Tourism Policy & Planning Process

Tourism Policy & Planning Process

INTRODUCTION

Tourism is one of many activities in a community or region that requires planning and coordination. This assignment provides a simple structure and basic guidelines for comprehensive tourism planning at a community or regional level. Planning is the process of identifying objectives and defining and evaluating methods of achieving them. By comprehensive planning we mean planning which considers all of the tourism resources, organizations, markets, and programs within a region. Comprehensive planning also considers economic, environmental, social, and institutional aspects of tourism development.

TWO SIDES OF TOURISM PLANNING

Tourism planning has evolved from two related but distinct sets of planning philosophies and methods. On the one hand, tourism is one of many activities in an area that must be considered as part of physical, environmental, social, and economic planning. Therefore, it is common to find tourism addressed, at least partially, in a regional land use, transportation, recreation, economic development, or comprehensive plan. The degree to which tourism is addressed in such plans depends upon the relative importance of tourism to the community or region and how sensitive the planning authority is to tourism activities.

Tourism may also be viewed as a business in which a community or region chooses to engage. Individual tourism businesses conduct a variety of planning activities including feasibility, marketing, product development, promotion, forecasting, and strategic planning. If tourism is a significant component of an area's economy or development plans, regional or community-wide marketing plans are needed to coordinate the development and marketing activities of different tourism interests in the community.

A comprehensive approach integrates a strategic marketing plan with more traditional public planning activities. This ensures a balance between serving the needs and wants of the tourists versus the needs and wants of local residents. A formal tourism plan provides a vehicle for the various interests within a community to coordinate their activities and work toward common goals. It also is a means of coordinating tourism with other community activities.

STEPS IN THE PLANNING PROCESS

Like any planning, tourism planning is goal-oriented, striving to achieve certain objectives by matching available resources and programs with the needs and wants of people. Comprehensive planning requires a systematic approach, usually involving a series of steps. The process is best viewed as an iterative and on-going one, with each step subject to modification and refinement at any stage of the planning process.

There are six steps in the planning process:

1. Define goals and objectives.

2. Identify the tourism system.

a) Resources

b) Organizations

c) Markets

3. Generate alternatives.

4. Evaluate alternatives.

5. Select and implement.

6. Monitor and evaluate.

STEP ONE

 Defining Goals and objectives. Obtaining clear statements of goals and objectives is difficult, but important. Ideally, tourism development goals should flow from more general community goals and objectives. It is important to understand how a tourism plan serves these broader purposes. Is the community seeking a broader tax base, increased employment opportunities? expanded recreation facilities, better educational programs, a higher quality of life? How can tourism contribute to these objectives?
If tourism is identified as a means of serving broader community goals, it makes sense to develop plans with more specific tourism development objectives. These are generally defined through a continuing process in which various groups and organizations in a community work together toward common goals. A local planning authority, chamber of commerce, visitor’s bureau, or similar group should assume a leadership role to develop an initial plan and obtain broad involvement of tourism interests in the community. Public support for the planning process and plan is also important.

Having a good understanding of tourism and the tourism system in our community is the first step toward defining goals and objectives for tourism development. The types of goals that are appropriate and the precision with which you are able to define them will depend upon how long your community has been involved in tourism and tourism planning.
In the early stages of tourism development, goals may involve establishing organizational structures and collecting information to better identify the tourism system in the community. Later, more precise objectives can be formulated and more specific development and marketing strategies evaluated.

STEP TWO:

Identifying Your Tourism System When planning for any type of activity, it is important to first define its scope and characteristics. Be clear about exactly what our plan encompasses. A good initial question is, "What do we mean by tourism?" Tourism is defined in many ways. Generally, tourism involves people traveling outside of their community for pleasure. Definitions differ on the specifics of how far people must travel, whether or not they must stay overnight, for how long, and what exactly is included under traveling for "pleasure". Do we want our tourism plan to include day visitors, conventioneers, business travelers, people visiting friends and relatives, people passing through, or seasonal residents? Which community resources and organizations serve tourists or could serve tourists? Generally, tourists share community resources with local residents and businesses. Many organizations serve both tourists and locals. This complicates tourism planning and argues for a clear idea of what our tourism plan entails.

We can begin to clarify the tourism system by breaking it down into three subsystems:

(1) tourism resources,
(2) tourism organizations, and
(3) tourism markets.
An initial task in developing a tourism plan is to identify, inventory, and classify the objects within each of these subsystems.

TOURISM RESOURCES

Tourism resouses are any (1) natural, (2) cultural, (3) human, or (4) capital resources that either are used or can be used to attract or serve tourists. A tourism resource inventory identifies and classifies the resources available that provide opportunities for tourism development. Conduct an objective and realistic assessment of the quality and quantity of resources we have to work with. Table I provides a suggested classification to help obtain a broad and organized picture of our tourism resources.

TOURISM ORGANIZATIONS

Torism organization combine resources in various proportions to provide products and services for the tourist. Table 2 is a partial list and classification of organizations that manage or coordinate tourism-related activities. It is important to recognize the diverse array of public and private organizations involved with tourism. The most difficult part of tourism planning is to get these groups to work toward common goals. We should develop a list of these organizations within our own community and obtain their input and cooperation in our tourism planning efforts. Setting up appropriate communication systems and institutional arrangements is a key part of community tourism planning.

TABLE 1. TOURISM RESOURCES

Natural Resources

Climate-seasons
Water resources-lakes, streams, waterfalls
Flora-forests, flowers, shrubs, wild edibles
Fauna-fish & wildlife
Geological resources-topography, soils, sand dunes,
beaches, caves, rocks & minerals, fossils
Scenery-combinations of all of the above

Cultural Resources
Historic buildings, sites
Monuments, shrines
Cuisine
Ethnic cultures
Industry, government, religion, etc.
Anthropological resources
Local celebrities

Human Resources
Hospitality skills
Management skills
Seasonal labor force
Performing artists-music, drama, art, storytellers, etc.
Craftsman and artisans
Other labor skills from chefs to lawyers to researchers

Capital
Availability of capital, financing
Infrastructure-transportation roads, airports, railroads, harbors & marinas, trails & walkwaysinfrastructure: utilities water, power, waste treatment, communications .

TABLE 2. TOURISM MANAGEMENT ORGANIZATIONS AND SERVICES

Off-Site: Coordination, planning, technical assistance, research, regulation:
* National & state departments of commerce, transportation, & natural resources
* National, state, regional, & local tourism associations
* Educational organizations & consultants, Travel & Tourism Research Association; Travel Data Center; Travel Reference Center, University's tourism faculties, Travel, Tourism, & Recreation

Resource Center

Travel information & reservation services
On-Site: development, promotion and management, of tourism resources:
* government agencies, departments of commerce, transportation, & land management agencies
* State agencies, departments of commerce, transportation, & land/facility management agencies.
* Local government organizations, visitor information, chamber of commerce, convention
& visitor's bureaus, parks

* Businesses:

-Accommodations: Hotels, motels, Lodges, resorts, bed & breakfast cabins & cottages, Condominiums, second homes, Campgrounds.

-Food & Beverage: Restaurants, Grocery, Bars, nightclubs, Fast food, Catering services
-Transportation: Air, rail, bus; Local transportation: taxi, limo, Auto, bicycle, boat rental; Local tour services.

-Information: Travel agencies, Information and reservation services, Automobile clubs

-Recreation Facilities & Services: Winter sports: ski, skating, snowmobile areas; Golf courses, miniature golf; Swimming pools, water slides, beaches; tennis, handball, racquetball courts, bowling alleys; Athletic clubs, health spas; Marinas, boat rentals and charters; hunting & fishing guides; Horseback enterprises; Sporting goods sales & rentals

-Entertainment: Nightclubs, amusement parks, spectator sport facilities; Gambling facilities: casinos, horse racing, bingo; video arcades; art galleries and studios, craft shops, studios, demonstrations; performing arts: theater, dance, music, film; historic & prehistoric sites; museums: art, history, science, technology; arboreta, zoos, nature centers,

-Special festivals and events

-Support services: Auto repair, gasoline service stations; boat & recreation vehicle dealers and service; retail shops: sporting goods, specialties, souvenirs, clothing; health services: hospitals, clinics, pharmacies; laundry and dry cleaning; beauty & barber shops; babysitting services; pet care; communications: newspaper, telephone; banking and financial services.

TOURISM MARKETS:

Tourists makeup the third, and perhaps most important subsystem. Successful tourism programs require a strong market orientation. The needs and wants of the tourists we choose to attract and serve must be the focus of much of our marketing and development activity. Therefore, it is important to clearly understand which tourism market segments we wish to attract and serve. Tourists fall into a very diverse set of categories with quite distinct needs and wants. We should identify the different types of tourists, or market segments that we presently serve or would like to serve. This may involve one or more tourism market surveys.

A visitor survey identifies the size and nature of the
existing market and asks the following questions:
* what are the primary market segments we presently attract?
* Where do they come from?
* What local businesses and facilities do they use?
* What attracted them to the community?
* How did they find out about our community?
* How satisfied are they with our offerings?

A market survey (usually a telephone survey) also can be conducted among households in regions from which we wish to attract tourists. This type of study helps identify potential markets, and means of attracting tourists to our area. Tourism market segments in a general tourism plan, some clear target tourism market segments should be identified (See Table 3). we might begin by defining the market area from which we will draw most of our visitors. The size of our market area depends upon the uniqueness and quality of our product", transportation systems, tastes and preferences of surrounding populations, and our competition. Identifying the market area will help target information and promotion and define transportation routes and modes, competition, and characteristics of your market. Next, divide our travel market into the following trip length categories:

* day trips from a 50 mile radius,
* day trips from 50 to 200 miles away,
* pass-through travelers,
* overnight trips of 1 or 2 nights (most likely
weekends), and
* extended overnight vacation trips.

After we have an idea of our market area and kinds of trips we will be serving, begin defining more specific market segments like vehicle campers, downhill skiers, sightseers, family vacationers, single weekenders, and the like. These segments can be more clearly tied to particular resources, businesses, and facilities in our community.

What kinds of products and services are likely to attract each of these groups? Tourist needs as well as their impact on the local community are quite different for day tourists versus overnight tourists. Areas catering primarily to weekend traffic will experience large fluctuations in use. In deciding the relative importance of these different segments, communities need to assess both their ability to provide required services (do you have enough rooms?), as well as the demand for different types of trips relative to the supply and our competition.

THE ENVIRONMENT:

A tourism plan is significantly affected by many factors in the broader environment. Indeed, one of the complexities of tourism planning is the number of variables that are outside of the control of an individual tourism business or community. These include such things as tourism offerings and prices at competing destinations, government and state policy and legislation, currency exchange rates, the state of the economy, and weather.

Local populations also must be considered in tourism planning. As they compete with tourists for resources, they can be significantly affected by tourism activity, and they are an important source of support in getting tourism plans implemented. A survey of local residents can be conducted to assess community attitudes toward tourism development, identify impacts of tourism on the community, and obtain local input into tourism plans. Public hearings, workshops, and advisory boards are other ways to obtain public involvement in tourism planning. Local support and cooperation is important to the success of tourism programs and should not be overlooked.

TABLE 3. TOURISM MARKET SEGMENTS
I. Geographic market areas

II. Trip categories

Day Trips:
* short-within 50 miles
* long up to 200 miles

Pass through traffic:
* day visitors
* overnight stays

Overnight Trips:
* weekend
* vacation

III. Activity or trip purpose

Outdoor Recreation:
* Water-based Activity:
-Boating: sail, power, cruise, row, canoe, water ski
-Swimming: pool, beach, sunbathing, scuba
-Fishing: charter, sport, from pier, boat, shore, ice

* Land-based Activity:
-Camping: backpacking, primitive, developed
-Hiking: climbing, beachcombing, spelunking
-Hunting
-Skiing: downhill, cross country
-Snowmobile
-Bicycling
-Horseback riding
-Picnicking

* Air-based Activity:
-Airplane rides, hang gliding, ballooning, parachuting

* General:
-Nature study
-Photography or landscape painting
-Viewing natural scenery

Sightseeing & Entertainment:
* Visiting particular sites or areas:
-historic or pre-historic
-cultural
-amusements
-scenic

* Attending particular events, shows, or demonstrations:
-ethnic festivals
-sporting events
-performances
-agricultural fair or festival
-boat show
-shopping

Other Primary Purpose for Trip:
* Visiting Friends & Relatives
* Convention & Business/Pleasure


STEP THREE:

 Generating Alternatives.

Generating alternative development and marketing options to meet our goals requires some creative thinking and brainstorming. The errors made at this stage are usually thinking too narrowly or screening out alternatives prematurely. It is wise to solicit a wide range of options from a diverse group of people. If tourism expertise is lacking in our community, seek help and advice outside the community.

Tourism planning involves a wide range of interrelated development and marketing decisions. The following development questions will get you started:

* How much importance should be assigned to tourism within a community or region?

* Which general community goals is tourism developments designed to serve?

* Which organization(s) will provide the leadership and coordination necessary for community tourism planning?
What are the relative roles of public and private sectors?

Tourism marketing decision questions include-

* Segments: Which market segments should be pursued; geographic markets, trip types, activity or demographic subgroups?

* Product: What kinds of tourism products and services should be provided? Who should provide what?

* Place: Where should tourism facilities be located?

* Promotion: who should use what kinds of promotion, in which media, how much, when? What community tourism theme or image should be established?
* Price: What prices should be charged for which products and services. Who should capture the revenue?


STEP FOUR:

 Evaluating Alternatives.

Tourism development and marketing options are evaluated by assessing the degree to which each option will be able to meet the stated goals and objectives. There are usually two parts to a systematic evaluation of tourism development and marketing alternatives: (1) Feasibility analysis, and (2) Impact assessment. These two tasks are interrelated, but think of them as trying to answer two basic questions: (1) Can it be done?, and (2) What are the consequences? A decision to take a specific action must be based both on feasibility and desirability.

FEASIBILITY ANALYSIS: First, screen alternatives and eliminate those that are not feasible due to economic, environmental, political, legal, or other factors. Evaluate the remaining set of alternatives in more detail, paying particular attention to the market potential and financial plan.

Make a realistic assessment of our community's ability to attract and serve a market segment or segments. This requires a clear understanding of the tourism market in our area and how this market is changing. Also carefully identify our competition and evaluate your advantages and disadvantages compared to the competition.

Plan toward the future because it takes time to implement decisions and for our actions to take effect. Therefore, look at the likely market and competition for several years to come. Review forecasts for the travel market in our area, if available. Careful tracking of tourism trends in our own community can help identify changes in the market that we will have to adapt to.

IMPACT ASSESSMENT:

When evaluating alternative development and marketing strategies it is important to understand the impacts, both positive and negative, of proposed actions. Table 4 presents a classification of economic, environmental, and social impacts associated with tourism development. The types of impacts and their importance vary across different communities and proposed actions. Generally, the size, extent, and nature of tourism impacts depend upon:

* Volume of tourist activity relative to local activity
* length and nature of tourist contacts with the community
* degree of concentration/dispersal of tourist activity in the area
* similarities or differences between local populations and tourists
* stability/sensitivity of local economy, environment, and social structure
* how well tourism is planned, controlled, and managed.

Look at both the benefits and costs of any proposed actions while tourism development can increase income, revenues, and employment, it also involves costs. Evaluate benefits and costs of tourism development from the perspectives of local government, businesses, and residents.

TABLE 4. IMPACTS OF TOURISM
Economic Impacts:
* Sales, revenue, and income
* Employment
* Fiscal impact-taxes, infrastructure costs
* Prices
* Economic base & structure

Environmental Impacts:
* Lands
* Waters
* Air
* Infrastructure
* Flora & fauna

Social Impacts:
* Population structure & distribution
* Values & attitudes
* Education
* Occupations
* Safety & security
* Congestion & crowding
* Community spirit & cohesion
* Quality of life

Impacts on Local Government Local government provides most of the infrastructure and many of the services essential to tourism development,including highways, public parks, law enforcement, water and sewer, garbage collection and disposal. Evaluate tourism decisions with a clear understanding of the capacity of the local infrastructure and services relative to anticipated needs, and take into account both the needs of local populations and tourists.

A fiscal impact analysis evaluates the impact of tourism on the community's tax base and local government costs. It entails predicting the additional infrastructure and service requirements of tourism development, estimating their costs, deciding who will pay for/provide them, and how. Will tourism generate increased local government revenue through fees and charges, local sales or use taxes, increased property values or property tax rates, or larger local shares of federal and state tax revenues?

Impacts on Business and Industry

Businesses that are directly serving tourists benefit from sales to tourists. Through secondary impacts, tourism activity also benefits a wide range of businesses in a community. For example, a local textile industry may sell to a linen supply firm that serves hotels and motels catering primarily to tourists. A local forest products industry sells to a lumberyard where local woodcarvers or furniture makers buy their supplies. They in turn sell to tourists through various retail outlets. All of these businesses benefit from tourism.

If most products and services for tourists are bought outside of the local area, much of the tourist spending "leaks" out of the local economy. The more a community is "self-sufficient" in serving tourists, the larger the local impact.

Impacts on Residents

Local residents may experience a broad range of both positive and negative impacts from tourism development. Tourism development may provide increased employment and income for the community. Although tourism jobs are primarily in the service sectors and are often seasonal, part time, and low-paying, these characteristics, are neither universal nor always undesirable. Residents may value opportunities for part time and seasonal work. In particular, employment opportunities and work experiences for students or retirees may be desired.

Residents may also benefit from local services that otherwise would not be available. Tourism development may mean a wider variety of retailers and restaurants, or a better community library. It may also mean more traffic, higher prices, and increases in property values and local taxes. The general quality of the environment and life in the community may go up or down due to tourism development. This depends on the nature of tourism development, the preferences and desires of local residents, and how well tourism is planned and managed.

STEPS FIVE AND SIX:

Implementation, and Monitoring and Evaluation. We will not attempt a complete discussion of decision making, plan implementation, and monitoring, but these are critical steps in the success of a tourism plan. A set of specific actions should be prescribed with clearly defined responsibilities and timetables. Monitor progress in implementing the plan and evaluate the success of the plan in meeting its goals and objectives on a regular basis. Plans generally need to be adjusted over time due to changing goals, changing market conditions, and unanticipated impacts. It is a good idea to build monitoring and evaluation systems into our planning efforCONCLUDING REMARKS
Successful tourism planning and development means serving both tourists and local residents. The bulletins in this assignment stress the importance of a market orientation for attracting and serving tourists. This market orientation must be balanced with a clear view of how tourism serves the broader community interest and an understanding of the positive and negative impacts of tourism evelopment.

Remember, tourism should serve the community first and the tourist second. Tourism development must be compatible with other activities in the area and be supported by the local population. Therefore, the tourism plan should be closely coordinated with other local and regional l planning efforts, if not an integral part of them.



TOURISM MARKETING

The marketing mix-the 4 Ps-target audience-segmentation-objectives-evaluation. These and other terms are all used in the process of marketing." In tourism and tourism related industries, success means understanding this process.

This bulletin is designed for those in the tourism industry who may not be completely familiar with marketing or who may simply wish to refresh their basic marketing skills. Covered will be important concepts used
in marketing, the relationship of marketing to tourism, and a process for developing a marketing plan for tourism/recreation businesses and/or communities. It will be impossible to cover in detail all the aspects of
marketing within the scope of this bulletin. There are, however, other bulletins in this series that will provide more in-depth information on the different components of a marketing plan.

WHAT IS MARKETING
People hold a variety of misconceptions about marketing. Most common is its confusion with selling and advertising. Selling and advertising are actually types of promotion which is only a component of marketing.
Marketing involves much more, including product/service development, place (location and distribution), and pricing. It requires information about people, especially those interested in what you have to offer (your
"market"), such as what they like, where they buy and how much they spend. Its role is to match the right product or service with the right market or audience. Marketing, as you will see, is an art and a science. According to the American Marketing Association, marketing is "the
process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." Simply stated it is creating
and promoting a product (ideas, goods or services) that satisfies a customer's need or desire and is available at a desirable price and place.

Modern marketing is a way of doing business, heavily based on the "marketing concept" which holds that businesses and organizations should:
(1) design their products/services to meet customer needs
and wants;
(2) focus on those people most likely to buy their product rather than the entire mass market; and
(3) develop marketing efforts that fit into their overall business objectives.

By adopting this concept you not only provide your customers with better products, you will avoid wasting valuable time and money developing and promoting a product or service nobody wants.

RECREATION AND TOURISM MARKETING
Earlier it was mentioned that a product can be "ideas, goods, or services." Since tourism is primarily a service based industry, the principal products provided by recreation/tourism (R/T) businesses are recreational
experiences and hospitality. These are intangible products and more difficult to market than tangible products such as automobiles. The intangible nature of services makes quality control difficult but crucial. It
also makes it more difficult for potential customers to evaluate and compare service offerings. In addition, instead of moving the product to the customer, the customer must travel to the product (area/community).
Travel is a significant portion of the time and money spent in association with recreational and tourism experiences and is a major factor in people's decisions on whether or not to visit your business or community.

As an industry, tourism has many components comprising the overall "travel experience." Along with transportation, it includes such things as
accommodations, food and beverage services, shops, entertainment, aesthetics and special events. It is rare for one business to provide the variety of activities or facilities tourists need or desire. This adds to the
difficulty of maintaining and controlling the quality of the experience. To overcome this hurdle, tourism related businesses, agencies, and organizations need to work together to package and promote tourism opportunities in their areas and align their efforts to assure consistency
in product quality.

THE MARKETING PLAN
One of the most important steps a business or community can take to improve the effectiveness and efficiency of their marketing efforts is to develop a written marketing plan. This plan will guide their marketing decisions and assist them in allocating marketing resources such as
money and personnel time. The plan should include:
(1) the overall business objectives--what you want to
accomplish;
(2) an assessment of the market environment--what factors may affect your marketing efforts;

(3) a business/community profile--what resources are available,

(4) market identification (segmentation)--the specific groups or clientele most interested in your product;

(5) the marketing objectives for each segment;

(6) the marketing strategies (or mixes) for different markets you target--the best combination of the 4 Ps (product, price, place, promotion) for each segment;

(7) an implementation plan--how to "make it work;"

(8) the marketing budget-how much you have to spend; and

(9) a method for evaluation and change.

Figure 1 shows a framework which can be used to develop a marketing plan. Each component will be briefly discussed in the remainder of the bulletin. For more information regarding different components of the plan be sure to consult other bulletins in this series.


OVERALL BUSINESS OBJECTIVES
Businesses, agencies, and communities should develop overall objectives and regularly monitor their progress. The objectives should provide guidance for all decisions including finances, personnel and marketing. They should be quantitative and measurable statements of what the
business or community wants to accomplish over a specified period of time. Business objectives are often stated in terms of sales, profits, market shares and/or occupancy rates. Communities frequently establish
objectives relating to such things as increasing the number of tourists, developing or changing their image, facility and activity development, cooperation among tourism related businesses and increasing length of stay and local expenditures.

It is important that the objectives be reasonable given the market conditions and the firm's or organization's resources. Establish a few reasonable objectives instead of a long, unrealistic "wish list." This is especially true for new businesses or communities which do not have
much experience in tourism development and/or marketing.

MARKET ENVIRONMENT ANALYSIS
The next step in developing a marketing plan is to assess the impact of environmental factors (such as economic, social and political) on present and future markets. Changes in these factors can create marketing
opportunities as well as problems.

Demographic and Lifestyle Trends Changing demographics and lifestyles are having a major impact on R/T participation. An assessment of these
trends is important to understand how they will likely affect your business or community.

Some of the important trends that bear watching:

(1) population growth and movement;
(2) rural community growth compared to metropolitan areas;
(3) number of adult women employed outside the home;
(4) the number of households is growing, especially non family and single parent households, but family size is decreasing;
(5) the impact of two wage earner households on real family income;

(6) the number of retired persons with the financial ability to travel;

(7) better health to an older age; and

(8) continued aging of the population (we are becoming a middle aged society).

Economic Conditions
Overall economic conditions can have significant impacts on recreation and tourism markets. A marketing strategy that is effective during periods of low unemployment rates may have to be significantly adjusted if
unemployment increases. Businesses and communities should monitor and assess the likely impact of factors such as unemployment rates, real family income, rate of inflation, credit availability, terms and interest rates.
Consideration should also be given to the prices of complementary products, such as lodging, gasoline and recreation equipment.

Laws and Government Actions
As a complex industry, tourism is significantly affected both positively and negatively by laws and by actions of governmental agencies. For instance, rulings on such things as liability issues or decisions regarding building and health codes may change or possibly prevent the construction of a proposed facility. If a public facility changes the prices of its services, this
could affect the service offerings of associated private businesses. These actions may have both positive and negative effects on the marketing efforts of the business and community. To avoid wasting valuable resources it is important that R/T businesses, agencies, and communities
continually monitor and evaluate governmental actions.

Technology
Technological developments are increasing rapidly. New recreation products, such as all-terrain vehicles and wind surfers, provide new ways for people to satisfy their recreational preferences. New production
technologies and materials offer recreation and tourism businesses ways to reduce costs and improve the quality of their products/services. Advances in telecommunications have and will continue to create new promotional opportunities. Technological innovations, in relation to jobs and the home, have resulted in increased leisure time for many people.

Competition
Businesses and communities must identify and analyze existing and potential competitors. The objective of the analysis is to determine the strengths and weaknesses of the competition's marketing strategies. The analysis should include the competition's:

(1) product/service features and quality;

(2) location relative to different geographic markets;

(3) promotional themes and messages;

(4) prices; and

(5) type of customer they are attracting.

BUSINESS AND COMMUNITY PROFILES
Too many communities attempt to market themselves as tourist destinations without accurate information about their resources (facilities, services, staff), image (projected vs. actual), and how well their customers are satisfied. Without this information, it is difficult to make other decisions in the planning process. Included should be such things as recreational and entertainment facilities, cultural and historic sites,
overnight accommodations, restaurants, shopping opportunities, special events and activities, staff size, and transportation. Each item of the "inventory" should also be assessed in terms of quality and availability.

MARKET SEGMENTATION (IDENTIFICATION)
Recreation and tourism businesses and communities often make the mistake of attempting to be all things to all people. It is difficult, and risky, to develop marketing strategies for the mass market. Strategies designed for the "average" customer often result in unappealing products, prices, and promotional messages. For example, it would be difficult to develop a campground that would be equally attractive to recreational vehicle campers and backpackers or promote a property to serve both
snowmobilers and nature oriented cross country skiers.

Marketing is strongly based on market segmentation and target marketing. Market segmentation is the process of:

(1) taking existing and/or potential customers/visitors (market) and categorizing them into groups with similar preferences referred to as "market segments;"

(2) selecting the most promising segments as "target markets;" and

(3) designing "marketing mixes," or strategies (combination of the 4 Ps), which satisfy the special needs, desires and behavior of the target markets.

There is no unique or best way to segment markets, but ways in which customers can be grouped are:

(1) location of residence---instate, out-of-state, local;

(2) demographics---age, income, family status, education;

(3) equipment ownership/use---RV's, sailboats, canoes, tents, snowmobiles;

(4) important product attributes---price, quality, quantity; and

(5) lifestyle attributes---activities, interests, opinions.

To be useful, the segment identification process should result in segments that suggest marketing efforts that will be effective in attracting them and at least one segment large enough to justify specialized marketing
efforts.

After segments have been identified, the business or community must select the "target markets," those segments which offer them the greatest opportunity. When determining target markets, consideration should be given
to:

(1) existing and future sales potential of each segment;

(2) the amount and strength of competition for each segment;

(3) the ability to offer a marketing mix which will be successful in attracting each segment;

(4) the cost of servicing each segment; and

(5) each segment's contribution to accomplishing overall business/community objectives.

It is often wiser to target smaller segments that are presently not being served, or served inadequately, than to go after larger segments for which there is a great deal of competition.

MARKETING OBJECTIVES FOR EACH SEGMENT
Marketing objectives which contribute to the accomplishment of the overall business objectives should be established for each target market. Objectives serve a number of functions including:

(1) guidance for developing marketing mixes for different target markets;

(2) information for allocating the marketing budget between target markets;

(3) a basis for objectively evaluating the effectiveness of the marketing mixes (setting standards); and

(4) a framework for integrating the different marketing mixes into the overall marketing plan.

The target market objectives should:

(1) be expressed in quantitative terms;

(2) be measurable;

(3) specify the target market; and

(4) indicate the time period in which the objective is to be accomplished.

For example, increase the number of overnight stays by people from the Chicago market over the next two years by five percent.

Remember, rank objectives by priority and carefully evaluate them to ensure that they are reasonable given the strength of the competition and resources available for marketing.

MARKETING STRATEGY (MIX)
The marketing strategy, or mix, should be viewed as a package of offerings designed to attract and serve the customer or visitor. Recreation and tourism businesses and communities should develop both external and internal marketing mixes for different target markets.

External Mix
The external marketing mix includes product/service, price, place/location, and promotion.

Product
Earlier we said the principal products that recreation and tourism businesses provide are recreational experiences and hospitality. The factors that create a quality recreational experience often differ among
people. A quality experience for one skier might include an uncrowded, steep slope. To another it might be a good restaurant and a chance to socialize. Decisions on what facilities, programs and services to provide should be based on the needs and desires of the target market(s). They should not be based on the preferences of the owner/manager or necessarily on what the competition is providing.

Recognize that a recreational/tourism experience includes five elements: trip planning and anticipation; travel to the site/area; the experience at the site; travel back home; and recollection. Businesses should look for ways
to enhance the quality of the overall experience during all phases of the trip. This could be accomplished by providing trip planning packages which include maps, attractions en route and on site, and information
regarding lodging, food and quality souvenirs and mementos.

Recreation and tourism businesses should also view their service/product in generic terms. Thinking of products/services in this manner helps focus more attention on the experiences desired by customers and also the facilities, programs and services that will produce those experiences. For example, campgrounds are the business of providing recreational "lodging" not just campsites to park an RV or set up a tent. Marinas should provide recreational "boating" experiences, not just slippage.

Location and Accessibility---Place
Too many tourism businesses and communities fail to recognize their role in improving travel to and from their areas. They focus instead on servicing the customer once they arrive at the site/community. A bad experience getting to or leaving an R/T site can adversely affect a person's travel experience. Ways to help prevent this include:

(1)providing directions and maps;

(2) providing estimates of travel time and distances from different market areas;

(3) recommending direct and scenic travel routes;
(4) identifying attractions and support facilities along
different travel routes; and

(5) informing potential customers of alternative travel
methods to the area such as airlines and railroads.

Potential businesses should also carefully assess
alternative locations for:

(1) distance and accessibility to target markets;

(2) location of competitors with respect to target
markets;

(3) modes of travel serving the area; and

(4) other attractions and activities that might induce
travel to the area.

Pricing
Price is one of the most important and visible elements
of the marketing mix. When setting prices it is important
to take into consideration all of the following:

(1) business and target market objectives;

(2) the full cost of producing, delivering and promoting
the product;

(3) the willingness of the target market to pay for the
product or service you provide;

(4) prices charged by competitors offering a similar
product/service to the same target market(s);

(5) the availability and prices of substitute
products/services (for example, campgrounds, motels, and
bed and breakfast are all substitutes for lodging);

(6) the economic climate (local and national); and

(7) the possibility of stimulating high profit
products/services (such as boats) by offering related
services (such as maintenance) at or below cost.

When establishing prices, R/T businesses should give
attention to pricing strategies which may encourage off
season and non-peak period sales, longer stays, group
business, and the sale of package plans (combination of
room, meals, and recreational facilities). For additional
information on pricing, see Extension bulletin E-1999.

Promotion
Promotion provides target audiences with accurate and
timely information to help them decide whether to visit
your community or business. The information should be of
importance and practical use to the potential or existing
visitor and also accurate. Misrepresentation often leads
to dissatisfied customers and poor recommendations. Don't
make claims you cannot live up to.

Developing a promotional campaign is not a science with
hard and fast rules. Making decisions regarding which
type or combination of promotion types to use (personal
selling, advertising, sales promotions, or publicity) is
not always easy. If, however, you follow a logical
process and do the necessary research, chances for
success will be improved. It will be necessary to make
decisions regarding:

(1) Target audience---the group you are aiming at;

(2) Image---that which your community or business wants
to create or reinforce;

(3) Objectives---those of the promotional campaign;

(4) Budget---the amount of money available for your
promotion;

(5) Timing---when and how often should your promotions
appear;

(6) Media---which methods (television, radio, newspaper,
magazine) will most effectively and efficiently
communicate your message to the target audience; and

(7) Evaluation---how can the effectiveness of the
promotional campaign be determined.

More detailed information on tourism promotion is
contained in Extension bulletins E-1939, E-1957, and
E-2005.

Internal Mix
As stated, marketing services such as recreation and
tourism differ from marketing tangible products.
Recreation and tourism businesses must direct as much
attention at marketing to customers on site as they do to
attracting them. In this respect, internal marketing is
important because dissatisfied customers can effectively
cancel out an otherwise effective marketing strategy.

The success of internal marketing is dependent on
creating an atmosphere in which employees desire to give
good service and sell the business/community to visitors.
To create such an atmosphere requires the following four
important elements:

(1) Hospitality and Guest Relations---An organization
wide emphasis on hospitality and guest relations,
including a customer oriented attitude on the part of the
owners and managers as well as the employees. If the
owner/manager is not customer sensitive, it is unlikely
the lower paid employees will be.

(2) Quality Control---A program which focuses on
improving both the technical quality (the standards
associated with what the customer receives) and the
functional quality (the standards associated with how the
customer receives the service). All employees who come
into contact with customers should receive hospitality
training.

(3) Personal Selling---Training the staff in the selling
aspects of the property (business) or community. This
also includes rewarding them for their efforts. By being
informed about the marketing objectives, and their role
in accomplishing those objectives, they can help increase
sales.

(4) Employee Morale---Programs and incentives aimed at
maintaining employee morale. The incentives can be both
monetary and non-monetary.

A customer oriented atmosphere usually results in
customers that are more satisfied, do less complaining
and are more pleasant to serve. This helps build employee
morale, their desire to provide good service and their
efficiency.

MARKETING BUDGET
Successful marketing requires that sufficient money and
personnel time be made available to implement activities
comprising the marketing strategy. A marketing budget is
a financial plan which shows the total amount to be spent
on marketing during different times of the year and how
it is to be allocated among alternative activities.
Separate marketing budgets should be developed for each
marketing mix strategy. The separate budgets should then
be aggregated to develop an overall marketing budget. If
the total amount is too great it will be necessary to
modify the overall objectives and the target market
objectives, narrow down or drop target markets, or adjust
marketing mixes. The final budget should be realistic
given your objectives. When deciding on a marketing
budget, consideration should be given to the job that
needs to be done as defined by the objectives. Basing
marketing budgets on some percent of sales or what the
competition spends usually leads to over spending or
under spending. Decisions should also be based on the
costs, projected revenues, and desired profitability of
different activities, not just costs alone. Successful
marketing activities will generate additional revenues
which can be projected based on the marketing objectives
(such as increase off season stay by 5%).

Although budgets should be viewed as flexible plans,
every effort should be made to adhere to them. Revisions
in the budget should only be made after careful
consideration of the likely impact of the change on the
marketing mix and accomplishment of your objectives.

IMPLEMENTATION
Many well designed marketing plans fail because they are
poorly executed. Businesses, agencies, and communities
can increase the likelihood of successful implementation
if they:

(1) identify specific tasks which must be accomplished;

(2) assign people or departments specific responsibility
for different tasks;

(3) provide employees with information on the marketing
plan (rationale, objectives, strategies);

(4) develop time lines and deadlines;

(5) adhere as much as possible to the budget; and

(6) regularly monitor and evaluate progress.

EVALUATION
It is important that marketing efforts be continually
evaluated. This will improve the effectiveness of
marketing strategies by quickly identifying differences
between actual results and expected performance and
determining likely reasons for the success or failure to
realize objectives.

A framework for evaluation would include:

(1) determining which elements of the different marketing
mixes are most important to evaluate.----It is rarely
possible or cost effective to evaluate all elements;

(2) establishing performance standards to compare against
actual results.---Marketing objectives, if properly
formulated, should serve as performance standards;

(3) development of formal and informal methods for
collecting data on actual results.---There are many ways
different elements of the marketing mix can be evaluated.
For example, promotions can be evaluated with money off
coupons. Special information request forms, telephone
numbers to call or post office box numbers to write to
can identify the area the request is coming from. Also,
formal (written) and informal (face-to-face) surveys can
be used to determine the promotional material the
customer used in planning the trip;

(4) comparison of results with objectives;

(5) determination of needed change(s).

CONCLUSION
Customer satisfaction in tourism is greatly influenced by
the way in which the service (hospitality) is delivered
and the physical appearance and personality of the
business. It is critical that these elements be
communicated in the best possible manner to convince
people to come and experience what your business or
community has to offer. Equally important is the
ability to generate repeat business because of your
efforts. Thus, marketing becomes the method to reach
potential visitors. It is a vital part of tourism
management and can be done effectively and well, with
sophistication and tact, or it can be done poorly in a
loud, crass and intrusive manner. Hopefully, this
bulletin has given you the basics for the former rather
than the latter. Remember that to do an effective job at
marketing:

(1) adopt a strong customer orientation which includes
regular research and assessment of their needs, wants and
attitudes;

(2) allocate sufficient resources and time to marketing;

(3) assign formal responsibility for marketing to one
person or department; and

(4) develop and regularly update a marketing plan.