Evaluating Marketing Opportunities for Tourism Queensland

Question: Describe about the Evaluating Marketing Opportunities for Tourism Queensland? Answer: Introduction The paper represents a research on the marketing of a City Precinct, which provides details about the needs and the goals of the precinct. This research work identifies and describes significant establishment of a precinct promoting social, cultural, entertainment and sporting venues for the domestic and the international tourists. This would help in a long term plan for tourism for Queensland. This would also increase the expenditure for tourist visitation. According to previous research the total visitor expenditure in 2013 was around $23.5 billion (approximately). But the proposed research work would increase the number of visitors in Queensland. According to the Government of Queensland tourism is considered as one of the four supporting pillars of future development for the states economy. This concept is expected to make Queensland Australias finest tourism destination. The tourism objective would help in economic growth for the state. Tourism Queensland Queensland is the third populous and the Second largest State is Australia. The city is in the border of Australian territories in the north such as New South Wales in the west, the Northern Territory and South Australia. The tourism Queensland plan targets in provides the tourism industry a clear focus on strong destination and sustainable plan for tourism. It provides a framework in order to guide development for the industry and also includes regional tourism organization. Aims and Objective: The sole aim for Tourism Queensland is to attract international and domestic travelers in Queensland with the help of: Promoting and marketing Queensland Destination developing and experience in Touring One of the objectives is also to attract, identify, promote and develop the social, cultural, sports and entertainment events. These would help in the increase in state tourism and a rise in economy for events. The plan Tourism Queensland will work to secure events like: Economic contribution Attracting tourists Enhancing Queensland profile Foster Queensland community pride Increase awareness on Queensland Precinct Target Markets: Tourism Queensland will focus on interstate, international and other domestic markets. The domestic market currently is responsible for overnight visitors expenditure for three quarters which is expected to generate an approximate revenue contribution of two-third of its economy. The plan also proposes and expectation of increase in share of Expenditure. Tourism Queensland expects tourists from every country especially from Singapore, Malaysia, Europe, New Zealand, Canada, United Kingdom, Europe, USA, China and Japan. Target Audience: The tourism Queensland aims to attract the Upper middle class people of average age between 25- 60 years. They also aim to attract various sports academy students and Educational tourists for touring the city. It has a focused target audience like: Dependent member of family must have with more than $100,000income level. Older couples aged 45-60 with no dependent childrens. Married or defector. Full time employed or semi-retired depending on the quality of income. The budget for tourism Queensland for tourists: Keeping in mind the various type of target audience, Tourism Queensland had a budget fixed for its tourists, on expenditure based on daily, weekly and monthly basis. This budget includes the accommodation and city tour expenses. Markets Actual budget $ (per person) Expected budget $ (per Person) 1 day 250 200 1 week 1500 1400 1 month 4500 4500 Evaluating the Inter State market: Accommodation average room rate and their percentage change 4 states including Queensland: city 2012 2013 %change Whitsundays $206.85 $213.04 1.8 Sunshine Coast $144.60 $142.93 -1.2 Northern $117.62 $119.78 3.0 Queensland 138.51 $141.96 2.5 Source: (Dws.net.au, 2015) Opportunities in the target markets: Tourism is a seasonal based industry, which varies from regions to region during peak season. With the continuous variations in season, the key markets for tourism Queensland may change over time with the emerging of new source markets. These changes occur due to various factors, they are: The comparative strength of the Australian currency and the economic condition of Australian market. The competition with other tourist destination The advancement of technology and availability of products. The travelling pattern of the tourists In order to assess opportunity for accessing the market Tourism Queensland requires certain tools, they are: Segmentation: the market for Queensland Tourism is categorized as niche or special market. Though it aims for a special category of people from selected countries in international level, they also have segmentation for the domestic and interstate tourists. The visitors can be differentiated by the type of product and experience they are seeking for. Promotion: For promoting Tourism Australia, special advertisements, positioning and branding of tourism Queensland would play a major role. The quality and the quantity needs to be huge in international market whereas in domestic and interstate market the level of promotion requires to be comparatively low. Consumer behavior: according to previous records the total number of visitors irrespective of the purpose being holidays or business, was 73,736,000 (Teq.queensland.com, 2015). It states that the annual change for visitors in Queensland has increased to 5.0% for the year ending 2014. Keeping in mind the progress of the number of visitors, Tourism Queensland expects the number of visitors to increase up to 9%. Advertisement: display banner at the International Airport gates, and hoarding welcoming tourists in Queensland would be effective for making an impact. Mass media like Internet Advertisement and Television on international channels and in YouTube and website of tourist interest would help in building the desire for the tourists to visit Queensland. Three Key marketing Opportunities in the target market: A dexterity approach to Promotion and marketing. Pioneering Infrastructure and product development across International, inter-state and domestic market that provides marketing aspiration. Enhancing the operations of tourism industry for operating at the highest servicing standards with sustainability and safety through efficient development in Tourism Queensland. Legal requirements: Depending on the services offered the Permits and licenses would also vary. There is certain license for tourist operators and travel agents, gaming license and Liquor license. In legal terms, all persons including Queensland, as far as the legal power has the permission common wealth and other states. The Subsection (1) does not allows the state commonwealth or another state liable to be put on trial for coming an offence proceeded against related contravention. Therefore tourism Queensland has to follow necessary legal rules for getting it registered for implementation (tourism Service Act 2003, 2014). Organizational brief: Tourism Queensland is a government agency that deals with domestic and international tourists. The organization is a new city precinct comprising of social, cultural, sporting, entertainment venues. The organization aims to encourage, develop the tourism of the state, and generate huge revenues by attracting foreign tourists. New opportunities: Queensland tourism has many opportunities in the market, which it sees as a goal to achieve in the near future. The organization aims to gain maximum tourists from international as well as domestic market. The organization plans to open an online image library called the visions of Queensland. This online library would promote Queensland`s photographic and video libraries. It would also be a useful tool for providing videos and images to the tourists and clients like advertisers of magazines, television, designers and conference organisers. The new opportunities that the organization is seeing in the market are: 1. Strategy for a new three-year plan: Queensland tourism provides a three-year plan for a regional growth that would consider team strategy to develop a regional development and help them to become a tourist attraction. 2. The organization aims to do a Chinese marketing campaign to attract the Chinese tourists and boom the market. The company aims to launch a new media campaign and advertise as much as possible to attract Chinese tourists. 3. Queensland tourism works with the industry to produce a number of strategies and plans that aims to build market strengths and it is the key factors of its promotions like art, culture heritage, food and wine. Impact of these strategies on the organization: These strategies have a huge impact on the working of the organization. The three-year plan for a combined growth of the region will need the organization to employ more people, strategies, and plans to attract new tourists. The Chinese marketing campaign is huge marketing campaign employing lot of advertisements to spread the word. Strategies for implementing new changes: The implementation of new strategies requires collaboration, partnership, and commitment to: Bring new ideas to business. Develop business cases to prove the economic merit for new opportunities. Get access to best skills and expertise. Provide leadership, management and opinions. Growth of the Town`s digital economy growth. Financial viability of marketing opportunities Strategy Resources Costs ($) 3 Year plan Human resource Promotions Development costs 1500 1000 1700 Total cost for 3 year plan 4200 China market campaign Media promotion Advertising cost Preliminary costs 1000 2500 2000 Total cost for china campaign 5500 Promotional campaigns Developing tourist attractions Free shows in one of the cultural heritage sites Social media promotion of arts and cultural heritage 2800 2500 3000 Total cost for promotional campaigns 8300 Total cost 18000 Investment requirements Considering the total costs involved in implementation of the strategies the tourism department need funding accordingly. The appropriate funding requirements may be sourced from the following sources: Funding sources Amount of funds ($) Development banks (Asian development bank of Commonwealth Bank) 50000 Commercial Banks 20000 Financial eco based agencies 10000 Return on investment The total investment is around $18000 considering all the expenses incurred for implementation of three different strategies. The return on the invested amount as adopted by the tourism organization is around 5%. Hence, the expected return is $900. However, this return will be possible only when the tourist footfall is increased by 1% every year. Factors Current month Month 1 forecast Month 2 Forecast Month 3 Forecast Sales (visitors) 1500 1600 1700 1800 Revenue per visitor 50 60 70 80 Total Revenue per visitor 75000 96000 119000 144000 Prioritization of the opportunities based on financial viability The costs for the three plans shows that China has the highest cost and the highest risk because promotion in the highly populated country of China does not assure that the tourism company will be able to attract sufficient tourist footfalls. Hence based on the cost and risk of the opportunities the 3Year plan should be prioritized first. Then the organization can pay attention to the Chinese promotional campaigns and finally the heritage promotional campaigns will follow. Communication of the implementation process to stakeholders The tourism organization will use the concept of stakeholder mapping in order to prioritize the stakeholders and communicate the required information. The organization can use meeting agendas, conference calls, project communication plans and informal communication techniques like voice mails, lunch meetings to communicate the information on the implementation process to the concerned stakeholders namely the internal board members, the government, the financial institutes and also the tourists. Concept of marketing and marketing orientation: Marketing is a chain that connects products/services to its customers. Its main purpose is to promote a product or service to elevate its growth and sell the product in the market. It includes various tools like advertisements, promotions to sell the product. It is an institution that creates, communicates, delivers and exchange offerings that worth its customers, partners and clients. Marketing helps a company establish its roots by making long- term relationship with its customers. The marketing strategies have the goal of increase sales and achieve maintained relationship with its clients and customers. Marketing Orientation: An approach that focuses on identifying and congregating various needs of customers is marketing orientation. A business following marketing orientation will develop its market performance. Competitive analysis is also a significant component of market orientation. This analysis helps the organization to identify the needs, preferences of the focus groups. It also helps to identify the strength and weakness of the competitors. Marketing Mix: Marketing mix is a business tool that is used in marketing of products and services. This marketing is done by associating with the four P`s of marketing namely product, place, price, promotion. These four elements are combined together in such a way that it serves all the needs of the customers. Marketing strategy integrating with a marketing plan: A marketing strategy is a lucid statement on how a marketing professional means to present a product to the customers. It takes into account the target audience, benefits of the product and marketing needs. When the elements of the marketing mix are combined with marketing plan of a company, it defines clear objectives and the plan becomes clearer to the executives. An organisation can combine its marketing mix with its marketing plans by the following ways: 1. Defining the unique selling proposition: The selling proposition of the company can be defined by stating the benefits, which only their products can offer. 2. The target audience: The companies can define their targeted audience and narrow the focus of the product by identifying the potential customers. This shapes the marketing campaign. 3. Defining the product in detail: The product can be defined in detail. The unique features that the product features. This product details can be showcase in the marketing campaign. 4. Creating a good pricing strategy that would help the products and services Contents of a marketing plan: A marketing plan of a small business consists of a business administration description of competitors, including the demand for the product and services and the weak spot and strong spot of the competitors. 1) Description of the product and services is mentioned in a marketing plan. 2) A marketing budget plan with the entire promotional and advertising plan is also mentioned. 3) The location of the business showing all the advantages and disadvantages associated with it. 4) The pricing strategy of the products and services is also mentioned in a marketing plan. 5) The target customers of the company, whom they believe to be their potential customers also constitute in a business plan. A classic marketing plan also includes the analysis of the micro and macro environment. The macro environment consists of analysis of economy, legal, technology, socio-cultural and government. The current market situation analysis includes market size, market segmentation, competition and market share, market trends. Consumer analysis is also a vital part of a marketing plan. It consists of nature of buying of the consumer, demographics, psychographics etc. A marketing plan includes objectives that clear the main functions of a business. The objectives include mission and vision statement, objectives of the corporate, its finance and marketing objectives, short -term long -term objectives, and corporate culture. Situation analysis analyses about the external threats, opportunities internal strengths and weaknesses. It is very necessary for the business to define it marketing strategy to compete with its competitors. The marketing strategy classifies its unique selling proposition, th e product mix of the company, all the strengths and weaknesses, perceptual mapping and the life cycle of the product and development of new product. A brand name of the company and its brand equity is present in a marketing plan. A marketing plan also consists of the promotional mix and promotional goals of the product. This promotional mix would define the advertisement strategy, its medium; its frequency and it reach to the customers. From the financial point of view a BCG analysis is also very important to understand the competitor`s market position. The objectives of the adma marketing code of practice for direct marketing: In order to set standards of conduct for direct marketer, The ADMA code of Practice was developed The ADMA code was meant to increase business, minimize the risk of breaching legislation, consumer confidence, settling disputes and promote a culture of best practice for doing business with the members of ADMA who are bound to the provision of the code. The objectives of the ADMA code are as follows: 1. Reducing the risk of members violating the trade practice Act of 1974,Spam Act of 2003 also known as State legislation for fair trading, Privacy Act of 1988 which includes the National Privacy Principles. 2. To encourage cultural practices among the members who conducts the ir business function fairly, ethically, honestly according to best practices. 3. One of its aims is to increase the confidence of consumer and business while doing Business with the members of ADMA. 4. Ensuring that both consumer and business have access with the services and product information so that they could make informed choices. Marketing research and its need: The system of assessing the feasibility of a newly introduced services or product with the help of techniques such as, focus groups, surveys and product technique is known as market research. For instance, if a company wants to enter into a market then it has to conduct a research on the present condition of the market in order to verify the viability of a service or a product idea. If the research confirms the prediction of an Organization then the organization can smoothly run its operation with full confidence. The entrepreneurs conducts market research for many reasons, they are: To identify the potential customers, Understand their existing customers, Set realistic targets Develop effective strategies To examine and solve business problems Prepare for business expansions Identify the opportunities that would enhance the operation of the business. Example Of Breach Of Privacy In Marketing Practise Violating privacy law in relation to marketing also refers to a common term that has been used recently known as Whistleblower. Whistle blower refers to the person who discloses certain information for the organization where he works. This is a kind of misconduct which affects the privacy of a company. Certain examples like public service employees who fail to act with diligence and care in tenure of their employment, applying common wealth resources improperly using information outside the organization. The motive of sharing information is generally for gaining an advantage or benefit for them or others. The act also states not to victimize against public servant when the accused person breaches the Australian Public service code of conduct. The marketing law appropriate for Breach of privacy law is Privacy Act 1988 which regulates the way by which the Norfolk Island and the Australian Government agencies along with some private sector enterprise discloses, uses, collects, secures, and provide access to correct informations which are personal. Conclusion: The study revolves around understanding the marketing plan of a tourism organization named Tourism Queensland. The study helps to evaluate and identify the marketing opportunities for the organization. A detailed marketing plan has been made, where the budget and previous references have been mentioned in order to analyse the financial strength of the marketing plan. References ADMA - Association for Data-driven Marketing and Advertising,. (2015).Code of Practice. Retrieved 3 March 2015, from https://www.adma.com.au/comply/code-of-practice/ Dws.net.au,. (2015).Qld Accommodation Update Q4 2013 | DWS. Retrieved 2 March 2015, from https://www.dws.net.au/uncategorized/queensland-accommodation-statistics-q4-2013 Tourism and events Queensland,. (2014).Domestic Tourism Snapshot(1st ed., p. 4). Queensland: https://teq.queensland.com/. Retrieved from https://teq.queensland.com/en-AU/Research-and-Insights/Domestic-Research/Queensland-Research Tourism Service Act 2003,. (2014).Tourism Services Act 2003(1st ed., p. 61). Queensland. Retrieved from https://www.legislation.qld.gov.au/LEGISLTN/CURRENT/T/TourServA03.pdf