4.1 Marketing Overview

BACKGROUND

Positive perceptions of Victoria and its incredibly diverse range of attractions have grown substantially since 1993, through well targeted marketing strategies promoting the State. However, in a dynamic and rapidly growing industry, marketing strategies must also be flexible. Competition for the tourist dollar is intense.

The economic potential of tourism is impressive and this integrated marketing plan aims to maximise the benefits tourism can generate. Tourism Victoria works alongside a dedicated and professional industry sector to ensure Victoria maintains and grows its share of the lucrative tourism market. Indeed, the State is being aggressively marketed to ensure that in targeted world markets Melbourne is positioned as a first-class holiday destination and is Australia's accessible and diverse southern hub.

Key challenges in achieving this include:

• Responding strategically and creatively to the growing levels of competition;
  
• Responding to changing economic and social trends in Victoria's primary and secondary international markets;
  
• Increasing domestic and international tourism dispersal throughout Victoria; and
  
• Maximising visitation, yield and visitor satisfaction.

The Challenge for Victoria

Competition for leisure time has never been greater. Tourism's rivals include everything from sport to home renovation. As governments and the private sector become increasingly aware of the value of tourism, the inevitable result is escalating competition in tourism marketing.

Governments and the private sector are investing progressively greater amounts of money into attracting tourists to their destinations using a growing range of marketing techniques. Events for example are popular as their ability to profile a destination makes government investment increasingly attractive. Victorian Government and private sector investment in tourism marketing must match the investment trend to maintain its position in this global competition.

The marketing strategies detailed in this plan assume both government and the Victorian industry will increase the level of funding applied to marketing Victoria over the life of the plan.

Victoria's marketing efforts have achieved significant success since the introduction of the Jigsaw campaign in 1993. In terms of image there is an improved perception of the desirability of Victoria as a tourism destination as well as real increases in visitor numbers. The next critical step is to build on this platform and increase awareness of Victoria's tourist attractions in all markets - international, interstate and intrastate.

How Will Victoria be Marketed? - Trade or Consumer Marketing

A wide range of marketing methods can be employed to influence Victoria's key national and international markets. These marketing options continue to expand, driven by new media and technology. The advances provide an array of tools that must be matched to the needs of individual markets. Which methods are chosen depends on market maturity. To reach consumers there are two routes - through advertising and communication directly to the consumer, and indirectly through travel trade distribution. More mature markets where there is some knowledge of Victoria can be engaged directly to consumer, while less mature markets will require other marketing distribution channels such as travel agents and airlines.

This plan develops customised strategies for each geographical market according to its unique challenges. They may include image marketing, public relations, trade marketing, tactical campaigns, product and event marketing or information provision e.g. internet, brochures, media partnerships, telephone, and visitor services.

Over the life of the plan there will be an overall trend towards greater use of public relations and the internet, however this principle cannot be applied in a generic way to all markets. Marketing must be based on the future information consumption and booking patterns of the consumers in each market.

Consumer Research Continues to be the Key

Building partnerships between State and local government, industry and regional groups is an important factor in developing a cohesive industry with an integrated marketing approach. In order to achieve this, it is critically important that Victoria continues to use consumer market research to plan and develop marketing strategies and keep them relevant over the life of the plan. The industry must keep in step with the needs of the markets. Thorough market research on consumer preferences, behaviour and satisfaction will remain a key requirement in developing tourism product and tourism marketing campaigns for Victoria.

Tourism Victoria will continue to undertake an extensive research program of qualitative and quantitative consumer research to help plan, develop and evaluate its marketing plans. The industry will be encouraged to continue to expand its research programs and support will be provided for the research programs of the Bureau of Tourism Research, Cooperative Research Centre, Australian Tourist Commission and Australian Bureau of Statistics. Tourism Victoria will seek Federal Government support to increase the level of tourism research funding to levels comparable to mature industry segments such as agriculture.

KEY MARKETING DIRECTIONS

From 2002-2006, Tourism Victoria and the tourism industry will build on the success of the past by continuing to actively market Victoria as a premier tourist destination through innovative and effective marketing strategies and campaigns. The key strategic marketing directions for the coming period are:

Three Year Marketing Plan for Victoria

• Continuation of the highly successfulYou'll love every piece of Victoria Jigsaw campaign.
  
• Continued emphasis on international marketing.
  
• Increased national marketing of regional Victorian destinations and attractions.
  
• Increased intrastate marketing activity.
  
• Implement integrated marketing strategies (dependent on increased cooperative resourcing).

Two crucial components of the marketing plan are specific Melbourne and Regional strategies, which cover both national and international markets. The key strategies include:

Melbourne Strategy

• Continue to market Melbourne as a sophisticated, stylish and vibrant destination.
  
• Continue to build awareness of Melbourne internationally as a gateway to Victoria and southern Australia.
  
• Establish a dedicated campaign committee for Melbourne (Destination Melbourne Inc.) in partnership with City of Melbourne, Melbourne Convention and Visitors Bureau and industry partners.
  
• Implement destination marketing campaigns for Melbourne including a Melbourne Gateway Strategy linking regional Victoria.
• Greater emphasis on working with influential business sectors and operators and with the general community.

Regional Strategy

• Implement a dedicated strategy for the development of regional Victoria.
  
• Shift from marketing product regions to marketing key destinations and attractions.
  
• Increased focus on product development and visitor services.