Executive Summary
Tourism is one of the leading economic activities that earn income and revenues to several countries worldwide. In Australia, Macedon Ranges, which lies in the outskirts of Melbourne, is an amazing tourism attraction that serves millions of tourists annually within and outside the region. Notably, the destination serves several domestic individuals and a few international tourists. By serving a large number of domestic tourists, the destination minimises instances of seasonality that affects several tourism destinations in the world. The location of Macedon Ranges that is close to Melbourne city facilitates convenience as tourists can easily access it. Apparently, it takes a few hours to reach the destination using modes of transport such as trains. In the destination, the attractions comprise humanmade and natural. While forests, mountains, such as Everest, and rocks such as the hanging rock are natural, humanmade attractions include food and beverages, wines, high-end accommodation facilities, artefacts, and theme parks.
In tourism, customers fall in the category of those individuals, who have the willingness and ability to purchase tourism products. Essentially, tourism products comprise services such as sightseeing, mountaineering, food and beverages, and a number of recreational services such as spas. To reach out to the right set of consumers and deliver the best in the field of tourism, managers and planners in regions like Macedon Ranges need to devise smart marketing strategies. Mass marketing and market segmentation are among the strategies that managers and planners in tourism destinations can employ to reach out to the target customers.
Conversely, mass type of marketing strategy has various disadvantages, which include delivery of substandard products, inability to match the ever-changing consumer trends, and consumer dissatisfaction. These disadvantages limit the application of the strategy and increase instances where managers of tourism destinations employ segmentation. Segmentation has focus and helps enhance the quality of products, which in turn lead to consumer satisfaction. Notably, the chosen consumer segment is the adult couples since they comprise the highest number of tourist visiting the destination and consume a wide range of tourism products.
Introduction
Tourism is one of the major economic activities that have the ability to boost the economic standing of a certain destination. Smart managers and planners usually develop tourism products that are not only productive but are also sustainable. In Macedon Ranges, tourism products range from humanmade to natural God-given attractions. Some of the natural attractions include forests, rocks, and mountains. Conversely, humanmade attractions comprise food and beverages (F&B), wines, gardens, theme parks, accommodation facilities, and artefacts. These attractions draw millions of tourists to the region annually and in turn earn the country and the destination with income used in boosting its economy. While some tourists come with the intention of recreation, others are adventurous and outgoing, engaging in activities like cycling, rock climbing, and mountaineering. It is within this context that the study designs a marketing plan for tourism in Macedon ranges.
Background Analysis
Macedon Ranges is a spectacular tourism destination that lies in the outskirts of Melbourne in Australia. Its location facilitates convenient accessibility since an individual takes a few hours from the city to reach the destination. Due to its good tourism attractions, which are spectacular, the region draws millions of tourists from various parts of the country and the world. In addition, because of the several tourism activities in the destination, a large number of individuals in the region derive their employment either directly or indirectly. According to Voigt and Pforr (2013), the high population of about 40,000 people in the region implies that it has enough human resources, which can effectively meet the demands advanced by the high number of tourists visiting the destination. Remarkably, the destination does not suffer from peaks and lows or seasonal variations common in several tourism destinations in the world. The unique ability of the destination to maintain its demand all through the year occasions from the fact that the majority of the tourists are domestic and are drawn from areas such as Melbourne, Loddon, and Mornington.
Some of the major tourist attractions in the region include natural attractions such as the hanging rock, forests, and mountains. Besides the natural attractions, the region is also famous for its amazing accommodation facilities, wines, food and beverages, and recreational activities. The implication of the wide spectrum of attractions available in the region means that the destination meets the needs of every tourist. For instance, adventurous young tourists, who adore adventure, can engage in activities like sightseeing, nature walks, and other forms of expeditions, while old tourists, who prefer relaxation, can rest at the spa resorts or in various accommodation facilities. Voigt and Pforr (2013) explain that the region provides visitors with a feeling of culture, art, and cuisine that is authentic and free from all kinds of commercialisation. Therefore, Macedon Ranges is an amazing destination for tourists of all lifestyles and demographics.
Fundamentally, Macedon Ranges is a destination that has several benefits for the residents within and outside the region. Hotels, food and beverage joints, as well as outlets that provide wines are enterprises that benefit from the tourists, who throng the destination annually. Employment in these outlets, accommodation facilities, and F&B joints is indirect since the individuals benefit indirectly from tourism. However, those individuals, who work either as tour guides, travel agents or in other sectors directly related to tourism, enjoy direct employment from the activity. As a result, tourism in the ranges is an activity that planners and smart managers need to sustain and promote within not only the country but also globally (Voigt & Pforr 2013). The benefits of tourism are very practical and important in the quest to advance and boost the living standards of individuals in and outside the destination.
Marketing Objectives
- Define the consumer and identify the different types of consumers in the field of tourism
- Explain the differences between market segmentation and mass marketing
- Describe the benefits of market segmentation
- Explain the disadvantages of mass marketing
- Discuss the significance of marketing mix in reaching out to the target consumers
The Customer
In marketing, customers are individuals who demonstrate the willingness and ability to purchase a particular product. The willingness and ability to purchase a product are factors that are paramount in defining a customer. Consequently, in tourism, those individuals, who have the interest to visit a particular tourism attraction and are able to visit and consume the products in the destination fall in the category of consumers. Sharp, Anderson and Bennett (2013) explain that customers vary in their tastes, preferences, likes, and dislikes. As such, managers and planners in the marketing arena need to be watchful so that they can align their operations and products in accordance with the diversities presented by these consumers. Principally, customer’s interest and ability to consume a variety of tourism products such as sightseeing, cycling, nature walks, as well as food and beverages make up the parameters that managers and scholars of marketing use in their classification.
In tourism, customers vary in their preferences, in that, while others love leisure and recreation, others enjoy activities that are adventurous and thrilling. It is imperative to understand these diversities so that the destination tailors its products in a manner that meets the requirements of the particular tourists or consumers. For instance, in the case of Macedon Ranges, mountaineering, cycling, car racing, and bicycle rides are activities that suit the demands of adventurous tourists. On the other hand, spas, theme parks, and arts, which are less engaging, match the requirements of those tourists, who want to relax.
In essence, identification of the right set of consumers is very instrumental as it enables managers in any tourism destination to prepare and design their products in tandem with consumer requirements. According to Hoffman and Bateson (2009), in a service industry, consumer satisfaction is paramount. When customers become satisfied with the products offered by a certain tourism destination, they market it through the ‘word of mouth’ to their friend’s relatives and. As a result, the destination receives an increased amount of tourists, a factor that boosts the economy of the region.
Market Segmentation and Mass Marketing
In marketing, segmentation is the process of classifying clients or customers using components such as tastes and preferences. Essentially, segmentation is a form of strategising where marketers align themselves in a manner that is more objective and consumer-oriented. Therefore, by segmenting, an enterprise specialises on products that a particular consumer segment prefers. Bhattacharjee (2006) explains that segmentation helps marketers and business enterprises to specialise and deliver high-end products to their target customers. Geographic and demographic segmentation are some of the common types of segmentations that marketers can employ in their quest to increase the quality of products and market share. Segmentation is a way of ensuring that consumers receive what they expect from an entity, and hence, the entity achieves satisfaction and eventually sustains its market share and niche in the competitive and dynamic marketing environment.
As opposed to the segmentation type of marketing, mass marketing focuses on all the consumers available in a region and attempts to meet the demands of every individual in the market. According to Sharp, Anderson, and Bennett (2013), Mass marketing is one of the oldest methods of marketing that a number of organisations employed to market their products. As opposed to segmentation, which focuses on a particular market segment and a given set of consumers, mass marketing is holistic and encompasses the needs of every consumer trying to provide ‘everything for everybody’. In mass marketing, the focus is on all the consumers and not on a particular set of customers, and thus, the emphasis is on the general requirements of the clients. Contrastingly, segmented marketing stresses the key and specific components of the product as advanced by the customer.
Benefits of Segmentation
Segmentation is one of the modern types of marketing and entails classification of consumers in terms of their preferences and tastes. It is important to assert that segmentation has several benefits, which range from enhanced product quality, consumer satisfaction, healthy competition, and specialisation. Evidently, when an enterprise segments itself in line with a particular set of customers, it focuses on the requirements of the chosen set of clients, and thus, the quality of the products that they deliver advances.
The advancing quality of products transpires because the entity focuses on the key elements of the product that the consumers expect from them, and as such, they eventually convert client needs and demands into finished products. Hoffman and Bateson (2009) assert that through experience and long periods of work focusing on a particular segment of consumers, employees easily discern the needs of the target clients and eventually meet their requirements. By meeting their requirements, the enterprise achieves consumer satisfaction, a factor that is vital for the success of any business establishment.
In tourism, market segmentation focuses on the various requirements of clients in line with the different tourism products. The main segments that tourism establishments focus on following parameters like adventure, leisure, recreation, religion, and individuals are visiting friends and relatives. In addition, youth, adult couples, families, and business people make up some of the main segments of consumers in the field of tourism. Significantly, these different segments of tourists consume a different set of products. Therefore, a destination can align itself in a manner that facilitates easy delivery of products that are high-end and up to the required standards. In the assertion of Bhattacharjee (2006), market segmentation helps organisations deliver products that satisfy customers and meet the required standards. Moreover, by segmenting a tourism destination, the region can easily watch consumer dynamics and trends, and thus, become consistent.
Disadvantages of Mass Marketing
Mass marketing focuses on a holistic approach that stresses on delivering products that match the requirements of every consumer in the market. The marketing strategy is among the oldest strategies used by enterprises in historical periods. Conversely, mass type of marketing has a number of drawbacks that have since led to its abandonment by several modern business enterprises. Some of the disadvantages associated with mass marketing include the absence of consumer satisfaction, delivery of substandard products, and inability of an establishment to maintain consistency with consumer trends and dynamics.
Sharp, Anderson and Bennett (2013), elucidate that mass type of marketing can make a business entity lose focus and avail substandard products into the market. In essence, the absence of consumer satisfaction occurs because the business entity strives to meet the requirements of several consumers in the market. Due to the increased focus on general consumer demands, the entity can neglect a number of key preferences of consumers and in turn, deliver products that do not match their expectations.
As opposed to segmentation, mass marketing does not specialise in any set of customers but aims at the delivery of products to every individual in the market. The general focus emphasised by mass type of marketing is one of the factors that makes it vulnerable to the delivery of substandard and low-quality products. Furthermore, the general approach used in product delivery occasions absence of specialisation, and hence, the specific needs of clients fail to materialise. Hoffman and Bateson (2009) elucidate that failure to deliver products that match consumer requirements is a factor that drives consumers out of the firm and reduces the number of revenues. Moreover, mass type of marketing renders the business establishment incapable of following the trends and dynamics of consumers since it does not have a set of consumers to use in its study. As a result, the company using a mass type of marketing strategy can easily become redundant.
The Chosen Consumer Segment
Market segmentation is very instrumental in the success of every business. By segmenting, the business establishments ensure that consumers get the maximum satisfaction and utility for their money. The ability to maximise utility and satisfaction is what makes the firm successful and increases its revenues. Imperatively, the contemporary consumer is keen on quality and associates it with the money value attached to a product. As such, businesses need to segment so that they specialise and convert consumer demands into tangible products. In the case of Macedon Ranges, it is important to ensure that the consumer segments, which comprise youth, adult couples, families, and business visitors, enjoy products that are in line with their preferences. Bhattacharjee (2006) explains that consumer satisfaction is one of the critical components that determine the success of a business. Therefore, it is important to ensure that consumers receive products that they expect in terms of quality and value for their money.
The chosen consumer segment comprises the adult couples, who make up the highest number of tourist visiting the Macedon Ranges. Moreover, adult couples engage in a wide range of activities as opposed to the elderly and business tourists.
Therefore, by selecting adult couples as the target consumers, the destination can easily achieve the desired revenues and economic development. The adventurous nature of the couples makes it easy and convenient for the destination to market its products such as cycling, car racing, mountaineering, and expeditions on mountains and rocks. Imperatively, the implication of choosing the market segment composed of adult couples is increased consumption of tourism products and a high number of visits through referrals. Hoffman and Bateson (2009) outline that through the correct system of segmentation; a business establishment attains increased purchases, which occasion through the ‘word of mouth’ marketing from past and repeat consumers. Therefore, segmentation of the business to match the requirements of couples leads to increased numbers of tourists and an eventual rise in the revenues from the tourism activities in the destination.
Marketing Mix
To reach the target market effectively, which consists of adult couples, the destination has to employ the components of the marketing mix. Place, product, promotion, and price are some of the main components of the marketing mix. Since the destination is static and dictates the tourist to visit, the place should be accessible through various forms and modes of transport. Although the destination is currently accessible through a number of modes such as road and railway, it still requires further developments so that the place becomes more accessible and convenient for the target segment of tourists. Sharp, Anderson and Bennett (2013) argue that accessibility is a vital element that determines success or failure of a business. It is notable for explaining that places that are not easily accessible do not attract consumers because inaccessibility is a push factor, which pushes away potential tourists, who wish to visit.
Since the majority of tourism products are services, the destination has to ensure that all the features of the supporting evidence such as the shape, colour, and design attract the consumers. Moreover, the destination has to ensure that the services offered as tourism products match consumer requirements and achieve their satisfaction. By ensuring that the product has tangible elements that are appealing and eye-catching, the destination can successfully sell its products to the target segment of adult couples.
Remarkably, a number of consumers are usually reluctant to purchase service since it lacks the tangible elements present in a good. According to Bhattacharjee (2006), services require a comprehensive provision of information, as they do not have an assurance prior to their consumption. Therefore, the destination needs to provide services that match consumer requirements and meets their expectations.
Presently, Macedon Ranges receives several tourists from Melbourne and other regions adjacent to the destination. As a result, the destination does not experience seasonality common in various tourist attractions in the world. However, to increase its revenues and income, the destination requires promotion so that it can increase awareness in the minds of potential consumers. By engaging in the right promotion mix and strategies, the destination increases the number of potential consumers, who know the attractions in the region, and thus, are attracted to the destination. Hoffman and Bateson (2009) assert that a good promotion strategy and the mix is one that informs the potential clients about the product offerings in an organisation and persuades them to purchase the offerings. As such, the promotion mix and strategy employed by the destination should have the capacity of informing potential tourists about the products available in the region, while persuading them to consume the products.
Pricing is another important element in the quest to reach out to the target segment of adult couples. The destination needs to price its services in a manner that matches the requirements and buying abilities of the target segment of consumers. Although the destination currently has pocket-friendly charges, they should relook at the charges so that the consumers enjoy the services, while maximising utility for their money. According to Sharp, Anderson and Bennett (2013), products deemed as expensive receive low purchases from consumers especially if consumers believe that the products have a value, which is lower than their attached monetary value. As a result, the destination needs to ensure that the prices of its products are in line with consumer purchasing power and buying abilities. In addition, the price should match the perceived product quality.
Conclusion
Tourism is among the leading income earners in several countries of the world. Macedon Ranges, which is in Australia, is among the best tourism destination that attracts millions of tourists annually. As opposed to other destinations, the destination does not suffer from the peak and low seasons since the majority of its visitors are domestic tourists visiting from adjacent towns such as Melbourne. The main customers, who visit the destination, are adult couples, youth, families, and business people.
To market the products, which comprise humanmade and natural attractions to the selected segment of consumers, managers and planners need to segment the type of customers in accordance with their preferences and purchasing behaviours. Through segmentation, the destination meets consumer demands and delivers high-end products. Moreover, segmentation helps the destination to be consistent with the trends and dynamics that characterise the contemporary competitive marketing environment. It is important for the destination to employ and optimise the components of the marketing mix so that it achieves maximum returns from the present and upcoming tourism products.
Reference List
Bhattacharjee, C 2006, Services Marketing Concepts, Planning and Implementation, Excel Books, New Delhi. Web.
Hoffman, K & Bateson, J 2009, Services Marketing Concepts, Strategies, & Cases, Cengage Learning Services, New York. Web.
Sharp, B, Anderson, K & Bennett, D 2013, Marketing: Theory, Evidence, Practice. Oxford University Press, South Melbourne. Web.
Voigt, C & Pforr, C 2013, Wellness Tourism: A Destination Perspective, Routledge, New York. Web.