Internet Marketing


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Internet Marketing

  1. 1. Internet Marketing Tourism Marketing Communications
  2. 2. Internet Marketing and Tourism <ul><li>Tourism services are complex, intangible and perceived as high risk by the consumer </li></ul><ul><li>The Internet provides scope for a more detailed proposition and feedback </li></ul>
  3. 3. Internet Applications <ul><li>Supports full range of organisational functions and services to stakeholders </li></ul><ul><li>Can integrate the marketing function within an organisation </li></ul><ul><li>Facilitates information management </li></ul>
  4. 4. Business Benefits <ul><li>Market penetration - can be used to sell more existing products into existing markets </li></ul><ul><li>Market development - can be applied to new markets taking advantage of low cost advertising </li></ul><ul><li>Product development - Information products that form part of tourism offering can be developed </li></ul><ul><li>Diversification - Specific tourism products can be designed for new Internet focused markets </li></ul>
  5. 5. Market & Product Strategic Grid Product Market Market Development Diversification Market penetration Product development Conservative Innovative Present New Present New
  6. 6. Benefits of an Internet presence <ul><li>Cost reduction - e.g reducing need for sales and marketing enquiries by telephone </li></ul><ul><li>Capability - New opportunities for products and services </li></ul><ul><li>Competitive advantage - provides scope for service modification </li></ul>
  7. 7. Benefits of Internet presence <ul><li>Communications improvement - for staff, customers, suppliers and distributors </li></ul><ul><li>Control -Internet's and Intranet’s can provide better market research </li></ul><ul><li>Customer service improvement - interactive enquiries </li></ul>
  8. 8. Strategic use of the Internet <ul><li>Environmental scanning </li></ul><ul><li>Competitor analysis </li></ul><ul><li>Market analysis </li></ul><ul><li>Customer analysis </li></ul><ul><li>Strategic decision making </li></ul><ul><li>Supply chain management </li></ul>
  9. 9. Strategic use of the Intranet <ul><li>Internal data analysis </li></ul><ul><li>Management information </li></ul><ul><li>Marketing information & database </li></ul><ul><li>Operations efficiency </li></ul><ul><li>Business planning </li></ul><ul><li>Monitoring and control </li></ul><ul><li>Simulations </li></ul>
  10. 10. Tactical uses of the Internet <ul><li>Advertising / promotions </li></ul><ul><li>Direct marketing </li></ul><ul><li>Public relations </li></ul><ul><li>Distribution / logistics </li></ul><ul><li>Workgroups </li></ul><ul><li>Marketing research </li></ul><ul><li>Publishing </li></ul>
  11. 11. Tactical uses of the Intranet <ul><li>Electronic mail </li></ul><ul><li>Data warehousing </li></ul><ul><li>Relationship marketing </li></ul><ul><li>Conferencing </li></ul><ul><li>Training </li></ul><ul><li>Product/service information </li></ul><ul><li>Customer service </li></ul>
  12. 12. Difference between the Internet and other Media <ul><li>One to many communications </li></ul><ul><li>Mass marketing </li></ul><ul><li>Monologue </li></ul><ul><li>Branding </li></ul><ul><li>Supply side thinking </li></ul><ul><li>Customer as target </li></ul><ul><li>Segmentation </li></ul><ul><li>One to one or many to many </li></ul><ul><li>Individualised marketing </li></ul><ul><li>Dialogue </li></ul><ul><li>Communication </li></ul><ul><li>Demand side thinking </li></ul><ul><li>Customer as partner </li></ul><ul><li>Communities </li></ul>
  13. 13. Marketing Mix applications The Product <ul><li>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 </li></ul>
  14. 14. Marketing Mix applications The Price <ul><li>Costs can be reduced since retail capital costs of buildings in key locations can be reduced. </li></ul>
  15. 15. Marketing Mix applications Promotion <ul><li>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. </li></ul>
  16. 16. Marketing Mix applications Distribution <ul><li>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. </li></ul>
  17. 17. Marketing Mix applications People <ul><li>Provides scope and innovation for a new generation of specialist marketing activity. </li></ul>
  18. 18. Marketing Mix applications Processes <ul><li>The Internet should be integrated with other marketing processes such as telemarketing and direct marketing in order to maximise its success. </li></ul>
  19. 19. Extent of dependence upon the Internet Customer access to Internet Low High Primarily complimentary Internet value proposition similar No Can product be standardised Primarily complimentary No Yes Primarily complimentary Primarily replacement Yes