Research Article: 2022 Vol: 21 Issue: 4S
Budi Iriani Yudaningrum, Sekolah Tinggi Ilmu Ekonomi Koperasi Malang
Siti Kustinah, Universitas Jenderal Achmad Yani
Krisna Nugraha, Universitas Bina Nusantara
Dede Jaelani, Sekolah Tinggi Ilmu Ekonomi-STEMBI
Avid Leonardo Sari, UIN Sunan Gunung Djati
Irwandi, UIN Sunan Gunung Djati
Citation Information: Yudaningrum, B.I., Kustinah, S., Nugraha, K., Jaelani, D., Sari, A.L., & Irwandi. (2022). Implementation of Marketing Management Strategies for Tourism Destinations Areas to Increase Local Revenue in the Decentralization Era. Academy of Strategic Management Journal, 21(S4), 1-10.
The tourism industry is one of the world's largest industries outside the automotive and oil industries, which contribute revenue to a country and boost the economy by creating jobs. Therefore, in the era of decentralization, each region seeks to improve its tourism industry by making various tourism marketing strategies to increase local revenue and open up new employment opportunities for the community. To market tourism industry products, coordination is not only required, but good cooperation between organizations is required. Who is responsible for tourism development with all parties involved and related to tourism activities, it can be said that the success of a marketing program in the tourism sector is very much determined by the factor of standard views on the role of tourism for regional development. Therefore, before the marketing program is implemented, there must be a commitment from all related elements that tourism is an economic sector that is quick-yielding and is an agent of development. The region is increasing its local income experimental research methods, discussion, and literature in presenting research data related to this research.
Marketing Strategy, Tourism, Local Own Income, Economic Development, Tourist Destination Areas (TDA).
Tourism is one of the largest industries in the world besides the automotive and petroleum industries, which make a significant contribution to a country's economy (Kim et al., 2003; Crouch & Ritchie, 1999) both in terms of providing income from tourism activities and creating jobs for the community, which is in the vicinity of these tourist attractions (Asley et al., 2007). Therefore, every country is competing to improve its tourism industry by implementing various kinds of tourism marketing strategies to get significant income, ultimately affecting the economy and welfare of its people (Lee & Brahmasrene, 2013). Tourism plays a vital role in national development, namely as a foreign exchange earner, leveling and increasing job opportunities and community income (Yoety, 2008). Development taxes derived from the tourism sector have proven to be the main focus of local revenue (PAD). This encourages to open tourism areas to increase local revenue (Aulia, 2012). Thus, it is clear that tourism has links with the development of other sectors. Given that development is essentially the use of resources to improve welfare, tourism development is an effort to accelerate economic growth (Yakup, 2019). The development of new tourist objects and tourist attraction facilities for regencies/cities is significant, especially for areas that are still poor in tourist objects and tourist attraction facilities (Mantra, 1993). Indeed, the development of new tourism objects and facilities requires a relatively large amount of funds and a long-term investment that cannot bring in quite a large amount of local revenue (PAD) quickly.
However, it should be remembered that the functions of tourist objects and tourism facilities are extensive and complex for a regency/city, including 1) Providing public space services for reaction, entertainment, and leisure sports; 2) Providing employment opportunities and business opportunities in the tourism sector for communities around objects in various sectors, including trade, transportation, entertainment, services, telecommunications and so on; 3) As a place to develop education and knowledge or research, outbound and so on; 4) Cultivate good love for the country and regional pride. 5) As a place for fostering and developing regional cultural arts through competitions or art performances; 6) As an effort to add valuable regional assets for long-term investment as a source of PAD in the framework of regional autonomy; 7) As a source of PAD which is increasing every year; 8) Promising tourism sector tax revenue sources to include hotel tax, restaurant tax, entertainment tax and some (Zebua, 2006; Suardana, 2013).
Regional autonomy was implemented on January 1, 2001. For tourism ranks, regional autonomy planning means that the government will only act as a facilitator; the central government's task is limited to selling the image, while the one selling the tourism industry products is the local government (Nirwandar, 2011; Setiawan, 2016). With the enactment of the two Laws No. 32 of 2004 concerning Regional Government, the District and City Government systems are Autonomous Regions based on decentralization. In the general provisions of the Law, it is explained that an Autonomous Region, from now on referred to as a Region, is a legal community unit that has certain regional boundaries, has the authority to regulate and manage the interests of the local community according to their initiative based on the aspirations of the community in the ties of the Unitary State of the Republic of Indonesia and Law No. 33 of 2004 concerning the financial balance between the Central and Regional Governments, the Level II Regions have the authority, not only in tourism development planning but also in marketing and promotion planning that the central government has carried out.
The problem that arises is the unpreparedness of districts and cities to accept the delegation of authority, including in terms of:
1. Limited human resources (HR) in the tourism sector, which are expected to carry out strategic marketing planning, have been the responsibility of the central government.
2. There are no directives that can be guided on things that need to be prioritized by the Level II Region in tourism development after implementing regional autonomy.
3. What are the ideal forms, patterns of marketing, and promotion of tourist destination (TDA) after regional autonomy, especially in the face of the globalization era that has been enacted (Osman et al., 2020)?
The tourism sector must provide added value by getting a touch of science, technology, and information starting from market analysis. To analyze the tourism market, information is needed. This information processing is closely related to consumer behavior (Binkhorst & Den Dekker, 2009). From this model, it can be seen that the behavior of consumers (tourists) visiting the TDA will provide both positive and negative information about tourist objects in the Regency / City and people or things that influence tourists to see TDA. Understanding tourist behavior is hoped that the right strategy can be formulated to improve tourist attractiveness. The Regency / City Government will decide this overall marketing mix.
This research was conducted based on experimental methods, discussion, and literature. The activities began with observations and laws and regulations, books, and scientific works from experts related to Regional Original Income supported by the tourism sector (Yusuf, 2016). From these observations, it can be seen several things associated with this paper, namely in the form of conditions at the district/city level TDA. Interviews were also conducted with local government officials; this is intended to determine the tourism sector's marketing strategy, which is a source of local revenue (PAD).
1. Environmental Analysis
The first step of tourism marketing strategic planning is to analyze how a TDA is located. In this way, the relevant trends and their implications for TDA or companies engaged in the tourism industry can be found (Remedo, 2005). By conducting an environmental analysis, it is hoped that we can find out the opportunities (opportunities) and obstacles or threats that need to be anticipated. This is necessary because change often occurs so far that it can be said that strategic planning is how an organization or institution periodically knows or can assess its strengths, weaknesses, opportunities, threats if they occur. Changes in the business environment (Satria, 2018). The tourism business environment is quite complicated and frequently changes, therefore for analysis purposes; the environment can be divided into three components as follows:
• The macro-environment (the macro environment): this is an environment that can create opportunities and at the same time pose a threat to a TDA. For example, this environment consists of various elements such as social, political, economic, and demographic factors because these are all factors that cannot be easily controlled, let alone to be held.
• A competitive environment can occur when those who offer tour packages fight for the same and regular potential tourists and want to visit a certain TDA. Competition occurs because several tour operators tend to focus their attention on capturing the same target market. So, we need to be careful because there can be a power struggle; the strong will win.
• The market environment: what is meant by the market environment here consists of none other than groups of tourists, both actual and potential, expected to visit a certain TDA.
2. Resources analysis
The purpose of this analysis is none other than to find out and identify the primary resources, especially regarding the strengths and weaknesses of the organizations or institutions that are responsible for tourism development in the TDA. To find reliable resources, it is necessary to carry out an inventory and, if essential, by auditing existing resources to know which ones are reliable and weak or not profitable (Setiawan, 2015).
Regional Strategy Formulation
As we know, environmental analysis and resource analysis can provide background information and encouragement for tourism organizations that are responsible for tourism development in a TDA, especially for formulating its mission, objectives, and primary objectives.
In this case, if the environment changes, then the tourism organization in TDA should review or review the mission, goals, and objectives that have been set some time ago (Amerta, 2019). It is like a ship sailing everywhere without a target but not knowing which port to go to; over time; it can sink, disappear in the waves. It is difficult for us to judge the organization's performance because there is no standard of evaluation. The formulation of goals, basically the plan, is first to determine the mission, second to set long-term and short-term goals, third to set specific goals.
1. Formulate a mission statement development
The real mission is a statement that states what the functions, duties, and roles of the tourism sector are in economic life and development, especially TDA, which develops regional tourism as an industry (Ahmar et al., 2016). The mission statement for TDA will cover several essential aspects, such as the area's past experiences concerning tourism which may need to be considered, including the characteristics, characteristics, and history of the area, tourism organizations in the area that are successfully doing business in the area; a mission statement that is considered successful usually always try to realize the choices and hopes of the majority community in the area; the mission must be based on regional competition which is different from the others. For this reason, efforts should be made to concentrate on the strengths of the regions. For example, if the dominant tourism potential is the area's cultural heritage, then the mission must be given the main emphasis of that cultural heritage (Laka & Sasmito, 2019).
In this way, by maintaining the mission and personality unique to the region, the organization in the area will be accepted by all groups and society at large and the local government in particular. The mission statement's contents should include the following aspects: the tourism industry group can meet the needs and desires, and expectations of tourists; the economic impact of the tourism industry if it is developed in the region (Payangan, 2014).
2. Formulating a Vision (Regional Vision)
A vision is a statement like a TDA in a period in the future. To be exact, a picture is an ideal or a dream that wants a TDA to reach a peak of achievement to bring fragrance, not only to its TDA but also to the Indonesian people.
Goals must be distinguished from missions. Goals are also set to guide an organization or institution in achieving or carrying out its mission. In tourist destinations (TDA), targets can be interpreted as guidelines for all organizational lines and the tourism industry. Goals can provide an assessment standard for both the organization's and the TDA's organizational performance. There are two reasons that a TDA wants to achieve, namely:
a. TDA Goals (Corporate Goals)
Each tourism organization or institution should be able to formulate or formulate tourism development goals for the future and must always be consistent in its actions and not conflict with the mission that has been developed for the TDA. All of these are goals that the TDA wants to achieve with tourism development in the area (Payangan, 2014).
b. Marketing Goals
Marketing targets need to be set to support the achievement of TDA's targets because everything comes from tourist arrivals, so the marketing targets are more focused on the following questions: How much growth in tourist visits will be achieved in a particular year. What is the increase in market share for tourist groups? When entering a new market, there will be an increase in tourist visits in the future. The targets vary widely and are greatly influenced by the mission formulated. A TDA can change the target according to the conditions at that time; because of that, the target can be different from year to year, depending on its problem.
Goals are measurable and specific goals on a large scale, which can be seen in time and responsibility. Besides, the goal is considered capable and achievable at a particular time in the future through planned actions.
TDA Strategy Formulation (Regional Strategy Formulation)
1. Tourism Business Unit Analysis
TDA in investing in the tourism sector can use a two-way matrix: A two-way matrix in which products are positioned to reflect their participation and development in the market. This model was developed by a management consulting firm, The Bostom Consulting Group; A two-way matrix in which it is positioned to reflect the industry's attractiveness and the product itself—developed by the General Electric Company (Nicholls, 1995).
2. Regional growth strategy
When analyzing the tourism industry group and investment policies that have been completed, a TDA needs to consider two things, first, whether to develop existing tourist objects and attractions, second, to create entirely new tourist objects and interests. The two options mentioned above can provide four alternatives as described below: as shows in Table 1.
Regional Growth Strategy
|Existing Product||New Product|
The assumption is that a TDA wants to expand its market, hoping that more tourists come, stay longer, and spend more of their money. In other words, TDA intends to increase market share by offering existing products. The market penetration strategy is used if the TDA wants to increase its market from existing products, but it will only work if demand is not saturated. Then new products are marketed in addition to existing and new markets, while product diversification is carried out solely to meet newly developed needs (Aziri & Nedelea, 2013).
1. Target Marketing Strategy
Defining and analyzing the product market means nothing but knowing which tourists are most interested or interested in tourism products that have been available at a local tourism destination. This can be done in two ways, namely: a) Determining and formulating the market for the products available at the TDA and giving direction to the tourism industry groups to prepare themselves to adjust products, facilities, and services about their needs and wants; b) Selecting target markets that are expected to come to visit the TDA (Meidan, 1984).
2. Regional Positioning Strategy
Positioning can be interpreted as an attempt to place a TDA in people's memories (in people's minds). Two TDAs may offer the same product, but the perception of tourists will be different. From the perspective of tourists, the position is different. Positioning is nothing but a strategy used in the marketing mix to create differences, benefits, benefits that make tourists remember and remember a certain TDA (Frochot, 2003). How to position the TDA so that it will always be a proverb and widely known can be done by implementing a predetermined strategy by implementing a marketing mix, namely:
a. Product Strategy
If a tourism industry product is known to have a problem, several alternatives are needed to fix it so that the product can compete if offered to potential tourists. The strategy chosen will first be influenced by the nature of the problems facing the product itself. The issues found are analyzed, then conclusions and suggestions for improvements that need to be made are made, namely:
• Reducing maintenance and product development costs to compete with similar products offered by competitors.
• Improve product quality following tourists' needs and desires, while the relative price is not a problem as long as it is following customer expectations.
• Changing the marketing strategy by setting an appropriate target market, competitive pricing policies, the distribution system used, or the promotion strategy is chosen or may need to add public relations support.
• Reducing the number of existing products by choosing only good quality ones, while others postpone their bidding while repairs are made.
b. Price Strategy
This is the most sensitive variable and even a crisis factor in the marketing mix. For a tour package whose competitive price is determined mainly by round-trip transportation costs to the relevant TDA, hotel room rates where tourists will stay, local tour costs while at TDA, local tourism transportation costs, and the price of souvenir items as an element of charm. The latter. These prices need to be discussed between regional tourism organizations (OPD) and associations of similar companies such as the Indonesian hotel and restaurant association (PHRI) and the association of Indonesian travel agents (ASITA), the Indonesian civil carrier association (INACA), the local government. These prices must be analyzed and compared with the costs of other TDA tour packages considered by competitors.
c. Distribution Strategy (Place Strategy)
Seen from the point of view of a TDA, it is necessary to regulate and supervise forms of power and supervision that can affect the distribution channel of tourist visits to a TDA, resulting in implications for the marketing strategy undertaken. Ownership of distribution channels should not confuse (Pearce, 2009). A tour operator can exert control over all distribution channel activities through ownership of retail outlets and distribution channel organization. Various aspects need to be considered about distribution in an integrated manner, among others:
• Market coverage: Market coverage is defined as a guarantee or protection against the market. Generally, the travel agency network is able and can reach tourist market locations effectively. If a tourism industry group does not want to participate in the distribution channel network, other alternatives cannot break the chain.
• Image: Impression or image, in practice, is an element that is considered quite important because the selection of distribution channels is still taking into account the impression or image in offering tourism industry products. In this case, the idea can be developed through quality intermediaries because they are the ones who provide and sell tour packages in the market segments they define.
• Motivation: A fact of development of distribution channels for each channel's component, from producers to tourists, looking for different things to satisfy their own needs and wants.
d. Promotion Strategy
The steps that need to be taken in developing a promotion strategy for an area:
• Determine the target market that will be affected by the promotional activities to be carried out. Knowing the target market will be easier for us to choose the media, the language they will use, and the time they usually travel.
• Determine the eligibility of the promotion to be carried out. What types and kinds of advertisements will be carried out, and how much budget will be used for a specific target market.
• Arrange the composition of the elements of the marketing mix that will be used.
• Preparing the form of the ad design that will be used, starting from the size, color or black and white, the language used, the highlighted product, and the copy-writing that is on target.
• Formulating the forms of sales promotions that will be carried out.
• Planning for the manufacture of promotion materials, including the forms of hand-outs that will be given at every formal meeting to tourism officials from abroad and the printing of quality brochures.
• Plans and schedules to invite travel agents, tour operators, and travel writers abroad to directly see and witness TDA products that are ready to sell.
• Appoint a public relations officer to maintain or maintain the image of a TDA and at the same time to counter negative news for foreign consumption, especially the target market.
Some things that need to be considered in developing and evaluating the promotional mix include:
• Promotional activities should be carried out in careful coordination.
• Tourism organizations should always try their best to find the main themes to increase recognition and identification for any communication with the offer made by a TDA.
• The promotion that is carried out should show authenticity (authentic).
• Tourism organizations should always remember that an effective marketing program is only one effort in the marketing efforts of a TDA.
Regional Organizational Design
Gartner (1996) says that a healthy organizational structure should have the following characteristics and characteristics:
•; The organization must be able to act consistently with the planned strategic marketing plan.
• All activities carried out must be coordinated, achieve the desired strategic planning implementation, both for TDA and the tourism industry group.
• The organization should be structured so that the responsibility for achieving results in an implementation must be clear.
• The organization should be able to act flexibly and quickly adapt to the changes that occur.
Management Support System
An essential step in marketing strategy is to develop the systems needed by the organization to implement the strategy that will be used to achieve goals in an almost ever-changing and dynamic environment (Beer et al., 2005). Lashley (2008) states that marketing information, marketing systems, and marketing control or supervision systems are the three central management support systems required to implement or implement a marketing strategy successfully.
1. Regional Information System
An effective information system is an essential element in a marketing strategy. Information can be divided into four broader subsystems, namely: the internal reporting system (the internal report system), the intelligent marketing system, and the marketing research system ( the marketing research system), and the marketing analysis system (the analytical marketing system). A useful marketing information can be of high value for a tourism organization in the area, especially in its potential role as a guide and director for tourism industry group companies.
2. Regional Planning System
Tourism planning in an area or at a TDA is highly recommended to develop a modern planning system by setting targets each year and the expected achievements at the end of a period of long-term planning. This is where it is essential to formulate a Regional Tourism Development Master Plan (RIPPDA), especially those TDAs that do not yet have a RIPPDA, highly relevant to the desired strategic tourism marketing planning.
3. Local Evaluation System
Marketing strategic planning is a process that runs continuously and continuously in terms of implementing work plans, monitoring the results of work carried out, possible deviations, and efforts to solve problems that occur. Therefore, it is necessary to have a tourism organization in TDA form a monitoring system to run according to the set objectives. In this case, the most accurate tool used is a marketing audit, a periodic testing tool for the work done and its strategies.
The marketing strategy's objective is to enable the tourism industry in the region to achieve its goals in the ever-changing business environment. In practice, regional tourism organizations must have an organizational structure that has the foresight and is supported by professional human resources to carry out effective marketing strategies for their regions. Besides, the organization has the necessary systems to carry out or assist efforts in implementing marketing strategies to achieve the targets set in a certain period. Three basic things are considered essential to influence why an effective tourism organization is needed in an area: There is a spread of tourism traffic outward from the usual tourism centers, causing a lack of convenience and comfort for visiting tourists. To the regions, from a management point of view, there is a need for fundamental improvements by central coordination. With the increasing need for regional economic development, the tourism industry is expected to be a catalyst for growth and increase local revenue (PAD), requiring an organization that can be relied on to manage tourism as an industry. The increasing number of people traveling, both domestically and internationally, due to increased prosperity and longer holidays, requires a tourism organization that can improve services to tourists visiting an area.
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Received: 25-Jan-2022, Manuscript No. ASMJ-21-10460; Editor assigned: 27-Jan-2022; PreQC No. ASMJ-21-10460(PQ); Reviewed: 12-Feb-2022, QC No. ASMJ-21-10460; Revised: 20-Feb-2022, Manuscript No. ASMJ-21-10460(R); Published: 25-Feb-2022