Destination Management Module 29: Destination Positioning

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THE DEVELOPMENT TEAM Principal Investigator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari Co-Principal Investigator Dr. Prashant K. Gautam Director, UIHTM, Panjab University, Chandigarh Paper Coordinator Prof. Nimit Chaudhary Head of Department, Hotel, Hospitality & Heritage studies, Jamia Millia Islamia Content Writer Dr. Ramesh Devrath Assistant professor, IITTM Gwalior Content Reviewer Prof. Monika Prakash Nodal Officer, IITTM Noida Paper 13: Destination Management Module 29: Destination Positioning

Transcript of Destination Management Module 29: Destination Positioning

THE DEVELOPMENT TEAM

Principal Investigator Prof. S. P. Bansal

Vice Chancellor, Indira Gandhi University, Rewari

Co-Principal Investigator Dr. Prashant K. Gautam

Director, UIHTM, Panjab University, Chandigarh

Paper Coordinator Prof. Nimit Chaudhary

Head of Department, Hotel, Hospitality & Heritage studies,

Jamia Millia Islamia

Content Writer Dr. Ramesh Devrath Assistant professor, IITTM Gwalior

Content Reviewer Prof. Monika Prakash

Nodal Officer, IITTM Noida

Paper 13: Destination Management Module 29: Destination Positioning

TABLE OF CONTENTS

1. Learning Outcome

2. Introduction

3. What is Destination Positioning?

4. Why destination positioning is needed.

5. Customers Choose a Destination Which Seems Attractive.

6. Effective Positioning

7. Positioning Intangibles

8. Market Positioning

9. Psychological Positioning

10. Summary

11. Bibliography

QUADRANT –I

1. Learning Outcome

After completing this module students will be able to:

ITEMS DESCRIPTION OF MODULE

Subject Name Tourism and Hospitality Management

Paper Name Destination Management

Module Title Destination Positioning

Module Id 29

Pre- Requisites Basic Knowledge about Destination Management

Objectives To understand what is destination positioning and how and why it is

important in marketing a destination and developing overall

image of destination.

Keywords Marketing, Positioning, Image, Destination branding.

DESTINATION POSITIONING

2. INTRODUCTION

Economic policy makers are trying their best to make more money by satisfying the

needs and wants of tourists visiting tourist destinations. For every tourist destination,

tourism marketers create a special reason to attract specific tourists. They have developed

tourist contexts for tourist destinations. Tourist context means creating a reason to attract

tourists to a specific tourist destination.

Spiritual people would love to visit temples. People who like adventure would love to

visit waterfalls, water sports, trekking destinations and more. Health conscious people

would like to visit spas, etc. When people get what they want in a tourist place, they will

want to come back. They will refer their friends. This will lead to an increase in the

numbers of people visiting the place. This will improve the profits for the businesses

operating in the target tourist spot.

3. What is Destination Positioning?

Destination positioning means creating a particular impression about a tourist spot in the

minds of the tourist. Advertising has a major role in creating destination positioning for a

particular tourist spot. When destination positioning is done correctly with right

advertising practices, it will definitely bring in more tourists to the target tourist

destination.

Definition- Positioning is not what you do to the product it’s what you do to the mind of the

prospect. It’s how you differentiate your brand in the mind. Positioning compensates for our over

communicated society by using an oversimplified message to cut through the clutter and get into

the mind. Positioning focuses on the perceptions of the prospect not on the reality of the brand

(Trout, 1969).

4. Why destination positioning is needed.

There are different tourist destinations offering similar tourism value. However, one

place will be more appealing than the other to the potential customer. For example, let us

consider two tourist places. Both of them offer water sports. These two tourist spots are

competing with each other to attract the same customer.

The tourist spot that gives a dominative and attractive reason to the average customer will

attract more clients. The client should not be able to say no to the offer. This special

reason will give the business an upper hand when compared to its competitor. This

special reason should be communicated to the customer in a way the customer will

develop a soft corner for this place. Creating this special place in the mind of the

customer is called destination positioning.

Destination positioning is done after choosing the target market. In the market

segmentation process, you choose to attract a specific age group or people with similar

interest. Example, you try to attract people looking for economic yet hygienic stay or

you try to attract people who love water sports etc.

After choosing your marketing segment, you create the advertising plan to create the

required destination positioning in the minds of the end customer. When you create the

special impression in the minds of your target customer, you will be enjoying their

business more than your competitor.

The positioning of a destination is the process of establishing a distinctive place of that destination

in the minds of potential visitors (Gartner, 1989).

Why destination positioning is needed-

Destination images influence tourists’ travel decision making and behavior towards a destination as

well as satisfaction levels and recollection of the experience. Therefore, perceived images are the

basis of the evaluation or selection process and thus provide the link between motivations and

destination selection (O’Leary & Deegan, 2003).

(Raha, 2012)

5. Customers Choose a Destination Which Seems Attractive

When customers are deciding between two tourism spots offering the similar

entertainment, they choose the one that is more attractive.

We are going to discuss the importance of “destination positioning” in tourism. There

are different methods to doing this. We have to remember that we are not trying to create

a false positive image in the customer’s mind. To create a true competitive edge, the

positioning should be true and useful to the end customer. Our aim is to explore tourism

marketing methods that will help create a true and meaningful impression about the place

in the minds of a customer.

Positioning is a difficult process, which can be done only after careful analysis of the

features and benefits of the services and products offered by the tourist destination.

These attributes should be compared to what the end customer will need and want. What

is offered by the business and what is required by the customer should be matched to

device the end positioning strategy for the business.

The tourism destination with a smart positioning strategy will be able to

directly compete with a stronger competitor. For example, a tourism

destination that is located very far away from the awareness of visitors will be

able to compete with a tourism destination that is very near and well known to

visitors. With a clear positioning strategy, it is possible to push a tourism

destination from being an unknown destination to a known destination.

When an advertisement is being sent, the target client should know that the

message is being sent to them; however, if the target market does not recognize

that the message is being sent to them, then the destination positioning message

will not work. This happens when the destination positioning strategy tries to

be everything to everyone. The tourism destination loses its identity. Target

customers will not be able to identify with its special identity. This destination

will not clear the customer demand. This will eventually create a negative

impression in the customers mind.

6. Effective Positioning

Effective Positioning is possible only when a product or service will solve the problem of

the customer. It has to clear the wants and needs of people and it has to provide some

benefits. When you are positioning a product or service, your positioning advertisement

should promise to deliver to a specific need or want of a customer. If the quality of the

benefit, that you are promising is better than that of your competitor, you will get a better

positioning advantage. At least, it should be similar in quality to what your competitor is

already offering.

Positioning should be based on the main concept of the tourist destination. From the

main concept, the rest of the activities of the tourist destination should be carried out.

When the main concept is single mindedly and properly targeted, it will be positively

helpful, in a way affecting everything that the organization stands for.

(Fernandez-Cavia, 2013)

This will be useful for the advertising process. Also, this will be useful in all the further

business promotions of the company.

Positioning plays an important role in affecting the procedures, policies, customer

relationship, attitudes of the employees, handling of complaints, and a range of other

details that contributes to the tourism experience in a specific destination.

The competition between tourist destinations does not only lie in creating

excellent destination positioning statements, but in delivering the service

promised in a consistent manner.

The positioning statement should express the fact that the promise will be

consistently delivered.

7. Positioning Intangibles

The tourism market is intangible. Intangible means the tourism experience cannot be

touched, but it can only be experienced. Talking to the customer about the tourism

experience in a believable way is a biggest challenge.

The tourists mind should be educated to love the cleanliness of the hotel room, the

chillness of the air conditioner, the warmth and smell of the food, the breeze of the beach,

the calming roars of the ocean, and the re-silent look of the mountain. This is a

challenge.

The hotel room, meals, beach etc. are touchable; however, not all customers are naturally

inclined to enjoy the experiences of tourism. Many are worried about spending. Some

are scared about relaxing, because they fear that any time they are not working is being

wasted. All these emotional challenges get broken with the right positioning statement.

The main goal of destination positioning is not to “sell” the beach, hotel room, or food,

but it is to market the experiences like cleanliness of the hotel room, the chillness of the

air conditioner, the warmth and smell of the food, the breeze of the beach, the calming

roars of the ocean, and the re-silent look of the mountain etcetera.

When an image is created in the mind of the tourist, about the tourist destination, with a

promise of quality and consistent services in a way the customer believes it is true, then

sales takes place. This means they will decide to visit the advertised location.

The “tangible hotel room” and “the intangible cleanliness” should be advertised in a

combined manner, to make the customer, experience the feeling in the mind. During this

process, the positioning statement should also express how they are different from their

competitors.

A good positioning statement should therefore, impression in the mind of the customer

about the location, the experience, the consistency of service, truth in advertising, and

how they are better than their competitor to eventually help their customer visit the tourist

destination.

The mental image that the advertisement creates should be similar and true to the real

physical image and experience of the location. What the customer is made to believe

should be what they see and experience when they visit the location. Being aware of this

fact, does not make things easy for destination positioning.

The abstract concepts about a tourist destination that simply lie in the thought or idea

without a concrete existence should be given a clear material form in the positioning

statement.

How the end customer is made to believe about a particular tourist destination in

comparison to the kind of image created by the competitor’s positioning advertisement is

important. The images created in the minds of the consumer may or may not be different

from the real time physical appearance of the tourist destination being positioned.

8. Market Positioning

The first step involved in market positioning is to identify and to select the market

segment that has a business potential. This is important to identify the parameters for

competitive success for that particular market segment.

To identify the business potential of a market segment, the wants, needs, and perceptions

of the target market should be taken in to consideration. This should be combined with

the benefits offered by the destination. A few important questions should be answered to

identify this:

1. How does the target market perceive the destination?

2. How does the target market perceive the competition?

3. What characteristic element or attribute should a destination use to differentiate

itself in order to make the best use of its limited resource?

No matter how well you advertise, if the target market does not perceive the

image, then the image simply does not exist.

If the target market does not consider what a specific destination has to offer is a

benefit, then it is not a benefit.

If the target market does not believe that the benefit can be delivered, then the

promises are meaningless.

If the benefit that you are offering is not important to the market, then it is not a

benefit.

If the target does not believe that the benefit offered is different from that of the

competition, then the differentiation has not succeeded.

(Positioning, 2006)

Images benefits and differentiation does not matter if the tourist cannot identify or

perceive it to be important. The perceptions of the tourism officials and the tourism

marketers simply do not matter.

9. Psychological Positioning

Communication is used as an important tool in creating an image about a particular

destination to the target market. The needs of the customer are converted in to images

and positions and an impression is created in their minds using psychological positioning

strategies. Using psychological positioning, a unique product image is created in the

minds of the customer. The aim of creating this image is to create an interest and to

attract the visitors. This image exists solely in the minds of the customer.

Any kind of positioning can happen in the minds of the customer without any kind of

effort by the marketer. When the positioning is not controlled it will just happen. This

perceived positioning can be (or) need not always be what you are trying you create.

Psychological positioning-

Psychological positioning is a strategy employed to create a unique product image with the

objective of creating interest and attracting visitors (Chacko, 1996).

Therefore, the marketer would prefer to control the positioning to create the exact image

that is required.

The image to be created, the methods to achieve the image, the methods to be followed to

maintain that image in the minds of the customer should all be selected by the marketer to

create a psychological positioning for the tourist destination. Failure to hold that

position, can lead to undesirable results.

The two kinds of positioning in the marketing process are:

Objective positioning

Subjective positioning

Objective Positioning

a. Objective Positioning

The objective attributes of the physical product are taken in to consideration in this

process. An image about the destination consisting of the characteristic and functional

features is created in the minds of the tourists. This image is mostly about what actually

is and what actually exists. No lies.

For example, Colorado is mountainous and the French Quarter is in New Orleans. This

positioning statement is abstract. Meaning to say, positioning statements need not always

Objective and subjective positioning-

There are two kinds of psychological positioning in marketing: objective positioning and

subjectivepositioning. Each has its appropriate place and usage. (Chacko, 1996).

be concrete. They can be even more abstract. Objective positioning is very important

and is very commonly used in the tourism industry.

If there are some unique features for a destination, the feature can be used in a unique

manner to position the destination. The image thus created can be used to differentiate it

from the rest of the competition.

If the purpose of objective positioning is to position the US among Japanese visitors and

tour operators, then unique landmarks like the Grand Canyon or the Niagara Falls can be

used in order to create an image about the size and magnitude of these attractions. This

image should be linked with several other attributes and expectations of the Japanese

visitor like being able to see as many places as possible and specifically to visit places

that others have never gone before.

When the feature that is being positioned is not unique, then it is not possible to create a

successful objective positioning. This is one reason for why several destination

promotions that have pictures of beaches are not able to create a distinct image to be able

to successfully differentiate the product. There are several other unsuccessful approaches

like including the picture of two people looking at the mountain that is similar to several

other mountains; a beach that looks like any other beach. Effective objective positioning

is possible only with uniqueness.

b. Subjective Positioning

The subjective attributes of a destination is required for subjective positioning.

Subjective positioning is related to the mental perceptions of the tourist. These attributes

are not really about the physical attributes of the tourist destination, but it is about the

mental perception of the tourist about a specific location.

The resulting perceptions and images in the minds of the tourist need not actually relate

to the true looks and state of the destination. It simply lies in the mind of the tourist.

And, not all tourists have a similar mind image of the place and not all tourists need to

agree with the mental perceptions of each other.

When taking the example of the Grand Canyon or the Niagara Falls, the subjective

positioning will give special importance to awe-inspiring feelings that one will

experience when at these tourist destinations, rather than to the physical attributes of the

destination.

Therefore, a visit to the Grand Canyon will be a better experience than just looking at the

physical land formation. People who are in the target market will surely agree with a

favorable image, regardless of whether it is true or not. This is about subjective

positioning.

10. Positioning Techniques

Positioned by Price Value

International destinations are not positioned by making use of price as the basis because

low prices will compare to low quality. However, the value that is being offered can be

used effectively like "Malaysia gives more natural value." In this positioning statement,

Malaysia will appear appealing not only to the sense of value for money, but also for its

natural attractions.

Positioning With Respect to Use of Application

The reasons for visiting a place become a major reason for positioning a destination.

Bermuda positions itself targeting the American Meeting Market with the statement

Objective Positioning- Objective positioning refers to the tangible, real or physical attributes.

Subjective positioning – Subjective positioning focuses on intangible aspect (Bowie & Buttle,

2013).

“Sometimes you have to leave the country to get your work done.” This statement

promises productive market in a relaxed environment. Cancun, Mexico has a position

statement like "The meeting place for sun worshipers."

Positioning according to the users or class of users

Positioning statements which defines the class of users who should be visiting with a

specific place is a method. Hong Kong is positioned as an incentive travel market. They

have a statement like When they've reached the top, send them to the peak," referring to

Victoria Peak, a major tourist site in Hong Kong. Fisher Island, a luxury residential

development in Florida, positions itself with a statement, "Where people who run things

can stop running."

Positioning with respect to a product class

Associating a destination with unique and extraordinary experiences is one method of

positioning.

For example:

The uniqueness of Monaco is positioned as "The fairy tale that does not

end at midnight."

Holding a convention in Thailand is positioned as "Smooth as silk where

the sky's the limit.”

For Israel the statement is, "If you’re looking for an ideal meeting place,

here's one that's close to heaven."

Positioning vis-a-vis the competition

Some positioning statements will be made in a way to meet with the competition head on.

This becomes important to bring out the differences between destinations. Making use of

this approach is avoided in international tourism because this can lead to having to make

negative statements about another country or region.

Positioning statements can also be testimonials from previous visitors and tour operators

who can actually make a direct appeal to the target market. Since, inspiring experiences

is an intangible construct the positioning statement should use words that explain the

feeling. Positioning is a powerful weapon in niche marketing.

(Morrison)

11. SUMMARY

In order to position successfully, one should recognize the market place, the competition

and the perceptions of the tourists. Positioning is a valuable weapon for tourist marketers.

Positioning analysis is done taking the target market in to consideration. Positioning

analysis provides the tools that are required to identify opportunities to create the desired

image. This image is important to differentiate a destination from its competitors in order

to help serve the target market in a better manner than anyone else.

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