Communication Strategies

Voyages Hotels and Resorts, an Australian travel company aims to expand its market into Asia and for this purpose the company seeks advice on improving inter-cultural communication skills of their managers. The report provides a comprehensive review of the needs and significance of understanding the basic features of a new culture in order to enhance service efficiency and then goes on to provide a set of recommendations on how to improve the intercultural communication skills.
Globalization of the economies has made a big impact on the way businesses and commercial ventures are planning their strategies for increased market shares. This is increasingly felt in the way industries are re-engineering marketing and business strategies to accommodate to a more globalised and diverse operating environment. Tourism industry has been attracting increased revenues across the globe with number of international travellers increasing from 25 million in the year 1950 to 842 million in the year 2006 (Hudson, 2008). The increasing tourism market has served as an important growth indicator of countries and there is growing focus on enhancing the services offered to the customers for increased satisfaction and increased value for money. One of the most important indicators of efficient tourism marketing is increased customer satisfaction since customers drive demand and revenues in the industry. The globalization of markets has exposed new challenges to the tourism operators in the form of cultural and political barriers in diverse geographic areas. Tourism marketing hence has gained new perspectives in the light of globalization of services and reducing boundaries between different cultures and regions.

The report provides a comprehensive analysis of tourism marketing principles and its application in the new globalised market environment. The emphasis of the report is on improving intercultural communication and how it can be applied in the new geographic markets. The marketing of tourism services involves a lot of complexity owing to the influence of regional factors that create barriers in delivering services matching the customer expectations. So while on the one hand globalization has opened new opportunities for business enterprises, it has also created complexities and exposed organizations to new challenges in terms of cultural barriers and effective collaboration skills.

Literature Review
Travel market is perceived as a market that reflects the demands of consumers for a very wide range of travel and hospitality products (Hudson, 2008). Travel and tourism organizations are part of the service industry that caters to niche clients who are willing to pay the price to avail the services. There are number of aspects that differentiate the marketing theories applied in this sector from conventional marketing practices. The basics of marketing principles may remain the same but the approach to reach the customers of this sector makes it imperative to understand the market environment within which the travel organizations operate. A McKinsey study recently claimed that companies that emerged successfully out of recessions did so by cultivating loyal customers through tough times (Nigam, 2009). Customers are the key to successful business operations and managerial strategies should focus the service packages keeping in mind the needs and expectations of the targeted customers. The primary requisite of any service company is to provide the customers with what they want and to do it better than their competitors in order to ensure customer return and loyalty (Dale  Oliver, 2005).

Marketing in the tourism sector assumes increased significance owing to the fact that it is the principal management influence that can be brought to bear on the size and behaviour of this major global market (Hudson, 2008).  It is easier to quantify the success of goods and physical products but the success rate in case of marketing of services is not easily discernible. This is primarily due to the intangibility and perishability feature of services that make it difficult to evaluate the impact on customers. Additionally the services cannot be separated from the customers. This is evident in the service of airlines that cannot be completed without the presence of passengers. Moreover, the level of service offered to customers differs on a regular basis owing to the influences of human behaviour and interaction pattern. One of the major reasons behind consumer dissatisfaction is the lack of consistency in the level or nature of service provided. (Hudson, 2008)

Marketing of tourism services in a global context involves a deeper understanding of cultural environment within which they operate. This is vital in view of the consumer attitudes, tastes, preference and habits that have a direct relation to the level of satisfaction provided. Managers in the tourism industry should have an improved understanding of the markets that they operate to assist in the process of strategy planning and marketing decision making. Culture differences often lead to mis-understandings, conflicts and ineffective comprehension of the messages being conveyed. Marketing of tourism services begins with a basic understanding of the customer needs, expectations, and preferences that drive demand for specific destinations. These parameters vary from one country to another and implementation of similar strategies in different geographic markets may not produce similar results. This is evident from the example of Disney Corporation when they implemented the American model in the French country. The Disney Park in France was based on the American model but it did not find many takers in the new market owing to increased difference in cultural practices, consumer tastes and customs. The result was a big financial loss to the company in addition to loss of image in the new markets. Cross cultural business strategies should focus on matching the local flavours and providing the consumers with their desired expectations. Marketing communication is one of the basic ingredients of a successful cross-cultural service promotion. (Buhalis  Costa, 2007)

One of the basic requirements of the global business environment is the innovative application of technology to communicate and collaborate with individuals and enterprises from all corners of the globe. This involves a basic understanding and knowledge of local culture and social customs to facilitate effective communication between individuals. Service marketing providers extending their operations beyond domestic market regions should have a deeper understanding of the habits, tastes, preference and practices. A major aspect of intercultural communication in international business is that people who were socialized in different cultures come together for the purpose of identifying shared goals and working towards their accomplishment (Brislin  Nab, 2007). It relates to strategies that can be applied while discussing business terms with an entrepreneur in another country in context of culturally influenced preferences for how best to interact, how best to communicate, and how best to follow through on business agreements (Brislin  Nab, 2007).

The prime barrier in communicating with individuals across different culture is language that comprises of spoken, written, and sign or body language. This forms the primary medium of information exchange and lack of understanding or knowledge in this aspect can lead to serious misunderstandings or misinterpretations. Body language and gestures convey diverse meanings to people from diverse cultures and this can often lead to confusion or conflicts. For these intercultural businesses to breach the cultural barriers encountered when stepping into foreign grounds it is vital for them to fully understand the cultural differences that exist so as to prevent damaging business relations due to intercultural communication gaps (Kwintessential, 2009).

Training managers and employees in the cross cultural communication and increasing awareness on cultural context is highly imperative in view of the increasing business opportunities in the global markets. Most organizations have a well planned training strategy for their employees to acclimatise the workforce with the new market environment and socio-cultural barriers that it presents. Communication skills and strategies have made a distinctive progress in the past few decades. The process of communication has however evolved over the ages to encompass a host of technology tools and applications that have provided a new dimension to the way people communicate with each other. The emerging collaborative tools include online web forums, social networking applications, blogs and conferencing technologies that enable individuals to share information and ideas for promoting efficiency at work. The use of social networking tools by global enterprises has re-defined conventional managerial strategies to include innovative practices at work.

Analysis Discussion and Recommendations
Technology has proved to be a great enabler of change and this is evident in the way it has manifested itself in all sectors of business and commerce and individual spaces. The advent of the Internet has triggered an increase in market opportunities and new business models that have revolutionized the face of management strategies and practices. One of the major contributors to the increasing globalization concept is the communications technology that has opened new vistas of collaboration between individuals and business enterprises. Business enterprises are adopting new and innovative technology and tools for the purpose of improved communications and collaboration between the customers and its associates. The Internet has assumed great significance in improved accessibility and communication revealing a new dimension to sharing and disseminating information across the globe. It has changed the way people perceive markets and communicate with their potential clients or suppliers. The global reach of the Internet has provided businesses with increased scope of connectivity, interactivity, and information transfer between remote corners of the globe. The time and cost advantage provided by this technology has led to optimum utilization of business resources and effective performance standards.

Organizations that provide a positive work climate through management policies that encourage employee talent and skills development are found to be better adjusted to face operational challenges and meet increased employee satisfaction levels. IBM is one institution that has always emphasized the importance of employee training in meeting the organizational goals and performance targets. The company has a comprehensive staff training and development practice across all levels of management and executives. Implementing an approach to employee development that adapts and evolves with the changing business landscape has played a key role in supporting IBMs growth and transformation over the years (Dominic Tong, General Manager, IBM ChinaHong Kong, 2008).

The organizations to cater to the changing market environment are increasingly focusing on quality, value, relationships and customer satisfaction to gain competitive advantage in the industry (Loudon et al., 2005). Among the strategies adopted by the marketing managers to reach their customers the most prominent is direct marketing of goods and services. Internet marketing too has proved highly effective in making use of technology to promote organizational sales and revenues.

In todays marketing environment, there are numerous and uncountable brands endorsing their products and services. Integrated marketing communications is a strategy that can be effectively used by both B2B and B2C businesses to optimize the promotion and advertising campaigns run for a specific brand or service. The overall objective of this strategy is to project the brand image to the receiver of messages from the company. Whether the consumer is viewing an advertisement or talking to a call centre that is handling the companys customer helpline, or whether it is the manner in which complaints are handled and service is recovered, there should be little doubt that the communications come from the same company (Mudie  Pirrie, 2006). Communicating to the customer about what to expect from the services delivered by the company is vital since it helps in establishing realistic expectations. This makes it easier for the company to deliver and meet to the expected standards.

Customers always appreciate the personal touch that results in building strong relationships. The net today provides numerous effective communication channels that are being used to keep the customer happy. Web based customer relationship management has effectively integrated all modes of communication  web, email, chat, video, voice to serve and support the customers to enhance the total customer experience.
Businesses operate through continuous strategic planning process of setting goals, assessing performance, taking corrective action, and monitoring results to ensure improved performance and increased productivity. Management must detect problems and identify new opportunities through an effective control and in-depth knowledge of the business environment.

Market research is a vital tool used by managers to understand the market dynamics and economic forces driving consumer trends and expectations. Market research provides the managers with an in-depth knowledge and insight into the opportunities and threats existing in the operating market environment and the industry competitive forces that have a significant impact on market share and potentials. The market research process helps the companies to identify potential markets and provide the required data based on which marketing strategies are formulated. The process of market research provides a comprehensive report and analysis on the consumer preference, choice, alternatives and substitutes available in the market and how this information can be used strategically to gain competitive edge in the market. It provides the managers with vital information on the industry trends and potentials, the market conditions, competitive structure, regulative practices and distribution logistics.

Once the business situation is analyzed in terms of market, technology, human resources, and other controlling factors the strategic planning process needs to define the alternatives open to the business. An analysis of each alternative reveals the feasibility in terms of cost, finance, market share, revenue forecasts, and profitability potential. The strategic plans cater to financial objectives that relate to improving the financial performance of a business and strategic objectives that translate to better competitiveness and stronger market position over a longer period of time.

New markets offer new opportunities to businesses and managers are adopting innovative strategies to widen their access and market reach. These business strategies play an important role in deciding the market share and product positioning in new markets. Extensive market research and analysis of economic forces driving the market in these regions are much required in formulating effective business strategies and establishing market presence.

The travel industry too has undergone significant changes with companies utilizing online platform to reach out to millions of customers at a given point of time. E-commerce has emerged as the new marketplace where travel package sellers provide prompt service to customers looking for holiday packages, flight ticket bookings, hotel reservations and sight seeing trips. The online travel industry has equipped the customers with access to vast information related to travel plans, cost of tickets, options and alternatives available to minimize costs and make more effective travel plans. This proves not only convenient to the customers allowing them to make better decisions but also saves a lot of time in commuting to the local travel agent or making reservations on phone. The flexibility offered by this mode of transaction has induced most people to venture online to book flights and make travel plans.

The online travel market demand is increasing in emerging Asian economies and most reputed travel brands are establishing their presence in these countries to tap the enormous market potential. The United States market has the maximum number of users online to meet their travel demands. Online ticket bookings and travel related purchases are one of the primary contributors to e-commerce revenue. The markets of United States and Europe are more matured compared to the emerging Asian markets that hold a lot of promise for the industry in the future years. Online travel market in Asia is gaining prominence owing to the increasing number of Internet users and growing accessibility to broadband connections that enable the consumers to access extensive information and make transactions online.