THE CHALLENGES AND OPPORTUNITIES POSED BY SOCIAL MEDIA FOR DESTINATION Research Paper

THE CHALLENGES AND OPPORTUNITIES POSED BY SOCIAL MEDIA FOR DESTINATION MARKETING - Research Paper Example This new and renewed focus on the tourism therefore also requires a new and fresh approach for tourism destination marketing as an essential and critical component of the overall process. This has also required the marketers to take a very strategic approach towards the destination marketing and design and develop their strategies in such a manner which can optimize the use of the resource. Social media has recently emerged as one of the key trends in the information technology market wherein connecting people through web has become a new norm. Social media however, also presented an opportunity for marketing by using the social networking websites such as Facebook and Twitter. This paper will present a review of how the social media can actually have an impact on the destination marketing, what challenges and opportunities it presents and how marketers can actually take advantage of this new and emerging trend in the market. Destination Marketing Destination marketing is a relativel y new and unique concept outlining as to how the destination marketers can actually take a more robust and strategic view of the destination marketing and use it for strategic purposes. This view is considered as in-line with the mainstream marketing which is managed as a strategic business planning tool to achieve the overall business objectives. Destination marketing therefore is also viewed as a market oriented strategic approach to develop the locations in such a manner that they take into consideration the overall interests of the customers while at the same time balancing the requirements and interests of other stakeholder groups in the community also. (Blumberg, 2005) This approach to destination marketing therefore views this as a very conscious and thoughtful process which requires a commitment of time and resources to develop and build the locations in such a manner that they can reflect the overall market sentiments. What is however, different for the destination marketer s is their inability to control the product because of the overall nature of the product they are marketing. This therefore also offers them an insight into how to tap the target market in order to ensure that the location attracts the people who are willing to visit it and spend there. This change or shift from the traditional marketing concepts where more focus is being given on the product, destination marketers will have to face a dual challenge of balancing the act between the product and the target market for the product. The focus on the target market is also based on the assumption that different individuals prefer different locations due to different reasons. In order to tap into the different niches which the differences in the choices of the consumers can offer therefore require an strong focus on the target market and how it behave and react to different changes taking place in the marketing. Since in destination marketing, marketers often do not control the product dire ctly therefore this leaves a little room for them to actually modify or change the product but rather use its existing attributes to attract the target market. As such marketers therefore often tend to create a kind of experience which can develop the customer satisfaction and can generate the repeat customers. This is because of the fact that the destinations offer different and unique experiences and each one have their own strengths and

Fianance enterpreship Essay Example | Topics and Well Written Essays - 3000 words

Fianance enterpreship - Essay Example The financial manager of the company tries to strike a balance between debt and equity with the aim of maximization of firm value and minimization of cost. It has been seen that the managers are biased in favour of debt owing to the tax benefits associated with debt financing. The interest paid on borrowings is a tax deductible expense. This is the reason the managers prefer debt over equity as it reduces the outflow of the business. However, an excessive reliance on debt is not in the financial interest of the company. An ideal mix of debt and equity is essential. There are various theories on capital structure such as pecking order theory, signalling theory, agency theory, trade-off theory, signalling theory etc. As per the pecking order theory the firm should rely mainly on the internal means of financing like retained earnings. This theory gives credence to retained earnings over the issue of equity. In the event of additional funds requirement the debt mode of funding is preferr ed. The equity issue is used only as a last resort. The main reason for the preference of debt over equity is the lower information costs associated with this mode of funding (Zhao, et al., 2004). The static trade off theory states that the firms try to strike a balance between the benefits associated with interest tax shield and the probability of bankruptcy and failure. The firms with strong cash flows can afford to have high levels of debt as they are assured of fixed future cash flows. But the small sized firms or nascent business firms with limited free cash flows must not use high levels of debt in their capital base. As per the agency theory the managers handle the affairs of the company on the behalf of the company shareholders. This gives rise to agency problems. As the reins of management of the company passes onto the managers and does not remain in the hands of its ‘actual’ owners it gives rise to conflict of interest. It is said that there is a misalignment of the objectives. The managers of the company are accused of investing in risky or unprofitable business ventures instead of passing on the surplus cash flows to the owners (Boodhoo, 2009). On the other hand there is also a view that the shareholders intervene in the smooth functioning of the business which often forces the company to forego lucrative business opportunities. The signalling theory of capital structure suggests that the issue of equity is based on the prevailing market conditions. Suppose the management of the company is of the view that the shares of the company are overpriced then it can resort to the issue of equity. This will help the company in raising higher proceeds from the issue of equity. On the other hand if the managers of the company are of the view that the market has failed to price the shares of the company correctly then it can opt for the debt mode of financing. If the shares of the company are underpriced then it is not feasible to issue equity as this would mean lesser proceeds. It will not just limit the amount of funds raised but will also lead to unnecessary dilution of ownership which is not in the interest of the company from the long term perspective. The financing decisions of a company are influenced by the above theories and views. However the financial managers in a company are biased towards issue of debt owing to the inherent benefits of debt issue. The