Opportunities and Limitations of the Trade Market - Essay Example

Opportunities and Limitations of the Trade Market Introduction A trade and market profile refers to consolidated data on prevailing trends, opportunities and limitations in a given country. Such data is collected and collated through integrated research by governments and interest groups within a country to help map out opportunities available and attract international as well as local investors and customers (Pricken, 2008, p 24). In the tourism sector specifically, such information is crucial for purposes of international Marketing. Marketing itself is the process employed by companies to determine what products or services customers are interested in; and the best strategy to use in carrying out sales, communications and business development. It is an integrated process through of creating value for customers and build strong customer relationships to capture value from customers in return (IMA, 2010). International marketing refers to marketing outside the immediate country of origin or registration of a given organization. It so happens that there is currently a lot of competition for tourists by almost all countries in the world. To help improve their chances of capturing tourists, countries are only too willing to give their profiles to help them achieve this end (Pricken, 2008, p 24) This paper sets out to discuss the application and analysis of the profile of France with specific regard to the tourism industry. It looks at France as a potential market for tourists bound for the UK and proposes appropriate strategies to boost this particular market segment for the benefit of UK tourism. Economic Issues in France Language France is one of richer Western European nations. It is made up of a population of 64.1 million persons according the 2008 national census. The main language spoken in the country is French which is an international language spoken by over 1 billion people globally who are mainly found in Francophone countries which are former colonies of France. Other important languages are English, Spanish and German. It is important to note that all these languages share a history of conflicts with French for supremacy in Europe. So some of them, especially English, may not have been very welcome in certain sections of France in the past. However, with the mergence of America as a superpower, speaking English has become fashionable and prestigious among the younger generations in France (visitbritain.com, 2010). French is a highly developed language classified as romantic and low context. It is highly expressive with nasalized and lilting sounds that make it be known as romantic together with Spanish and Italian. It is a low context language since it has a highly developed vocabulary that limits the use of non-verbal signs for effective expression (visitbritain.com, 2010). The French are very proud of their language and in order to enjoy one’s stay in France, it is important to get at least a smattering of the language, since the effort to speak it will be highly appreciated. It is a veritable language with some memorable sayings, poetry, songs and general expressions. It is laden with French culture, history, pride and symbolism. Exploring the French language is a very excellent way of beginning to explore France (visitbritain.com, 2010). Naturally, the French language is the main factor when it comes to advertising. Traditionally, the tourism industry is driven worldwide by the older rather than the younger generation. This is mainly because whereas the young are adventurous and curious. Their drive to travel and tour is limited by their financial ability. Older folk find it easier to move around if they decide to since they mostly control the resources. However, modern times have churned out millionaires in their teens and twenties trough football, performing arts, internet business and high paying management jobs. This new generation of explorers forms a crucial emerging market for persons interested in the tourism industry in France. Their language is French, but for them it is important to lace it with a little bit of English since they do not mind that at all (visitbritain.com, 2010). State of the Economy Like the rest of the major world economies, France was relatively hard hit by the recent international economic recession. The country faced a drop of 2.6 % in international tourist and 6% in local tourist arrivals in the year 2008. This signified a fast developing trend carried forward from the previous year (visitbritain.com, 2010). Whereas the recession was a primarily and predominantly an America Affair, it affected most of the world’s major economies due to the interconnectivity of the main trading blocks. Europe was particularly hard hit and France was no exception. The good news is that there has been a significant recovery from the recession and business picked up significantly in the year 2009. Fickle sectors such as tourism, which are primarily driven by the availability of disposable incomes was badly affected, but has just as suddenly bounced back most of the way out of the woods (visitbritain.com, 2010). Another economic issue is that of unemployment. In France the unemployment index was on the rise especially during the period of the global recession. By Autumn 2008, the unemployment rate had risen to 8% (visitbritain,com, 2010). Though this rate has been on the decline since 2009 it is still an issue ranging between 6%-7%. The trouble with unemployment is that it severely limits the ability of the younger folk to go touring. Tourism is not a top priority and will easily be taken to the back burner when other pressing issues have to be tackled. IMF projections predict that the French economy will grow by between 0.2%-0.8% (IMF, 2010). This means that the general economy will still be recovering over this period. The unemployment situation is not really likely to improve greatly anytime soon (Lewis & Housden, 1998, p 68). This has had a negative impact on tourism in particular and other aspects of the economy in general. The period 2007-2008 saw the number of visitors to Britain from France increase from 3.4 to 3.6 million. This increase also saw the amount of money spent by the visitors increase from ₤260 to ₤289 on average per visit. This trend continued through the year 2009. This is a positive sign that tourism traffic from France to the UK is on an upward trend. Another indicator for tourism is the issues influencing tourism in France. Many tourists are drawn by the need to view scenic beauty which accounts for 76% of the reason for visits. The weather accounts for 63% of the reasons to visit. Other main reasons include history and culture, hospitality of the hosts, isolated and private sites and famous locations (visitbritain.com, 2010). These are some of the points that marketing of hospitality need to emphasize on. Customer Expectations, Cultural Issues and Behavioural Patterns Media France is a highly accessible market in terms of communication media. The Internet still ranks as the best possible way of reaching as many potential travelers as possible. This is for the reason that there were 36.2 million users in June 2008. The web had a market penetration of 58.1% population of the entire population. Moreover, the internet is the most popular means of seeking information on travel to external destinations in France (visitbritain.com, 2010). This market reach is further strengthened by the availability for use of social networking sites like Facebook, You Tube and Yahoo. The market share of these sites in 2008 were: Google Sites accounting for 82.0%, Groupe Pages Jaunes with 2.7%, Microsoft Sites with 2.4%, eBay with 2.2%, Yahoo ! Sites having 2.1%, Groupe Spir Communication with 1.6%, Skyrock Network accounting for 1.5%, Orange Sites with 1.4% and AOL accounting for 1.0%. However, though a total newcomer Facebook already accounted for 0.8% and was rising fast (visitbritain.com, 2010). Statistics indicate that 51% of all travelers from France rely on information from loved ones to make decisions to travel and on the particular places to visit. The social interaction sites are therefore a crucial means of injecting the correct information into these sites to make them part of daily exchanges of messages. This really boosts the chances of people making a decision, and an informed one at that, to visit the UK (visitbritain.com, 2010). For the sake of advertisement above the line, there no shortage of television and radio stations. The major national TV channels with their corresponding market reach are TF1 with 32%, France 2 with 20%, France 3 reaching 16%, Canal Plus with 4%, Arte capturing 4% and M6 with 13%. There are also Cable and satellite TV which have themed channels. The travel channels include Voyage, Planète and Escales.The main radio stations are RTL, France Inter, Europe 1, France Info. These reach approximately 80% of the total number of listeners (visitbritain.com, 2010). These channels provide an important means of seeking potential visitors and furnishing them with the requisite facts for the intended visits. There are also Magazines and newspapers that provide information for aspiring visitors. The age old advertising advantage of magazines and newspapers over the other electronic media is the longevity of their messages (Pricken, 2008, p 213). Whereas high impact TV and radio messages are gone in a flash, magazines can keep sending the same message for months or even years. This advantage should be used to full effect alongside the electronic media. In France magazines have a readership level amounting to 64.3% of the population reading at least one magazine daily; while 47% read a daily or regional newspaper (visitbritain.com, 2010). However, as mentioned earlier, the most effective way of disseminating information on tourism is by word of mouth between loved ones accounting for 51% of all tourism decisions (visitbritain.com, 2010). It is very important therefore to ensure that all forms of communication be tailored towards initiating and effecting discussion. Apart from just loading the public with facts, advertisements can be tailored to stimulate conversation through rhetorical questions and real life situations that invite comments and other forms of responses from the public. in this way the topics of visiting Britain is imposed into daily conversation thus making them issues of daily discussion (Fifield, & Lewis, 1995, p 28). This ensures that any decisions made are initiated by the clients themselves rather than being directly imposed on them by the advert. Literacy Levels Advertising becomes greatly effective if literacy level of the recipients is taken into due consideration. For advertising to be highly effective, the recipients must be able to understand concepts, facts, figures and ideas promulgated through advertisement (Doole et al, 1997, p 71). In essence, it is crucial to understand one’s audience in order to select the accurate coding and media of delivering the message. Information such as the co-ordinates and direction of London relative to Paris may be of great interest to a pilot or geographer, but are superfluous to an entrepreneur taking planning a holiday in Liverpool. However, the weather condition in Liverpool at the time of travel and over the duration of stay is of great importance to such a traveler. It is therefore crucial to tailor the message to fit in with the levels of knowledge and interest of the traveler (visitbritain.com, 2010). The general populace in France is a highly educated lot. Most of the population have benefited from at least a high school education and are therefore literate. Since France is a technologically savvy country, the populace is also highly informed with information gained from the media and internet sources. The biggest hindrance to the UK tourist operator is the pride the French have in their language. For one to gain maximal cooperation, some attempt to speak French even if one has only a smattering of the language is highly appreciated (visitbritain.com, 2010). Tourist Categories French tourists generally fall into four categories. The first is that of the lone traveler whose interest may be academic, exploration or simply holidaying and having a nice time. The second is that of groups of young people in their 20s to 40s. They mainly attend events, sports, go on holiday or tour cultural and landmark sites. This group is highly educated, rich and adventurous. The other advantage with them is that they most likely speak English (visitbritain.com, 2010). The third type are the school parties. These are students mainly on academic or Holliday tours. Their visit historical and picturesque sites, they may also go camping or participate in different sports. School parties of course need a lot of assistance in getting suitable accommodation and guidance on their tours. Then there are the family groups. These are mainly holiday bound and like visiting beaches and sightseeing. Older folk usually fall in this category as they accompany younger family members or simply travel with fellow old folk. These older persons are most likely repeat visitors who stick to the tradition of hotel accommodation and guided tours. In many cases they can afford it from their pension, business proceeds or life savings (visitbritain.com, 2010). Though different categories may have different specific needs to fulfill on their tours, certain things remain the same. They all have to provided with hospitality, guidance and assistance. They must be furnished with information to help them make choices on what suits them best. When they receive all these in good measure, then they are likely to return later, prolong their stay or encourage others to visit too. Whichever way it goes, any of these eventualities are great fro the tourism industry in the UK (visitbritain.com, 2010). There is however one last category of visitors that often goes unnoticed and therefore unplanned for. This is the category of disabled persons (Darcy, 2005, 3). These persons have special needs ranging from rumps for wheelchairs to toilets that are accessible to them. Above all else though, they need caring and responsive staff in the different places they visit since they are the one’s who can advise on how to attain their various needs on particular occasions (Darcy, 2005, 14). IF the people they deal with do not attend to them with patience and a listening attitude, then that can easily put paid to their holiday and that of others like them in future. Outbound and Inbound Travel Patterns Tourists from France mainly travel to Spain, Italy, Morocco, Tunisia and the USA who are the main competitors for the UK by descending order of importance. The UK actually ranks 3rd by order of importance as a destination. Spain and Italy have some competitive advantages over the UK in terms of proximity to France and therefore reduced cost of travel. Secondly, they both share with France a culture of excellence in sports and have languages closer in structure to the French language. Morocco and Tunisia are not only close to France in terms of physical distance but also share a common history being former colonies of the latter. Moreover, they are French speaking destinations which makes them easily accessible to the French (visitbritain.com, 2010). The allure of the US is mainly its powerful position in world affairs though its strict immigration laws and lengthy distance from France give it a distinct disadvantage. In terms of numbers visiting Spain is by far the leading destination for French tourists with up to 23% of all outbound tourists visiting it. This is in comparison to Italy’s 13% and the UK’s 9%. Since a total of 60% of all tourists from France visit western European destinations, this is the market segment that the UK has to fight tooth and nail for, to gain as large a chunk as possible at the expense of their fellow European Competitors (visitbritain.com, 2010). In terms of inbound tourist traffic, France still ranks as the country with the largest number of tourists in the world. They account for some 30% of all tourists heading to Europe. This puts its neighbors at a distinct disadvantage hence the need strike some kind of balance. One way of doing this is to learn from them the tricks of luring tourists that they seem to be so good at (visitbritain.com, 2010). Accessibility Travelers from France have no real obstacles when going to the UK. They are not required to have a visa or even a passport. All they need is the French National Identity Card which adults in the country are obliged to own anyway. This makes it very easy for tourists to plan their visits without too much of a hustle. Both countries are integral members of the European Union and so the Euro can be used for such trips further eliminating any problems that may arise from currency exchange (visitbritain.com, 2010). In terms of transport logistics visitors from France are always spoilt for choice. Many choose to travel through the tunnel using either public or private means. Moreover, there is always the Train de Grand Vitesse (TGV) which eats up the rail between countries within no time. In 2008 40% of the French visitors used either of these means of travel. The train is both fast and comfortable; it is also a source of great pride to French citizens who view it as some kind of national symbol of pride. Those who are so inclined can also sail or fly into the UK. These accounted for 39% and 21% respectively of the preferred means of travel for French visitors into the UK in the same year (visitbritain.com, 2010). This relative ease of accessibility makes it possible for many more visitors to access the UK market than is currently the case. More effort can therefore be made to maximally benefit from this situation. One way of doing that is to emphasize on just how easy it is to cross over into the UK from France and how much more difficult it is for others to travel to the same destination. Ease of accessibility is a highly motivating factor for individuals with a budding interest in international travel (Selden, 1997, p 23). This incentive can really be used to great effect. Another issue is that of costs involved. It may be very easy to travel but the real test is in affordability. This is a comparative issue of course. If one for example finds it less costly to go to Spain rather than the UK, then obviously the motivation will be to opt for the former. As things stand now, Spain enjoys more than twice the number of visitors from France than the UK. The costs involved play a major part in this state of affairs. It is possible therefore that in an era of absolute international competitiveness in tourism, maybe it is high time the issue of costs involved was brought sharply into focus to try with a view to minimizing expenses, especially in travel. There are for instance a number of low cost airplanes that frequent the routes between the UK and France. These airlines include Ryanair, Easy Jet, Flybe, Jet 2 and Thomsonfly. Encouraging potential travelers to try out this cheaper kind of travel is a highly practical way of managing cost implications (visitbritain.com, 2010). Going hand in hand with the problem of travel costs is that of accommodation (Selden, 1997, p 23). It is no wonder that some 45% of visitors from France to the UK opt to stay with families in private houses rather than hotels to cut down or eliminate the costs of accommodation. This trend too should be encouraged since the targeted families stand to gain through cultural exchange and interaction. They get to gain friends in another country which may just come in handy in case they are to go on the return tour themselves. Meanwhile, the whole country gains through income generated from tourism while the visitors benefit from reduced costs. This is therefore a quid pro quo situation that in the end benefits all the parties involved, save for hotels who are bound to lose out (visitbritain.com, 2010). Conversely, then the hotels wont gain either if the tourists don’t come in the first place. In any case, they can still offer food and entertainment, provided that there are tourists. This arrangement of course cannot work well for all categories of tourists. Some of them do not fancy exchanging their privacy for saving a little cash. This category will continue to live in hotels which means that the latter operators will not be left out completely after all (visitbritain.com, 2010). Another point is that the French habitually opt for middle-class accommodation. Availing more of these places for access by the visitors may just encourage more of them to come into the country. In a competitive industry like tourism, every little helps and no measure can be taken for granted (visitbritain.com, 2010). International Marketing Strategy Theories There are many theories when it comes to international marketing. Actually in may cases, international marketing does not differ very much from internal marketing. The main variance however is that the international version involves interaction with social, economic, political and cultural issues that may work at cross purposes with those in the marketing organizations country of origin (Fifield & Lewis, 1995, p 61). One theory that smartly fits into the UK/France tourist situation is the trend that emerged from the 1970s to the present day. This involves the process of carrying out research to find out the desires of customers and the tailoring the product according to those needs. The aim here is to make the product attractive and well fitting into the needs of the customers. This is the process that is known today as marketing (Doole et al, 1997, p 72). Given the research information given so far above that covers the intricacies of the French tourist market, it is much easier to come up with a marketing plan that takes into cognizance the specific needs of the market. The first form of marketing that pops out of the hat is internet marketing or e-marketing. This is a fairly recent development that came up with the emergence of the internet. Given the high number of persons who view the internet as a reliable source of information on various products in France; a total of 85% of the population according to research findings; this is a very reliable method of reaching a sizable chunk of the desired market (Onkvisit, & Shaw, 2008, 18). The beauty of the internet is that it brings with it the advantage of social marketing. Advertising in social sites encourages discussion of the information availed by the persons interacting through it. As mentioned earlier, family and friends are very important to the people of France in making decisions. So, there is no better way of accessing them than going through the sites in which they interact (Onkvisit, & Shaw, 2008, 28). The other distinct advantage of the internet is that it enables the advertiser to reach different market segments, which is a carry over from traditional marketing. Marketing segmentation is based on the identification of different groups or categories of persons with similar interest unique to them but distinct from the rest of the general populace (Lewis & Housden, 1998, p 21). A good example of a market segment is that of disabled persons. Whereas they touring desires may be similar to those of other tourists, they have certain special needs that should be met to make their tour a success (Darcy, 2005, 6). Other market segments include teenagers, the very rich or mothers. It is very easy to target these particular segments by tailoring information to their unique needs. The internet also makes it a lot easier to carry out a PESTLE analysis of international market. PESTLE is the acronym for Political, Economic, Social, Tecnological, Legal and Ecological analysis of the market environment (Doole et al, 1997, p 72). The internet is not only an avenue of passing information but is also a source of the same. This not only enable some background research to be carried out, but also makes it possible to configure and pass on an advert based on the same information. As mentioned earlier, the other forms of advertising above-the-line must also be employed to help bolster the intended advertising messages and support the internet adverts. Conclusion With the information put together here on the market profile of France as gathered from previous research and internet sources, it his highly possible to increase the number of visitors to Britain. Al that needs to be done is to set into motion the marketing strategies suggested here. In this way a marked improvement can be seen on tourism scenario in the UK with regard to French tourists. The message that should be put across is clear; accessible, cheaper, more exciting tourism with special care for the old and disabled persons. References Darcy, S. (2005). Disability and Tourism: A Bibliography. Sydney: University of Technology.   Doole, I, Lowe, R & Phillips, C (1997). International marketing strategy, 2nd ed. London: International Thomson Business Press. Chap 9 Fifield, P & Lewis, K (1995). International marketing strategy. Oxford: Butterworth-Heinemann. Chap 11 International Marketing Association [IMA] (2010). “Definition of Marketing” retrieved on February 18, 2010 form International Monetary Fund [IMF] (2010). “Economic Prjections 2010.” Retrieved on February, 18 from Lewis, K & Housden, M (1998). An introduction to international marketing. London: Kogan Page. Chap 9 Onkvisit, S. & Shaw, J. (2008). International Marketing Strategy and Theory. New York: Routledge. Pricken, M (2008). Creative Advertising. New York: Thames $ Hudson. Selden, P H (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI: ASQ Quality Press. p. 23. visitbritain.com (2010, February, 18). “France”. Retrieved on February 18, 2010 from: Read More