International marketing (Tourism0 Essay Example
MARKETING AUSTRALIA TOURISM IN AMERICA. 5
Marketing Australian tourism in the United States fundamentally requires sufficient understanding of this industry and/or its market structure. According to Porter’s model of competitive strategy, an insight into the opportunities and threats of an institution’s market and external environment is key (Porter 1996 ).The economic, political and cultural variables analysis is central for strategic marketing as they have a direct correlation with consumers’ behavior (Kotler 2010 ).In fact, such a sensitive industry as tourism in USA, the prior, economic, political and cultural study findings by the Tourism Australia and other tourism providers would have a significant impact in their marketing decision making (Kotler 2010).To begin with, the economic analysis of USA provides critical information essential in marketing such as; the USA Gross Domestic Product, USA income per capita,the employment situation,(employment and unemployment rates, average income or earnings), purchasing power parity of the Americans, the consumer price index, USA foreign exchange rates, US import export price indexes and specific interest rates relevant to marketing, (ABS 2011).Further more, it makes available other key tourism marketing determinants as; the US retirement systems and programs, US monetary trends, and the US balance of payment deficit (ABS 2011).All these economic factors directly influence the Americans’ consumption behavior.
Indeed, increment in tourism to Australia from America is determinant of Tourism Australia and other marketers’ interpretation of the US economic variables (Kotler 2010).For instance, the mid 2008 economic recession significantly destabilized the US economy (ABS 2011).The employment rate reached a high of 9.7% (ABS 2011).This presents one of the highest unemployment rates in the recent history of America (ABS 2011).Layoffs accounted for 1,269,000 Jobs between 2008 and 2009 (ABS 2011).Consequently, incomes of majority of the potential tourists’ to Australia, was substantially cut down (TRA 2010).This lead to an average increment of 0.5% in the consumer price index (ABS 2011) .Kotler (2010) acknowledge that such information is critical in shaping the marketing mix (price,placement,promotion and product) changes of the Australian tourism marketers. Moreover, other economic variables such as the US balance of payment which also dropped from an annual current account balance of -$378.4billion in 2009 to -$470.2billion in 2010, directly affects the Australian tourism marketing model (ABS 2011).US balance of payment deficit weakens the US dollar exchange rate against the Australian currency making it expensive for tourists to travel to Australia. Winning through lower prices marketing, would be hampered (Kotler 2010).
In addition to the economic variables, consumers spending preferences are also primarily shaped by the political climate (Kotler 2010).Kotler ( 2010) notes that consumers spending pattern is the heart of any marketing decision making. Based on the reports of the political climate in America, the Australia Tourism provider would be able to forecast the behavior of American tourists. For instance, terrorism has been a major concern of US tourists (TRA 2010). The 9/11 terrorism attack profoundly transformed the keenness of US consumers to their security especially at the airports, railways and other modes of transport (TRA 2010).Hence, the Australian tourism marketers would need this information during their promotion to assure prospective American tourists that its save to tour Australia. In fact, Kotler (2010) asserts that marketers ought to win through exceeding the expectations of their consumers. In addition, foreign policies coupled with bilateral investment relation are a function of politics (TRA 2010).The USA and Australian’s relation has always been cordial, which boosts the Australians tourism marketers’ entry strategy into the untapped USA high-growth markets (TRA 2010).For example, the AUSFTA agreement, has increasingly increased business; imports and exports from Australia to America and vice versa. Good political relation also enhances a better investment culture among nations.
Culture is inseparable with the tastes and preferences of a people which directly determines packaging of a product and its marketing (Kotler 2010).The culture in Asia who are also a major tourism market for Australia is completely unique from that of the Americans (TRA 2010).This calls for different marketing techniques and approaches when advertising and marketing Australian tourism attraction (the same product) to these distinct markets culturally. For example, it’s very rude to have an eye contact with your senior in Japan while it’s disrespectful not to have an eye contact with your senior in US when conversing. Such dictates of culture diversity are the foundation of Australian tourism marketers’ advertisements and promotion in the American tourism market. Longitudinal marketing research show that marketers have to not only to adapt to customers’ taste but to also customize their brand to win over consumers (Kotler 2010).Liberty is the central pillar of the general American culture (ABS 2011).The Australian tourism marketers have to brand their destinations around the general sense of freedom (TRA 2010). Moreover, the diversity of cultures in America is very impressive (TRA 2010).The marketing firms have to understand the general American culture and the specific local cultures’ that is unique in each of their market segment.
According to tourism forecasts, tourism in Australia and global tourism in general is projected to increase toward the year 2020 (TRA 2010).The international arrivals globally is projected to hit 1.6billion in 2020 which is approximately 2.5 times the total volume achieved in the late 1990s( TRA 2010).Australia Tourism Forecasting Committee (TFC) acknowledges that the tourism industry is fundamental in the Australian economy (TRA 2010).TFC accounts that Australian tourism is worth $33billion to the Australian GDP and it directly employs 4.5% of the Australian labor force.Statistically,United States is third in the countries projected contribution to growth from inbound tourism arrivals in Australia between 2009- 2020 (TRA 2010).US growth is projected to be at 7.0% comparative to China’s 16.6% and New Zealand’s 12.8% (TRA 2010).However there has been a notable downward revision of tourist arrival forecasts for the year 2010 and/or 2011,caused by the aftermath of the recent global recession (TRA 2010).Thus although projected to increase by an impressive 8.8% in 2010/2011,the United States arrival are now forecasted to marginally increase by only 1.6% between 2010 -2011.In comparison,China,Japan,South Africa and Indonesia had an upward revision of expected arrivals despite the global recession (TRA 2010).The forecasts increment were; China 18.8%,Japan 11.9%,South Africa 4.1% and Indonesia 21.0% in 2010 respectively (TRA 2010).
All in all, these statistical findings suggest the urgent need for intense marketing and promotion by the Australian Tourism marketers in the US rich and vast market putting in consideration the economic, political and cultural variables examined.
American Bureaus of Statistics (ABS) 2011, U.S. Census Bureau; Economic Indicators and Economic Census, viewed 17th Apr 2011, <http://www.census.gov.us/>
Dwyer, L, Edward, D, & Mistilis, N 2008, Megatrends Underpinning Tourism to 2020: Analysis of Key Drivers for Change, CRC for Sustainable Tourism Pty Ltd, Queensland, and Gold Coast.
Kotler, P & Armstrong, G 2010, Principles of Marketing, Pearson, New Jersey, NJ.
Porter, M 1996, ‘What is Strategy’, Journal; Harvard Business Review, Nov-Dec,1996,pp.61- 78.
Tourism Research Australia (TRA), 2010, Tourism Forecasting Committee: Forecast 2010 Issue 2, Australian Governement, Department of Resources, Energy and Tourism, Tourism Research Australia.
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