Demography – it shows a changing age structure, shifting family profiles, geographic population shifts, a more-educated and more white-collar population, and increasing diversity.
The population of Australia is around 19 million people. High population densities also exist around the major cities such as Sydney, Adelaide, Brisbane and Perth, all have more than a million inhabitants. An understanding of the geographic distribution of the population is vital for marketing planning. Once the areas of highest population density are known, marketers can establish where the greatest concentrates of buyers are likely to be found. Today, Sydney abounds with modern interpretations of its colonial past. At waterfront Circular Quay, where Philips first landed, street entertainers ply their trade along Writer’s walk, where famous writers’ words about Australia are fixed in the sidewalk with gold medallions.
Economic – it reflects the policies adopted by successive governments and more recently the impact of wider global economic trends. However, the key factors which concern marketers most include: buying power and the distribution of income within the population.
Australia is a prosperous nation. At the end of 2000, Australia had benefited from nine years of uninterrupted economic growth, it economy had grown considerably faster than the average for developed countries over this period. The issues of economic growth can further develop Australian tourist industry. Information from the case to tell us that international tourism is a growth business for Australia. By 2003 it was expected the international visitor arrivals would be 87% higher than they were in 1993.
Natural – it shows four major trends: shortages of certain raw materials, increased costs of energy, higher pollution levels, and more government intervention in natural resources management.
The Australian government tries to achieve economic growth without damaging the natural environment, two key issues have arisen in Australia – dryland salinity and water scarcity. Australia is a dry continent in which water scarcity is worsened by climate. The farming method in use in Australia has also had negative effects on both biological and ecosystems. The extensive use of irrigation in the farming industry contributes to high levels of water use in Australia and to gradually increasing levels of salt in the land, which damages agricultural productivity. Further, Australia is rich biodiversity, with many unique species of plants and animals. Many are threatened with extinction caused by habitat altered and loss, or competition and predation from introduced species.
Technological – it is perhaps the most dramatic forces that create new technologies, creating new product and market opportunities such as antibiotics, organ transplants, notebook computer and the internet.
New technologies create new markets and opportunities, such as internet emerging, Tourism Australia’s consumer website delivered over 780,000 pages of information to users in Hong Kong in 2003. It has key information available in Chinese for Hong Kong consumers who prefer language translations.
Political/Legal – it consists of laws; agencies; and groups that influence or limit marketing actions. The political environment has undergone three changes that affect marketing worldwide: increasing legislation regulating business, strong government agency enforcement, and greater emphasis on ethics and socially responsible actions. Politically unstable countries, they tend to suffer from a low level of long-term investment reflecting the lack of business confidence.
Some countries show renewed growth after the terrorist attacks on the World Trade Center and the Pentagon in the USA on 11 September 2001, such as UK and USA. Another concern from the European who visit Australia would be deterred since their flight path would take them through Middle Eastern air space. Overall, Australian international tourist industry was showing reasonable optimism to the next decade because its has a stable international political situation and economic prosperity.
Social/Cultural - it is made up of material culture and non-material culture. Material culture consists of all the things people like to buy, use and do, such as buying T-shirt and jeans, going to a football match, watching television and so on. Non-material culture encompasses the more abstract shared rules and guidelines which influence what is generally regarded as acceptable or desirable behaviour in a society, such as values, beliefs and customs.
Most visitors have a soft spot for Australia because its offers the attractions of the sea and the beach, the wilderness, and modern cities. There are no better examples than the Australian kangaroos and koalas. Australia transformed itself into a paradise for food. Few places in the world have restaurants that can compare with the variety, quality and sheer inventiveness of Australian ones. It is only comparatively recently that Australia has attracted international attention, there are now 930 wineries in Australia, many of them small family operations. But around 80% of all wine production comes from the conglomerates.
As a figure of visiting purpose to Australia to recognize different social class groups exhibit very different spending patterns. There is a vast difference in the way the money is spent, reflecting their differing tastes and preferences, values and aspirations. Evidence suggests that occupation, which tends to be closely linked to level of education, is a far better determinant of the social class.
Q.2
Propose strategic policies for the individual organization of the key tourist areas to follow
Marketing starts with finding out what motivates customers to buy a particular product or service. I propose strategic policies starting from marketing planning involves gathering information on an existing situation, analyzing both the internal and external factors affecting the organization’s performance, and making some basic assumptions about external trends that are likely to occur in the future. The results or objectives that organizations hope to achieve and the actions or strategies that are needed to implement these are decided. Finally, the strategies adopted are evaluated in relation to the desired objectives. These stages are shown in below:
Picture??(p100)
- Situation analysis
The first step to define “Where are we now?” This involves carrying out an internal audit of the organization’s own resources and capabilities, together with an external audit of the factors in the wider business environment which are likely to affect the organization’s performance.
- SWOT analysis
The SWOT analysis highlights the important internal strengths and weaknesses as well as the key external opportunities and threats.
- Make assumptions
At this point, it is usually necessary to make some assumptions about external factors which are likely to affect the organization’s performance.
- Set objectivies
The setting of objectives means finding out “Where do we want to go?” Marketing plays a role in achieving any business objectives.
- Decide strategies
Once definite marketing objectivities have been agreed, the next step is to decide on the strategies. This involves the organization working out “How do we get where we want to go?”.
- Measure results
Once the marketing plan is in operation, the results are monitored closely in order to access whether the original objectives have been achieved.
Before deciding on the marketing strategy that is to be followed, organization need to be aware of the factors which affect their operations both internally within the organization itself and also externally in the wider business environment.
The most widely used technique is called SWOT analysis which include strengths, weaknesses, opportunities and threats. Let us to evaluate the SWOT within Australia by internally and externally.
Internal factors: strengths and weaknesses
The Australian government strives to sustain growth in the economy without damaging the natural environment that can attract many visitors comes to Australia. At the end of 2000, Australia had benefited from nine years of uninterrupted economic growth and its growth faster than the developed countries. Overall, Australia has a stable political situation and economic prosperity. On the other hand, Australia faces two issues on environmental protection – dryland salinity and water scarcity.
External factors: opportunities and threats
Take into account a number of other influences affecting Australian tourism in the early years of the decade, and the event of the 11 September 2001. Most travelers concern the stability of the international air carriers. Australia is an island, all international tourists who visit Australia by air. Another threat of European who visit Australia would be deterred since their flight path would take then through Middle Eastern air space. In current, there are some external factors affecting Australian tourist industry, including:
- Strong competition from traditional destinations
- New destinations being developed
- Aggressive price promotion by European and American airlines
- Strong Australian currency affecting travel agents’ profitability and Australia’s attractiveness.
Regarding the above analysis, I suggest to concentrate on promotion to Asia countries as niche marketing. Costs can be kept low because of the saving made as a result of specialization, organization can concentrate their limited resource on establishing a strong image and dominant market position within their chosen niche. To the end, the strategies adopted by organization aimed at attracting Asian revolve around the key factors of product, price, place and promotion
It is a well-known fact that Australia is a land of the unexpected. Of vast size amazing natural wealth, awesome scenery, exotic plant and animal life, and cosmopolitan cities. Australia’s climate and the fact that it is driest continent on earth makes it a fabulous holiday destination all year around. One of USA magazines, namely “Travel and Leisure World Magazine” of July 12 2004 select Sydney as World’s best travel destinations
In the survey result from Australian government about Hong Kong Visitor analysis by purpose of visit are education and employment. For holiday, business, visiting friends and relatives all decrease. In order to attract more families, business tourism, matures and young singles, offer a lower price during peak season by effectiveness of adverting campaigns and promotion in generating more Asian, including:
- Australia and Singapore have established a Joint Tourism Council that will aim to increase international arrivals to both Australia and Singapore from key markets through a co-operative partnership between the Australian Tourist Commission and the Singapore Tourism Board.
- Most key operators selling Australia have developed websites providing product information, special deals, travel clubs and newsletters and online enquiry response mechanisms.
- There are 10 major wholesalers/retail agents selling Australian group tour packages, with extensive branch office network of sales point location. These agents are linked with the three major carriers: Qantas, Cathy Pacific and Singapore Airlines.
