Internet Marketing

1
Internet Marketing

• Tourism Marketing Communications

2
Internet Marketing and Tourism

• Tourism services are complex, intangible and
  perceived as high risk by the consumer
• The Internet provides scope for a more detailed
  proposition and feedback

3
Internet Applications

• Supports full range of organisational functions
  and services to stakeholders
• Can integrate the marketing function within an
  organisation
• Facilitates information management

4
Business Benefits

• Market penetration - can be used to sell more
  existing products into existing markets
• Market development - can be applied to new
  markets taking advantage of low cost advertising
• Product development - Information products that
  form part of tourism offering can be developed
• Diversification - Specific tourism products can
  be designed for new Internet focused markets

5
Market Product Strategic Grid
Product
Present
New
New
Market Development
Diversification
Market
Market penetration
Product development
Present
Conservative
Innovative
6
Benefits of an Internet presence

• Cost reduction - e.g reducing need for sales and
  marketing enquiries by telephone
• Capability - New opportunities for products and
  services
• Competitive advantage - provides scope for
  service modification

7
Benefits of Internet presence

• Communications improvement - for staff,
  customers, suppliers and distributors
• Control -Internet's and Intranets can provide
  better market research
• Customer service improvement - interactive
  enquiries

8
Strategic use of the Internet

• Environmental scanning
• Competitor analysis
• Market analysis
• Customer analysis
• Strategic decision making
• Supply chain management

9
Strategic use of the Intranet

• Internal data analysis
• Management information
• Marketing information database
• Operations efficiency
• Business planning
• Monitoring and control
• Simulations

10
Tactical uses of the Internet

• Advertising / promotions
• Direct marketing
• Public relations
• Distribution / logistics
• Workgroups
• Marketing research
• Publishing

11
Tactical uses of the Intranet

• Electronic mail
• Data warehousing
• Relationship marketing
• Conferencing
• Training
• Product/service information
• Customer service

12
Difference between the Internet and other Media

• One to many communications
• Mass marketing
• Monologue
• Branding
• Supply side thinking
• Customer as target
• Segmentation

• One to one or many to many
• Individualised marketing
• Dialogue
• Communication
• Demand side thinking
• Customer as partner
• Communities

13
Marketing Mix applications The Product

• The features of the product can be varied in
  relation to customer service and brand values can
  be enhanced. New information based products can
  be provided

14
Marketing Mix applications The Price

• Costs can be reduced since retail capital costs
  of buildings in key locations can be reduced.

15
Marketing Mix applications Promotion

• The Internet is not designed to persuade the
  customer but to inform and provide more details
  of the service provision. The Internet also
  supports the buying process as well as supplement
  traditional advertising and promotion.

16
Marketing Mix applications Distribution

• The Internet offers new sales channels for
  national and international markets especially for
  the small companies and businesses that are a
  significant part of the tourism industry.

17
Marketing Mix applications People

• Provides scope and innovation for a new
  generation of specialist marketing activity.

18
Marketing Mix applications Processes

• The Internet should be integrated with other
  marketing processes such as telemarketing and
  direct marketing in order to maximise its success.

19
Extent of dependence upon the Internet
High
Customer access to Internet
Low
Primarily complimentary
Internet value proposition similar
Yes
No
Primarily complimentary
Can product be standardised
No
Yes
Primarily replacement
Primarily complimentary