Shopping as a selling strategy for tourism: combination of marketing mix tools

PhD. Gloria Jiménez-Marín 1 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 Shopping as a selling strategy for tourism: combination of marketing mix tools1 IROCAMM Nº 1, VOL.1 - Year 2018 Received: 03/01/2018 | Reviewed: 03/02/2018 Accepted: 15/03/2018 | Published: 02/05/2018 DOI: http://dx.doi.org/10.12795/IROCAMM.2018.i1.05 Pp.: 67-87 ISSN: 2605-0447 individuals and further expenditure is oriented towards this set of activities. Then a classification of the activities offered for the entertainment of individuals paying particular attention to the main Spanish companies involved in some of these sectors and, secondly, the role of shopping as one of the leading suppliers of trade and leisure. Finally, exercise has articulated a dual approach to complementarity between the commercial and tourist activities, first of all, we performed a quantification of non resident consumption by commercial areas, and afterwards, it has developed a classification of regions in terms of its commercial and tourism potential through a cluster analysis. Keywords: Citymarketing, Citybranding, Shopping, Seville, Tourism. Abstract: The use of time for entertainment has increased participation both at home and outside and, in our days, we look at the proliferation of a wide range of activities that are included in the leisure economy: tourism, catering, shopping, sports, entertainment... In this sense, a lot of studies agree that the activities related to leisure time of individuals with strong potential for growth as amusement parks, restaurants, tour operators... and, above all, new retail formats that are configured as great business opportunities. Consequently, the main objective of this text is to relate some of the main activities that are encompassed in the new economy of leisure. And as a specific example to analyze the complementarity between trade and tourism in a particular case: Shopping in Seville. Firstly, there exists a theoretical review of the phenomenon of leisure within the needs of PhD. Gloria Jiménez-Marín University of Seville. Spain. [email protected] ORCID: https://orcid.org/0000-0003-0252-3975 DOI: http://dx.doi.org/10.12795/IROCAMM.2018.i1.05 ______________________________________________ 1 Paper within the R + D + I proyect: Online Communication tourist destinations (CODETUR), funded by Ministerio de Ciencia e Innovación (Ministry of Science and Innovation) of Gobierno de España (Government of Spain). PhD. Gloria Jiménez-Marín 68 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 1. Introduction Leisure, increasingly, is also consumption, so the commercial sector strategies and approaches for the future, inevitably into the field of leisure being considered as a factor of high value to the traditional business. One of the main activities carried out in the leisure tourism are travels, which are linked together not only with tourism services but also has a strong economic impact on the commercial distribution sector given the importance in the international Spanish tourism market. So, the use of time for entertainment has a growing involvement at home and outside it and, in our days, we look at the proliferation of a wide range of activities that fall into the leisure economy: tourism, restaurants, shopping, sports, entertainment... Thus, more and more abundant studies agree that the activities related to leisure time individuals have a high growth potential, that is, leisure parks, fast food establishments, tour operators and travel agencies, hotel chains, publishing or new retail formats appear as major business opportunities in this new century. This paper is structured in three sections besides this introduction, a brief endnotes and references. 2. Objectives The main objective of this study is to analyze the relationship between variables ‘purchases’ and ‘visits’ in tourist destinations. Thus, we question how empowering procurement routes influence urban tourism while analyzing the strategies undertaken by the city of Seville (central and metropolitan area) to get boost sales of shops and restaurants in the Andalusian capital and, thus, increase tourism. The main objective is accompanied by other equally relevant. The introduction has placed the state of affairs in the communication and promotion of tourist destinations through a long-term strategy with tactics that come together in the tertiary sector: trade and services. Furthermore, research should serve to deepen the specific concepts and increasingly developed and are citybranding shopping or tourism. Consequently, the main objective of this article is to relate some of the main activities that are covered by the PhD. Gloria Jiménez-Marín 69 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 new economics of leisure. Namely, is to analyze the complementarity between trade and tourism. Finally, the joint analysis should lead to operational conclusions to open new lines of research. 3. Theorical framework 3.1. From citymarketing to citybranding The concept of marketing applied to cities is a relatively new concept. But not for this reason, the tourist companies forget this technique; in recent years the care is bigger even in managing the promotion / sale of the cities. It is true that tourism-related businesses have traditionally gone to specific strategic approaches and tactics to attract the target audience; the news is linking the possible strategies to attract tourists not only to the tourist agents, but the concept of the city as fully marketable product in terms of image and salable economically. A strategic marketing plan is a plan called 'citymarketing', that is, a must “para la concepción actual de las ciudades como centros de atracción socio-económicos y culturales” 1 (López, 2007: 57). We can say that the concept of 'citymarketing' is a research process that highlights aspects that are real barriers to the development of the city while trying to understand the city as an object, as a commodity. In the words of Lopez (2007: 63): “El citymarketing aprovecha así las últimas aplicaciones de la mercadotecnia turística, del marketing cultural y del patrimonio, al tiempo que elabora sus presupuestos y propuestas de acción con una visión a largo plazo” 2 . In line with the concept of marketing applied to destinations we find DMO (Destination Marketing Organization) that, for Gartrell (1994) are, simply, organizations established to promote specific destinations among potential travellers. A similar concept is Convention and Visitor Bureau, characterized as a small or medium non-profit organization, which makes a wide range of information and communication activities to facilitate the development and promotion of tourism in certain geographic areas (Yuan, Gretzel y Fesenmaier, 2003). 1 “For the current conception of cities as centers of attraction socio-economic and cultural”. 2 “The citymarketing take advantage the latest applications of tourism marketing, the marketing culture and heritage, while it prepares its budgets and proposals for action with a long-term vision”. PhD. Gloria Jiménez-Marín 70 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 For Forda y Peeperb (2007) these companies have done a good job, at the moment, in data collection in tourism activity. They have been commissioned, among other activities, to meet the needs and satisfaction of tourists. They know why a destination is selected as such by tourists and intermediaries, what they like and do not, and what is the value that the tourism industry in the destination. They are responsible for transmitting the needs, desires and expectations of one group to another seeking the right balance. So, Firat and Venkatesh (1993: 246) consider that in postmodernity “marketing is the conscious and planned practice of signification and representation”. This thought plays an important role because it provides the basic guidelines that lead from the citymarketing mix to the citybranding, which are the two distinct approaches to citymarketing combined here. In this sense, Helbrecht (1994: 528) discusses the relevance of citymarketing philosophy and methods, so “Citymarketing enables a new level of quality within the local development policy in terms of comprehensiveness, creativity and flexibility. (…) In this way citymarketing enables a strategic approach to public planning in collaboration with the private sector”. According to Ashworth and Voogd (1994: 39), “there is nothing new about places being promoted by those likely to profit from their development”. Because of this, what is new is the application of marketing approaches not just as an additional but as a philosophy of place management to get selling the city. And, this way, there are, more recent developments within the marketing discipline that make the distance from traditional, general marketing to place and citymarketing shorter and the transfer of marketing knowledge easier. Borchert (1994) commented that “the majority of publications on citymarketing are at best limited to some aspects of marketing and in most cases there exists only a weak relation with modern developments in marketing theory”. One concept that has emerged in recent years and has a clear and direct relevance to marketing implementation in cities is the concept of corporate branding and corporate-level marketing, which is a theoretical and practical development of the earlier concepts of corporate image and corporate identity (eg Balmer, 1998; Balmer and Greyser, 2003). One of the basic elements of this type of marketing is the determination of the major action areas that the implementation of a strategic marketing plan should incorporate. It is the description of distinct categories that should be dealt with by city marketers PhD. Gloria Jiménez-Marín 71 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 in the effort to implement integrated citymarketing. The intention is to create a mix of components applied to the cities: product, price, promotion… and place. For this one and other reasons, recently we have pass from citymarketing… to citybranding. Because citybranding implies a significant change of perspective on the whole marketing effort. Marketing is a process that can be used to accomplish various goals set by the city, because “to discuss city marketing solely in economic terms is to oversimplify its meaning” (Paddison, 1993: 348). So, citybranding is understood as the means both for achieving competitive advantage in order to increase inward investment and tourism, and also for achieving community development, reinforcing local identity and identification of the citizens with their city and activating all social forces to avoid social exclusion and unrest. And finally: what do we mean by citybranding? When we talk about citybranding, we are referring to the process of branding applied to cities, that is, the process of creating, developing and managing city marks as a brand city. This concept began to generalize from the Travel and Tourism Research Association's Annual Conference in 1998 (Blain, Levy and Brent Ritchie, 2005). Fernández (2009) already noted the importance of the brand for the tourist destinations, for the citybranding. But, a full definition of the target mark, the mark entirely applicable to city, based on the previous definitions of Aaker (1991) and Ritchie and Ritchie (1998), is that of Blain, Levy and Brent Ritchie (2005:337), according whit Huertas (2011), who says that: “La creación de un nombre, símbolo, logotipo u otro grafismo que identifica y distingue un destino; que comporta la promesa de una experiencia memorable de viaje que se asocia exclusivamente con el destino; y que sirve para consolidar y reforzar la conexión emocional entre el visitante y el destino; que reduce los costes de búsqueda del consumidor y el riesgo percibido; todo con el objetivo de crear una imagen de destino que influya positivamente en la elección del destino por parte del consumidor 3 ”. Each of the marketing mix variables are necessary, but not sufficient in themselves to carry out a proper marketing of a product, and even more so when we refer to a service and therefore intangible. We assume that tourism, the cities, as a product, must be optimal to be desired, distribution channels have well structured and priced accordingly and fundamental, that established communications with the environment, with its target, with the objectives, needs, etc. In line with Díaz-Luque (2009b), in 3 “The creation of a name, symbol, logo or other graphic that identifies and distinguishes a destination, that involves the promise of a memorable travel experience that is associated exclusively with destiny, and that serves to consolidate and strengthen the emotional connection between the visitor and destination, which reduces consumer search costs and perceived risk, all with the goal of creating a destination image that positively influence the choice of destination by the consumer”. PhD. Gloria Jiménez-Marín 72 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 marketing science this has been termed the ‘marketing mix’. The importance of the determination of the marketing mix, meaning “the combination of marketing measures needed to achieve the desired strategy” (Ashworth and Voogd, 1990), has been highlighted in citymarketing literature (Kotler et al., 1999; Van Den Berg et al., 1990) and it is acknowledged by most commentators as an essential step in the whole marketing effort. So, the called ‘4P’ variables represent a chain of marketing activities that can be developed by organizations in different ways (Kotler, 1997). Some commentators, for example, adopt for city marketing the services marketing mix (Van Den Berg et al., 1990); others adopt a wider view: Kotler et al. (1999) adopting the marketing mix as suggested by general marketing, distinguish between four distinct strategies for place improvement: - Design (place as character) - Infrastructure (place as fixed environment) - Basic services (place as service provider) - Attractions (places as entertainment and recreation). 3.1.1. Design of metropolitan brands: Citybrand as a strategy. The study of city brands and branding is strongly connected to two other concepts with significant relevance to city residents and urban communities. Two subjects: 1. The first is the matter of the city’s distinctive identity. Although there is wide agreement that one of the most important assets cities possess is their local character and local identity. Citybranding can assist in an attempt to reverse this tendency, since it is largely based upon the distinctive characteristics of the city. Especially useful at this point is the examination of the organisational structure of the city, which underlines subjects such as community participation. 2. The second is the notion of the ‘linking value’ of products, services and especially brands, a notion developed within the influence of post-modernity on marketing thought. As Cova (1997) remarks, brands have to serve at the same time the person in their individuality and in its paper in the group’. This is the case for city brands, especially since the city has always served and still serves as the place of this group togetherness. PhD. Gloria Jiménez-Marín 73 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 So, applying corporate branding to places demands a treatment of the place brand as the whole entity comprised of the place products, in order to achieve consistency of the messages sent. Because we start with the assertion of the ultimate goal of city marketing is to increase living standards for city residents… So, city brand want to become in the principal element to get it. Within the city marketing context and with this final objective in mind, it is the development of the city’s brand and the correct understanding and treatment of its components that carry the most importance for the actual and tangible results of the whole marketing strategy and planning. The selection, use and combination of branding variables is the point of contact between theory and practice, between strategy and implementation, between planners and final users; it is the point where all efforts come together, and therefore the point of more possible conflict or satisfaction (Helbrecht, 1994). These are the goals of city branding. Based on this idea, we get the concept of corporate branding, that has not received adequate attention by commentators interested in place and city marketing, with some exceptions: Rainisto (2003), Trueman et al. (2001), for example. A fundamental notion for corporate branding is corporate identity. So, corporate identity is a holistic concept that, in words of Riel and Balmer (1997: 355): “articulates the corporate ethos, aims and values and presents a sense of individuality that can help to differentiate the organisation within its competitive environment”. A strong identity is very important for transmitting a consistent internal and external image among stakeholders, turning into a valuable asset (Simoes and Dibb, 2001). So, Balmer (2002) suggests that the elements that constitute a corporate identity are: - Strategy: Management vision, corporate strategy, product/services as well as corporate performance… - Structure: Relationships between parent company and subsidiaries, relations with alliance or franchise partners. - Communication. - Culture: The soft and subjective elements consisting of the mix of subcultures present within the organisation. Hatz and Schultz (2001) suggest that creating a corporate brand is complicated and they point to the interplay of three variables: vision, culture and image. These three concepts need to be aligned in order to create a strong corporate brand. In an PhD. Gloria Jiménez-Marín 74 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 attempt to define the corporate brand, Knox and Bickerton (2003: 1013) say that “a corporate brand is the visual, verbal and behavioural expression of an organization’s unique business model”. So, as Simoes and Dibb (2001) comment, the brand is expressed through: company’s mission, core values, beliefs, communication, culture and overall design. Meanwhile, Balmer (2001) argues that at the center of a corporate brand is an explicit covenant between an organization and its stakeholder groups. So, corporate branding draws on the traditions of product branding, in that it shares the same objective of creating differentiation and preference. Otherwise, according to Aaker (1996), in contemporary marketing branding is central, as it integrates all the strategic elements into one success formula, because “the entity in corporate branding has a higher level of intangibility, complexity and responsibility, making it much more difficult to build a coherent brand” (Simoes and Dibb, 2001). Brands in general and corporate brands specifically are seen as the base for long-term success of various firms and organizations. Some other authors (Blain, Levy and Brent Ritchie, 2005) defined the brand city as the creation of graphic elements, some values, some attractive and some promises that are to be associated with a city, as the city's identity that organizers decide and communicate marketing, and positioning to be achieved. This refers to the identity of the city brand. So every city should have a brand essential component to configure its full existence, which are the following (Huertas, 2011): 1. The elements that make up the identity of the brand, which the organizers wish to communicate marketing and that are associated with the city. Ther are: a. The graphic element, which involves the creation of a symbol and a logo. b. The functional conceptual element, consisting of real and tangible characteristics of the city. c. The emotional conceptual element, consisting of abstract and symbolic values that you want to associate with the city. 2. The elements that make up the city's brand image, how it is perceived by its stakeholders, the positioning purchased. It also consists of three elements: PhD. Gloria Jiménez-Marín 75 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 a. The perception of the graphic element by audiences. It is the understanding and acceptance of the logo and the graphical components of the brand. b. The perception by the public of the functional elements inside the city, its attractive, its valuation and disposition toward them. c. The perception of the emotional values that identify with the city and with which they can be identified or not. 2.1. Shopping 2.1.1. Shopping tourism as a playful experience Tourism and shopping have always been related; throughout history, travelers have used some of the time your trip souvenirs, typical local products, curios and all kinds of things as a souvenir of the trips. Another type of relationship would be the actual shopping tourism: tourism whose main motivation is to buy, to which are added stimulus similar to those of souvenirs, like getting exclusive or unique products, art products, technology, culinary and fashion do not are in the place of origin or whose price is much lower, since this provides a certain social status. This type of tourism, ‘shopping tourism’ is not new, and although currently covering all types of products, although the main elements have always been all related with fashion, gastronomy and art. So, since the early twentieth century, this is getting up with the proliferation of designers… Because emerge cities that have placed part of its attraction in stores, as Metha and other expressed (2014). It is true that, traditionally, this type of shopping tourism has been associated with the concept of fashion ... And, in this sense, the classical fashion capitals, cities considered worldwide icons, have always been, and continue to, Paris, Milan, New York and London. But increasingly emerging new cities that offer fashion... and other purchases as attractive: Dubai, Tokyo, Stockholm, Singapoore, Hong Kong, Buenos Aires, Sao Paulo… and, recently, in Spain, Madrid, Barcelona o Seville, for example. As with most forms of tourism, there are also shopping for high and low seasons, traveling more sales time, of which the best example is New York, considered a paradise for the sales outlets and apply important discounts; it is especially attractive for Europeans, due to the devaluation of the dollar against the euro. PhD. Gloria Jiménez-Marín 82 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 How did we do? In physical questionnaires (paper) and virtual (online). How do we select interviewees? We need, in principle, a random sample. How many people do we select? We propose a survey of 1000 individuals. 6. Results Encourage sales of shops and restaurants in the capital of Andalusia is one of the objectives in the “II Plan Estratégico Sevilla 2020” 4 . For this reason, it is have raised (not carried out, at least at the moment) a series of initiatives promoted by the organisms such Ayuntamiento de Sevilla 5 and Diputación Provincial de Sevilla 6 , along with the various Cámaras de comercio 7 and tourism, as well as various local associations: - Confederación de empresarios de Andalucía - Asociación de comerciantes de Asunción - Asociación Céntrico Sevilla - Federación provincial de comerciantes de Sevilla The proposals were: - Pedestrianization of certain streets - Improved public transport - Openness and trade liberalization schedule - Tours dining and shopping - Campaign promoting tourist shopping in Seville Among these proposals, some were carried out, as the pedestrianization of certain streets (Constitution Ave., Asunción street 8 ), liberalization of business hours (which has 4 II Strategic Plan Seville 2020 5 Seville Town Hall 6 A local public organization 7 Chambers of commerce 8 They are two streets famous in Seville because their commerce and shops. PhD. Gloria Jiménez-Marín 83 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 led to much criticism, and that far from matching the Spanish model to Europe - Nordic countries, for example-, makes it different, with a greater number of hours open to the public), conducting commercial and gastronomic routes and campaigns such “ En Sevilla, como un rey ” 9 , “ En Sevilla, como un rey, siempre ” 10 o “ Mapping Sevilla ” 11 , among any others. The results of the surveys revealed that local people didn’t appreciate the changes performed and the tourists who were surveyed, although they were satisfied with their purchases, they did not consider the supply of stores as the item because they decided to visit the city. But, however, the increased of sales of tourists was important, as is shown by reports of Tax Free 12 (although this fact just shows that purchases by tourists were higher, not that the actions had effects). Moreover, the interviews showed that, in general, the commerce and shops entrepreneurs aren’t satisfied with the actions done by the local organizations. So, although all of them asserted that some initiatives are good, the way which were made didn’t so good. An example: The pedestrianization of streets was a very good initiative to attract buyers (tourist or not) but the time for the improvement works Street did that during two or three years had many economic losses… And this fact had no solution or consideration. Also, the interviews with the representative of chambers and associations showed similar opinion: although global projects and strategy were good, the implementation of actions, tactics, was wrongly executed. The observation indicated that in the last years the commerce in Seville has been modernized, but not enough to claim that shopping is a touristic attractiveness, but not enough to claim that shopping is the cause because tourists visit the city. Even with the outlets malls that offer low prices and coming renewing its image, offerings and campaigns, such The Outlet Style Seville, recently modernized. Just SIMOF (“Salón Internacional de la Moda Flamenca” 13 ) gets mobilize specific tourists in search of typical Spanish fashion. 9 http://www.youtube.com/watch?v=Gm4CPo6udPw 10 http://www.youtube.com/watch?v=wSb_QrG8MJ8&list=UUYqeWiPhqoYlz5fo- VPClMg&index=0&feature=plcp 11 http://www.youtube.com/watch?v=zoXD8m20mes 12 System to promote sales and to avoid double taxation tourists. The system consists of a tax refund VAT (Value Added Tax) on purchases over 90 euros. 13 International Flamenco Fashion Show PhD. Gloria Jiménez-Marín 84 IROCAMM Nº 1, VOL.1 Year 2018 Pp. 67-87 ISSN: 2605-0447 7. Discussion and conclusions. Shopping tourism is a type that is increasingly evolving, although started as just an add-on trips, it has become a form of tourism potential very important to the economy. From being a simple shopping while on a trip to be the main activity around which creates all kind of services. This type of tourism are the Shopping Outlet Villages, towns created by shops, in order to establish themselves as destinations in themselves devoted to shopping and in which there are all kinds of necessary services such as accommodation, restaurants, transportation, entertainment etc. A big number of cities in the world is improving its offers of service touristic shopping with special offers, routes and ads campaigns to attract them: Madrid has the “Madrid Sunday Shopping”, or Barcelona has the “Route of the designers”… and, in this line, New York has “The sales”; Singapore, its “Technological Route” and, for example, Stockholm its “Biblioteksgatan Route”, a route with Swedish design label… However, Seville is in a full process to change its offer of shopping to adapt for the tourism. At moment, the city is improving its services, its campaigns, its image for shopping tourism, but now this is not a reality. Perhaps in the future, the city can get a real route for shopping tourism with a big and fort image in other cities or other countries. The seeds are being planted now. 8. Documentation AA.VV. (2016): Informe estadístico Familitur 2015 . Ministerio de Economía. AA.VV. (2011): “II Plan estratégico Sevilla 2011-2020”. Sevilla, Ayuntamiento de Sevilla . AA.VV. (2009): “El turismo mundial crece a pesar de la crisis”, en Andalucía Turismo Digital . Disponible en http://www.andaluciaturismodigital.com. [consultado el 14/1/2009]. AA.VV. (2008): “El turismo en España durante el 2007” en Instituto de Estudios Turísticos .Disponible en http://www.iet.tourspain.es.[Consultado el 27/2/2017]. AA.VV. (2007): Plan Integral de Calidad Turística Española 2007-2012. Ministerio de Economía. AA.VV. (2004a): “Coyuntura turística 2015-2017” en Instituto de Estudios Turísticos . 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