Applying the marketing concept to recreation.

Given the increasing competition in the recreation field, organizations should examine the extent to which they actively engage in proactive marketing efforts. Perhaps the best example of a cost-effective and proactive marketing strategy is the adoption of the marketing concept. This concept suggests the "key to business success is to integrate all company activities and personnel toward satisfying consumers, while providing satisfactory profits to the firm. The firm should find out what benefits consumers want and then provide these benefits through goods and services" (Peterson 1989).

There are four fundamental tenets of the marketing concept that will be discussed and applied to recreation organizations. These tenets include:

1. Implement a consumer orientation.

2. Integrate marketing processes.

3. Focus on long-term profitability.

4. Develop consumer relationships.

Implement a Consumer Orientation

A consumer orientation suggests that the consumer should be involved in product or service development. Rossman's (1995) discussion of micro segmentation, where patrons and their program needs and desires are identified prior to program development, is consistent with this tenet. Certainly this type of an approach is more cost effective than developing a program first and then trying to attract participants through promotional efforts such as advertising.

Consumer involvement may also be a source of program innovation and assistance. Programmers operate internally with finite resources for program modification, change and delivery. However, opening up communication channels with consumers expands the resource base. Such consumer involvement in the form of advisory boards, focus groups, and volunteerism are proactive in nature and a source of valuable marketing information.

Danford and Shirley (1964) noted that a potential limitation of this type of reliance on the consumer for program direction is that people are limited by their experiences, therefore, leadership in recreation needs to introduce new activities beyond the scope of personal experiences. Additionally, the programmer must be aware of representative samples. There can be a tendency for the most vocal or politically active to voice their opinions at the expense of a well-rounded program.

Integrate Marketing Processes

Competition necessitates quality consumer services. Rakstis (1992) noted that only 14 percent of people stop patronizing a business because of poor product quality, whereas 68 percent stopped buying because of service factors (someone was rude, indifferent or discourteous). The integration of marketing efforts from the CEO to rest room attendants may improve service factors leading to continued patronage. All employees in an organization need to understand how their job affects the consumer, however, according to Masiello (1988), only five to 25 percent of employees in a typical organization understand this relationship.

An integrated marketing effort also encompasses the involvement of all employees in marketing processes. Whenever employees are engaged in activities such as word-of-mouth promotion and consumer service, they are involved in cost-effective marketing of the organization. It is important to support such endeavors by creating a work environment that invests in the training and development of human resources; ensure that employees understand their role in marketing and how their job affects consumer satisfaction.

Many leisure organizations hire part-time employees for peak season demand However, how often are these seasonal employees trained in marketing processes? Are they trained to effectively solve consumer complaints? Are they aware of the critical role they play in consumer satisfaction? Are they knowledgeable about programs and services so that they can communicate effectively with the public and their associates outside of work?

The Walt Disney Company provides an excellent example of staff training. Before employees interact with guests one-on-one, they must complete an eight-hour orientation, eight to 16 hours of classroom training, and 16 to 48 hours of paired training (Solomon, 1989). Perhaps it is not feasible to invest this much time in training for many organizations, but it is critical for employees to understand the significance of their job to the organization. Furthermore, training can contribute to higher production, fewer mistakes, greater job satisfaction, and lower turnover (Mathis and Jackson, 1991).

Unfortunately employees are not always treated as valuable assets and marketing agents. Berry (1992) suggested that employees have critical marketing information since they are the ones on the "front-line," the ones that have the most interaction with the consumer. Moreover, employees are themselves consumers of internal services. Their treatment and integration by management directly influences the care they deliver to consumers and subsequent outcomes.

Focus on Long-Term Profitability

A focus on long-term profitability requires a commitment to excellence. Webster (1994) suggests that profit is a measure of value perceived by the consumer. Naumann and Shannon (1992) proffer that the population is more consumer wary, educated and demanding of product or service quality than ever before. Hence, a fundamental goal of organizations in order to respond to the "new" consumer should be continuous improvement.

Perhaps the most critical element of a focus on excellence and continuous improvement in the management of consumer satisfaction is follow-up effort. A time frame for consumer follow-up should be established for all organizations in order to influence value determination. For example, Jamieson (1992), in a discussion of consumer responsiveness, identified one organization that initiated a Response Network guaranteeing consumer follow-up within one hour, while Harris (1991) discussed an organization that investigates consumer complaints within 24 hours. Harris's scenario also provides that these complaints are personally responded to by the CEO of the organization.

Consistent and timely follow-up establishes trust and reliability, two primary factors in the establishment of a relationship. Trust in a business exchange results from expertise and reliability of the service provider (Groonoos, 1994). Calonius (1989) indicated that, "A firm that is preoccupied with giving promises may attract new customers and initially build relationships. However, if promises are not kept, the evolving relationship cannot be maintained and enhanced." Consumer relationships take time to develop, but in a competitive market they are essential. Certainly trust is significant in recreation services in order to maximize consumer experiences, sustain profitability, and nurture relationships.

Develop Customer Relationships

Finally, the marketing concept espouses relationship development between staff and consumers. Consumer relationships lead to an expanded market and effective promotion. Which is more effective, an advertisement or a consumer telling one of his or her six friends about your programs?

Consumers will tell their friends about programs provided a relationship has been forged. A relationship suggests a connection that is mutually beneficial, a two-way street or win-win situation. Aside from word-of-mouth promotion, relationships allow for less than perfect program delivery. If mistakes are made with facilities, staff or other program elements, the consumer is likely to be forgiving and continue to be a participant and agency advocate.

Naumann and Shannon (1992) suggested that in a competitive environment it is critical to develop and implement consumer retention strategies or mechanisms to promote continuous interactions. Retention leads to cost savings. Most estimates indicate that acquiring a new consumer is five times more expensive than retaining an existing consumer (Harris 1991; Naumann and Shannon, 1992; Rakstis, 1992).

Future business success dictates that an organization cannot realistically attempt to meet all consumer desires or interests. Programs must be evaluated from a cost-benefit perspective. Additionally, it is critical in a competitive market to differentiate your firm's programs and services from those of the competition. Differentiation and a corresponding competitive advantage can be manifested in adoption of the marketing concept. As Naumann and Shannon (1992) state, Marketing must now work with customers to form partnerships that will extend beyond the traditional exchanges so that customers are considered an integral part of the development team for new products and services."

Recreation providers should examine to what extent they have adopted the marketing concept. A study by Lamb and Crompton (1981) concluded that recreation and park agencies have had difficulty moving from conceptual acceptance to implementation of this concept. Has this conclusion changed in the profession?