1. Electronic Marketing &
Internet Marketing

2. Key Terms E-commerce: B2B (business to business)
B2C (business to consumer)
C2B (consumer to business)
C2C (consumer to consumer)
Intranet
Marketing Web site

3. Key Terms Corporate Web site Customer database Data warehouse
Direct-mail marketing
Direct marketing
Disintermediation
E-business
E-commerce
E-marketing
Extranet
Integrated direct marketing
Internet

4. Marketing Communications and the Internet

5. “Computers in the future may weigh no more than 1. 5 tons
“Computers in the future may weigh no more than 1.5 tons.” - Popular Mechanics, 1949

6. Marketing Communications and the Internet
It can be accessed from almost anywhere in the world
It is the simplest form of international market entry available
“The firm cannot avoid creating interest in its offerings outside its local or national market”
Christian Grönroos

7. Chapter Objectives
Describe the relationship between Internet marketing, database marketing, and direct marketing
Evaluate a company’s or destination Web site and comment on its marketing potential

8. Chapter Objectives Describe how to set up an effective database
Discuss the growth of marketing
Understand how databases can be used to develop direct marketing campaigns

9. Major Forces Shaping the Internet Age
Digitalization and Connectivity
The Internet Explosion
New Types of Intermediaries
Customization

10. Digitalization and Connectivity
Digitalization consists of converting text, data, sound, and image into a stream of bits that can be dispatched at incredible speeds from one location to another
Connectivity involves building networks and expresses the fact that much of the world’s business is carried over networks connecting people and companies

11. Types of Networks
Intranets connect people within a company
Extranets connect a company with its suppliers and customers
The Internet connect users to an amazingly large “information superhighway”

12. The Internet Explosion
Useful as a sales outlet and it provides a medium for communication between a company and its customers
The number of Web surfers worldwide has reached 2,7 billion (2013) and is expected to approach 3.5 billion by 2015.
It was only 1.04 billion in 2005.

13. New Types of Intermediaries
With the birth of dot-com sites such as Booking.com, tripsta.com, tripadviser.com, Expedia.com, Priceline.com, and Travelocity.com, the hospitality % tourism industry has had to change how they do business

14. Customization
Technology has been useful in assisting companies in understanding their customers and potential customers on an individual level and developing marketing to their specific needs & wants.

15. E-Business, E-Commerce & E-Marketing
E-business involves the use of electronic platforms to conduct a company‘s or organisations’ business
E-commerce involves buying and selling processes supported by electronic means, primarily the Internet
E-marketing is company efforts to communicate about, promote, and sell products and other services over the Intranet

16. E-Commerce E-commerce can be divided into:
E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered into a "virtual mall"
Buying or Selling on various websites
The gathering and use of demographic data through Web contacts and social media
Electronic Data Interchange (EDI), the business-to-business exchange of data
and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
Business-to-business buying and selling
The security of business transactions

17. Benefits to Buyers Convenient Easy and private
Greater product access and selection
Offers comparative information
Immediate and interactive

18. Benefits to Sellers
Builds customer relationships
Reduces costs
Quick and efficient
Reduces communication costs

19. E-Commerce Domains
B2C (business to consumer)
B2B (business to business)
C2B (consumer to business)
C2C (consumer to consumer)

20. Types of Web Sites
Corporate Web Sites are designed to build customer goodwill and to supplement other sales channels
Marketing Web Sites engage consumers in an interaction that will move them closer to a direct purchase or other marketing outcome

21. Designing Attractive Web Sites
The key is to create enough value and excitement to get consumers to come to the site, stick around, and come back again

22. Content Convey what the company is and what the company has to offer
Project brand image
Easy to navigate
Attractive
Have a “contact us” page
Ask permission to send information on specials
Able to purchase products online

23. Website Design Considerations (1)
Contain useful, interesting information for target customers
Facilitate self-service in information gathering
Users friendly
Firms must set explicit communication goals for websites

24. Website Design Considerations (2)
Design should address attributes that affect website “stickiness”
Content quality
Speed of download
Frequency of update
Memorable web address helps attract visitors to a site
Ensure that people are aware of/can guess firm’s web address

25. EasyJet Paints Its Website Address on Each of Its More than 200 Aircraft

26. Effective Advertising on Internet: Banner Advertising (1)
Placing advertising banners and buttons on portals such as Yahoo!, Netscape and other firms’ websites
Draw online traffic to the advertiser’s own site
Websites often include advertisements of other related, but non-competing services
Advertisements for financial service providers on Yahoo!’s stock quotes page
Small messages from Amazon.com on web pages devoted to a specific topic
Links relevant to content on GMail

27. Effective Advertising on Internet: Banner Advertising (2)
Easy for advertisers to measure how many visits to its own website are generated by click-throughs
Limitations
Obtaining many exposures “eyeballs” to a banner does not necessarily lead to increase in awareness, preference, or sales
Problem of fraudulent click-throughs designed to boost apparent effectiveness

28. Effective Advertising on Internet: Search Engine Advertising (1)
Reverse broadcast network—search engines let advertisers know exactly what consumer wants through their keyword search
Can target relevant messages directly to desired consumers
Several advertising options
Pay for targeted placement of ads to relevant keyword searches
Sponsor a short text message with a click-through link
Buy top rankings in the display of search results

29. Effective Advertising on Internet: Search Engine Advertising (2)
Google – The New Online Marketing Powerhouse
Google AdWords - allows businesses to connect with potential customers at the precise moment when they are looking at related topics; advertisers can display their ads at websites that are part of the Google content network
Google AdSense - In return for displaying relevant Google ads on their websites, publishers receive a share of advertising revenue generated

30. Internet Marketing Offers Powerful Opportunities for Interactivity (1)
Internet used for a variety of communications tasks
Promoting consumer awareness
Providing information and consultation
Facilitating two-way communications
Enabling customers to place orders
Can market through firm’s own websites or advertise on other sites
Supplement conventional communications channels at reasonable cost

31. Internet Marketing Offers Powerful Opportunities for Interactivity (2)
Must be part of integrated, well-designed communications strategy
Able to establish harmony with individual customers
Interactive nature of the Internet can increase customer involvement
Facilitates permission marketing and “self-service” marketing
Banks allow customers to pay bills electronically, apply for loans over the Internet, and check account balances online

32. Legal and Ethical Issues
Online Privacy and Security
Online privacy is perhaps the number-one e-commerce concern
Identification theft and commercial espionage are security fears of consumers and companies alike

33. Marketing Database System
A marketing database is an organized collection of data about individual customers, prospects, or suspects that is accessible and actionable for such marketing purposes as lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships

34. Using a Database to Create a Competitive Advantage
Provide the guest with a better experience
If on a prior visit a guest requests a certain type of mineral water, the mineral water is placed in the guest’s refrigerator on returning visits
If a guest had a problem, all departments in the hotel are notified, and everyone works to regain the guest’s confidence and loyalty

35. Direct Marketing
Direct marketing is an interactive system of marketing that uses one or more advertising media to affect a measurable response and/or transaction at any location

36. Reasons for Growth of Direct Marketing
Precision targeting
Personalization
Privacy
Immediate results
Measurability

37.
The greeting should be personalized and other persons being sent the same message should not be listed
The name of the company should be identified
The subject needs to be relevant to the reader
s need to be short
Text message is the preferred format

38. Direct Marketing Builds Relationships
Direct marketing allows companies to develop a strong relationship with their customers, which helps prevent them from switching to competitors
It costs four to seven times as much to bring in a new customer as it does to maintain an existing one

39. Integrated Direct Marketing
A more powerful approach: execute a multiple-vehicle, multiple-stage campaign
Direct
Mail
Mechanism
Outbound
Tele-
marketing
Paid Ad with a Response Channel
Face-to-Face Sales Call

40. Discussion Questions
Go to two internet sites for the same type of tourism organisation (Hotel, Airline, Destination marketing organisation, Restaurant, Travel Agency, Tour Operator or Theme park like Disneyland).
Based on the information provided so far in this lecture, critique the web sites.

41. End of Chapter Slides