A Marketing Communications Strategy Innovation for Promoting Tourism at Technical Heritage Sites in Ostrava. David Šrámek - PDF

A Marketing Communications Strategy Innovation for Promoting Tourism at Technical Heritage Sites in Ostrava David Šrámek Bachelor Thesis ABSTRACT Cílem mé bakalářské práce je analyzovat současnou

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A Marketing Communications Strategy Innovation for Promoting Tourism at Technical Heritage Sites in Ostrava David Šrámek Bachelor Thesis 2013 ABSTRACT Cílem mé bakalářské práce je analyzovat současnou komunikační strategii Dolní oblasti Vítkovic a zjistit, zdali je správně nastavena. První část mé bakalářské práce se zaměřuje na teoretickou literární rešerši. V druhé, analytické, části zmiňuji, které komunikační nástroje jsou v Dolní oblasti Vítkovic využity. Také se zaobírám vyhodnocením dotazníkového šetření, které ukazuje, zdali dané marketingové nástroje zvolené společností plní svou roli. Závěrečná část mé práce se zaobírá mými doporučeními, které byly navrženy na základě dotazníkového šetření. Klíčová slova: komunikační strategie, marketingový mix, turismus, Dolní oblast Vítkovic, služby, dotazníkové šetření, technické památky ABSTRACT The aim of my Bachelor s thesis is to analyze the present communication strategy of the Lower Vítkovice and to find out whether it is stated properly. The first part of my thesis is focused on theoretical knowledge gained from the literary research. In the second, analytic part, I clarify which communication tools are used in the organization and there is also an evaluation of a questionnaire survey which points out if the marketing tools chosen by the organization work well. The last part deals with the recommendations which I have proposed based on the questionnaire research. Keywords: communication strategy, marketing mix, tourism, Lower Vítkovice, services, questionnaire, technical heritage sites ACKNOWLEDGEMENTS I would like to thank my bachelor s thesis supervisor doc. Ing. Miloslavě Chovancové, CSc., for her time and guidance throughout my thesis without which I would not be capable of managing everything so smoothly. I would like to dedicate my special thanks to my whole family. Namely to my father Ing. Arnošt Šrámek and my mother Ing. Jarmila Šrámková for their patience, psychical and financial support during my studies. I also want to thank my sister Bc. Lucie Šrámková for her suggestions about the thesis. I would like to express my greatest thanks to my grandfather Ing. Arnošt Šrámek for his contribution by his professional knowledge of my topic. Furthermore I would like to thank JUDr. Alena Batková who has shown her interest and she has always tried to do everything for my achievement. I also thank my both grandmothers Marta Šrámková and Hedvika Tomášková for supporting me. Finally I would like to thank my friends that they were always ready to help me with any kind of problem and they always stay on my side. I want to dedicate this bachelor s thesis to my decedent grandfather Ing. František Tomášek who unfortunately passed away before my graduation. CONTENTS INTRODUCTION I THEORY SERVICES MARKETING Characteristics of Services Classification of Services A MARKETING STRATEGY A Marketing Communication Strategy Distribution Channels Promotion Advertising Marketing tools A Marketing Mix in Tourism Product Price Place and Distribution Promotion People Packaging Programming Partnership Processes Political Power TOURISM Definition of Tourism Roles and Types of Tourism THE TECHNICAL HERITAGE SITES History of the Technical Heritage Sites Division of the Technical Heritage Sites II ANALYSIS AN OVERVIEW OF THE TECHNICAL HERITAGE SITES IN THE CITY OF OSTRAVA Technical Heritage Sites in the Auspices of the Lower Vítkovice Landek Park... 27 5.1.2 The Hlubina Mine The Blast Furnace Number The Gas Container th Energy Exchange Trojhalí The Michal Mine/Petr Cingr Mine The Anselm Mine THE HISTORY OF THE TECHNICAL HERITAGE SITES IN THE CITY OF OSTRAVA The History of the Vítkovice Ironworks ( ) The Technological Process in the Vítkovice Ironworks IMPORTANCE OF THE TECHNICAL HERITAGE SITES FOR THE CITY OF OSTRAVA Importance of the Lower Vítkovice for the City of Ostrava Ostrava Candidate for the European Capital of Culture The Comparison of Industrial Complexes in Ostrava and Duisburg ANALYSIS OF PRESENT COMMUNICATION STRATEGY IN THE LOWER VÍTKOVICE Services Price and Packaging Distribution Channels Promotion People Programming Partnership Processes Political Power A MARKETING RESEARCH OF A PRESENT MARKETING COMMUNICATION USED IN THE TECHNICAL HERITAGE SITES IN THE CITY OF OSTRAVA Stating an Aim of a Marketing Research Plan of Survey Evaluation of Particular Questions Evaluation of Hypotheses PROPOSAL FOR AN INNOVATION OF PRESENT COMMUNICATION STRATEGY IN THE LOWER VÍTKOVICE... 59 10.1 Services Distribution Advertising CONCLUSION BIBLIOGRAPHY LIST OF FIGURES APPENDICES... 69 TBU in Zlín, Faculty of Humanities 10 INTRODUCTION The decision to write about tourism aimed at technical heritage sites in Ostrava resulted from my fondness for the city where I come from Ostrava. When I found out how big potential the Lower Vítkovice area has I knew I wanted to write my thesis about this topic. I was astonished how far-sighted Mr. Jan Světlík, the chairman of the Lower Vítkovice area is, and how amazing vision about its future he has. I admire him for his support of Ostrava and also for the way how he contributes to its development. Due to further study of specific literature on this topic, I gained theoretical knowledge which helped me to understand smoothly the strategy adopted by the specific organization I was writing about. The thesis is divided into two parts. The first, theoretical, part focuses on literary research on marketing, communication strategy, tourism and technical heritage sites. This acquired theoretical information serve as a basis for the second, practical, part of the thesis. In the practical part of the thesis the related technical heritage sites in Ostrava are described and there is a further analysis of the history of the Lower Vítkovice area which includes a short description of a technological process realized in the Vítkovice ironworks during its active days. The following chapter is devoted to the importance of the industrial complex for the city of Ostrava. The complex has a significant cultural and educational contribution. The practical part includes a description of the current communication strategy of the industrial complex in the Lower Vítkovice. The present communication strategy is being analyzed based on the marketing mix. Furthermore, there has been done a marketing survey which includes a questionnaire. In the survey was stated an aim and two hypotheses which were after the evaluation of the questionnaire approved. The last part of the thesis is devoted to the innovative proposal of the present communication strategy. TBU in Zlín, Faculty of Humanities 11 I. THEORY TBU in Zlín, Faculty of Humanities 12 1 SERVICES MARKETING 1.1 Characteristics of Services Services can be defined as activities or a complex of activities which principles are more or less intangible. Its realization is implemented through stint of provider of services and his employees, machines and equipment. The service might (but it does not have to) require a presence of a tangible product. The basic task of providing services is to satisfy customer s needs. (Boučková et. al. 2002, 302) The four characteristics which are in the literature review are called the 4 I s (Intangibility, Inventory, Inconsistency, Inseparability) are typical for the professional services. 1. Intangibility the customer has no possibility to try, to examine, to test, to taste or to touch the service before its purchase. On the other hand the customer might get information about the service he wants to order in advance. He might use previous buyer s references or he might use his own personal experience with another similar service. For some customers might be complicated to weigh up pros and cons before the purchase and this case might make the purchase of services partially risky in the customer s eyes. Such services are described as mentally intangible services. (Lovelock 2007, 16-18) 2. Inconsistency it is impossible to standardize the services because the process of providing the services is realized by humans (customers and service providers) and it is very hard to anticipate human s behavior. Different providers might provide different quality of the same service during the same day. Due to this fact the customers choose their provider carefully and they compare different providers before the purchase. A positive contribution might be brought by a system of wishes and complaints. (Boučková et. al. 2002, 303) The product does not have to be tangible even though most of people associate this word with material products. In tourism and the hospitality industry intangible products are more important than the tangible ones because they help to create a positive memory in customer s minds. (Kotler 2010, 13) 3. Inseparability providing and consuming services is tightly connected with the place and time and it requires a personal attendance of the customer. Customers consider the time factor very important and they are willing to pay more money especially when they are in rush. For instance a visitor of a city guided tour would TBU in Zlín, Faculty of Humanities 13 be willing to pay for a taxi in order to be there on time and to travel more comfortably even though there might be a public transportation route. (Lovelock 2007, 21; Byron 2013, 264) 4. Inventory services are inconsistent and it is not possible to produce them in order to store them. Due to that is very hard to succeed with a complaint. If the demand is permanent, there should be no problem with inconsistency but once the supply and the demand fluctuate it might lead to troubles. In tourism the coverage of demand might be solved by recruiting part time workers. (Boučková et. al. 2002, 303) 1.2 Classification of Services The offers provided by companies usually consist of several services. A set of services might be more or less important part of the whole price offer. Offers can be divided into 5 categories. (Kotler and Keller 2007, 441) 1. Tangible goods The offer consists purely of material commodities (e.g. shampoo, salt) 2. Tangible goods with companion service The offer consists of tangible goods and one or more services (e.g. car and its servicing). 3. Hybrid 50% of the offer consists of goods and another 50% are represented by services. (e.g. restaurant. People like going to their favorite restaurant in order to eat but they also enjoy the staff s service) 4. A major service with a companion goods and marginal services The offer is formed by one major service which is accompanied by another services and goods. (A flight participant pays for the transportation + for some beverage, meal, magazines). 5. Service The offer consists of a major service. (e.g. massage, babysitting) (Kotler and Keller 2007, ) TBU in Zlín, Faculty of Humanities 14 2 A MARKETING STRATEGY A marketing strategy is a way an organizations behavior is presented to customers which covers orientation on particular segments of customers, selection of proper marketing tools, marketing mix and a marketing communication (distribution channel, promotion, advertisement etc.). A marketing strategy should be implemented according to firms plans and it should be in step with its major strategy. A marketing strategy should take into account the marketing research, SWOT analysis and internal and external changes of conditions in the company. A marketing strategy often puts an emphasis on some of the marketing tools, especially price. (Zelenka 2010, 15) 2.1 A Marketing Communication Strategy Fill (2005, 7) defines the marketing communication strategy as a marketing communication which is a management process used by a firm in order to communicate with the audience. Thanks to the audiences understanding of a communication environment do the organizations seek for a development and presentation of their messages to their stakeholders groups before assessing and acting upon responses. Producing the messages which have an important value, audiences are asked to provide their subjective and behavioral reactions Distribution Channels The main aim of distribution is to give customers insight into produced products. Most of the clashes between producer of services and customer are disputes about place, time and quantity. Distribution channels are focused on meeting customer s needs and companies abilities. Distribution channels also influence another parts of marketing mix. Distribution requires a long-term perspective planning and it cannot be changed operatively. (Jakubíková 2009, ) Promotion Promotion is one of marketing tools which support sale and marketing communication with both current and potential customers. Part of the promotion is advertisement, public relations, personal sale, internal advertisement and publicity. It is typical to put emphasis on emotions, experience, reliability of services, diversity from the competition and security in tourism. Typical features of promotion are leaflets, brochures, postcards, catalogues, advertisement in magazines, advertisements on the web pages, movies, video clips etc. TBU in Zlín, Faculty of Humanities 15 Media (press, public address system, television, and internet) might be used for promotion, personal sale, sponsorship etc. Promotion is, together with the price, the major and the most visible part of marketing. A typical mistake is to narrow down the marketing just to promotion or just to advertising. All the marketing promotion tools should be in some balance and they should consider all the features which influence every single case. In each case the marketing promotion tools should be presented as a balanced promotion mix which consists of advertising, publicity, public relations and support of sales. In tourism a big emphasis is put on accommodation and eating services and products of travel agencies. (Zelenka 2010, 107) Advertising Advertising is a paid form of promotion and presentation of product, services or ideas. Advertising is the most visible part of promotion and the whole marketing mix. There are various options how the advertising can be realized. Paid advertisements are often used in media (magazines, newspapers, television, web pages etc.). Very often services are used in advertising agencies. (Zelenka 2010, 107) 2.2 Marketing tools Marketing tools are generally all internal and external factors within the scope of marketing. They are usually considered as a part of a marketing mix. Internal methods, planning, strategies etc. might be included there. Some marketing tools might be preferred and used more than others when implementing some particular strategy. An emphasis on price (any kind of discounts etc.) is typical. Some marketing tools might by unintentionally underestimate. This fact might lead to complications in achieving the firm s goals. (Zelenka 2010, 19) 2.3 A Marketing Mix in Tourism A marketing mix is a set of tools which might the provider of services use in order to make his product competitive and to push it through in the competition on the market. Marketing tools are used by companies in order to achieve marketing goals on a target market and in order to help the company in making strategic decisions for running some product. (Zelenka 2010, 19) Basic marketing mix consists of so to called 4 Ps: product, price, place and promotion (Foret 2001, 66) but in a connection with tourism these 4 Ps are expanded by 6 more Ps. These are people, packaging, programming, partnership, processes and TBU in Zlín, Faculty of Humanities 16 political power. (Jakubíková 2009, 183) A marketing mix 4P is created from the company s point of view but nowadays is preferred a marketing mix which combines 4Ps and 4Cs. 4Cs marketing mix is from a customer s point of view. These 4Cs are: 1. Customer value - represents a value from a customer s angle. 2. Cost to the customer represents costs from a customer s point of view. 3. Convenience represents customer s comfort. 4. Communication. (Jakubíková 2009, ) Now can all particular features be analyzed in more detail Product Products are considered those issues which might be offered at the market for usage, getting an attention, consumption which might meet the requirements and wishes of other people by American marketing association. Due to that the covered material objects, services, persons, places, organizations, thoughts etc. are covered. (Foret 2001, 66-67) Product is divided into 3 levels. 1. Core a general formulation why do customers purchase the product. It is a basic utility which the product brings. These are basically characteristics of a particular product expressed from the customer s point of view. 2. Personal a real product which includes its 5 typical characteristic features: quality, rendition, style and to it superior design and brand. 3. Extensive a wide product range includes additional services or advantages. (Foret 2001, 66-67) Price Price generally symbolizes an amount of financial instruments required for a product. Price is the only element of marketing mix which creates an income. The other parts of marketing mix create expenses and costs. (Foret 2001, 69) Price is also used to ensure an image of the brand amongst the consumers. (Jakubíková 2009, 222). The decision about the price maintenance depends on internal and external factors. Basic internal factors are based on costs of a product production or creation, its distribution, sale and promotion. External factors might be for example prices of a bought material. Costs are usually a lower limit of the price. That means that the lower the costs are the lower the price could be. Overhead costs do not change according to the volume of production. They are stable TBU in Zlín, Faculty of Humanities 17 and for instance salaries, taxations or rents might be included there. Very important is to know the break-even point, in which overhead and variable costs are in balance with revenues and the business becomes profitable. Stating a good price is very hard. When the price grows, demand usually declines. Customers also perceive the price according to price movement and the reactions differs a lot. Depreciation might be considered a result of a poor product s quality which does not sell well or that a new model is about to be announced and put into the production process. On the other hand the escalation of prices might be regarded as a result of an excess demand and it might be taken as an evidence which proves that the product is highly valuable. Customers do not understand the changes of prices clearly and their perception of the prices is very important in marketing. This common division of 3Cs recommends how to deal with the issue between price and a customer. (Foret 2001, 69-70) 1. Customers - demand schedule From the customer s demand 2. Cost function from the costs 3. Competitors prices from the prices of competitors (Foret 2001, 69-70) Price is especially in our economic conditions a way how to communicate with customers. In the Czech Republic 60% discount is considered as a stimulus to purchase products which are not necessarily needed but the customer purchases them just because the price is very attractive and it is an extremely cheap bargain purchase. (Foret 2001, 70) Place and Distribution It is a decision how and where we should deliver the product to the market and finally to the customer. It is not possible to change the distribution flexibly because it is rather a long-term decision which requires a prospective planning. There are several ways how to inform the customer and we should provide him with enough information about the product itself and the ways which would help him to find more information on his own. The customer should be also informed where he can find the product. In case of tourism marketing the place issue is divided into 3 parts. (F
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