The Role of Marketing in Tourism and Hospitality Development. Case Study: Mazandaran-Iran

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1 The Role of Marketing in Tourism and Hospitality Development. Case Study: Mazandaran-Iran By Romina Cheraghalizadeh Department of Business Administration, Eastern Mediterranean University Gazimagusa, Turkish Republic of Northern Cyprus Abstract. Despite of Iran's capabilities in the field of tourism and hospitality, unfortunately there are lots of problems to achieving proper position in this industry. Among the factors that could improve the development of the tourism industry, applying effective marketing tools and parameters are very important. This study concerned the role of marketing in the tourism industry in state of Mazandaran. This study has examined five factors that seem they are related to development of tourism industry in Mazandaran such as the major policy adjustment of country, Infrastructure development, concerning to tourism attractions, commercial activities and set of strategies based on the adsorbent distribution. After gathering information and identifying different aspects through interview with experts, managers and pundits in tourism and hospitality and library studies five hypotheses were developed. The study population is consisting of managers, experts and scholars in the field of tourism and hospitality including 300 people Sample size according to Morgan was estimated 169 people. Moreover, they were selected using random sampling. In order to data collecting from the researcher made questionnaires with 48 five index option that its reliability is calculated via Cronbach's alpha and it is The results showed that all factors have been considered in this study Influence on the development of tourism in the province. Key-words: Macroeconomic policy, Infrastructure, Tourism and Hospitality, Regulation strategies. JEL classification: M31 1 Introduction Tourism and hospitality is one of the most important part in economic and it is increasingly in progress. In some countries in economic activities ground major portion of their revenues are from introgression of tourists. In fact, not only tourism is world s largest industry, but it is also growing uninterrupted, as world tourism organization predicts that in 2010 the number of tourists will reach 1.5 billion people (Shaw & Williams, 2004). Iran is among the first ten countries in the world in terms of tourists attraction s and is among five countries in the world in terms of tourism diversity (World Tourism Organization, 2000). Among the factors that can influence and improve the development of the tourism industry, Applying marketing tools and parameters are effective. The marketing of tourism is particularly important because if you know the marketing as a management process (Pender, 1999), all planning activities, developing tourism products and attracting tourists Operations and marketing activities is needed. Marketing refers to all activities of market assessment and customers' needs of that market, with the evaluation of service, facilities, the costs of achieving the target and facilities that contain customer s satisfaction. This includes programs targeted to specific groups of customers and encourages them to purchase or use the services (Van, 2007). Weakness in tourism marketing in the cultural heritage, handicrafts organization and tourism is the greatest cause of Iran s retardation of the growth of this industry in the world. In this regard, Mazandaran province does not pay attention to this industry and it does not only invest enough in marketing, but has not also formulated clear policies. This is the condition of Mazandaran province has numerous known and unknown capacities in the national and international tourism. According to the importance of tourism marketing, one of the main ways to development of this industry in the province can be Investment and compilation clear policies in marketing. Therefore, this study examines the role of marketing in tourism development. In this regard, National macro policies adjustment, infrastructure development, 111

2 attention to tourist attractions, advertising activities, guideline Strategies based on the distribution of attractions, that it seems they are related to tourism industry development was introduced as the dimensions. More, the study describes the background, research method and result will be presented. 2 Tourism industry and Marketing Tourism are included all activities that tourists do when they travel and these activities are related to them. These may include planning the journey, displacement between origin and destination, accommodation and etc. Tourism and marketing is as identifying and anticipating the needs of tourists and providing facilities to meeting needs and notifying them and accessing to motivate them. This makes the tourists' satisfaction and organizational goals. Tourists target from travelling the whole of world is seeing the attractions in tourism destinations (Brown, 2009). Tourism product not only is different from physical goods and products, but it is different from other services. In other word, in first stage this product experience in time period and in different stages and this subject makes difficult its assessment. In second stage this stage is hazardous for tourists, because it has opportunity and missing time costs. In third stage, part of this product is related to personal tendency of tourists such as defecting life pressure, achieving new experiments, recreation and diversion. Therefore planning tourism development needs identifying these motives and demands. Recognition of motives and tourists needs are tourism marketers tasks. And finally tourism product has dual vector ability. It means these products are not only used by non-native tourists and many local people also benefit from the products of this industry (Xinyan et al., 2009). Due to the special characteristics of tourism products, the role of marketing in this industry compared to other industries is more important and implementation of tourism marketing tools for a country or a region is essential, because marketing can provide some information about that specific area to potential tourists and encouraged them to visit it (Laimer & Juergen, 2009). According to above contents about tourism marketing and its importance in development of this industry, it is necessary to refer a few examples that the researchers in this study have done. Thomas (2006) in his research achieved that With careful planning and execution of marketing management, It can be used to greatly increase tourism revenue and diversify foreign income. Zahrer (2009), in his study concluded that there are a significant relationship between the dimensions of policy and dimensions of marketing. And the major problems and barriers in the tourism industry are institutional and organizational barriers, existence of parallel organizations and lack of coordination among agencies involved in tourism in the country. Tosum and Jenkins (1996), have stated in their research that can be adopted distribution policies of tourist facilities at the national prevent irregular density and focus on specified tourists points. Focus on tourism planning at the national cannot act as an efficient. And it is better decentralized systems can be used. Williams (2006) concluded in his research the state historic sites and monuments, accommodation facilities and establishing marketing offices and information is an important factor in tourism development. Gilmore (2002) in his research concluded that protection, maintenance, repair, and pay more attention to tourism attractions, emphasis on the use of traditional architecture in the construction of tourist sites and appropriate infrastructure can lead to an increase in tourists and tourism development. Uzama (2008) showed in his research tourism development includes considering to all the individual ground, conducting investments, technology promotion and its orientation and changing in structure that are compatible with tourists needs. 3 Aims of study According to previous researches and importance of this subject, this study is designed to prove the following hypotheses: 112

3 1. Macroeconomic adjustment policies in country affect the tourism industry in Mazandaran province. 2. Develop infrastructure to be effective in development of the tourism industry in the province. 3. More attention to tourism attractions can be effective in tourism developing in Mazandaran. 4. Promotional activities can be effective in the development of the province's tourism industry. 5. Set of strategies based on the distribution of all the attractions in the province rather than focusing on a specific city in Tourism development is effective Distribution of all the attractions in the Mazandaran province with the approach in reducing seasonal tourism demand is effective Distribution of all the attractions in the Mazandaran province with the approach in increasing the length of stay of tourists is effective Distribution attractions all around the province approach is effective in increasing tourists satisfaction and loyalty Attraction distributed all over the province to increase tourism revenues in tourism development approach is effective. 4 Methodology In order to achieve the aims of the research hypotheses were developed. Current study is descriptive and also in terms of the objectives for this research, it is practical. Because the findings on the role of marketing in tourism development of Mazandaran state could be the basis for recommendations for policy makers in areas related to tourism. The sample of this research is included managers, experts and scholars of tourism in the province, which consists of 300 persons containing 18 directors, 84 tourism experts, 39 professors in the field of business administration and tourism, and 159 graduate students in the field of business administration and tourism. Sample of 300 was chosen because present study was designed to develop the tourism industry in Mazandaran province and all managers, specialists and experts in the field of tourism in this province is not much more. Due to the estimate sample size because of limited population table of Krejcie and Morgan have used. Thus, a sample size is 169 people. Stratified random sampling method is used in this study. The overall sample is divided according to the following table. Table 1: The research sample number classes Abundance The prevalence Sample 1 Managers in the field of tourism Experts in the field of tourism Master s in business administration and tourism MBA students and tourism Sum total In this study data were collected using a questionnaire consisting of 49 items with five alternative measures are collected and ranked as one of the options.1- Very low, 2- Low, 3- On average, 4- High 5- Is very high. In addition the Cronbach's alpha reliability coefficient is estimated to be Measuring instrument had with content validity. Data analysis in statistics was performed using the spss software. 5 Findings Hypotheses have been analyzed by designing a series of questions in the questionnaire. In calculating the amount of effects of each question in the questionnaire Cohen's interpretation of measurements obtained on the basis of a chi-square test was used. The criteria is 1% for at least, 9% for the average and 25% for high impact. For testing the hypotheses, the questions related to each individual and separate hypotheses were tested and after the question test, the effectiveness of each is calculated and compared using chi-square statistics. Effectiveness determines possibility of ranking and importance of each hypotheses question. The table below shows the results of the research questions. 113

4 Table 2: Factors related to the country's macro policies 1 Delegate some decision-making authority of Cultural Heritage and Tourism Organization 2 More support of government to the departments involved in tourism marketing research, timely data collection time, to meet the needs of tourists 3 Compilation of Outsourcing strategies of tourism activities 4 Proper planning for creating more interaction among tourism sub-systems (e.g. hotel, agency relationship, accommodation, etc.) 5 Providing the necessary infrastructure to creating a national commitment to develop tourism industry 6 Adoption policies based on the development of programs aimed at attracting tourists and Vision Table 3: Indicators related to infrastructure development Number Indicators Chi- square Significant Effect Priority 1 Development of residential centers and appropriate complexes in the road with support services (insurance, medical rescue, etc.) 2 Having convenient communication facilities at tourist sites 3 Development of appropriate road to ease the movement of tourists 4 Investment in productive industries to develop and complete equipment and tourist facilities Table 4: Indicators related to more attention to tourist attractions Number Indicators Chisquare Significant Effect Priority 1 Restoration and renovation of destroyed and partially eroded buildings and transforming them into centers for tourists visiting 2 Restoration and Renovation of the appearance of the old town and the emphasis on strengthening its traditional architecture 3 Spread of anthropology museum Development of culture arts forums in order to constructive programs with native culture 5 Joint production of art cultural works in cooperation with broadcasting center of neighboring provinces (such as theater, film, TV series, etc.) 6 Creating and expanding house of culture (library, art gallery, amphitheater, auditorium, classrooms, etc.) 7 Beautification of urban areas in developing resorts Prevent the destruction of agricultural and horticultural land to produce more attractive provincial products Table 5: Indicators related to enable commercial skills Number Indicators Chi- Significant Effect Priority square 1 Appropriate design of tourists visits patterns from province tourist attractions

5 2 Recognition and understanding of tourists' motivations, in order to meet their needs 3 Planning to introduce the cultural, natural, historical and...in national and international s 4 Through various activities related to provincial broadcasting Through written activities (brochures, posters, pictures and ) development of colleges and courses related to the field of tourism in the province 7 The counseling offices by relevant departments of tourism for information the tourists 8 Through the development of e-marketing Table 6: Indicators related to attractions distribution all around the province with the approach of reducing seasonal demand 1 Consider the annual tourists needs to meet their requirements 2 Adopted policies based on identification tourists targets from travelling 3 Production of concrete products to offer to tourists in order to associate positive memories of visiting the attractions to visit again 4 Adoption of flexible pricing policy in order to possibility of service offering with lower prices in the tourism off-season 5 Product development and packaging of goods Table 7: Indicators related to attractions distribution all around the provincial with the approach of Increase in length of tourists stay 1 Existence of skilled and active human capital in the field of tourism 2 Reduce travel and accommodation costs for tourists 3 Providing tourism services in the most attractive physical conditions for the qualitative value of tourists' satisfaction 4 Adopting strategies for easy access to market in order to greater tourists use shopping activities Providing tourism services according to standards Table 8: Indicators related to the distribution of all the attractions anywhere in the province with the approach to increase tourists' satisfaction and loyalty 1 Continuous monitoring to improve the quality of services to providing to tourists 2 Recognition of tourists needs through marketing activities in order to deliver services on time and in appropriate place 3 Involving local people in tourism activities through fair dividend, for good behavior toward tourists 4 Motivate employees in the tourism industry with

6 an emphasis on learning mechanisms. 5 Creating favorable conditions with respect to tourists 6 Creating a suitable environment for the tourists during the journey to fulfill religious affairs Table 9: Indicators related to attraction distribution all around the province with the approach to increase tourism revenues 1 Support and encouragement of private sector in the provision of tourism activities 2 Adoption incentive policies (tax breaks, subsidies) by the government to attract investors 3 Adoption policies to attract and retain entrepreneurs in the tourism industry 4 Formation database Formation Database to distribution data from market research to target customers 5 Higher prices in tourist season and lower prices in the off-season tourism 6 Creating marketing and tourism advertising related sectors such as information centers 7 Extreme attention to after-sales services to tourists According to the above results, the effects of all questions in questionnaires according to Cohen's criteria are more than 25%. And therefore all hypotheses are confirmed. Chisquare test results for all the hypotheses are shown in the following table: Table 10: Test of hypotheses Hypotheses Calculated chisquare Critical value Significant Error Result Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted As can be seen in the tables all factors are listed in this study are effective in promoting tourism industry in the Mazandaran province. In the following by using Friedman test this research is prioritized. The following tables showed the priority of five main hypotheses and four research sub-hypothesis using the Friedman test. Table 11: The main assumptions ratings Hypotheses Calculated chisquare Critical value Significant Error Result Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted 116

7 Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Hypothesis Hypothesis accepted Table 12: The rank of sub-hypotheses sub-hypotheses Average Priority The attractions distribution with the approach of reducing the seasonality of tourism demand The attractions distribution with the approach of tourists' satisfaction and loyalty The attractions distribution with the approach of increased length of stay of tourists The attractions distribution with the approach of increase tourism revenues Conclusions This study showed macro adjustment policies can be effective in promoting tourism industry in Mazandaran province. These findings are consistent with the research of Uzama (2008). Accordingly, the adoption of appropriate policies and adjustments in national policies (Revision of all legislation related to tourism), comprehensive model of policy-making in tourism destinations based on aspirations and needs of tourists can be achieved. With the revision of the laws relating to tourism policy, marketing of tourism can be bolder in policy and with allocating adequate funds and facilities the industry benefit from this industry. Other research has shown that infrastructure development can be effective in promoting tourism industry in Mazandaran province. This finding is consistent with the results of Gilmore (2002). Attraction existence is prerequisite for tourists traveling to a tourism destination. But easy access to the attractions is the important factors that attract tourists to the destinations. Existence of tourist Attractions without proper infrastructure cannot attract tourists and create their consent. One way to develop the tourism industry in the Mazandaran is having the varied and fascinating tourist attractions. Tourist attractions should meet needs, desires and expectations of tourists during their visit to the tourists. In other words, tourist attractions should make value and affect attitudes of tourists and create a kind of satisfactions. Not only continuously should prevent destruction of tourist Attractions, but tourist facilities should be added according to tourists preferences. This study showed that promotional activities can give better vision of the tourist areas. This finding is in line with the findings of Williams (2006). Introducing tourist attractions to tourists and trying to encourage, motivate and convince them in order to use this attraction are important elements in tourism. Role of advertising in the tourism industry is motivating motivation for tourists to visit tourist destinations and attractions and take advantage of the attractions and facilities in future. Tourism promotional activities should be commensurate with the type of tourism and culture. Therefore it requires specific strategies, proper management and professional personnel. Other findings showed that the management strategies based on distributing attractions all around the province can be effective in tourism industry development. This finding is in line with research of Tosum and Jenkins (1996). This way based on distribution of attractions, tourism planners and activists can pay attention to all the cities with tourist attractions instead of spending resources in one city. This leads to using potential and actual capacity in all cities of the province. This makes the tourists' 117

8 satisfaction and loyalty and length of stay of tourists in the province increase. With increasing length of tourists stay tourism revenue increases.in general we can say that the role of tourism and creating memories in the minds of tourists. If we want to improve the tourist attractions and, identify new attractions, offer to tourists as well, create the appropriate infrastructure the result is a positive position of tourism industry in the minds of tourists. With a positive position in the minds of tourists, tourism market share will increase and develop. References Brown, K.G. (2009), Island tourism marketing music and culture, International Journal of Culture Tourism and Hospitality, 3(1): Gilmore, J.H. (2002), Differencing hospitality cooperation s via experiences, cornell, hotel and restaurant, Quarterly, 4(3): Laimer, P. and Juergen, Weiss. (2009), Portfolio analysis as a strategic tool for tourism policy, Tourism Review, 64(1): Pender, L. (1999), Marketing management for travel and tourism, Stanley Thornes Publishers Ltd, Cheltenham. UK. Author description Shaw, G. and Williams, M.A. (2004), Tourism and tourism Space, London, SAGE Publications. Rhodri, T. and Huw, T. (2006), Micro politics and micro firms, Journal of Small Business and Enterprise Development, 13(1): Tosum, C. and Jenkins, L. (1996), Regional planning approach to tourism development: The case of Turkey, Tourism Management, 17(7): Uzama, A. (2008), Marketing Japans tourism to the world, Paper Presented at the Annual Conference of British Association of Japanese Studies in University of Manchester, April. Van B.M. (2007), Tourism industry, The Christchurch Press. Williams, A. (2006), Tourism hospitality marketing: fantasy, feeling and fun, International Journal of Contemporary Hospitality Management, 18(6): World Tourism Organization, (2000), Tourism 2020 Vision, 6, South Asia, 11. Xinyan, Z., Haiyan, S. and Huangb, G.Q. (2009), Tourism Supply Chain Management: A New Research Agenda, Tourism Management, 9: Zehrer, A. (2009), Service experience and service design, Managing Service Quality, 19(3): Romina Cheraghalizadeh is PhD student in business administration from Eastern Meditterean University, Northern Cyprus. She earned B.S. in Accounting from Allame Mohaddes Nouri Private Higher Education Institute, Iran, and Master in Accounting from Islamic Azad University of Bandar Abbas, Iran. Romina has done research projects with some companies, firms, research institutions and academies. Her research interests include reliability, optimization, Consumer relationship management and marketing management. 118