1 Ssyal Bilimler Enstitüsü Dergisi Jurnal f the Institute f Scial Sciences Sayı Number 2, Snbahar Autumn 2008, BRAND MANAGEMENT IN DMO S: CASE STUDY ON DMO S ROLE IN TOURISM MARKETING IN TURKEY DMO larda Marka Yönetimi: Türkiye de Turizm Pazarlamasında DMO ların Rlü Özet Ruhet GENÇ Assc. Prf. Dr. Chairman, Department f Internatinal Lgistics and Transprtatin Beykent University, Istanbul, Turkey Ige PIRNAR Prf. Dr. Chairman Turism Department Dkuz Eylul University, Turkey Uluslar arası düzeyde turistik faaliyetlerin artması bu endüstrideki rekabeti çk arttırmıştır. Bu endüstrinin müşterileri de artan rekabet rtamında gidecekleri yer ve özellikleri knusunda daha seçici davranmakta ve kendi beklentilerine uyan yerleri tercih etmektedirler. Turizmde yeni müşteri çekmek ve var lan müşteriyi elde tutmak için uygun yönetim ve pazarlama teknikleri kullanılması gerekmektedir. Rakip firmalar DMO lar ile bu seçici müşteri katmanına ulaşmaya çalışmaktadırlar. DMO uygulamalarında en etkin pazarlama yllarından biri ise markalaşma ve marka yönetimidir. Bu çalışma genel larak üç kısımdan luşmaktadır. Ilk kısımda DMO luşumları ve uygulamaları genel larak anlatılacaktır. Ikinci kısım markalaşma ve markalaşmanın DMO larda nasıl uygulandığına değinecektir. Sn kısımda da marka yönetimini İstanbul un tanıtımında çk başarılı bir şekilde uygulayan ICVB (Istanbul Cnventin and Visitr Bureau) vaka çalışması larak ele alınmıştır. Anahtar kelimeler: DMO, ICVB (Istanbul Cnventin and Visitr Bureau), marka yönetimi, markalaşma, turism marketing Abstract The turism industry is very cmpetitive with increasing internatinal arrivals and receipts annually, and the custmers are getting mre sphisticated in their chices. T attract them and t change the ptential custmers t real and repeat ne needs cnstant applicatin f suitable management and marketing techniques. Cmpeting destinatins use destinatin management rganizatins (DMO s) in rder t reach these specialized targeted cnsumers. Destinatin management is mst effective when accmplished thrugh management and marketing techniques like branding and brand management. As a whle, the study cnsists f three
2 122 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , parts, where the first part cmprises f destinatin management rganizatins frmatin and applicatins in general, secnd part abut branding and hw it is applied by DMOs and the third being abut a case study n ICVB (Istanbul Cnventin and Visitr Bureau) which had dne a great jb in prmting Istanbul as a well-knwn brand destinatin. Keywrds: Brand management, branding, DMO (destinatin management rganizatin), Istanbul Cnventin and Visitr Bureau, turism marketing INTRODUCTION Tday, it seems that destinatins arund the wrld are taking turism develpment and marketing mre seriusly than ever, while destinatin marketing rganisatins (DMOs) are trying t strengthen the market advantages f destinatin turist ffers in the hpe that they culd increase their share frm the internatinal flw f visitrs and turism incme (Pike, 2004). Als, accrding t the UNWTO Business Cuncil, the current trend in almst all regins f the wrld is twards semi-public but autnmus turism rganizatins invlving a partnership with bth private sectr and reginal and/ r lcal authrities. DMOs in successful examples, seems t answering all the stated needs. 1. Destinatin Management Organizatins and Their Applicatins The real-life practices revlving arund destinatin marketing has recently becme immense n an internatinal scale with varius respnsibilities, activities, targets and managerial tasks pursued by DMOs (Pike, 2004). The cuntries wh are aiming t have a high market share within the glbal turism prduct are using all the strategies applicable in rder t stand ut frm the severe cmpetitin by shwing and cmmunicating their cmpetitive advantages and psitive image. Cuntries cmpete in the market fr turists, factries, businesses and talented peple... the need fr attracting turists and factries and cmpanies requires cnscius branding strategies fr the different target grups (Mrgan, Pritchard and Pride, 2004). One way f achieving this is by using the destinatin management and marketing, which fcus n prmting the destinatins as being the cuntries r regins r cities r twns by their brand names established. Destinatin Management Organizatins (DMO) have all the necessary infrmatin abut the defined destinatin and by integrating and crdinating all the related accmmdatin, transprtatin, entertainment, F
3 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , & B establishments and technical supprt, nt nly supprt and manage t build up the image and brand f the destinatin but als help t prmte and cmmunicate it t the target grups and cnsumers (Tavmergen and Aksakal, 2004: 76). DMO's have played a leading rle in turism develpment fr many years nw which may be briefly described as any rganizatin at any level that manages the prmtin and marketing f an identifiable regin r destinatin. DMO s may include Natinal Turism Offices (NTO's), State Turism Offices (STO's), Reginal Turism Offices (RTO's) and Cnventin and Visitrs Bureaus (CVB's). It is imprtant t stress that the main aim f DMO's is enhancing sustained destinatin cmpetitiveness. The Wrld Turism Organizatin (2004) defines DMOs as the rganisatins respnsible fr the management and/r marketing f destinatins and generally falling int ne f the fllwing categries (Presenza, Sheehan and Ritchie, 2005): Natinal Turism Authrities r Organizatins, respnsible fr management and marketing f turism at a natinal level; Reginal, prvincial r state DMOs, respnsible fr the management and/r marketing f turism in a gegraphic regin defined fr that purpse, smetimes but nt always an administrative r lcal gvernment regin such as a cunty, state r prvince; and Lcal DMOs, respnsible fr the management and/r marketing f turism based n a smaller gegraphic area r city/twn. Structuring and management applicatins d effect the effectiveness f DMOs. Accrding t the UNWTO Business Cuncil, the current trend fr prmting destinatins in almst all regins f the wrld is thrugh sme srt f destinatin management rganizatins. Many cuntries are aiming twards semi-public but autnmus turism rganizatins invlving a partnership with bth private sectr and reginal and/ r lcal authrities. Over the last decade the functins and respnsibilities f gvernments as well as the private sectr and sciety has changed a lt (Hawkins, The traditinal apprach was centralized prmtinal and develpmental effrts in turism whereas it is changed twards decentralizatin f turism management and prmtin and twards public-private sectr partnership. With such change, the new, flexible and multi-disciplinary appraches t destinatin management are needed. T answer this need destinatin management rganizatin are frmed r already existing nes changed their way f ding business. The
4 124 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , different relevance f DMO prcesses cncerning resurces and prcesses n different axis are shwn belw in figure 1. Fig1. Different relevance f DMO prcesses. Resurce: Rugger Sainagh, Frm cntents t prcesses: Versus a dynamic destinatin management mdel (DDMM) 2005 Elsevier 1.1 Blueprint Fr Building A Successful Turism Prgram By DMO s There are different applicatins and ways fr DMO s t fllw up in their prgrams t successfully develp and prmte a turism regin. A 5 pint check list stated belw cvers a general frame, thugh as an autnmus bdy, DMO s shuld be very flexible in their implicatins (GACB, 2005).
5 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , Pint Check-List 1. Cnduct a visitr-demand study Identify the travelers f yur regin, learn abut them: What are their demgraphics? (age, family type) Visitr segments, needs and interests senirs, families, crprate business peple utdr recreatin, sightseeing, shpping, entertainment, business meetings determine: purpse f their trip attitude abut places traveled t and thrugh length f stay size f travel party reasns they wuld stay lnger (new attractins, facilities, events, services) Ask questins/cnduct surveys talk t yur visitrs! 2. Inventry existing resurces Identify the primary reasn peple visit yur area like educatin, business, leisure etc. Identify majr generatrs f visitrs List everything t see and d 3. Psitin yur city s attractiveness amng cmpeting cities and twns Identify yur strengths, weaknesses, pprtunities and threats (SWOT analysis)
6 126 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , Figure ut applicable strategies fr each case frm SWOT analysis like strength and pprtunities / strengths and threats/ weaknesses and pprtunities / weaknesses and threats. Apply them Are yu a sustainable r ec-friendly cmmunity. If nt becme ne. Is signage f the regin adequate, legible? If nt imprve. Remember the IMAGE f yur cmmunity is critical in turism prmtin. 4. Develp and implement a destinatin marketing plan Identify different visitr segments yu want t target and determine benefits, appeals and incentives fr each Match yur resurces t the needs f each segment Make it in writing Assign turism-develpment and prmtin respnsibilities and budget Determine ldging tax frmula and prper use f funds Hire an expert t cnduct a market study n the ecnmic feasibility f 5. Keep that in mind that t prmte yur destinatin / city / regin as ne that delivers a feel-gd experience Slicit cntinual lcal and reginal supprt f yur turismprmtin effrts. Keep that in mind that the peple buy travel destinatins fr the same reasns they buy ther prducts they want t experience pleasure, satisfactin and reward The imprtant cmpetitive factrs fr destinatins t cmmunicate t their target market may be stated as; built and cultural attractins which are the mtivatrs fr the visit, amenities which include basic infrastructure
7 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , such as utilities and rads and direct services and accmmdatin, F & B and shpping facilities, the image, the attributes attractive t target grup, unique qualificatins, time and age characteristic with heritage, Prtecting the basic characteristics, service quality and perceived price/quality rati (Usta, 2008: ). DMO s nt nly cmmunicate the destinatins attractins, amenities, image and quality but als engage int research, represent their destinatin in markets, rganize wrkshps, trade shws and familiarizatin trips, participate in jint marketing schemes and c-branding prjects, supprt new r small business, invlve in cnsumer assistance and prtectin prgrams and prvide general turism educatin fr lcals (Ktler, Bwer and Makens, 1999, ). DMO s prper management culd be checked by finding answers t related questins stated belw thus which culd be gruped under implementing a strng fundatin fr DMOs (GACB, 2005).. Hw is it funded? Wh des it reprt t? Des it have a jb descriptin? What is the rganizatin s missin? Visin? Applicable strategies? What are their primary markets? What is in a name? Establishing shrt and lng term gals Cnstant and effective cmmunicatin between related bdies It is als stated that in rder t apply effective destinatin management, the rganizatins shuld (Carter and Fabricius, 2007): Delivery f services n the grund t ensure that it meets r even exceeds the visitr expectatins
8 128 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , Cntribute t the lng term develpment f the lcal cmmunity in the ecnmic and scial sense,like prviding emplyment and develping infrastructure. Ensure a respnsible and sustainable balance in the destinatin between ecnmic, sci-cultural and envirnmental impacts Ensure a suitable physical, scial and ecnmic envirnment in which t develp turism Create an effective destinatin branding by c-branding and cperating the rganized effrts between the related establishments Any destinatin s turism marketability may be evaluated accrding t their attractin fr turists and their turism infrastructure. Envirnments that have cultural sites, natural beauties, nice climate, museums, sustainability, high service quality, interesting lcal arts and heritage, unique gegraphy and cultural histry are all ptentially rewarded destinatins fr turists. With the new trend in destinatin management and the changing rle f destinatin management rganizatins, the prmtinal and develping effrts fr destinatin are maximized with additinal benefits f gained synergy. The develpment and marketing f turism destinatins has attracted attentin n the cllabratin and cmmunity apprach in which cnventin and visitrs bureaus (CVBs) are playing imprtant rles in crdinating marketing activities and develping desired image f the destinatin in the marketplace (Wang, 2008). 2. Branding by DMOs In tday's highly cmpetitive market, many destinatins - frm individual resrts t cuntries - are adpting branding techniques similar t thse used by 'Cca Cla', 'Nike' and 'Sny' in an effrt t differentiate their identities and t emphasize the uniqueness f their prduct (Mrgan, Pritchard and Pride, 2004). DMOs are very prfessinal in this sense since they adpt and apply a highly targeted, cnsumer research-based, multiagency 'md branding' initiative leads t success. Understanding that marketing thugh cvering means mre than selling r advertising, destinatin prmtin is nrmally the DMOs majr activity and budget item. T this end, after develping a marketing plan, DMOs can use different prmtin tls such as persnal selling, direct marketing, advertising, sales prmtin, publicity and public relatins,
9 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , and image management. Even thugh the selling f the turism prducts and services f a destinatin may be primarily dne by the individual firms ffering them and the travel trade fr reasns f efficiency and effectiveness, the DMO can still be viewed as managing the selling f a destinatin as a whle in the brader sense. While managing sales, there are lts f activites cvering; attending trade shws, exhibitins and events, familiarizatin turs fr meeting and incentive planners and travel writers, telephne call centers and turist infrmatin kisks (Presenza, Sheehan and Ritchie, 2005). Althugh the cncept f branding has been applied extensively t prducts and services, turism destinatin branding is a relatively recent phenmenn. In particular, destinatin branding remains narrwly defined t many practitiners in destinatin management rganizatins (DMOs) and is nt well represented in the turism literature (Blain, Levy and Ritchie, 2005). "Accrding t legend, the practice f branding prducts riginated when an ancient ruler decided that prducts shuld bear sme srt f symbl s that, if smething shuld g wrng, buyers and authrities wuld knw wh was t blame. Frced t identify their prducts with themselves, the stry ges, prducers began t take greater pride in their prducts and t make them better than thse f their cmpetitrs, thus reversing the negative intent f the rder f their king"(zikmund & D'Amic1996:289). Tday thugh branding serves very many ther purpses like creating identity, prtectin frm cmpetitin, enhancing image, facilitates market segmentatin, ver time, building brand equity and creating and keeping brand lyal custmers, t repeat business (Pwers, 1997:222). DMOs may use brands pwer fr a cmpetitive advantage in a crwded marketplace. That pwer can be measured by awareness, cnsistency and perceived quality (Walsh, 2002). The turism industry is a very cmpetitive industry which is made f very specialized cnsumers wh lk fr the image and prestige in the prducts and services that they buy. Due t this nature f turism marketing branding gains a special imprtance t this grup. Effective branding is created by cnstantly putting the assciatins thrugh cmmunicatin vehicles (Higley, 2001). In tday's crwded marketplace, getting yur brand knwn which is called brand awareness, is nt an easy jb. What may be even mre difficult it t effectively cnvey what the brand stands fr - brand identity (Nykiel, 1989:97). In this regard, many businesses make the mistake f putting ppularity and quantity befre
10 130 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , quality. Identificatin f an peratins' best custmers is based n the "RFM principle" that is recency, frequency and munificence. The firms best custmers are thse wh purchased recently, purchase frequently and deliver the greatest mnetary earnings t the firm (Pwers, 1997:109). The public perceptin f a destinatin is ften embdied by the way in which the 'brand' is presented. While cnsumers are mre brand aware than ever befre, research suggests there may even be a perceived stigma assciated with turism sectr. Integrating a branded cncept int a turism is a way t minimize the stigma, bringing guests back t the turism regin. Turism has a huge emtinal appeal in buying, a strng interest, attractiveness, safety and smetimes luxury factr in it, s custmers like the availability and cnsistency that accmpanies a knwn brand name prduct. In rder t gain the advantages f branding, DMO s may use internet and their databases in the fllwing ways (Ktler & Armstrng, 2001, ): Deciding which custmers shuld receive a particular ffer: Cmpanies identify the prfile f an ideal custmer fr an ffer. Then they search their databases fr individuals mst clsely resembling the ideal type. Deepening custmer lyalty: Cmpanies may build custmers interests and enthusiasm by remembering their preferences, special infrmatin like birthdays and actin n it. Data base management is a great help ding this Reactivating custmer purchases: The database can help a turism / turism cmpany make attractive ffers f prduct replacements, upgrades r cmplementary prducts just when custmers might be ready t act. A rich custmer database allws a cmpany t build prfitable new businesses by lcating gd prspects, anticipating custmer needs, crss-selling prducts and services, and rewarding lyal custmers. Lnger duratin: Audiences in traditinal media, like televisin and radi, encunter a brand s messages in 30-secnd increments. Hwever, nline audiences encunter the brand fr a much lnger duratin ften 10 minutes r mre. Therefre, the depth and apprpriateness f a brand s messaging and cntent becmes mre critical nline (McCasland, 2003).
11 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , Targeted prmtins (Oliva, 2001): As with any database used fr marketing purpses, Web-based CRM systems can als be a tl fr targeted prmtins, allwing turism cmpanies and marinas t cater t their custmers needs by reviewing their custmer histry. 3. ICVB s Cntributin T Turism Develpment in İstanbul A vibrant business turism sub-sectr can cntribute significantly t any city s ecnmic grwth. In fact, fr sme cities in the wrld, up t 40 percent f their turism business is generated by the cnventin and exhibitin market (Law, 1993). In additin, cngress turism is develping as a majr urban activity in a number f cities arund the wrld and ften becmes the impetus fr turism develpment. The attractiveness f a destinatin is clearly amng the mst imprtant factrs fr its selectin fr business turism activities, which in turn leads t significant ecnmic benefits fr the chsen city. The amunt f mney spent by each turist, the number f accmpanying persns r party-size, and their length f stay (ttal rm-nights generated) depend heavily n destinatin characteristics and attractiveness (Petersen, 2004). Althugh, attractiveness is highly subjective, it is fair t cnclude that thse destinatins that ffer a variety f attractins and any needed special services, that are safe and secure, that pssess unique attributes, and that ffer value will by cnsensus be deemed attractive. İstanbul is an imprtant turist destinatin in Turkey and is raising its prfile as an internatinal travel destinatin. It is a city with a wealth f natural, histrical, cultural, religius, sprts, and cmmercial attractins that appeal t a wide gamut f travellers. Over the past several decades, turism develpment has increased İstanbul s supply f turism services and facilities, prpelling the city t a new level f internatinal cmpetitin. In fact, İstanbul ranked 7 th place after New Yrk City in a list published by Travel and Leisure (2005), f the tp 10 travel destinatins in the wrld and 3 rd place amng the tp 10 Eurpean destinatins (Turkish Weekly, 2005). Tw f İstanbul s five-star htels were als placed in this list: the İstanbul Fur Seasns Htel was ranked 2 nd place and the İstanbul Çırağan- Kempinski htel was ranked 7 th best htel in Eurpe s best htels list (Dünya Gazetesi, 2005). Effrts t develp İstanbul as an imprtant turism destinatin started when the city hsted the 1996 Wrld Habitat Cnventin. Since then, a great deal f wrk has been dne by the private sectr, the Ministry f Culture and Turism (MCT), and the İstanbul Cnventin and Visitrs Bureau (ICVB), which spearheads effrts t bring internatinal meetings t
12 132 Ruhet GENÇ-Ige PIRNAR/ Ssyal Bilimler Enstitüsü Dergisi , İstanbul. Particularly because lng lead times and investment plans are required fr rganizing cnventins, the ICVB is invlved in numerus activities t facilitate these plans, including: assisting meeting planners in preparing cmpetitive and highly attractive bids, prviding a wide range f infrmatin and material n İstanbul and Turkey; publishing prmtinal material (e.g., İstanbul mnthly bulletin and fact sheet, quarterly ICVB news, İstanbul meeting planners guide); crdinating site visits fr representatives f decisin-making bdies, acting as a liaisn between lcal cntacts and meeting planners; prviding literature, brchures, CDs, DVDs, films, and ther audivisual materials n turism and cnventins in İstanbul and Turkey; helping planners and rganizers t select suitable cnventin facilities, accmmdatins, and ther cnventin suppliers frm amng its members; and helping t prmte İstanbul and Turkey t attract t increase vlume f participants. Althugh the ICVB is making imprtant headway tward achieving this gal, there remains a need fr a strategic develpment plan specifically fr business turism in Turkey Istanbul s Business Turism Capacity While İstanbul is Turkey s largest and mst high-prfile city and its leading business center, it has the secnd best capacity (after Antalya) fr business and specifically; meetings and cnventins (TÜRSAB, 2004). Demand fr İstanbul as a cnventin and incentive destinatin is rapidly increasing (Erl, 2003). İstanbul hsted 37 internatinal meetings in 2004 and 55 in 2006, in which year, İstanbul ranked 8 th in cnventin delegates statistics in the wrld with 44,547 attendees (Öncü, 2007). In İstanbul, mre than half (54%) f ttal capacity fr meetings and cnventins is supplied by five-star htels and 18 percent by fur-star htels (Yücel, 2002). During cnventin and festival seasns, İstanbul htels reach 100 percent ccupancy. The city s existing meeting infrastructure fulfills criteria fr quality standards required fr cnventin centers and htel meeting facilities. While İstanbul has experienced many imprvements t infrastructure and superstructure as well as new investments and develpment in recent years, the city urgently needs cngress htels that can hst 4,000 t 5,000
13 Ruhet GENC-Ige PIRNAR / Jurnal f the Institute f Scial Sciences , attendees. T cmplement its new cngress htels and centers, and tw cnventin centers that are preparing t pen in 2007, İstanbul needs greater technical and financial assistance fr prmtin and a sund planning system fr MICE turism (TÜRSAB, 2004). During this capacity develpment stage, stakehlders in business turism in Turkey in general and İstanbul in particular need t cnsider custmer needs, which includes bth rganizers f business turism activity as well as the travelers themselves. Key factrs in decisins invlving destinatin selectin fr business turism rganizers include: lcatin, cst, quality and availability f venues and accmmdatins, quality f service, weather, cst and duratin f travel t destinatin, internatinal air rutes, safety and security, range f ptins fr leisure and recreatin activities, shpping facilities (Kennedy, 2007). Istanbul meets mst f the criteria (e.g., gegraphic lcatin between Eurpe and Asia, mild climate, wide spectrum f available activities and attractins, reputatin fr high quality service, affrdability and value) which can be cnsidered highly prmising fr the develpment and grwth f business turism. İstanbul is als an attractive business destinatin frm a safety standpint, as it was fund t be ne f the safest majr cities in the wrld by the Eurpean Unin s 2006 Crime and Safety Survey, with a crime rate f nly 18 percent, (ICVB, 2006) cmpared with 32 percent in Lndn, 27 percent in Amsterdam, 26 percent in Belfast and Dublin, 24 percent in Cpenhagen, 23 percent in New Yrk and Stckhlm, 20 percent in Brussels, and 19 percent in Rme (NTV, 2007) Cnclusin Nwadays, glbal turism seems very cmpetitive and in rder t stand ut frm the crwd many destinatins are getting help frm destinatin management rganizatins (DMOs). They are the rganizatins which nt nly prmte and market the regin in the turism market but als manage all the marketing and related functins. Tday DMOs are trying t strengthen the market advantages f destinatin turist ffers in the hpe that they culd increase their share frm the internatinal flw f visitrs and turism incme. Tday in rder t cmmunicate their destinatin s cmpetitive advantage t the target grups, destinatin management rganizatins rle has been changed frm being traditinally centralized, passive twards being mre flexible and twards crdinatin where the branding strategies gain special attentin fr attracting and bringing repeat custmers t the destinatins.
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