Electronic marketing

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Electronic marketing

Executive summary

The increasing development of information technology especially the internet and the World Wide Web has opened opportunities for the travel industry especially hospitality and tourism. ICT has completely reformed the role of every player in this industry especially in the value improvement process.  Studies reveal that effective utilization of information technology is very vital in the hospitality and tourism industry since it enhances competitiveness and development. The technology enables the industry to create variations in their services as well as productions and expenses.

The fast revolution in business environment as a result of advancement in technology requires industries to develop relationships and cooperation and also be very creative ion the way they do their business especially marketing. Internet promotes speedy reforms in the operation, provision and structure of the travel industry. The structural changes in the travel industry entail enhanced and speed response to communication and delivery of needs within their area of specialisation. Consequently, business ought to choose the most appropriate e marketing strategy so as to realize maximum profits within their area of specialization.

e marketing has therefore especially through the web gives rise to new and very appropriate mode of creating awareness in the travel industry. The approach defines clearly the way marketers embrace marketing mix variables so as to deliver services and to reach to their client’s in a timely manner. The products of both hospitality and tourism are easily available on the internet since the process is fast and easily available to all the internet users.  However, the travel industry is a very competitive and challenging industry. The clients in this industry are very selective and always choose where to put their money based on what they prefer.

The role of Electronic marketing in the travel industry

Advancement in the internet and how it is utilized has a direct impact on how e marketing operations are carried out. The changes have created new ways of creating awareness to the clients. Internet therefore reduces marketing costs and eliminates middle men in the marketing process (Anchi, Konishi, Lei,Petalas, Stiegler, and Sugiyama, 2003. 300).

E marketing has increased competition within the travel industry especially through the use of technology mediated channels.  Travel industry has embraced technology through the creation of internal and external value besides creating technology convergent strategies. In order to achieve all this strategies, both hospitality and tourism industry have organized their resources within knowledge and cooperation. E marketing has in turn enhanced exchange of information and customization of products due to increased demand of internet economy (Rodríguez, 2003.45).

E marketing has influences how marketing mix operates to a larger extent.  The technology has influenced every aspect of service delivery and all the crucial stages involved in the market mix.  The technology has had a direct influence on product, price, promotion and destination of the various products. Consequently, this process has reflected on how the consumer desires to receive services which have become the main focus in e marketing (Bindiganavale,  Vijayaraman and Gurdeep, 2002.23).

Product means Customer value; Price means Cost to the consumer; Promotion means Communication; and Place means Distribution, access or Convenience. E marketing has therefore changed the way people, process and design is handled in the travel industry. The new changes in the industry are very vital especially in relation to both hospitality and tourism industry.

Internet plays various roles in this field of hospitality and tourism in terms of marketing.  Internet is a medium that enhances exchange of information hence provides so many forums for information exchange for marketing purposes.  E marketing has the way both clients and travel industry transacts business (Kotler, 2003.57).

Internet has enhanced market research especially information concerning marketing. The stakeholders in this industry are able to understand and get the latest information on how to improve on their business. The new marketing trends in the market are easily accessed and embraced. The customers who are the main stakeholders in the travel industry are now enjoying the services being provided.  This is because e marketing has enhanced marketing customer relationship through the implementation of marketing activities.

The marketers in the travel industry are now able to plan their activities strategically and also enhance their networks with their clients.  All marketing institutions provide distribution and marketing services to their clients. E marketing has enhanced this through provision of a channel upon which so many products can be displayed at the same time. In some instances, e marketing creates connections for virtual business especially connections for small business (Porter, 2001.100).

E marketing has enhanced advertisement and public relations. There is a new channel upon which clients are able to receive information. In addition, the clients are able to receive information materials within a very short time.  The development of the websites has enhanced accessibility of information by the clients without having to spend a lot of money and time.

Travel industry main objective is to ensure that customers are aware of the prices being offered.   E marketing has enhanced and improved sales promotion and offering of prices.  Internet has become the preferred mode of communication of prices and new products to clients. Companies are now able to own their own products due to the connectivity through the database. Furthermore, there has been enhanced ease of access and distribution of travel products. This has now become the preferred mode of distributing new products in the market (Turban et al., 2000).

Comparison of Tourism and Hospitality industries

Similarities

Both tourism and hospitality industry use Social media as a strategy to create awareness in the tourism industry. Social media are web based services which enhance online marketing. (Yang, Kim & Dhalwani, 2008. 34). Hospitality industries use online marketing to develop online communities. This has ensured that new business models are developed. Some of the new business models which have been developed in the hospitality industry as a result of social media include new product marketing channel (Chung & Buhalis, 2008.20; Ulusu, 2010.35; Yang et al., 2008.67). This has enhanced the relationship between the consumers and the business people through eliminating the challenges of both time and space (Bolotaeva & Cata, 2010.45; Sigala, 2003.70).

Electronic marketing in the hospitality industry through social media and community marketing has therefore enabled marketers to collect information concerning their current consumers and the potential consumers from their database. Business people are able to tell the consumer’s needs based on history of community utilization. The process also enhances direct feedback from the consumers concerning their needs (Sigala, 2003.32).

Hospitality industries have achieved high levels of ownership through the internet and e marketing. This is enabled through monitoring of every activity and evaluating all the needs of the consumers. The information gathered through the social media and community marketing is used to improve on the products being delivered or even create new products based on the client’s preferences. Social medias have therefore enhanced creation of awareness of the new products in the hospitality industry hence target the new clients (Chung & Buhalis, 2008.56).

Online communities are very useful since they enhance the relationship between the client and the marketers. This factor is further enhanced by the ability of the website to draw consumers to its site through creation of value hence trust (Zott, Amit, & Donlevey, 2000.90). The website ensures that internet users are able to interact with other users within the same community and with the hospitality industry (Sigala, 2003.100).

Tourism industry has embraced social media as a form of e marketing to a very large extent. The medium has had far reaching impacts in the tourism industry especially with how the business communicates to its clients. The platform is easily accessed by everyone through the internet. Tourism sector prefers this mode of communication since people are able to exchange information more easily (Admin, 2010). The channel has enhanced the rate at which tourism industries accesses customers and promotes its brands in an efficient manner.

Electronic marketing:

Hospitality and Tourism industry are composed of some known clients. Email marketing therefore entails creating awareness to such kind of clients through emails (Cho, 2010). Email marketing has become a very important sector in the hospitality and tourism industry. The approach has been received very well by both the marketers and the business people in the industry. The process is cheaper as compared to the traditional forms of communication hence it is able to reach to more audiences at the same time. The approach is used to send reminders to clients hence is very important in converting audience into quick action (Chaffey, 2003)

 

Differences in the application of Electronic marketing mix strategies between Hospitality and Tourism industry

Tourism

Hospitality

Online marketing in Destination marketing organizations Tourism is an industry that relies largely on information. Due to this fact, internet has become the most efficient mode of accessing and distributing information this industry.  Most of tourism industries around the world are now appreciating the use of internet in transacting their businesses. As mentioned before in this study, tourism is an information-intensive industry and Internet is the most effective and efficient tool in information exchange worldwide. Most tourism organizations are by now familiar with the Internet (Law, 2002b.34). Tourism industry has therefore enabled tourism destinations and businesses to strengthen themselves in the current society.  The environment is so competitive hence each and every player in the tourism sector has been forced to accept change. The internet has is being used to provide information to the clients about their destinations. Even the smallest countries are now able to market themselves through the internet. Creation of awareness through the internet has therefore benefited all areas of marketing. Some of the fields within tourism industry that have been enhanced include market research and segmentation besides effective utilization of the market mix strategies (Liu, 2000). Tourism has embraced e marketing in DOMs as a tool for making discoveries especially in the marketing strategies. This has been enhanced through utilization of online marketing and the use of social media to create awareness. Most people are now aware of tourism destinations through the social media platforms like facebook and twitter. Destination brand Destination is the country whose main aim is to attract visitors. Destination brand is therefore very significant when it comes to identification of this particular place by tourists. (World Tourism Organization and European Travel Commission, 2010). The main aim of destination branding is to promote a given country positively. This has been enhanced through e marketing in the tourism industry. Tourism industry has embraced various marketing strategies to achieve this (Cai, 2002.34).  One of the most reliable modes of creating awareness by the tourism industry through e marketing is communication accurately an authentic product to the consumer through the internet. The moment the visitors discover that this is not the case, they refuse to come back. Tourism has cleverly embraced e marketing by ensuring that the branding process is very accurate, the one to be remembered and also very useful to the clients (Kolb, 2006). Branding of the destination through e marketing within the tourism industry has focused on making people value the destination of tourism. This is through audio visuals and communicating about the brand (World Tourism Organization and European Travel Commission, 2008).

Hospitality industry has embraced e marketing in a big way just like the tourism industry. The industry has been branded the name e travelling in the recent days.  This is simply because all its transactions are done online. Some of the services transacted through online services in the hospitality industry include customer compliance and satisfaction, value addition for both travel businesses and the clients and privacy of the clients. The upcoming hospitality industries have embraced e marketing so as to remain competitive in the fast growing hospitality industry around the world. E-Booking E Booking has become the trend in the hospitality industry. Consumers prefer doing all their bookings online as compared to long to the traditional forms which were very expensive and time wasting.  E marketing has ensured that online booking is made efficient. This has increased the rate at which clients do their bookings. Each and every hotel industry has now come up with bargain hunters whereby people are able to book hotels online without necessarily having to travel. This has been enabled through creation of websites by these companies.  Travel agencies are mandated with the responsibility of offering these services in an efficient manner to the clients.  Rooms are made available online hence clients can access them (Christian, 2001.12). Search Engine Optimization (SEO) Hospitality industries have embraced this technique so as to increase the website traffic. This is done through the use of the relevant key words which are displayed in the content of the company websites.  (Cho, 2010). The search engines are primary, secondary or targeted search engine (Ledford, 2008). Primary search engine is the main search process in the Hospitality sector.  The engine avails most of the information about the company to the website. (Ledford, 2008). Secondary search engine on the other hand entails dealing with smaller information which targets smaller groups of people. The process is not very specific (Ledford, 2008). Targeted search engines in the tourism sector deals with specific topics within the e marketing (Ledford, 2008)

 

Theories to Explain Participation in Electronic marketing by travel industry

Economic theory

E marketing has an economic power due to its ability to enhance relationship between marketers and clients (Hagel & Armstrong, 1997.89). Due to the fact that clients who use internet to access services comprise of consumers who have interest in specific products, consumers will only purchase products from industries with which they have trust in. consumers therefore contribute to increased profits for any particular industry that deals in travelling services. Consumers are now able to access more information compared to before hence their ideas are very important in enhancing product development and advertisement. (Butler, 2001.78). According to research, economic theory clearly explains participation of both clients and industries in online activities (Gu & Jarvenpaa, 2003.29). According to Butler (2001.73), resource based model that entails perceived value is realized if the consumers hope to get more value from a service as compared to resources spent. The perceived benefits are therefore the information that is provided by others. Consumers sacrifice their time and money to receive these benefits from the travel industry. The moment the benefits gained go beyond the perceived value, then the clients increase in number hence profit to the industry. Similarly, according to  Gu and Jarvenpaas (2003.12),consumers will only contribute to the industry if the perceived benefits exceed the costs and are sure of receiving more tangible benefits as compared to intangible as such, industries ought to focus on increasing the levels of benefits so as to gain more clients through e marketing (Barnett and Standing, 2001.34).

Social theories

Social theory involves reciprocal interaction between the clients and the industry. Individuals within this arena expect to receive some form of rewards. There are two forms of social theories thus the social exchange and the social identity. Despite the fact that participation in the process of marketing does not necessary lead to benefits to the clients, they only want to receive reciprocal interaction from the industries (Rayport and Jaworski, 2001.56).

Summary of findings and Conclusion

Summary of the Findings

E marketing leads to flexibility in the marketing structure. The success of any business therefore relies upon quick response to changes in technology within the industry so as to meet the needs of the clients. Information technology therefore has to be utilized so as to deliver the requirements of the clients. Use of the internet has enhanced interaction, efficiency and competitiveness with the tourism industry.

The new economy is changing the way distribution of products and customer behavior used to happen. The main concern of most tourism industries is how to change from the traditional way of doing business to a more advanced and acceptable form. It is undoubtedly clear that this concern has been addressed by the change in the internet hence e marketing (Soteriades, 2002.47; Siegel, 2003.56). It is very evident that only strategic marketing will be able to promote the travel industry through embracing the internet. Tourism has approached this aspect by appreciating the fact that internet offers every tool that is very relevant in every market and business.

Electronic marketing is not an activity that can be developed independently and implemented separately. The technology has to be taken as a new way of doing business that is there to serve the current and also future needs of the travel industry.

Conclusion

Hospitality industry and tourism industry have both embraced Electronic marketing as a form of doing business. The two industries converge at some point especially in the way they create awareness to their clients. In both industries, the main aim is to attract visitors from within and outside their destinations. However, the two companies differ to some degree in the way they utilize technology. Hospitality industry is concerned to a larger level with bookings whereas tourism industry is concerned with marketing their destinations. Tourism industry is therefore a key player in e marketing hence the largest consumer and user of e marketing technology. The services advertised by tourism industry thorough e marketing range from branding to marketing their destinations.

References

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