The document discusses the major marketing challenges faced by e-travel companies due to changes in markets, customers, and the nature of marketing. Traditional marketing methods are declining in effectiveness due to customers having more power as networked and tech-savvy consumers. This has led to decreasing customer trust. The appropriate response is social media marketing that focuses on engaging customers, customizing offers, and involving customers in new product development. Companies should advocate for their customers by treating them with openness and respect in order to build customer trust and loyalty. The key is managing the total customer experience across different media and placing renewed emphasis on truly understanding the needs of the new empowered customer.

1. Marketing Challenges in
E-Travel
Dr. Efthymios Constantinides
Assistant Professor Marketing / E-Media
University of Twente
Faculty of Management and Governance / Business Administration
e.constantinides@utwente.nl
10/30/2013
E. Constantinides ©
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2. The Biggest Challenge of
(Tourism) Marketers Today is…
the changing nature of Markets,
Customers and Marketing

3. Declining Effects of Traditional Marketing

4. Millions?
Increasing customer power: the networked, tech-savvy consumer

7. Brand advocates and Brand detractors
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8. Decreasing customer trust

10. But my customer is happy!
(don’t be so sure!)
Example 1: Kryptonite
Example 2: AOL
Example 3: UA
Example 4: FedEx
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11. Customer activism and customer attacks

12. Power to the people: Social media activism
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15. Facts about reputation management
More than 70% of 142 global CCOs said their
companies had experienced a reputation threat
in the past 2 years (2012)*
2012 survey of social media risk managers by
Altimeter Group: 66% identified reputation or
brand damage as either a critical or significant
risk
*http://www.webershandwick.com/uploads/news/files/Rising_CCO_IV.pdf

16. New Technologies + Informed consumer = Powerful
consumer: A Major Marketing Paradigm Shift
From Push Marketing:
Producer has control over media and distribution channels
To Trust based / collaborative marketing:
Customer is the powerful party:
- Build belief, confidence, reliance
- Engage the customers
- Advocate customers/ they will advocate for you:
Honest, open, full info, Partnership
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E. Constantinides ©

17. Changing: Market
and Marketing
Declining Effects of
Traditional Marketing
Model
Increasing
Customer
Power
What is the right response?
Decreasing
Customer
Trust

18. Changing Marketing
Why?
Declining Effects of
Traditional Marketing
Model
Increasing
Customer
Power
Decreasing
Customer
Trust
RESPONSE?
Online and
Social Media
Marketing*
* Emphasis on Content Marketing
Engage the
customer
Customer Advocacy

19.  Weblogs 
 SNS 
 Online communities 
 Forums 
 Content aggregators 
© E. Constantinides

20. Use of Social Media as Marketing Tools
Passive: Listen the customer’s voice
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Active: Engage the customer
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21. Active Social Media Strategies
PR, Direct Marketing, Customer
Service
Reach the Influencers
Customize your offer
Engage the customer in Innovation

22. Changing Marketing
Why?
Declining Effects of
Traditional Marketing
Model
Increasing
Customer
Power
Decreasing
Customer
Trust
Social Media
Marketing
Engage the
customer
Customer Advocacy

23. Engage the customer
Customize your offer
Co-innovate: Get the
customer involved in
your NPD

24. Changing Marketing
Why?
Declining Effects of
Traditional Marketing
Model
Increasing
Customer
Power
Decreasing
Customer
Trust
Social Media
Marketing
Engage the
customer
Customer Advocacy

25. Active* Customer Advocacy
Help your customers
succeed by giving
them open, honest
and complete
information and help
them find the best
products/services for
them even if they are
not yours.
(Glen Urban)
Take proactive steps
to treat your
customer with
openness, respect
* Next to passive advocacy: Brand advocates
Make your customer
successful

26. The Dream

27. The reality?

28. Steps towards Customer Advocacy

29. Learn about your customers and their needs
Source: The Travel magazine http://www.thetravelmagazine.net/i-4850--flight-stress-what-annoys-you.html

31. Avoid “Ryanairization”of your business

32. And find ways to help your customers to become
successful
Advocacy Elements:
Simplicity
Benevolence
Transparency
Trustworthiness

33. Conclusions and a few tips
• A study by MIT Sloan Management
Review and Capgemini Consulting finds that
companies now face a digital imperative:
adopt new technologies effectively or face
competitive obsolescence.
• “The rise of the tech-savvy, connected
consumer across all facets of society changes
the expectations consumers have of
companies, regardless of their business”
» Curt Garner, Chief Information Officer at Starbucks.

34. Main Marketing Challenges today
• Manage the Total Customer Experience: Social
Media, Web, mobile and traditional media: cross-media
strategies
• Renewed emphasis on the Customer: Understand the New
Customer
– Use the Social Media to their full potential: Information vs. push
– Listen to the Customer Voice: Attention to reputation management
– Advocate your Customer to win Customer Trust and learn who are your
Customer Advocates (and Detractors)
– Customize your offer
– Harness the Crowd Wisdom: The customer as Co-Innovator
• Some tips for the future:
– Keep up with technology developments: mobile, wearable
technologies, RFID, Cloud, Semantic Web
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– From Consumer (segments) to Consumer Networks
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35. Thank you