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The Future of Destination Marketing Why all Marketing is Social Marketing

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  • 1. THE FUTURE OF DESTINATION MARKETINGWhy all marketing is social marketing Anna Pollock  DestiCorp Presentation to BIT Reiseliv Oslo, 2009 1
  • 2. THE FUTURE OF DESTINATION MARKETINGWhy all marketing is e‐marketing Anna Pollock  DestiCorp Presentation to BIT Reiseliv Oslo, 2009 2
  • 3. My Purpose Today To help you survive the next  decade From the Five Ps to Five Cs Why all marketing is social in  nature The Importance of Content … Relationships: The Power of  Community What to do now?
  • 4. Your Survival depends on: 1. Being Relevant  and Effective Reducing the PAIN!
  • 5. If the Destination Management  Company does not reduce the  pain experienced by  guest, supplier or host,  it won’t survive! 5
  • 6. Who’s Pain? Supplier  Members Customers Guests Host Community
  • 7. What pain exists for Guests?  Risk Unique experience Planning their trip Online products are not  representative The small, unique and unusual  is particularly hard to find. This  is what the high yielding  tourist seeks! 7
  • 8. What pain exists for the Supplier?  Suppliers sell just one element Distribution costs are high  (25‐40%) The product is perishable  Difficult to unload distressed  inventory. Distress leads to discounting.  Discounting leads to paper  thin margins At the same time, suppliers  must deal with….. 8
  • 9. Access Proliferation • Video games • Radio • Satellite Radio • Email • DVD • TiVo (Starhub PVR) • XBox LIVE • Ring Tones • Video On-Demand • Websites • TV • Newspapers • IM • Blogs • Podcasting • Search • Magazines • Cell PhoneSource: Darwin Day Conference, Google
  • 10. More New Channels 14,463,346 auctions www.ebay.com 21 Nov 2006 133,000,000 blogs 2 billion page views daily 2008 Almost 10,000,000 articles 78 million videos (10 languages) (200,000 publised/day) 33,347,000 profiles 1.8 million 139 million + residents members 10
  • 11. What pain exists for the Host?  Politicians want re‐ election They want people  talking about them They want people  believing they’ve  made a contribution That’s why they like  tangible things 11
  • 12. But Survival also depends on:  2. Understanding the world you live in Harnessing the Change Drivers
  • 13. Human organizations are slow to changeEvidence that the old model still being used  Our organization structures Our language What we count What we value……. 18
  • 14. From Heirarchies
  • 15. From Functional Boxes
  • 16. To Networked Teams
  • 17. From Value Chains
  • 18. To Value Networks - Ecosystems
  • 19. To Value Networks - Ecosystems Host Community AgentsProviders GUEST Channels Destination Suppliers Partners
  • 20. Me and My
  • 21. Back to Familiar Ground! Marketing How Far We’ve Come!
  • 22. Marketing: A Quick History 1930-1960s •ONE TO MANY  •Products Pushed at Targets •Blitz campaigns through limited media •Print – newspapers and magazines •Radio & TV – broadcast channels •Call to action: the BROCHURE •Glorious days for advertising •Enormous reach and influence
  • 23. Marketing: A Quick History 1960-1990 •ONE TO FEW  •Beginning of individualism  •From mass markets to market  segments •Growing variety of media  •Magazines and Cable TV – focused TV channels •Pushy
  • 24. Marketing: A Quick History 1990-2000 •ONE TO ONE  •Customer Relationship Marketing CRM  •WEB SITES! •Plethora or Brochures to Plethora  of Web Sites •Still PUSHING – Banner ads and  phone calls
  • 25. Marketing: A Quick History BUT DID ANYTHING  REALLY CHANGE? Still Pushing Still interrupting Still Product Centric Still Transaction  Oriented 1950-2000
  • 26. the Millennium Bug didn’t strike but SHIFT HAPPENED!
  • 27. Marketing: A Quick History
  • 28. So What Happened? Information & Choice Overload 35
  • 29. So What Happened? Information & Choice Overload 36
  • 30. NGOs EMPLOYEES CUSTOMERSTRADE ORGS The new cacophony. INVESTORS MEDIA ANALYSTSMARKETERS GOVERNMENT 37
  • 31. But Something else was happeningBreak Down of Trust 39
  • 32. With so many voices in the mix…People turn to peers for  recommendations.They also do this when: Risk is higher More choices to review and filter They have less time to research
  • 33. In fact, PEERS are the most credible source of company/product info58% believe what “a person like me” says about an organization(up from 51% in 2007) LEAST CREDIBLE (IN THE US): corporate or  product advertising (22% of ages 25‐34) SOURCE: 2008 Edelman Trust Barometer
  • 34. Peer recommendation isn’t just influential. Trust and distrust are widely shared.56‐63% were “likely to share their opinions and experiences about companies they trust or distrust on the web.”*when you put it on the web, it stays forever….*SOURCE: 2008 Edelman Trust Barometer
  • 35. And trust drives preference.88% of opinion elites choose to buy from companies they trust. 85% refuse to buy from companies they distrust.* The bottom line: Trust drives transactions.*SOURCE: 2008 Edelman Trust Barometer
  • 36. SOURCES OF INFORMATION USED BY TOURISTS FROM VARIOUS COUNTRIESSource: Phocuswright
  • 37. So What Happened? Open Source  + Web 2.0 Machines can talk with one another; People can interact; web services & widgets 46
  • 38. So What Happened? Proliferation of Online Communities; sites that enabled sharing of pictures, papers, videos,  and personal details……..Social Media emerged as the “next big thing”Another FAD or something deeper? 47
  • 39. PUSH to PULL
  • 40. •Power to Search•Power to Express & Publish•Power to Participate•Power to Choose•Power to Share
  • 41. Power of Self ExpressionAnyone can now be:  Author Journalist Film maker Reviewer Marketer Intermediary, or even a DMO or DMC ! 50
  • 42. Power of InfluenceConsumers decide what’s valuable or important Amazon ratings E‐Bay ratings Trip Advisor ratings and reviews Content Tags People who bought this, also bought……..So customers shape your brand, influence others, and…. 51
  • 43. BECAUSE CLIENTS TALK andTALK INFLUENCES PURCHASE DECISIONS
  • 44. There is only one metric!* Will your customers recommend your brand/product to their friends?Fred Reichfeld in Driving Good profits and True Growth
  • 45. ALL MARKETING IS SOCIAL  MARKETING  MARKETING IS NOT A BATTLE  IT’S A DANCE! AND THE CUSTOMER TAKES THE LEAD…
  • 46. PUSH to PULLProduct CustomersPosition ConnectionsPrice ConversationsPromote ContentPlace Community
  • 47. THE NEW BASICS!
  • 48. CUSTOMERS 58
  • 49. How well do you know your customers? Norwegians or International?  Repeats or First‐timers? Single, couple or in a group? Weekend Escape or Annual Vacation? Touring (passing through) or Staying Put Activity or relaxation focused?  Special interest? ??????????How do you connect with them? 59
  • 50. Do you Know Where They Are?
  • 51. Do you Know Where They Are? 1.4 billion  prospects can  now potentially  be reached via  the web.
  • 52. Do you know where they are?Brits spend 164 minutes a day online
  • 53. Do you know what your guests are trying to achieve when they “ask you to dance”?  Decide where to go?  Decide when to visit?  Plan activities? Find a good deal?  Learn about the destination?  Read other visitors’ reviews and impressions?  63
  • 54. Where are they in their experience cycle?  64
  • 55. What media are they using? 65
  • 56. How are you Connecting with your visitors? Through a screen? Face to Face, Voice to Voice? There’s a technical answer…. 66
  • 57. The 3‐Screen world TV Computer Monitor Handheld67
  • 58. How are you Connecting with your visitors Through a screen? Face to Face, Voice to Voice? There’s a human answer……. 68
  • 59. Markets are CONVERSATIONS! 69
  • 60. Features of a Good Conversation Two‐way dialogue Active Listening Let your partner hog the limelight Good Content makes for good  conversations As trust builds….. So will more content be  exchanged The conversation can be  continued later… 70
  • 61. Where do Good Conversations Occur?Homes Offices Restaurants, bars Dinner parties Travel agencies At the gym On the way to work 71
  • 62. LOCATION OF ONLINE CONVERSATIONS
  • 63. When do Good Conversations Occur? Where and when the partner wishes to initiate it….. They may knock on your front door They may come in through the back door  They maybe “hanging out with friends”  Remember It’s rude to shout & brag Don’t interrupt Success is to become the topic of conversation Don’t be shy – join in; be where your customers are; but  don’t interrupt. 74
  • 64. NOT about pulling levers 75
  • 65. NOT about exploiting new channels!
  • 66. Not About Shouting 77
  • 67. It IS about becoming your customers’  Topic of Conversation 78
  • 68. And You Do This By.. Listening Helping Supporting Being present Being alert Being creative 79
  • 69. So, do You Need a Social Media Strategy? NO! You need to re‐think your entire role and your entire  marketing strategy Ensure it reflects the realities of your marketplace Is active in the places your customers meet Acknowledges the new rules and realities Learn the power of CONTENT and COMMUNITY! 80
  • 70. The Power of CONTENT In tourism, content is your currency. Conversations are fuelled by content Content Enables choices Reduces risk  Stimulates emotions All content is digital  All marketing is publishing DMOs are the ideal content brokers Close to the supplier, the setting, the place Closest to the customer’s experience Content comes in different forms and performs different  functions 81
  • 71. INSPIRE http://www.newzealand.com/travel/USA/ 82
  • 72. ENGAGE http://www.classicbritain.no/ 83
  • 73. ENABLE A SEARCH  http://www.classicbritain.no/ 84
  • 74. ENABLE A SELECTION  85
  • 75. Good Content is created by:  The DMO Third Parties Suppliers Other travel companies Film and TV producers Users It doesn’t matter who created it so long as 86
  • 76. Good Content is Relevant Reliable Comprehensive Compelling Consistent Portable Ubiquitous = Everywhere 87
  • 77. Why Everwhere? 88
  • 78. Content Has to Be Everywhere! Supplier Web Site & e‐newsletters Destination Portals  Third‐party web sites and portals: Online agencies: Expedia, Travelocity, Hotels.com Other suppliers (tour, ferry , airline, train companies) Media: newspapers and magazines – on and offline Banner and classified advertisements Directories (Yellow pages) Travel Community Sites (Trip Advisor, Real Travel,  WAYN) Social Media Sites (Facebook, MySpace) Kiosks Hotel, airline  TV Mobile phone channels  89
  • 79. You Can’t Do This By Yourself! 90
  • 80. But that’s impossible! 91
  • 81. It is impossible unless….You engage your community!Guest, Suppliers, Residents are doing the inviting!Everyone is an intermediary  92
  • 82. Your NEW role as DMO is to Enable Facilitate Support Encourage SeedAnd all in a digital world!! 93
  • 83. In summary Rethink your entire marketing approach, from  outbound monologue to full engagement Go DIGITAL, think DIGITAL Build trust by being found, providing value, and  not interrupting consumers on their journey to  find what they want Engage and support your Community  in their  conversations about your destination
  • 84. CREDITS AND SOURCES:This slide deck is a “mash-up” – a blend of author’s observations, insights andlearning. I have attempted to indicate sources either on the slides or below andand express gratitude to the generosity of those who have shared their insightson the web.Slides 1-2 Image of boat: http://www.flickr.com/photos/good_day/236094065/Slide 9: http://www.slideshare.net/wah17/social-media-35304Slide 10: More new channelsSlides 14:17 – still searchingSlide 25: David Armano – see slideshareSlide 25: David Armano – see slideshareSlide 28:34 Background: The Changing media Landscape:http://www.slideshare.net/Cscout/cscoutmarketing-innovation-presentationSlide 37, 40, 41, 43,44 - http://www.slideshare.net/Weave/trust-drives-transactions-why-marketing-must-go-social-presentationSlide 45: PhocusWrightSlide 52, 54: http://www.slideshare.net/Weave/trust-drives-transactions-why-marketing-must-go-social-presentationSlide 78: http://www.slideshare.net/howardgr/greenstein-landsman-social-media-jungle-presentationSlide 89: http://www.slideshare.net/socialmediainfluence/social-media-comes-of-age-radar-ddb-uk-at-social-media-influence-conference
  • 85. GOOD LUCK! Thank You Anna PollockAnna.pollock@btconnect.com +44 01544 388 910

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