Promotion mgt by hk shastry & dr.pawar


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Promotion mgt by hk shastry & dr.pawar

  1. 1. 1 Promotional Strategies of Andhra Pradesh Tourism Development Corporation Mr. Hemant Kumar Shastry (Research Scholar, Dr.B.R.Ambedkar Open University, Hyderabad -500033 (A.P.), India) Cell 09989114576 Dr. I. ANAND PAWAR (Dept. of Commerce, Dr.B.R.Ambedkar Open University, Hyderabad -500033 (A.P) India) Abstract: Tourism marketing and promotional efforts are the basic activities to link the product with the potential tourist market both at state and national levels. Promotional strategy is the function of informing, persuading, and influencing a tourist decision. Despite of various resources and potential of satisfying the needs and motives of almost every class of visitor, the state of Andhra Pradesh have not been able to attract more and more tourists, particularly international tourists. The present study is designed to make an attempt to understand about the promotional strategies adopted by APTDC and to examine critically. INTRODUCTION Promotion is a marketing function, which communicates to the tourist about the availability of the products, services and their prices as well as delivery system and terms attached to the offer. Promotion helps to keep the gap between promise making and promise keeping. Promise making is when you are alerting the tourist that you can offer something to them. Promise keeping is the real performance of what was promised. Promotion is such a vital tool that links the two domains (promise making and keeping).Promotion is the communicative activity of marketing. It fills the perceptual and informational gaps that exist between suppliers of tourism (industry) and the tourists (market). Promotion involves the creation and dissimulation of information that the tourist need to take a purchase and consumption decision. Promotional strategy is a controlled integrated programme of communication methods and materials designed to present an organization and its products to prospective customers; to communicate need satisfying attributes of product to facilitate sales and therefore give a long-run-profit performance. ROLE OF PROMOTION IN TOURISM Tourism business at all levels are becoming increasingly competitive, due to emergence of new destinations, rapid and affordable modes of transport, new marketing strategies and tools, changing trends etc. One of the 4P’s of tourism marketing mix is tourism promotion also known as tourism marketing communication. Tourism being a very competitive industry requires a coordinated management and marketing approach, based on a collective vision and strong partnership among stakeholder including governmental bodies and state and central people. Tourism businesses will succeed with the help of a strong marketing organization for tourism product or service. In promotion of tourism product or service, the role of social media plays a vital role. Now a day’s more travellers use online resources to learn about travel destinations, service
  2. 2. 2 providers, and pricing options to inform and make their purchases. Effective use of social media is probably the best tool for destinations for raising awareness about the destination. It’s cheap and effective. But it requires time, planning, good strategy and innovation. BRIEF PROFILE OF APTDC Andhra Pradesh Tourism Development Corporation (APTDC) is a state government agency which promotes tourism in Andhra Pradesh, India. APTDC is a body of the Government of Andhra Pradesh responsible for development of tourism in the state. APTDC was incorporated in 1976 and carries out commercial operations with a focus on creation of tourism infrastructure and products. The information centers provide information on various historical and religious sites, APTDC complexes (for tourist accommodation) at different locations as well as information about festivals and fairs celebrations in the state. The State Tourism Department, in addition to the Tourism Director Office in Hyderabad, has opened Tourism information centers at Chennai, New Delhi, Bangalore, Goa, Mumbai and Kolkata. Besides, APTDC has also set up several tourist complexes and 53 Haritha Hotels, which provide quality accommodation to the tourists at affordable rates. Over the last few years, APTDC has added an array of function to its lists of tasks, with a determination to show commendable performance. From just providing information to tourists, it has gone into serious business like accommodation, catering, & such other service that have become essential for ensuring tourist infrastructure & service. LITERATURE REVIEW National Tourist Organizations’ engage in sales promotion activities in an attempt to persuade potential tourists to visit the destination, and these activities may take various forms including media advertising and public relations (Witt and Witt, 1995).Promoted image brand should always reflect the reality of a destination (Maurice N.M,2007). A tendency among companies not to take sales promotions seriously enough when developing and implementing their marketing strategy (Ken Peattie & Sue Peattie, 1996). Destination managers and marketers require this understanding in the marketing and promotion of destinations (Bassey Benjamin Esu, 2010). Having reviewed previous research studies, it is found that many of the researchers have focused their attention on sales promotion activities related with tourism industry, brand image in tourism industry, etc. No specific research study has covered intensively on the promotional strategy of APTDC, which required for promotion to increase its presence in Andhra Pradesh. As APTDC is the state tourism corporation in the field of tourism in Andhra Pradesh. It is therefore, the researcher has selected APTDC. NEED FOR THE STUDY Tourism in India is going through a significant phase of growth and development. The growth in Indian tourism industry both in terms of Tourist arrival and foreign exchange earnings is notable. India has a lot of potential in the field of tourism and travel as compared to some of the other countries like Singapore, Thailand, Malaysia, Hong
  3. 3. 3 Kong and Mauritius which earn more foreign exchange than India. As it is a matter of concern, however, that a country which supports more than sixteen per cent of the world population had just one per cent share of the global tourist arrival. Tourism, however, has become a fiercely competitive business for tourism destinations all over the world. However, India’s tourism growth is blocked by specific factors such as poor perception of the security and safety of tourists when travelling in India, a lack of adequate international and domestic marketing, shortages of well-trained, tourism- friendly staff, restrictions on international flights, weak linkages within the private and public sectors, and fragmentation within the sector itself. Promotional strategy is a controlled integrated programme of communication methods and materials designed to present an organization and its products to prospective customers. Understanding consumers’ needs and wants is fundamental. It is important to know why consumers’ prefer one destination against another cites that the finding might ease promotional strategy. Tourism is promoted by the government both state and national level because it supposedly contributes to creating wealth at the national and local levels. In many developing countries tourism have moved as the best method for earning the foreign exchange. This means that tourism is the only way to attract people throughout the world to a country. Tourism also generates enough revenue to maintain and preserve the heritage and historical monuments which would otherwise have fallen into rapid disintegrate. Andhra Pradesh is the southern state of India. It is fondly referred as ‘Kohinoor of India’. Andhra Pradesh enjoys unique features that have made it one of the most sought-after tourist destinations in Asia. The tourism sector in Andhra Pradesh has seen a tremendous growth in the last few years. However faces competition from a number of states like Kerala, Maharashtra, Gujarat, and Tamilnadu etc. Tourist flow to Andhra Pradesh is no doubt growing, but it is growing slowly. As APTDC is the state tourism corporation in the field of tourism in Andhra Pradesh. It is therefore, the researcher has selected APTDC as a case study the relevance and the design of strategies in meeting the competitors not only from other tour operators, travel agents but also from Hotels, Car Rentals etc. Hence there is a need for designing promotional strategies not only to meet the needs of tourist, but also to overcome the effects of competition prevailing between the APTDC and tour operators as well as travel agencies. OBJECTIVE OF THE STUDY To examine the existing promotional activities adopted by APTDC to promote tourist destinations in Andhra Pradesh. Hypothesis (Ho) There is no significant relationship between promotional activity of APTDC and image of tourist destination.
  4. 4. 4 RESEARCH METHODOLOGY Research is a scientific and systematic search for pertinent information. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet or refinement over the existing findings of the earlier research work. Marketing mix for APTDC is the comprehension blending of 7P’s strategy elements of marketing decision making as mentioned by Zeithmal and Bitner. The promotional strategy is analyzed. Methods of data collection: The task of data collection begins after a research problem has been identified. The study is basically empirical in nature. The required data for the study was collected from both primary and secondary sources. Primary source of data was collected with the help of well-structured questionnaires. Separate questionnaires were prepared and circulated among (i) Tourists. The questionnaires contained both types of questions i.e. open ended and closed ended. Tools for data analysis: The objective of empirical analysis is to present the perceptions of the respondents (tourist). The views were obtained and summarized by administrating a well-structured questionnaire. In addition direct personal interviews with few respondents were also conducted. Chi-square test (χ2) Chi-square test (χ2), perhaps the most commonly used test in dealing with social behavioural data, is used to evaluate whether or not frequencies which have been empirically observed differ significantly from those which would be expected under a certain set of theoretical assumptions. This is applicable to test the hypothesis of variance of the normal population. Goodness of theoretical distribution is tested to observe the frequency distributions one-way classification have ‘k’ category, Formula: The chi-square (χ2) test is given by the formula, χ2 = Σ (O-E) 2/ E Where, O = Observed frequency; E = Expected frequency. It is a statement of universe and it is of two types.  Null Hypotheses (H0): The attributes are independent.  Alternative Hypotheses (H1): The attributes are not independent. Degree of freedom: As χ2 is used to test a contingency table; Degree of freedom “dof”= (r-1) (c-1); Where, r = the number of rows; c = the number of columns in the table. Accept or Reject criterion Decision arrived from the test is based on calculated value and comparing with the critical value (table value), if the calculated value is higher, we accept the alternative hypotheses. Similarly, if the calculated value is less than the table value, we accept the null hypothesis.
  5. 5. 5 Table-1 Promotional activity adopted by APTDC Opinion Respondents Percentage (%) Advertising (print and electronic media) 125 35.71 Seminars and workshops 95 27.14 Fairs and exhibitions 35 10.00 Tourism by heritage walk and mobile museum 56 16.00 Tourism by printing of brochures 39 11.14 Total 350 100 Source: Field data Table-2 Publicity and to enhance image of AP as tourist destination Opinion No. of Respondents Percentage (%) Strongly Disagree 33 9.43 Disagree 30 8.57 Neutral 64 18.29 Agree 125 35.71 Strongly Agree 98 28.00 Total 350 100 Source: Primary Data CHI-SQUARE TEST Null Hypotheses (H0): There is no significant relationship between promotional activities of APTDC and image of tourist destination. Table -3 Cross Tabulation (Table- 1 Image of tourist destination & 2 Promotional activity of APTDC) Image of tourist destination Advertisi ng Seminars & Worksho ps Fairs & Exhibitions Heritage walk & mobile museum Printing brochures Tota lPromotional activity SDA 15 12 12 38 48 125 12.00 9.60 9.60 30.40 38.40 DA 6 5 12 40 32 95 6.32 5.26 12.63 42.11 33.68 Neutral 4 3 11 9 8 35 11.43 8.57 31.43 25.71 22.86 Agree 5 6 16 19 10 56 8.93 10.71 28.57 33.93 17.86 SA 3 4 13 19 0 39 7.69 10.26 33.33 48.72 0.00 Total 33 30 64 125 98 350
  6. 6. 6 Observed values Image of tourist destination Advertising Seminars & workshops Fairs & Exhibitions Heritage walk & mobile museum) Printing brochures Total Promotional activity SDA 15 12 12 38 48 125 DA 6 5 12 40 32 95 Neutral 4 3 11 9 8 35 Agree 5 6 16 19 10 56 SA 3 4 13 19 0 39 Total 33 30 64 125 98 350 Expected frequencies Image of tourist destination Advertising Seminars & workshops Fairs & Exhibitions Heritage walk & mobile museum Printing brochures Total Promotional activity SDA 12 11 23 45 35 125 DA 9 8 17 34 27 95 Neutral 3 3 6 13 10 35 Agree 5 5 10 20 16 56 SA 4 3 7 14 11 39 Total 33 30 64 125 98 350 Table showing calculation of χ2– value Oi Ei Oi- Ei (Oi-Ei)2 (Oi-Ei)2/Ei 15 12 3 10 0.8766 12 11 1 2 0.1543 12 23 -11 118 5.1571 38 45 -7 44 0.9885 48 35 13 169 4.8286 6 9 -3 9 0.9763 5 8 -3 10 1.2130 12 17 -5 29 1.6609 40 34 6 37 1.0865 32 27 5 29 1.0962 4 3 1 0 0.1485 3 3 0 0 0.0000 11 6 5 21 3.3063 9 13 -4 12 0.9800 8 10 -2 3 0.3306
  7. 7. 7 5 5 0 0 0.0148 6 5 1 1 0.3000 16 10 6 33 3.2400 19 20 -1 1 0.0500 10 16 -6 32 2.0576 3 4 -1 0 0.1247 4 3 1 0 0.1292 13 7 6 34 4.8293 19 14 5 26 1.8465 0 11 -11 119 10.9200 χ2 46.32 Calculated value of Chi-Square = 46.32 Degree of Freedom = (r-1)(c-1) = (5-1)(5-1) = 4*4 = 16 Table value of χ2 for dof = 16 @ 5% level of significance = 34.27 Result: Calculated value of χ2 (46.32) is greater than the table value of χ2 (34.27). Hence, H0 is rejected and it is concluded that there is a significant relationship between promotional activity of APTDC and image of tourist destination. CONCLUSION There are many promotional mix methods that are developed over the years. Promotion is a marketing function, which communicates to the tourist about the availability of the products, services and their prices as well as delivery system and terms attached to the offer. Promotion helps to keep the gap between promise making and promise keeping. Promotion and communication efforts in tourism marketing strategy are directed at accomplishing brand awareness, brand loyalty and increase in market share. The increase in market share is characterized by effective advertising; secured channels of distribution, retail outlets and other forms of communication and other promotion variables. Advertising is the promotion tool of a company's products and services that are carried out primarily to increase the sales of the products and services. Direct marketing messages give emphasis and a focus on the customer, data, and accountability. The product marketing mix consists of the 4 P’s which are Product, Pricing, Promotions and Placement. SUGGESTIONS 1. It is suggested to promote tourism by organizing road shows, campaigns, events and festivals. Promoting tourism through movies is one of the best options that can be explored. Celebrities TV advertising campaign will attract more tourists. Showing clippings of culture, heritage and destinations during cricket match is one of the viable options. It is suggested to provide comprehensive and clear information to enable Tourists to plan a travel itinerary.
  8. 8. 8 2. It is suggested that the website needs to be more focused, product driven and clear so that travelers can decide their destination and can compare Andhra Pradesh vis-à-vis other competitive states or countries. The Campaign should be focused more to lure the intending travelers to “Visit Andhra Pradesh “rather than simply describing about Andhra Pradesh. 3. There is a need to show more destination specific visuals/ campaigns defining the products and its unique features need to be devised and promoted. Rather than marketing Andhra Pradesh or just one destination to the trade, focus should be on marketing a product /activity/ event. Under the umbrella of brand Andhra Pradesh new tourist circuits need to be created to attract different type of travelers. BIBILOGRAPHY 1. Andhra Pradesh Tourism (2011). site/tourism_policy_2010.pdf, 2. Andhra Pradesh Tourism Development Corporation, (2011).Information handbook, Tourism House, Himaynagar, Hyderabad. 3. Baloglu, S. and McClearly, K.W. ( 1999). A model of destination imageformation. Annals of Tourism Research. 26(4), 868 – 897. 4. Bassey Benjamin Esu (2010).Promoting an Emerging Tourism Destination University of Calabar, Nigeria. 5. Beerli, A., & Martín, J. D. (2004). Factors influencing destination image. Annals of Tourism Research, 31(3), 657-681. doi:10.1016/jannals.2004.01.010. 6. D’Silva, B., &D’Silva, S. (2008). Perception of tourists towards India as a preferred tourist destination - An empirical researchIndian Institute of Management Kozhikode. Symposium conducted at the meeting of the Conference on Tourism in India – Challenges Ahead Retrieved from 7. Ministry of tourism, Govt. of India (2011). Competitiveness of tourism sector in India with selected countries in the world, Final Report, 2011. 8. Ken Peattie and Sue Peattie (1996). Promotional competitions: a winning tool for tourism marketing. Tourism Management, Vol. 17(6), pp. 433-442, Elsevier Science Lid Great Brilain. 9. Kotler, P; Bowen, J & Makens, J (1996). Marketing for hospitality and tourism. USA: Prentice-Hall Inc. 10. Marta Miguel García (2003).An examination of international promotion in a spanish hotel network: Paradores , Bournemouth University. 11. Maurice Ndalahwa Marshalls (2007).Country image and its effects in promoting a Tourist destination, Case study: South Africa. Blekinge Institute of Technology, South Africa. 12. Middleton, VTC (1994). Marketing in travel and tourism, second edition. UK: Butterworth- Heinemann Ltd. 13. Prafulla Chandra Mohanty (2004).Marketing of Tourism Services in India. A Study with Special Reference to Orissa. 14. Witt S and Witt C (1995). Forecasting tourism demand: A review of empirical research, International Journal of Forecasting, Vol. 11 pp 447-475.