Dr. Khaleel Ibrahim Breesam Breesam (1)
General Background Tourism marketing strategies play a central role in shaping the performance and competitiveness of tourism institutions in a dynamic global environment. Specific Background The study focuses on how structured marketing strategies are applied within tourism organizations to support sectoral development and organizational positioning. Knowledge Gap Previous studies have not sufficiently clarified the relationship between strategic marketing practices and competitive positioning within specific regional tourism contexts. Aims This research aims to examine the role of tourism marketing strategies in achieving competitive advantage and supporting sector growth. Results The findings indicate that well-designed marketing strategies contribute to improved organizational positioning, customer engagement, and sector development. Novelty The study provides an integrated perspective linking marketing strategy dimensions with competitive outcomes in the tourism sector. Implications These results suggest that tourism institutions should adopt comprehensive and adaptive marketing strategies to strengthen their competitive positioning and sustain sectoral growth.
Keywords: Tourism Marketing, Competitive Advantage, Strategic Management, Tourism Sector, Marketing Strategy
Key Findings Highlights
The role of tourism marketing strategies in achieving a competitive advantage for tourism organizations
( An analytical study of the opinions of a sample of employees in some excellent hotels in Baghdad)
Dr.KHALEEL IBRAHIM BREESAM
Ministry of Higher Education and Scientific Research/Minister's Office
rrwwvv38@gmail.com
Abstract:
This study is conducted to investigate the impact of tourism marketing strategy on competitive advantage in some of the city's luxurious hotels. The key question to consider is: Do tourism marketing practices have a relationship with competitive advantage within the selected star hotels? The study was carried out with a limited selection of employees from different ranks as the research population in a number of high-standard hotels (Al-Rasheed, Palestine, and Al-Mansour), based on a random sample consisting of 288 employees against a total research population estimated at 1135 employees across all hierarchical levels. For this reason, a questionnaire was administered, and a battery of statistical techniques was used to analyze the data, including Structural Equation Modeling and Path Analysis in SPSS & AMOS. The researchers reached several conclusions, the most important of which is that there is a statistically significant positive relationship between the application of tourism marketing techniques and competitive advantage. From these observations, the researchers provided recommendations and suggestions that can help others learn from their experience with the deployment of smart technologies to optimize automation processes: most importantly, increasing investment in smart technologies and digital transformation so that costly manual labour can be kept at bay. This helps reinforce the low-cost strategy and improve operational procedures at a lower cost, without reducing service quality.
Keywords: Tourism marketing strategies, competitive advantage, excellent hotels in Baghdad Governorate.
Introduction
Competitive tourism marketing practices for tourism organizations operating in the global market The requirements of the business strategic and tactical dimension, which succeeds integration into a social environment, such as investment control conducted in tourism sectors must start from establishing a marketing strategy that would lead to its existence on the tourism market, competitive improvement and stimulation of volumes in terms of both business and personal development.
This is because these strategies increase production and sales, which boost demand. All types and categories of tourism enterprises hold a leading role in marketing strategies in modern tourism companies, as well as an indispensable and important way to implement such strategies. Marketing is the management and process of creating or enhancing market demand and of dumping production surpluses. As a consequence, marketing strategies are among the few key tools for achieving success and differentiation for tourism organizations. Indeed, the effectiveness of a tourism marketing strategy now determines whether a tourism organization can exist, function, and attain its goals. This emphasizes the importance of marketing strategies in gaining a competitive advantage for tourism organizations. Based on the problem of the present study, several hypotheses were derived regarding how different study variables in some star hotels in Baghdad are perceived. In light of these questions, and in an attempt to answer them, we have set several aims for the present study, which it seeks to achieve by using several pieces of information and facts to understand the features of the relationship between the independent variables of the current study. According to the findings of the statistical analysis, this study would conclude how and to what extent the variables were related and provide recommendations.
The main problem of this study is the gap between theory and practice regarding the extent to which luxury hotels in Baghdad (Al-Rasheed, Palestine, and Al-Mansour) adapt their traditional marketing strategies to current competitive advantage. This trend persists over time in an unstable and challenging tourism industry. The issue in practice is reflected in the varying market share and inadequate adaptation to the expectations of a new type of visitors, generating doubts about whether the currently implemented cost, differentiation, and focus strategies contribute to building the image of these traditional facilities. In terms of knowledge, there is a dearth of local studies that combine the three dimensions of Porter’s Five Forces model with qualitative and quantitative measures of competitive advantage in the Iraqi hotel industry. This calls for determining which approach among these strategies is most beneficial for competitive sustainability and service performance upgrading in these ageing hotels.
Research problem: The main research question that can be addressed is "What is the role of tourism marketing in gaining a competitive advantage in the luxury hotels studied.
The study's cognitive currency lies in augmenting the academic library with a theoretical thrust that translates tourism marketing strategies into competitive advantage within a highly specific hotel environment, such as Baghdad. This helps fill the gap in the literature on how to adapt global strategic theories to the tourism industry in developing countries. It also serves as a scientific reference for researchers on the effects of the cost, differentiation, and focus dimensions on brand reputation improvement and increased market share for well-established firms.
As to its practical significance, it results from the issuance of a definite plan for their leaders at the Al-Rasheed, Palestine, and Al-Mansour hotels. This plan enables them to take informed decisions regarding statistical values, which is the most effective measure for attracting visitors and maximizing their revenue. The study also helps decision-makers direct the best investments in quality and technological innovation toward favorable tourism performance. It helps them make decisions to increase Baghdad’s competitiveness as a choice hotel destination regionally and internationally.
The current study focuses on the main objective of analyzing the role of tourism marketing strategies in achieving competitive advantage for luxury hotels in Baghdad. This main objective leads to the following sub-objectives:
Figure 1: Hypothetical Model of the Study
Based on the research title, we can formulate the hypotheses as follows:
Main Hypothesis (H1): There is a statistically significant effect of tourism marketing strategies on the competitive advantage of the studied premium hotels. The following sub-hypotheses are derived from this:
Given the nature of the variables in this study, namely, tourism marketing strategies and competitive advantage, the researcher sought the opinions of employees to fulfill the study's requirements. This was due to their high level of awareness of the direct and indirect impact of these variables on the overall performance of the hotels where they work. Therefore, the current research population consists of (1135) individuals working in the following luxury hotels in Baghdad: (Al-Rasheed Hotel, Palestine Hotel, and Al-Mansour Hotel), according to the Baghdad Tourism Authority's classification. These hotels were selected for the following reasons:
Table (1) Classification of the hotels studied
Source: Prepared by the researcher based on interviews conducted with the authorized managers of the hotels mentioned above.
To determine the appropriate sample size, the current study population consisted of 1,135 employees. The following equation, as mentioned by Steven K. Thompson (2012 [1], was used to determine the sample size. Based on this equation, the optimal sample size was 287 employees. Therefore, (290) questionnaires were distributed, and (282) were collected, resulting in a 97% return rate. There were (2) outlier questionnaires and (2) questionnaires that were not valid for analysis. Therefore, the final sample size was (288), which meets the required sample size criteria, as shown in the table below.
Table (2) Stratified Sample Distribution of the Study Population
“Source: Prepared by the researcher”.
The study sample exhibited diverse characteristics, particularly in terms of the demographic characteristics of four elements used as control variables to measure their influence on the dependent variable (as opposed to the influence of the independent variable): gender, educational qualification, field of study, and years of work experience, as shown in the table below.
Table (3) Analysis of Demographic Data for the Study Sample*
Source: Prepared by researchers based on data from the field study.
The following is evident from the table above:
The quality of the field scores in this study relies on the statistical construction of the measurement instrument (the SDE) and its ability to faithfully measure people's responses. To realise this, the data were coded on a five-point Likert scale of agreement with the research variables. Internal consistency of items was assessed using Cronbach’s alpha and other reliability tests. To ensure the stability of results in retest, the dimensions with a reliability coefficient over 70% would be accepted [2]. Mill’s statistical criteria for the residuals were drawn from the literature and applied in this study (Table 2.5). Normality was checked against normal distribution by egoing to Normal test using its skewness and kutosis, where under the conditions of a possible range of ±1.96 In addition, it represents a necessity for the data to be normally distributed as one step in making sure that the data are appropriate to be used for parametric analysis and are capable of representing the study population reliably prior conducting hypothesis testing (Hair et al., 2010).
Table (4) Study scale coding, scale reliability, and (normal) distribution
“Source: Prepared by the researcher”
The table below presents high reliability of the study instrument, as evidenced by Cronbach's alpha coefficients for all dimensions and total scale scores exceeding 70%, requiring at least 0.70^2 = 0.49 for all: it was observed (90.01%), indicating the robustness of the scale's internal consistency. The negative and positive values of skewness and kurtosis also suggest that all variables fall in the standard range (± 1.96), representing the normality or validity of the distribution of data for applying advanced parametric statistical tests."
Tourism marketing strategy is defined as identifying target tourism markets and preparing their marketing mix. The market segment represents a homogeneous group of customers whose needs and desires the tourism company seeks to meet [3].
Kotler also sees tourism marketing strategy as "the rationale that enables tourism companies to achieve their marketing objectives, which must include a coherent set of decisions related to target markets and the marketing mix (product, distribution, price, and promotion) of the marketing budget" [4]. Khasawneh (2015) defines it as a comprehensive and organized plan that uses a mix of different tourism marketing tactics and elements in the tourism sector to add a new competitive advantage that meets the needs and desires of tourists, increases their satisfaction and attraction, and maintains their length of stay at tourist sites—and protecting them from heading to or fleeing to tourist markets in other countries [5].
The world today is witnessing changes that have affected all countries, and the primary concern of all these countries has become profit maximization, regardless of geographical, regional, or legal boundaries. This has led to the emergence of what is known as tourism globalization. This is due to these countries' recognition of the tourism sector's importance in driving comprehensive development, especially after the reopening of borders and the integration of new, modern technologies into tourism operations. Generally, the overall objectives of the tourism marketing strategy revolve around the following: [6]
First: Diversifying and increasing the number of tourist attractions.
Second: Launching the tourism product in global markets through development.
Third: Attracting local and international tourism investments and establishing quality standards and specifications.
Fourth: Working towards creating sustainable development and improving communities.
Fifth: Developing tourism marketing and promotion tools.
Sixth: Developing the private sector and encouraging it to invest in the tourism field. Based on the above, every organization needs to have a marketing strategy, as it plays a significant role in achieving both general and specific objectives, balancing market needs with the organization's capabilities, and thereby gaining a competitive advantage.
The most important of these components are the following [7]:
Porter identifies three main strategies through which an organization can achieve a definite competitive advantage. These are as follows [8] [9]:
There are many obstacles, including [10]:
Excellence and competitiveness are two essential elements for building an organization's marketing strategy. This means that meticulous planning for market entry, the ability to allocate administrative, financial, and innovative resources, and the minimization of uncertainty in marketing strategies enable the organization to develop, seize marketing opportunities, enjoy a competitive advantage in the business environment, and achieve the desired results. This, in turn, allows each organization to develop and fully harmonize its work policies.
A successful strategy is effective in achieving long-term goals, efficient in the optimal use of resources, and dynamic, reflecting the organization's environment. A marketing strategy focuses on the means by which a tourism organization can effectively and efficiently differentiate itself from its competitors and leverage its unique strengths to offer superior value. Therefore, a marketing strategy is characterized by the following [11] :
Competitive advantage is a weapon for facing challenges and a measure of success for any organization. It is also an important positive indicator of an organization's orientation towards achieving a competitive position [12].
Competitive advantage is a strategic goal that institutions strive to achieve amid current competitive challenges.
On both academic and practical levels, the concept of competitive advantage is considered a true revolution in business management. To achieve continuous superiority for the organization over others—that is, over competitors, suppliers, buyers, and other parties it deals with—and to maintain the organization's competitive advantage in practice, managers, according to the new idea, are keen on diligent and continuous work, analysis, discovery, and maintaining funding [13].
It expresses the organization's investment in its strengths and formulating them into strategies through which it can create a way to differentiate itself and its products positively from its competitors, according to the importance of the end customer [10]. It is also defined as anything that can positively distinguish the organization or its products. Compared to competitors from the customer's perspective [8].
The researcher also defined it as achieving superiority in the products or services offered by the organization compared to its competitors.
There are numerous sources for achieving product excellence and cost reduction through superior skills and resources. Some of the best sources of competitive advantage are summarized below [13], [14] [15] :
Two approaches to competitive advantage can be identified [16]:
Competitive advantage arises from the external environment, and the idea behind this approach stems from this premise. Accordingly, to achieve a competitive advantage based on attractive market opportunities, the organization determines the appropriate competitive strategy. The organization's external environment undergoes several changes (economic, political, social, cultural, and demographic), and it pursues opportunities in government facilities, information, or raw materials. Exploiting current opportunities in the external environment is a response to their availability.
Finding a competitive advantage compared to what competitors offer is the core of marketing strategy, because competitive advantage contributes to achieving the following [17]:
There are several characteristics of competitive advantage, including [13]:
(MA)Market share is one of the most important quantitative indicators for measuring competitive advantage. It reflects the percentage of a hotel's sales or number of guests compared to the total hotel market in a specific geographic area, such as Baghdad. The importance of this dimension lies in the hotel's ability to attract new segments of tourists and retain existing customers by outperforming competitors in the elements of the marketing mix. This leads to economies of scale and reduced operating costs. Acquiring a high market share gives luxury hotels greater negotiating power. It makes them price leaders, tangible evidence of the marketing strategy's success in penetrating the market and achieving sustainable growth. [4][13].
This dimension represents the qualitative pillar of competitive advantage. In hotel tourism, quality refers to the extent to which the services provided meet tourists' expectations and evolving needs. At the same time, innovation represents the ability to offer unprecedented hotel services or operations that break with tradition. The combination of quality and innovation enables the studied hotels (Al-Rasheed, Palestine, and Al-Mansour) to create added value that is difficult for competitors to imitate, whether through the use of smart booking applications or the development of high-quality tourism programs. Continuous innovation contributes to improving internal processes and reducing waste, thereby reducing costs while simultaneously raising the standards of luxury and comfort that characterize premium hotels [13] [18] .
Brand image is an intangible asset representing the impression and standing a hotel holds in the minds of tourists and the general public. It stems from accumulated past experiences and trust in the services provided. In the tourism sector, reputation plays a crucial role in purchasing decisions. The names of Baghdad's long-established hotels are associated with safety, luxury, and historical credibility, giving them a sustainable competitive advantage that protects them from competitors' price fluctuations. Building a strong reputation requires alignment between marketing promises and on-the-ground performance. This serves as the primary driver of customer loyalty and motivates them to recommend the hotel to others, thereby enhancing long-term competitive advantage [5] [8].
The effectiveness of a marketing strategy in achieving a tourism organization's objectives stems from the organization's understanding of the competitive landscape, the surrounding environment, and its internal resources. A marketing strategy is fundamental to achieving competitive advantage for various tourism and other organizations. Tourism marketing strategies contribute to achieving a competitive advantage for the organization. Adopting a low-cost strategy or a cost-focused approach creates a cost leadership advantage, while adopting a differentiation strategy or a product-differentiation strategy creates an organizational advantage. This is due to several factors and circumstances that lead the organization to choose between these strategies, such as the organization's objectives, capabilities, the nature of the target market, and the nature of the competition. These strategies are [19]:
This section describes the study results by reviewing the opinions and preferences of the managers (in the studied banks) in the study sample of 288 respondents. It determines the level of agreement regarding the suitability of the measurement instrument items to their views by focusing on descriptive statistical analyses, specifically the arithmetic mean, standard deviation, relative importance, coefficient of variation, and level and direction of response for each item of the study variables, namely: (tourism marketing strategies, strategic consensus, and competitive advantage).
Table 5 illustrates the degree of preference for the level and direction of response.
Table (5) Criteria for the Availability of the Study Variables
Akadiri O. P. (2011), Development of a Multi-Criteria Approach for the Selection of Wolver Hampton, U. K.[20]
The differentiation and dimensions were based on obtaining the highest and lowest coefficient of variation, which indicates consistency and homogeneity in the responses of the selected sample members for the main dimensions and variables under study.
3-1-1- Descriptive Analysis of the Independent Variable: Tourism Marketing Strategies. The following can be observed from the figure and table below:
Table (6) Statistical indicators for the independent variable: Tourism marketing strategies
“The researcher used SPSS software to prepare the source.”
3-1-2- Descriptive Analysis of the Tourism Competitive Advantage Variable
The following can be observed from the figure and table below:
Table (7) Statistical indicators for the competitive advantage variable
“ The researcher used SPSS software to prepare the source.”
The present study estimated model parameters using confirmatory factor analysis (CFA) and the Maximum Likelihood method in Amos V.26.
This procedure consists of testing how well the covariance matrix of the actual data (observed variables) matches the covariance matrix postulated by the theoretical model. According to it, the analysis derives a list of statistical criteria known as "Goodness of Fit Indices" that serve as the main basis for acceptance, rejection, or modification assessment of the proposed model.
Table No. (8) Conformity Quality Indicators
Source: Prepared by the researchers from the field study data (2023) based on (Hair et al., 2010) [21]
Table (9) Results of the standardized regression weights for the research variable
“The researcher used AMOS software to prepare the source.”
As shown in the table above and the figure below, model reliability and validity are confirmed based on goodness-of-fit criteria that meet the established cut-off levels recommended by Hair et al. (2010), as listed in Table 8.
This is demonstrated by the value above 0.95 for GFI, 2.958 of chi-squared, and 0.065 of root mean squared approximation error (RMSEA). In addition, the factorial regression weights exceeded 0.40, indicating a good fit.
To identify the impact of relationships between variables, structural equation modeling was employed.
Structural equation modeling is a statistical method for studying and modeling relationships among variables. It demonstrates the dependence of one variable, the dependent variable, on one or more independent variables. A mathematical model is constructed to describe the correlation between the dependent variable and the independent variables (tourism marketing strategies and competitive advantage), using the statistical software AMOS (version 26). This model allows measurement of the direct and indirect impacts of tourism marketing strategies on competitive advantage, mediated by strategic consensus.
Table 10 shows the impact values between tourism marketing strategies and competitive advantage.
First: The first hypothesis: “The hypothesis states: (“There is a statistically significant direct effect” of tourism marketing strategies on competitive advantage).
The construct validity of the structural model obtained in AMOS. V. 26 and the high quality of study data match with field realities in Al-Rasheed, Palestine, and Al-Mansour hotels. The trajectories of the model indicated reasonable explanatory power, as proven by the value of R² (57%), which showed that tourism marketing strategies were indeed a considerable variable in explaining competitive advantage. Referring to the values in the table, with an impact factor of 0.694 (Table), this indicates a positive and strong correlation, followed by a significant reduction in standard error at the level (P = 0.069), which leads to higher estimate accuracy. In addition, the computed t-value (t=7.767) confirms this relationship, far exceeding its tabulated value (1.96) at the 0.000 statistical significance level. And that is a fact that firmly establishes adopting reasonable marketing strategies as the principal guarantee for increasing market share and brand reputation in Baghdad.
The following sub-hypotheses branch out from it:
First: - The first sub-hypothesis (H11): “It states: (“There is a statistically significant effect” of the dimensions of tourism marketing strategies in enhancing market share.”
The findings of the statistical analysis of the first sub-hypothesis show that there is a direct, positive effect of different tourist marketing dimensions on gaining share. The low-cost strategy was the most important dimension (standardized coefficient: 0.476; P = 0.000). This verifies the successful strategy of the hotels under study to distinguish themselves as lowest‐price producers by allocating resources so that production is nearly at ideal levels, thereby upping overall profit margins considerably, though at a somewhat low per-product basis. The differentiation strategy also had a significant effect of 0.345, due to these hotels' ability to provide unique services or prices, making the destination significantly outperform its competitors given their limited resources. Related to the key hypotheses, however, the focus strategy emerged as a statistically non-significant factor (t = 0.154; p > 0.121). It also implies that the focus on market share for premium hotels in Baghdad is more on cost leadership and overall service excellence than on choosing a limited competitive scope or target market segment.
Table (11) Values of the impact of the dimensions of tourism marketing strategies and market share
Second: - The second sub-hypothesis (H12): “states: (“There is a statistically significant effect” of the dimensions of tourism marketing strategies on quality and innovation).
The table above shows statistical readings that partially support the second sub-hypothesis, whereby the dimensions of marketing strategy had differing influences on quality and innovation across Al-Rasheed, Palestine, and Al-Mansour hotels. The strategy of differentiation was found as the most powerful factor, based on its standardized value (0.404) with a significance of (0.000), which indicates that hotels' effort to differentiate through providing distinctive services and products and using resources properly will be directly affected by increasing quality standards and being innovative in such a way that they gave them competitive advantage over rivals. A statistically significant impact of the focus strategy (0.287) was also observed, indicating that by specializing in serving individual market segments, the hotel has a better chance of creating innovative services tailored to those segments. On the other side, seeking a lower cost product seemed to be a non-significant factor at this level with β = (0.105) and P = (0.134), which means that while focusing on cost cutting and being on low profit margins might not mainly drive qualitative innovation compared to differentiation and specialization strategies.
Table (12) Values of impact between the dimensions of tourism marketing strategies, quality, and innovation
Third: - The third sub-hypothesis (H 13 ) states: (“There is a statistically significant effect” of the dimensions of tourism marketing strategies on mental reputation).
The results in the table above further reveal partial support for the second sub-hypothesis, in which the influence of marketing strategy dimensions on quality and innovation differs among Al-Rasheed, Palestine, and Al-Mansour hotels. The differentiation strategy appears to be the most significant variable, with a standardized estimate of 0.404 (p=0.000), which supports the idea that hotels investing in differentiated services and products, and the resources that support them, can turn this into an advantage over competitors through improved quality or innovative solutions. The focus strategy also had a statistically significant impact value (0.287) which means that to specialize in serving certain segments in the market will provide the hotel with an ample chance The statistical results of testing sub-hypothesis no 3 state complete acceptance of the hypothesis as all dimensions of tourism marketing strategies have shown a statistically significant positive influence on improving brand image for AL-Rasheed, Palestine and Al-Mansour hotels together were rejected.. The highest effect among the three IS strategies was observed in the focus strategy, with a standardized value of 0.326 (p=0.017), indicating that hotels focusing on serving restricted competitive sectors make an important contribution to achieving a powerful brand image from their target audience's perspective. This is followed by a differentiation strategy with 0.319, and the significant value is 000, which means providing high-quality services and using resources very well, making the hotel number one in the minds of tourists, or adding a name with quality and luxury to the tourist mind. The lowest-priced model also had an impact value of 0.292, and the significance level is 0.009. This result demonstrates that competitive pricing and resource allocation maximization build the hotel's credibility with a wide range of customers. Therefore, the three strategies integrate to support a powerful brand image in terms of trust and quality in Iraqi tourism. To create new services exactly for those segments. On the other hand, the low-cost strategy in turn, and for the second time in this case, emerges as a statistically non significant variable with (0.105) and significance(0.134), indicating that either cost saving's reduction or low-profit margins are not likely to be driving forces of qualitative innovation so far comparison with moderate and high differentiations as well as specialization strategies.
Table (13) Values of the impact of the dimensions of tourism marketing strategies and mental reputation
These findings would be summarized as:
Once drawing a set of conclusions, recommendations regarding study variables will be developed:
Resources
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S. H. Al-Qaisi and A. H. Al-Tai, Strategic Management Theories Approaches Examples and Contemporary Issues, 1st ed. Jordan: Dar Al-Safa, 2020, p. 22.
M. M. Messaad, Modern Trends in Tourism. Egypt: Modern University Office, 2008, pp. 61–62.
R. Sangeetha, "A Study on Marketing Strategies of Garment Industry with Special Reference to Tripura," International Journal of Research and Review, vol. 7, no. 2, pp. 230, 2020.
S. A. K. Al-Kubaisi, Knowledge Management. Baghdad, Iraq: Dar Al-Sibsan, 2014, p. 243.
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C. B. Fella, "The Contribution of Governance Mechanisms to Achieving Competitive Advantage A Case Study of Mobilis," Master’s thesis, Algeria, 2013, p. 64.
B. S. Nawaldine, "The Role of Administrative Empowerment in Achieving Competitive Advantage A Case Study of Mobilis Constantine," Master’s thesis, Algeria, 2015, p. 68.
B. Hossam, "Electronic Marketing in Achieving Competitive Advantage in Tourism Institutions," Master’s thesis, 2016, p. 7.
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