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DMO Final Exam Review Questions with Correct Answers

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DMO Final Exam Review Questions with Correct Answers Describe the elements of the basic model of communications. - Answers The DMO is the sender, the audience is the receiver. DMO is encoding the message & medium to the audience, which is decoding the message/medium. Noise on the Sender/DMO side is competition, noise on the audience/receiver side is distractions & lack of interest. Define IMC & explain the benefits that DMOs derive by following this approach. - Answers Definition: the coordination & integration of all of a DMO's external communications & promotions to increase their effectiveness & consistency. Benefits: - greater consistency in communication messages - added impact as messages are repeated: if the same or a similar message is passed through multiple channels, there is a much greater probability the message will get to the receiver successfully. - Reflects different customer buying stages: Audiences have people spread across all the buying-process stages, it is better for the DMO to be simultaneously using all of the IMC components. - More effectively puts across positioning and branding: using all of the IMC components in a consistent way more convincingly communicates the destination's chosen positioning and branding approach. - Better accommodates different consumer learning styles: When used together IMC components accommodate all different consumer learning styles. - Components complement and support each other: The weakness of one IMC component is compensated for by using other IMC components. Identify, elaborate, and give examples of this major component of IMC: Advertising - Answers Definition: the placement of persuasive messages by a DMO in any of the mass media to remind, inform, or persuade potential pleasure travelers, business event planners, travel trade companies, & others to consider the destination for future travel Importance: -for some DMOs, occupies a significant share of total budget for marketing & promo - can be instrumental in building destination awareness in early stages of destination life cycle - can be crucial in more mature destinations facing intense competition - in intermediate stages, may not be as important as other IMC components Example: Colorado in 1992 was ranked the #1 ski resort and #1 summer resort, domestic market growing 50% annually, Colorado Tourism board dedicated budget of $12 million for tourism promo. Next year, promo. budget cut COMPLETELY--lost 30% domestic market share 2 years later Annual loss of $2.4 billion in tourism revenue by late 90's; 2000 +$5 million promo fund, 2003 one-time infusion of $9 million for tourism promo. By 2004, visitor arrivals increased by 5.3 million trips (17% of total) & $1.4 billion increase in visitor spending Identify, elaborate, and give examples of this major component of IMC: Sales Promotion & Merchandising - Answers Definition of sales promotion: approaches used by DMOs to give short-term inducements for people to visit & special communication methods/techniques not included in other promotional components. Definition of Merchandising: retail merchandising materials & point-of-purchase advertising done by DMOs in places such as visitor information centers, transportation terminals, attractions, & accommodations. Roles: - Getting people to come to the destination for the first time. - Increasing off-peak demand. - Increasing demand in periods that coincide w/ major events, vacations, or special occasions. - Encouraging travel trade intermediaries to make a special effort to sell the destination. - Helping sales staff get business from prospects. - Facilitating travel trade intermediary marketing. Special communication methods: specialty ads, sampling, travel shows & exhibits, merch. materials, educational seminars, AV materials Special Offers: coupons, price-offs/sales, contests, sweepstakes, games, travel trade

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DMO Final Exam Review Questions with Correct Answers

Describe the elements of the basic model of communications. - Answers The DMO is the sender,
the audience is the receiver. DMO is encoding the message & medium to the audience, which is
decoding the message/medium. Noise on the Sender/DMO side is competition, noise on the
audience/receiver side is distractions & lack of interest.

Define IMC & explain the benefits that DMOs derive by following this approach. - Answers
Definition: the coordination & integration of all of a DMO's external communications &
promotions to increase their effectiveness & consistency.

Benefits: - greater consistency in communication messages

- added impact as messages are repeated: if the same or a similar message is passed through
multiple channels, there is a much greater probability the message will get to the receiver
successfully.

- Reflects different customer buying stages: Audiences have people spread across all the buying
-process stages, it is better for the DMO to be simultaneously using all of the IMC components.

- More effectively puts across positioning and branding: using all of the IMC components in a
consistent way more convincingly communicates the destination's chosen positioning and
branding approach.

- Better accommodates different consumer learning styles: When used together IMC
components accommodate all different consumer learning styles.

- Components complement and support each other: The weakness of one IMC component is
compensated for by using other IMC components.

Identify, elaborate, and give examples of this major component of IMC: Advertising - Answers
Definition: the placement of persuasive messages by a DMO in any of the mass media to
remind, inform, or persuade potential pleasure travelers, business event planners, travel trade
companies, & others to consider the destination for future travel

Importance: -for some DMOs, occupies a significant share of total budget for marketing &
promo

- can be instrumental in building destination awareness in early stages of destination life cycle

- can be crucial in more mature destinations facing intense competition

- in intermediate stages, may not be as important as other IMC components

Example: Colorado in 1992 was ranked the #1 ski resort and #1 summer resort, domestic
market growing 50% annually, Colorado Tourism board dedicated budget of $12 million for
tourism promo.

,Next year, promo. budget cut COMPLETELY--lost 30% domestic market share 2 years later

Annual loss of $2.4 billion in tourism revenue by late 90's; 2000 +$5 million promo fund, 2003
one-time infusion of $9 million for tourism promo. By 2004, visitor arrivals increased by 5.3
million trips (17% of total) & $1.4 billion increase in visitor spending

Identify, elaborate, and give examples of this major component of IMC: Sales Promotion &
Merchandising - Answers Definition of sales promotion: approaches used by DMOs to give short
-term inducements for people to visit & special communication methods/techniques not
included in other promotional components.

Definition of Merchandising: retail merchandising materials & point-of-purchase advertising
done by DMOs in places such as visitor information centers, transportation terminals,
attractions, & accommodations.

Roles: - Getting people to come to the destination for the first time.

- Increasing off-peak demand.

- Increasing demand in periods that coincide w/ major events, vacations, or special occasions.

- Encouraging travel trade intermediaries to make a special effort to sell the destination.

- Helping sales staff get business from prospects.

- Facilitating travel trade intermediary marketing.

Special communication methods: specialty ads, sampling, travel shows & exhibits, merch.
materials, educational seminars, AV materials

Special Offers: coupons, price-offs/sales, contests, sweepstakes, games, travel trade
inducements, recognition programs, continuity programs

Identify, elaborate, and give examples of this major component of IMC: Sales (personal selling) -
Answers Definition: involves communication between DMO sales staff & prospective customers.
These communications can be face-to-face, by telephone or SMS, e-mail, or an instant
messaging program, or through web services. Very important for certain DMOs w/ strong focus
on attracting business events

Roles: - Promoting to travel trade, associations, corporation, & other groups.

- Providing detailed and up-to-date information to event planners and travel trade.

- Maintaining a personal relationship with key clients.

- Identifying decision-makers, decision processes, & qualified buyers.

- Gathering information on competitors.

, Identify, elaborate, and give examples of this major component of IMC: PR & Publicity - Answers
Definition: all the programs & activities that a DMO initiates or participates in w/ the purpose of
maintaining or improving its relations w/ other orgs. & individuals. Publicity is a PR technique
involving non-paid communications of info. about the destination of a DMO. Internal PR includes
communications w/ local tourism sector stakeholders, community residents, and non-tourism
sector stakeholders

Internal publics: board members, members, staff & staff members' families, unions, tourism
sector stakeholders, other stakeholders, local media

External publics: customers & potential customers, tourism sector companies, media, other
DMOs, government agencies, tourism educational institutions

Roles: - Maintaining a positive public presence: the DMO definitely wants to ensure that the
destination has a positive image externally, & w/in the destination as well.

- Enhancing effectiveness of other IMC components: getting publicity enhances & extends the
effects of other IMC components.

- Handling negative publicity: a destination can receive negative publicity for a number of
reasons, including natural disasters, civil unrest, acts of terrorism, outbreaks of serious
illnesses, etc.

Explain concept of crowdsourcing & the different ways that this concept can be applied in
destination IMCs - Answers Definition: to outsource a task to a group (crowd) of people; in this
case, to individuals outside of the DMO.

Example: DMO invites local people to upload written materials & photos of their favorite places,
experiences, & activities in the destination (e.g. "There's nothing like Australia").

- Another way is to invite tourists to submit photos & stories of their trips to the destination &
award prizes for the best ones

Elaborate on the relationship between movies & film & dest. marketing/development - Answers -
People like to visit the places where famous movies & films were shot.

- Some destinations have recognized this phenomenon & use movies/films as part of their
promotions.

- Other destinations have gone even further & put tourism development/marketing together with
film development & marketing, knowing the synergies that can occur between the two.

Define digital marketing and explain its growing importance to DMOs. - Answers Definition: The
use of digital-format information & communication technologies to liaise w/ various audiences,
to provide destination information, & to promote the destination.

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