information
regarding the destination, services etc (Schubert, Brida and Risso, 2011). However, marketing
the tourism destination through social media is an effective tool that assists in raising the level of
awareness regarding the destination.
According to Witt Brooke and Buckley (2013) with the increasing level of travel and
tourism industry, DMO focuses on assessing the competitiveness of the destination along with
determining their strengths as well as promoting their attractive places so that they may develop
effective marketing strategies for the tourism management (Witt, Brooke and Buckley, 201). On
the contrary basis, Akinboade and Braimoh (2010) has also stated that through assessing the
attractive places within the destination they would also determine the segmentation on the basis
of visitor’s demographics, interest as well as behaviour that support them in targeting customers
with different marketing tactics (Akinboade and Braimoh, 2010). As per the view of Shen Li and
Song (2011) another significance of marketing or promoting destinations in the internal level is
that it results in understanding their clients or visitors to whom they are targeting (Shen, Li and
Song, 2011). Thus, it will support Destination management organization in devising effective
marketing mix for the promotion of tourist destination within national and international
marketplace. In addition to this Lew (2011) has also stated that marketing also results in
determining the effective ways through which service providers can deliver delight destination
experiences to the visitors that leads them to revisit that place in future (Lew, 2011).
Relationship between marketing strategies and growing perspective of destination
The contemporary perspective of a tourist destination is very important to ensure
marketing activities because traveller prefer to visit a destination which consider as recognizable
as a place and as a tourism product. In this regard, it is necessary for the DMO to apply different
6

marketing method, knowledge and tactics in order to detail the competitive advantages for the
destination to attract different tourist and guests. Marketing strategies plays an essential role in
increasing the perspective of the chosen destination as result in enhancing the awareness
regarding the destination so that visitors may come to know about the products that are offered
by the destination to different traveller. According to Samimi Sadeghi and Sadeghi (2011) the
competitiveness of tourism destination mainly calculated upon the perception of visitors and the
experience ad services offered by the destination (Samimi, Sadeghi and Sadeghi, 2011).
However, marketing strategies have positive relation the assist in enhancing the awareness of
destination among the wide marketplace. As per the view of Hartl (2002) the different marketing
strategies used by the destination and different tourist organization include promotion through
social media sites, internet, word of mouth etc. that increases the awareness in the international
market (Hartl, 2002). Destination management organization may also focuses on destination
marketing mix for formulating the effective marketing strategy that would directly support the
destination in growing their perspective in the market. The destination marketing mix mainly
focuses on measuring four components that is product, price, place and promotion. According to
Mulec (2009) destination product mainly include assessing items like attraction, service
facilities, transportation and infrastructure (Mulec, 2009). Attraction is consider as the key
services that mainly attract the visitors and tourist to prefer the destination. Sometime tourist also
consider availability of services like hotel and restaurant that assist in catering the requirement of
tourist. As per the Weaver and Lawton (2006) another element for devising the marketing
strategies include measuring price, while marketing the tourism destination DMO must ensure
that destination packages must be set properly so that large visitors can focus on choosing the
selected destination (Weaver and Lawton, 2006). For instance; destination with numerous
attractive places, natural sites scenes, theme park etc. will raise the price of packages thus it is
justified in such cases. Fyall and Garrod (2005) has also asserted that another essential element
in the destination marketing mix include assessing the different promotional and marketing
activities that support the destination management organization in marketing the selected
destination among the international visitors to prefer to visit the new-new destination (Fyall and
Garrod, 2005). Therefore, Morrison (2012) has also stated that through assessing all the above
7

element of the destination marketing DMO, can easily frame the marketing strategy that will
directly affect the awareness of the destination (Morrison, 2012).
According to Kotler Haider and Rein (2002) the destination marketing process include
number of steps that is determining the target markets, analysing the motivational factors that
assist in increasing the number of visitors, developing an effective marketing plan with the
different goals and the last step in the marketing process include developing an advertising
campaigns (Kotler, Haider and Rein, 2002). Therefore, Kozak and Baloglu (2011) has stated that
with this process DMO result in enhancing the awareness of the destination (Kozak and Baloglu,
2011). However, in the contemporary scenario with the help of social media sites they would
promote the product ad services of destination to the target customers.
DISCUSSION AND ANALYSIS
Marketing is consider as that element of business operations, regardless of the industry
that an organization may be operating in. It basically help in interacting with various
stakeholders, identifying & understanding needs and wants of target customers and also
generating, eventually increasing brand image as well as loyalty in the market (Wang and Pizam,
2011). However, it has also analysed that there are different marketing strategies that must be
used by the DMO for enhancing the London destination image within the international market
via using internet platform through social media sites, PPC advertising etc. as now a days
customers prefer to review and gain information regarding the tourist destination with the help of
internet. From the above discussion it has been analysed that there are different factors that affect
the overall destination marketing strategies. The factors mainly include political, economic,
social and technological factor.
 Political factor- The main external factor that affect the destination marketing
organisation strategies for marketing the awareness of London as the tourist destination
city within the UK. However, the political factor plays vital role in modifying the
strategies as government authority continuously changes their policies and regulations
that directly affect the marketing strategies (Schubert, Brida and Risso, 2011).
 Economic factor- Another factor that affect the marketing strategies of destination
management organization include economic factor. As London, UK have growing
economy that assist the customers to prefer the leisure and luxurious services of the travel
8

and tourism industry. For instance; with the higher economic growth it increases and
recreate the heritage and cultural attractions of the London so that visitors or traveller
may get satisfied with the destination (Witt, Brooke and Buckley, 2013).
 Social factor- However, another factor that affect the marketing strategy for destination
management organization include social factor. It mainly include continuous changing
preferences and tastes of the customers regarding the tourist destination. In the
contemporary scenario, tourist mainly prefer to visits the eco-tourism places as well as
place with natural attraction. Therefore, this factor impact the marketing strategies of the
DMO because of the changing perspective of the visitors (Akinboade and Braimoh,
2010).
 Technological factor- One of the key component of macro environment that mainly
impact the international tourism industry include technology. It had great effect on the
individual traveller as well as the tourism businesses. However, in the contemporary
scenario tourist and traveller primarily choose to book their travel planning via internet
medium. Thus, DMO must focuses on the selecting online marketing strategies for
promoting the destination into the international market. Thus, it will positively impact the
travellers and travel businesses because marketing the products and services of the
destination via internet support targeting large customers across the nation (Shen, Li and
Song, 2011).
In addition to this, the above discussion also focuses on different factors that mainly
affects the traveller motivation as well as their demand in travel and tourism sector. The factor
mainly include-
 Pricing factor- Price is being considered as the key factor that results in consumer
motivation. For example, if prices or package of London tourism is low by the travel
operator then it may outcome in accelerative the demand of customer to visit the specific
destination. Travellers pay lower price to visit, they will pay less price for tickets.
therefore, demand gets increased by it. Hence, it helps in increasing motivation level of
the customers (Samimi, Sadeghi and Sadeghi, 2011).
 Health and safety factor- Effective health and safety practices sat the destination also
plays critical role in increasing the motivational level of customers to visits the place. As,
9

London destination mainly focuses on historical and have rich cultural diversity thus, UK
government enable high health and safety factor at the place (Hartl, 2002).
From the above discussion it has also stated that there are different features that attract
the customers towards the London, UK that is-
Features Appeal to the tourists
Social The social characteristic of London tourist destination include different social
groups within the city that is national or regional, different requirement of the
customers or visitors, local and national government policies etc. The effective
social factors in the tourist destination will result in appealing the large customers.
The government policies and regulation is essential for creating sustainability. It
will also result in rendering the great experiences to the visitors who visits the place
(Promotion and Advertising, 2010).
Cultural The London destination attribute the huge cultural and heritage resources like
museums, monuments, ancient structure etc. for instance, The Buckingham palace,
London eye, Windsor castle etc yield or appeal the travellers to visits the place. The
beauty and the composition of museums get draw in the large number of travellers.
This will outcome in gaining the popularity of the different heritage place among
the customers (Stanković and Đukić, 2009).
Physical The destination also features the broad physical features in terms of beaches,
mountains etc that is essential for rendering the appeal to the customers to visits the
place. However, natural places, waterfall, beaches attract the travellers and visitors
most (Morrison, 2013).
CONCLUSION
From the above report it can be concluded that destination marketing organization within
the UK have viewed that the activity of segmenting the different tourism marketplace is consider
as critical step within destination marketing procedure. However, this will benefit in gaining the
fuller perceptive regarding the specific destination as well as it also result in understanding or
predicting the behaviour of traveller and visitors. However, it is essential to understand the key
charismatic places within the destination, heritage and culture of the destination that will attract
10

the market customers. Furthermore, the report has also measured that there is significant impact
of marketing on the tourist destination as it assist them in promoting the destination in the
market.
RECOMMENDATIONS
 The DMO while developing the marketing strategy must focus on preparing long-term
and short-term plans for the tourism. It mainly determine the priority the target markets
and chooses the most impressive strategy for implementation of an effectual branding
approach of the London tourism. However, the DMO must also focus on the integrated
marketing communication method through combining modern and conventional
promotional material to communicate and persuade traveller to visits their destination.
 It is also recommended that DMO must also act as the main competitor that advocate for
tourism within the London region by elevation the awareness and visibility of tourism
locally that result in supporting the accomplishment of their travel product development
and merchandising goals. In addition to this, DMO may also consult with societal
residents before making essential decisions that will impact their life-style as well as
living standards.
 Furthermore, DMO may also play key role in devising the tourism policies, program and
plan of action for enhancing the awareness of the destination. They may conducts
investigation on active and possible target markets so that they may focus on the future
marketing as well as product development decisions. However, DMO may also tracks the
programs of its principal rival and continually focuses on the desire out best practice to
amend product improvement and marketing.
 Another recommendations to DMO for achieving and maintaining the positive image of
destination include marketing the destination services through using online platform as
they are cost effective in nature.
11

REFERENCES
Books & Journals
Akinboade, O. A. and Braimoh, L. A., 2010. International tourism and economic development in
South Africa: A Granger causality test.International Journal of Tourism Research. 12(2).
pp.149-163.
Fyall, A. and Garrod, B., 2005. Tourism Marketing, A Collaborative Approach, Aspects of
Tourism: 18, Cromwell Press.
Kotler, P., Haider, D. and Rein, I., 2002. Marketing Places. New York: Free Press.
Kozak, M. and Baloglu, S., 2011. Managing and Marketing Tourist Destinations. Strategies to
Gain a Competitive Edge. Abingdon: Taylor & Francis.
Lew, A. A., 2011. Tourism's role in the global economy. Tourism Geographies. 13(1). pp.148-
151.
Morrison, A. M., 2012. Marketing and Managing Tourism Destinations. London: Routledge.
Samimi, A. J., Sadeghi, S. and Sadeghi, S., 2011. Tourism and economic growth in developing
countries: P-VAR approach. Middle-East Journal of Scientific Research. 10(1). pp.28-32.
Schubert, S. F., Brida, J. G. and Risso, W. A., 2011. The impacts of international tourism
demand on economic growth of small economies dependent on tourism. Tourism
Management. 32(2). pp.377-385.
Shen, S., Li, G. and Song, H., 2011. Combination forecasts of international tourism
demand. Annals of Tourism Research. 38(1). pp.72-89.
Wang, Y. and Pizam, A., 2011. Destination Marketing and Management. Theories and
Applications. Wallingford: CABI.
Weaver, D. and Lawton, L., 2006. Tourism Management, 3rd edition, John Willey & Sons.
Witt, S. F., Brooke, M. Z. and Buckley, P. J., 2013. The management of international tourism.
Routledge.
Online
Hartl, A., 2002. Developing marketing strategies for tourism destinations in peripheral areas of
europe: the case of bornholm. [Pdf]. Available through:
<http://eprints.bournemouth.ac.uk/442/1/Ann_Hartl.pdf>. [Accessed on 18th December
2015].
Morrison, A., 2013. Destination Management and Destination Marketing: The Platform for
Excellence in Tourism Destinations. [Pdf]. Available through:
<http://www.lyxk.com.cn/fileup/PDF/2013-1-6.pdf>. [Accessed on 18th December 2015].
Mulec, I., 2009. Promotion as a Tool in Sustaining the Destination Marketing Activities. [Pdf].
Available through: <http://www.dgt.uns.ac.rs/turizam/arhiva/vol_1401_mulec.pdf>.
[Accessed on 18th December 2015].
Promotion and Advertising. 2010. [Online]. Available through:
<http://www.sustainabletourismonline.com/destinations-and-communities/
implementation/destination-marketing/promotion-and-advertising>. [Accessed on 18th
December 2015].
Stanković, L. and Đukić, S., 2009. Challenges of strategic marketing of tourist destination under
the crisis conditions. [Pdf]. Available through:
<http://facta.junis.ni.ac.rs/eao/eao200901/ehttp://www.lyxk.com.cn/fileup/PDF/2013-1-
6.pdfao200901-03.pdf>. [Accessed on 18th December 2015].
12