COCAL 2016 Keynote Evolving and Protecting the Destination Brand

YOUR THOUGHTS ON LEADERSHIP IMPLICATIONS

EVOLVING AND PROTECTING THE DESTINATION BRAND

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TRANSFORMATIONAL OPPORTUNITIES IN DESTINATION MARKETING

Bruce MacMillan President/CEO Bandwidth

THANK-YOU FOR ASKING ME TO SPEAK. I KNOW I AM THE LAST SPEAKER AND ITS A VERY COMPLEX SUBJECT THAT TYPICALLY CREATES DIFFERENCES OF OPINIONS —> EVERYBODY HAS OPINIONS ON BRANDING SO HERE I STAND A BIT INTIMIDATED BY THE FACT THAT THERE I AM GOING TO TALK ABOUT DESTINATION BRANDING IN FRONT OF LATAM’S EXPERTS ON A FRIDAY AFTERNOON BEFORE HAPPY HOUR

GIVE OVERVIEW OF WHAT I AM GOING TO TALK ABOUT:

- TALK ABOUT WHAT A BRAND IS- TALK ABOUT WHAT DESTINATION BRANDING IS AND THE ROLE OF DMOS

I HOPE TO SHARE A PERSPECTIVE ON HOW DESTINATION BRANDING HAS EVOLVED AND WHERE ITS GOING WITH SOME EXAMPLES OF STRATEGIES THAT DMOS ARE SUCCESSFULLY USING TO BUILD THEIR DESTINATION BUSINESS PERFORMANCE AND ALSO THEIR VALUE IN THE COMMUNITY…THIS ISN’T GOING TO BE A HOW-TO BECAUSE DMOs CANNOT REALLY BUILD A BRAND BUT THEY CAN HELP GUIDE ITS EVOLUTION AND PROTECT IT, AND I WILL SHOW SOME EXAMPLES OF HOW DMOs ARE DOING JUST THAT…

THIS IS NOT GOING TO BE AN ADVERTSING CRITIQUE AND I’VE TRIED TO USE EXAMPLES THAT I HAVE HAD SOME ROLE IN DEVELOPING WHERE POSSIBLE TO PROTECT THE INNOCENT AND THE GUILTY…

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SO LETS GET OUR HAPPY HOUR SESSION ON BRANDING GOING SHALL WE…

HANDS-UP DOES ANYONE SEE A BUNCH OF BRANDS ON THIS SLIDE.

GOOD…THEN I’VE BROUGH THE RIGHT PRESENTATION…


BRAND

A unique promise kept over time.

— Brian Collins, Collins

A brand is a simple mental model that represents, collectively, what people feel, think and say about a product, service or company, and where meaning is established over time through consistent positive experiences and engagements.

— Elizabeth Talerman , Nucleus

FEELING ESTABLISHED THROUGH CONNECTIONS

ITS NOT A N AD CAMPAIGN, A LOGO OR A TAGLINE

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“” “OUR CUSTOMERS WANT TO KNOW WHERE APPLE FITS INTO

THEIR WORLD.”

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GREAT BRANDING INSPIRES

THE STORY

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STORIES ARE:

MEMORABLEIMPACTFUL

PERSONALY CONNECT

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STUDY RESULTS:

Only 5% of people remember sales pitch statistics…

63% of people remember sales pitch stories

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DESTINATION BRANDING

City branding refers to all the activities that are undergone with the purpose of turning a City from a location into a destination.

Successful branding can turn a city into a place where people want to live, work and visit.

— Robert Jones, Wolff Olins

DESTINATION BRANDING IS ALL ABOUT EXPERIENCES AND ACTIVITIES THAT TAKE PLACE IN A DESTINATION…THAT HELP THAT FEELING TO MANIFEST…WITH PEOPLE THAT LIVE IN THE DESTINATION AND ALSO THOSE THAT VISIT

THATS EVERYTHING FROM THE BUILDINGS WE CONSTRUCT TO THE ART WE CREATE TO THE FOOD WE EAT

AS DMOs WE TEND TO LOOK AT BRANDING AS THE MARKETING CAMPAIGNS WE CREATE AND THE MESSAGES WE BROADCAST.

AD AGENCIES AND COMMITTEES DON’T CREATE A DESTINATION BRAND…THE PEOPLE THAT LIVE THERE DO

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DESTINATION BRANDING IS ABOUT DEVELOPING AN AUTHENTIC AND

CONSISTENT EXPERIENCE THAT INSPIRES GREAT STORIES.

INSERT APPLE EXAMPLE SLIDE

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THE ROLE OF DESTINATION MARKETING IS TO CONNECT THE DESTINATION STORY

WITH THE VISITOR’S MINDSET.

WHAT DOES THAT MEAN TO A VISITOR?

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TODAY…WE ARE STRUGGLING WITH OUR ROLE IN DESTINATION BRANDING.

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THE EVOLUTION OF BRANDING AND DESTINATION MARKETING

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DESTINATION BRANDING APPROACH 1.0 (1900-1950)

Simple, central awareness message

Trusted information source

Exclusive proprietary knowledge

Broadcast communications

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EXPERIENCE

GOVT/BUSINESS

STORY

MESSAGE/INFORMATION AUDIENCE

BRANDING BY INFORMATION BROADCAST

BRAND CONSTRUCT

DESTINATION BRANDING APPROACH 1.0 (1900-1950)

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DESTINATION BRANDING APPROACH 2.0 (1960 —> )

Logos and taglines

Media-centric

Channel control

Information publishing

Frequency and reach

INSERT TRAVEL EXPLOSION SLIDE

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INFORMATIONEXPERIENCE

GOVT/BUSINESS

STORY

DMO BRAND MARKETING

MESSENGERVISITOR1

MEDIA CHANNEL MESSAGES

DMO AS DESTINATION BRAND MESSENGER THROUGH CHANNEL CONTROL

AND INTERMEDIARY MANAGEMENT

TRANSACTIONS FEEDBACK

BRAND CONSTRUCT

VISITOR2

VISITOR3


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THE BRAND WAS WHAT WE SAID IT WAS

WE TRIED TO MANAGE THE BRAND THROUGH ADVERTISING

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CUSTOMERS TAKE CONTROL

Universal connectivity to information

Overload of choices and messages

Local business goes global

Rise of User Generated Content/social networks.

Customers want direct connections to the brand

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GOVT/BUSINESS

STORY

VISITOR2



BRAND CONSTRUCT

VISITOR1

VISITOR3


INFORMATION

INFORMATION

MANAGING THE BRAND THROUGH MESSAGING ALONE HAS BECOME COMPLEX AND INEFFECTIVE.

DMO BRAND MARKETING

MESSENGER

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THE DMO CAN NO LONGER MANAGE THE BRAND THROUGH ADVERTISING AND

TRADITIONAL MARKETING

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“Conventions in CITY DESTINATION are more than meetings. They’re opportunities to connect with innovative chefs, gallery owners in the Arts District farmers at the Market and brewers at the Trail and more. And the reimagined convention center is at the heart of it all. With more space and an open, modern design ready in 2017, attendees will love the location and find excitement just steps away.”

“With 1.3 million sq ft of meeting space, we have room for large or small groups. We’re accessible, welcoming over 50 international flights every day. Meet in a city with a dynamic technology sector and a deep entrepreneurial spirit.”

— Real 2016 destination ad copy

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THE DMO CAN NO LONGER MANAGE THE BRAND THROUGH ADVERTISING AND


OUR INDUSTRY LOST ITS ABILITY TO TELL GREAT BRAND STORIES

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SOURCE

SOURCE: Lab42

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31.7%

11.9%

14.9%

32.7%

1.0%

6.9%

1.0%1.9%

12.TheLEASTEFFECTIVEdes9na9onmarke9ngengagementtac9ctogetyourinterest/aGen9on

PRINTADVERTISING

DIGITALADVERTISING(WEBORSOCIALMEDIA)EMAILMARKETING

PHONECALLFROMADMOREPRESENTATIVE

NETWORKINGEVENT

F2FMEETINGORTRADESHOWAPPOINTMENT

PROPRIETARYEDUCATIONAL/RESEARCHCONTENTSITEINSPECTION/FAM

Source:FULCRUM/KlimanGroup2016

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THE DMO CAN NO LONGER MANAGE THE BRAND THROUGH ADVERTING AND


OUR INDUSTRY LOST ITS ABILITY TO TELL GREAT BRAND STORIES

LOSS OF TRUST

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WHAT DO WE DO NOW?AH CHINGAUS!

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WHAT DO WE DO NOW?

A Strategic Road map for the NEXT Generation of Global Destination Marketing

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Relative Importance

Perceived Performance

1st

2nd

3rd

4th

1st

4th

2nd

7th

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The future of DMO leadership will be broadened to include destination brand management and destination development. DMOs will need to rethink roles, competencies and relationships, transforming themselves to destination managers in addition to that of destination marketers.

DestinationNEXT Phase I Report — July 2014

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DMOs should forge expanded relationships with its community’s economic development and planning stakeholders, collaborating on common objectives and initiatives.

DestinationNEXT Phase I Report — July 2014

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QUE BUENO!

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DESTINATION NEXT TRANSFORMATIONAL OPPORTUNITY EMERGES…

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DMOs EVOLVE TO BECOME A BRAND ADVOCATE AND DESTINATION MANAGER

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WHAT DOES THAT LOOK LIKE?

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GOVT/BUSINESS

STORY

DMO BRAND MARKETING

MESSENGERVISITOR1


DMO AS DESTINATION BRAND STORY-SELLER THROUGH CHANNEL

INTERMEDIARY MANAGEMENT


BRAND CONSTRUCT

VISITOR2

VISITOR3

DESTINATION BRANDING APPROACH 2.0

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EXPERIENCE

GOVT/BUSINESS/

PUBLIC

STORY

NEW BRAND CONSTRUCTTRANSACTIONS

FEEDBACK

DMO ASSUMES ROLE AS DESTINATION EXPERIENCE ADVOCATE AND PRODUCT DEVELOPMENT COLLABORATOR THROUGH ONGOING STAKEHOLDER ENGAGEMENT

MARKETING

MARKETING

VISITOR2

VISITOR1

VISITOR3

NEW STORIES

NEW EXPERIENCES

NEW PARTNERS AND

POLICIES

DMO BRAND ADVOCATE

DESTINATION EXPERIENCE

MARKETING

DESTINATION NEXT TRANSFORMATIONAL OPPORTUNITY

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BENEFITS OF BRAND ADVOCATE ROLE

Expanded focus on the overall destination experience helps build business

sustainability

Consistent and integrated projection of the destination experience and brand essence

DMO positioned as leader in bringing community and marketplace stakeholders

together

Expanded community visibility for DMO’s community value contributions

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CHALLENGES OF BRAND ADVOCATE ROLE

Expanded scope of focus in the community

Requires non-traditional DMO skill sets

Long-term performance measurement horizon

Non-transactional success measures

Product development could require additional business risk

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THE DMOs FUTURE ROLE IN DESTINATION BRANDING WILL BE AS MUCH ABOUT CREATING THE STORY AS TELLING IT.

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THE FUTURE IS HERE

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BEST PRACTICES

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TOP DESTINATION NEXT ACTIVATION STRATEGIES

• PLAY CENTRAL ROLE IN ADVOCACY AND PROTECTION FOR THE DESTINATION

• CONNECT VISITOR EXPERIENCE WITH QUALITY OF LIFE OF RESIDENTS

• GREATER ROLE AS CULTURAL CHAMPION OF DESTINATION • PARTICIPATE IN BUILDING NEW VISITOR EXPERIENCES • BALANCE NEED FOR GROWTH WITH RESPONSIBLE AND

SUSTAINABLE DEVELOPMENT • PLAY A GREATER ROLE IN POLICY AND PRODUCT DEVELOPMENT • MY NATIONAL TOURISM ORGANIZATION WILL ENCOURAGE LOCAL

BRANDS

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BRUSSELS Brand Advocacy

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BRUSSELS Brand Advocacy

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NEW ORLEANS Connecting Tourism to Community Quality of Life

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CANADA Community Engagement with the Brand

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AUSTRALIA Activating Visitor Story-Telling

More than 330,000 people from 196 countries around the world expressed interest in the six dream jobs with more than 40,000 video entries being uploaded.

45% increase in web visits and A$200M in publicity

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GUAM Destination Sustainability

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CLEVELAND Product Development/Brand Alignment

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GRAPEVINE Product Development

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BEVERLY HILLS Thought-Leadership

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VANCOUVER Responsible and Sustainable Development

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SYDNEY Brand Integration with Economic Development

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EVOLVING AND PROTECTING THE DESTINATION BRAND

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TRANSFORMATIONAL OPPORTUNITIES IN DESTINATION MARKETING

Bruce MacMillan President/CEO Bandwidth