Importance of Web Marketing in Tourism Marketing Promotion - Case Study Example

Importance of Web Marketing in Tourism Marketing Promotion 1 Introduction Brazil is a country which possesses numerous tourist attractions and its tourism industry has strong growth potential. It appears, however, that Brazil has not achieved the level of tourism that has the potential to garner, particularly from Western Europe and the United States. While the Brazilian tourism industry greatly aspires to broaden While there are numerous reasons for the explicated failure, they can be, in essence, summarised as the failure to invest in the design and implementation of effective marketing strategies In consideration of the country’s tourism potential, this report will undertake a critical analysis of the industry, identify the market segment which brazil should target and propose relevant marketing strategies, designed to realise the potentialities of Brazil as a tourist destination for citizens of the United States and Western Europe. 2 Market Analysis It appears that one of the primary reasons for Brazil’s failure to experience higher levels of tourism due to its lack of an effective marketing campaign. According to EMBRATUR - Empresa Brasileira de Turismo, Brazilian National Tourism Board, (cited in Weaver, 2005), for many decades, the Brazilian tourism industry assumed that the natural attributes of the country - great biodiversity; contrasting ecosystems, sports activities, and tourist attractions - would attract, inherently, tourists without additional need for marketing. However, eight years ago, the government of Brazil realised that it needed to be more active in its campaign for tourists and, hence, started planning, shaping and investing more resources in the tourism industry. The investiture of additional resources in the Brazilian tourism industry has significantly expanded it, generating 5 million new jobs between 1996 to 2002 (Weaver, 2005). These investments are focused on “bettering management of natural and cultural resource; searching of more quality in delivering tourism services; developing promotion of tourism activities by gathering governmental and private initiatives; implementing basic infra-structure appropriated to regional potentialities, and investing in professional qualification” (EMBRATUR, 2001 cited in Theobold, 2004, p. 98). On the international side, the government noticed that the most viable sources of tourists are South American countries, Western European countries, the United States, and Japan, respectively. In 2000, Visit Brazil committees were established in several of those countries. According to EMBRATUR, those committees have participated in trade shows and sought to bring international investments to the Brazilian tourism industry (cited in Theobold, 2004). However, it appears that the improvements, when compared to the potentialities of the country, still represent relatively small numbers. According to the PNT - Politica Nacional de Turismo/National Tourism Policy - two international markets are considered of great importance to Brazil's tourism industry: Europe (Germany, Italy, France, Portugal, Spain, and the UK) and the United States. Between 1997 and 2000, the relative market share of Europe and U.S. tourists in Brazil has been constant: 25 percent from Europe and 12 percent from the U.S. (PAC, 2002). EMBRATUR (2001) maintains that tourism has not reached its perceived potential because the Brazilian government belatedly recognised its potential as a driver of economic growth and development. It was only by 1996 that the Government began to understand the importance of the enormous tourist potential in Brazil. It also realized that it would need to establish a strong administration for tourism promotion and development in order to fully capturing the tourism potential. At that time, the national tourism policy was drafted with definitions of macro strategies for both domestic and international markets (EMBRATUR, 2001 cited in Theobold, 2004). 3 Brazilian Tourism According to EMBRATUR (2002), the tourism industry represents 4.7 percent of the country's Gross Domestic Product. The Brazil tourism industry has begun a transformation from a disarticulated enterprising tourism effort to a more qualitative and structured industry. This comes because of government policy to promote domestic and international tourism as strategy for national economic growth. To its advantage, Brazil has commercial relations with almost every country in the world, among the most important regions: 28 percent of Brazil trade is with the European Union; 25 percent with NAFTA (North American Free Trade Agreement); 21 percent with Mexico, and South America by MERCOSUL, (Mercado Commercial da America do Sul -South America Trade Market), and 16 percent with Asia (cited in Theobold, 2004). Those positive relations facilitate Brazil's tourism image and products. The total number of international visitors to Brazil grew four percent between 1999 and 2000, six percent between 1998 and 1999, and 69 percent between 1997 and 1998. For the year 2000, the number of the Brazilian international clientele was 5.3 million but in 2001 it dropped to 4.7 million. These international travellers come from the regions of South America, Europe, North America, Asia, Africa, Middle East, and Central America (Brazilian Tourism Office in London, 2001). 4 International Tourism As Goeldner and Richie (2002) assert international tourists “come from countries with a comparatively high standard of living, with high rates of economic growth, and with social systems characterized by declining inequality incomes and a sizeable urban population” (cited in Goeldner and Ritchie, 2003, p. 316). Goeldner and Richie (2003), shows four extremes relating to the preferences of the international tourist: complete relaxation to constant activity; travelling close to one's home environment to a totally strange environment; complete dependence on group travel to travelling alone; and, order to disorder. Most travellers are willing to combine those extremes for the purposes of variety. Time and cost play a functional role to contribute the generation of that international tourism experience, besides providing a higher interaction between tourism places (Jackson and Hudman, 2002). In general, as cost and distance increase, tourism interaction between places decrease, and tourism interaction increases when cost and distance decrease. 5 Tourism Marketing Promotion In an international or in any other tourism level, the investments need to be applied in a realistic situation which will be formed by knowing a real demand and its features, and by analyzing the local market resources and potential of the place (Godfrey and Clarke, 2000, p. 9). The information collected from market research should be applied to an intelligent marketing plan to attract exactly the visitors that are sought. As stated by Godfrey and Clarke (2000), when planning to attract the right visitors, (who will really appreciate, spend money, and tell others of their visit), the expected results should focus on meeting the goals and the objectives of the tourist destination. Take into consideration that carefully elaborated marketing strategies play a very important role in attracting the right expected demand; certain scientific techniques about marketing promotion from which any marketing strategy should be structured must be considered. In order to reach consumers, a company needs marketing strategies that make relative similar products and services stand out. “Tourism marketing planning leads to the setting of long-term marketing objectives within which detailed marketing plans must be developed” (Knowles, Diamantis & El-Mourhabi, 2001, p 25). As suggested by several authors, a marketing strategy starts with a “market segmentation to identify the market segments that are likely to be heavy users of the product” (Knowles, Diamantis & El-Mourhabi, 2001, p. 27). According to Starr (2000), it is necessary tourism marketing strategies should be founded upon the analysis of the target market, its needs and wants, and then on the development and maintenance of a mix of products and services to satisfy this target market, “more efficiently and effectively than competitors” (Knowles, Diamantis & El-Mourhabi, 2001, p. 26). For that purpose, the marketing mix theory is popularly employed as a prominent tool for efficient and effective marketing management. As defined by Kotler (1994), the marketing mix is comprised of product, price, place, promotion. Within the context of the tourism industry, however, several researchers have proposed the inclusion of a fifth P, people (Payne-Palacio and Theis, 2001). Marketing a product such as a tourist destination requires a unique combination of tourist diversity and quality of services. The product should be carefully prepared based on the observed needs, demand and preferences of tourists. Price is an important criterion that affects product image, and cost is indicated as the third considered aspect when choosing a foreign destination (Visit Brazil Committee, 2002). Another important element is place, which determines that products must be available at the right time and place. According to Payne-Palacio and Theis (2001), knowledge of the customer, the market segment, is the primary determinant of successful tourism marketing campaigns: The development of the product and services necessarily have to satisfy, if not exceed, those needs and wants. Promoting a tourist destination place will involve all communication with customers in order to introduce them to or increase their awareness of, the available product (Payne-Palacio and Theis, 2001, p. 510). Another important consideration in the process of promotion planning is given to objectivity and measurability. The primary objective of promotion planning is to increase the frequency of customers’ visits and the level of their satisfaction (Payne-Palacio and Theis, 2001). Inter-human interaction is one of the most evident characteristics in the tourism industry. “In all cases of tourism activities, there are contacts or visible clues in which tone of voice, choice of words, the body language of welcome or indifference, the appearance and look of staff and the way they behave to each other, are part of a tourist product” (cited in Payne-Palacio and Theis, 2001, p. 115). 5.1 Importance of Web Marketing Today, important emphasis is given to the advent of the internet in the marketing promotion area and to the changes that this medium has been brought to the marketing approach and development of the tourism industry. As stated by Buhalis, Tjoa & Jafari (1998) the Internet has emerged as an imperative tool for marketing, distribution, promotion, and coordination in the tourism sector. As You, O'Leary, and Fesenmaier (2000) write: The Internet and the Web provide National Tourism Organizations with a very effective market communication channel to disseminate information and knowledge about a destination to the public, with an excellent opportunity to capture costumer knowledge, such as shifting preferences towards travel products and destinations and varying travel behaviour patterns (p. 182). Though internet marketing has still much room to grow, “it has already become an essential promotional tool for the tourism and leisure industry” (Briggs, 2001, p. 1). The intrinsic characteristic of global reach makes the Internet a fundamental tool for the tourism industry. The purchase of flights is the most useful aspect brought by the influence internet in the tourism market (Briggs, 2001). Considering the fact that tourism and leisure are ideal products and services for online distribution, Briggs (2001), points out some benefits of the Internet for the tourism market. In absence of seeing or experiencing before purchasing, the consumer's decision is based only on perceptions of the services that will be offered; the richness of information available online, providing very clear ideas on all the possible options of a destination or an experience. When the customer makes repeat bookings, they feel very comfortable in buying online (Briggs, 2001). 5.2 Marketing an International Tourist Destination Advertising and promotion, travel agents, and previous experiences are the main elements responsible in forming perceptions and notions about a country's image, with emphasis on advertising as providing one of the most effective means to promote a country's image to potential tourists (Bojanic, 1991). According to Reynolds and Gutman (1984, cited in Theobold, 2004), the importance of advertising is focused on creating and reinforcing the image of a product. Further, “the impression people have of a place, which they have never visited, can be improved through advertising” (Knowles, Diamantis and El-Mourhabi, 2001, p.91). Within the context of the stated, Briggs (1997) proposes the following for the international marketing of tourism destinations: It is better to establish a strong domestic business base before starting overseas marketing, with adequate resources for that; determine if the country tourism product is appropriate by considering if there is already an expressive number of visitors from overseas; define the markets to be targeted. It is essential to select a small number of overseas markets carefully and appropriately, and their needs and characteristics. Briggs (1997) adds that instead of marketing independently the tourism product overseas, partnership promotions are usually more successful and cost-effective. Depending on the country tourism product, the overseas promotions can be developed by working with a regional or area tourist board or company; work with a group of organizations; work with similar products or types of businesses, which may operate in other areas of the country, such a hotel marketing association. The benefits of partnership marketing are considerable and include “greater impact, particularly in markets where the products or areas are not well known; reduced costs, and wider range of activities than would be possible for a lone organization” (Briggs, 1997, p. 18). In the case of Brazil as an overseas tourist attraction, there is evidence of international tourists being attracted that way. According to Briggs (1997), the objective is to improve promotion in order to attract more tourists and capture a greater share of the global tourism industry. 6 Brazil’s Tourism Markets Brazil's promotion of the country's tourism destination image, following strategies that were specifically proposed for the year 2002, sought to target international markets. Tourism professionals and potential tourists were considered the main target. The city of Rio de Janeiro leads as Brazil's greatest tourist driver. This fact appears to be related to images of soccer, carnival, and popular beaches; images which were exported as Brazil's most desirable tourist attractions over the past decades. With the increase of world tourist demand, however, looking for the uniqueness of destinations, and with the high level of tourist expectancy, new places have been discovered as tourist attractions. From that perspective, many other destination drivers in Brazil have emerged and have begun to attract international visitors. Over the years, Brazil tourism has expanded its destination drivers. This expansion goes far beyond the carnival in Rio, which might be considered obsolete from the standpoint of a knowledgeable tourist who goes to Brazil looking for adventure tourism, eco-tourism; or, even for the sea, sand and sun, three of the greatest destination drivers for the Brazilian tourism industry. From the tourism perspective, the term Special Interest Tourism - SIT occurs in the literature to classify the tourism that is “undertaken for a distinct and specific reason, moreover, that provides customized leisure and recreational experiences driven by the specific expressed interests of individual and groups” (Douglas and Derrett, 2001, p. 3). Six specific categories of tourism have been identified by Smith: “(1) ethnic tourism, (2) cultural tourism, (3) historical tourism, (4) environmental tourism, (5) recreational tourism, and (6) business tourism” (Smith, as cited in Goeldner and Ritchie, 2003, p. 262). Brazil's current destination drivers offer options that strongly reflect diverse attractions of world tourism. Brazil’s international tourism appeal is primarily directed towards business, cultural, 3 S (sea, sand, and sun), and ecologic tourism. 6.1 Business Tourism Conventions, meetings, and seminars characterize business tourism, which is frequently combined with one or more of the other types of tourism (Goeldner and Ritchie, 2003). These have a very important meaning in the tourism industry relative to the advantage of having no seasonality, consequently bringing a bigger return to the local and national economy. Business events are powerful ways to generate resources to develop the local quality of life and to create contacts with world business. In Brazil, trade shows and all business events represent a vital aspect of the country's economy, bringing technological advancements that give micro business the opportunity to reach advanced new markets. 6.2 Cultural Tourism Cultural tourism is broad and diverse. “It covers all aspects of travel whereby people learn about each other's ways of life and thought” (Goeldner and Ritchie 2003, p. 262). Cultural tourism in Brazil reflects the enormous diversity that is a feature of the country. For instance, the carnival is one of the principal images evoked when U.S. potential tourists think about Brazil, as well as the dancing, music, food, and the European, African and Indian heritage, all are strong cultural attractions in the country (Theobold, 2004). 6.3 Sea. Sand, and Sun Tourism Sea, Sand and Sun tourism characterize recreational tourism, which has the fundamental purpose of relaxation (Goeldner and Ritchie, 2003). Lawton and Weaver (2001), state that 3 S tourism still is the largest manifestation of nature-based tourism, being associated with the world's subtropical and warm temperate coastal regions. Beach activities such as golf and scuba diving, and beach resort settings are its main characteristics (cited in Weaver, 2005). This segment has great relevance for Brazilian tourism, and it is the first images evoked by U.S. potential tourists when thinking of Brazil as a vacation destination (Weaver, 2005). The 8,000 km of coastline in Brazil starts above the line of the Equator, stretches the whole length of the tropic of Capricorn, and advances towards the Antarctic polar circle (Santana, 2001). These facts make diversity also the main feature of Brazilian beaches. They are huge or tiny, crowded or deserted, bordered by dunes or rock formations, bays or river deltas. Water activities with luxury or simplicity, movement or tranquillity are examples of diversity that explain the importance of this tourism segment in Brazil. 6.4 Ecological and Adventure Tourism Nature travel accounts for over 10 percent of international tourism (Hulm, 2001) and it has become Brazil’s largest new source of revenue (Goeldner and Ritchie, 2003). The principal ecotourism sites are the Amazon, Pantanal (the largest area of swamplands on the planet, recognized by UNESCO as a world biosphere reserve and a world heritage of humanity), and many other sites from the north to the south of the country (Santana, 2001). Adventure tourism has many of the same attractions of ecotourism. These similarities make adventure tourism another important tourist driver in Brazil. This type of tourism is becoming an economic alternative to communities that live in regions of peculiar natural beauty in Brazil, and it is gathering important components of the biodiversity conservation (Hall, 2004). The IEB - Brazilian Institute for Ecotourism lists 96 ecological centres across 26 Brazilian states (Santana, 2001). Andruss (2000) states that one of the tourism industry's most important trends is adventure tourism, which includes all kinds of outdoor activities, from sailing to skydiving. The Adventure Travel Society defines it as an outdoor activity in which an individual participates that is both physically and mentally challenging. Drawn by this trend, more travellers are choosing a vacation destination based on what they can do there besides what they can see (Andruss, 2000). As implied by the name, adventure tourism contains an element of risk, involving also a high level of physical exertion, and requiring a certain amount of skill to carry out the activity (Ewart, 1989). Characteristics firmly distinguish adventure tourism from ecotourism. There are two core characteristics associated with this type of tourism These are educational/appreciative motives and sustainability (Blarney, 1997). Sustainability is a very relevant principle focused on the responsibility to provide jobs and income for the local people, to generate funds for purchasing and improving protected natural areas to attract more ecotourists, and to encourage heritage and environmental preservation and enhancement (Goeldner and Ritchie, 2003). The concept of sustainability should be included in the cultural, social, and economic dimensions of a destination. As Goeldner and Ritchie state, Like all change, tourism exacts a price. However, it is here, it is huge, and it needs to be planned and managed. The challenge is to get the right balance, which is to have the benefits outweigh the costs and take steps to lessen the unfavourable impacts that are a part of change. Tourism development must be a part of overall economic development and must be done in a manner that is sustainable (p. 470). Indeed, the broad concept of sustainability is almost universally understood as the great imperative of the tourism sector and all other facets of the contemporary economy. 7 Concluding Recommendations Marketing to nature related tourism distinguish as much as possible the products of a nation, in a creative and intelligent way. It is crucial to emphasize diversity, infrastructure, and the use of different techniques to create an expansion of originality in the country's tourist regions (Goeldner and Ritchie, 2003). It is very important, from a marketing perspective, for a visitor to be aware of all the possible alternatives that a destination can offer. Along with that, it is important to market the message about visitors' impacts and to educate them concerning minimal impact behaviours (Faulkner, Moscardo, and Laws, 2001). Nevertheless, as any other tourist target market, nature related tourism should focus its promotion mainly on that market which the tourism attraction would be most lucrative. Marketing of ecotourism, 3S, and Adventure tourism, if advertised in sport travel magazines, for instance, will give comprehensive coverage of the target markets (Goeldner and Ritchie, 2003). As mentioned previously, sustainability of a destination will be a considerable factor in influencing tourist choice of a destination. Hence, balance of a destination's commercial prosperity and its environment health should be focused on marketing an ecotourism destination. In addition, to effectively promote a country's ecotourist attractions and any other type of tourism, it is essential for the national tourism board to know precisely the “needs, wants, and interests” of the target market in order to “deliver the desired satisfactions more effectively than competitors,” in manner which responds to customers’ needs while preserving societal well (Sirgy and Lee, 1996, p. 21). Proceeding from the above stated, it is evident that Brazil has tremendous growth potential in the tourism industry and, indeed, can capture a significant percentage of the global tourism trade. To realise that potential, however, it must deploy the marketing strategies suggested in this study. These strategies, which encompass all of print, internet and media electronic media advertising, can significantly contribute to the growth of Brazil’s tourism industry if they target the identified segments. 8 Bibliography Andruss, P. (2000) PR gets adventurous with travel industry. 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