The document discusses the major marketing challenges faced by tourism marketers today. The changing nature of markets and marketing is leading to declining effects of traditional marketing models as customers gain more power through social media and technology. This is decreasing customer trust in brands. The right response is social media marketing that engages customers, advocates for them, and involves them in product innovation. Marketers must help customers succeed by treating them with openness and respect in order to build advocacy. They need to understand customer needs through active listening on social media and customizing their offerings to address those needs.

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
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2. The Biggest Challenge of
(Tourism) Marketers Today is…
the changing nature of
Markets 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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14. 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

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

17. 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

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

19. 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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20. Active Social Media Strategies
PR, Direct Marketing, Customer
Service
Reach the Influencers
Customize your offer
Engage the customer in Innovation

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

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

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

24. 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

25. The Dream

26. The reality?

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

28. And find ways to address their needs
Advocacy Elements:
Simplicity
Benevolence
Transparency
Trustworthiness

29. 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.

30. Main Marketing Challenges in 21st Century
• Manage the Total Customer Experience: Social Media,
Web, mobile and traditional media: cross-media
strategies
• Renewed emphasis on the Customer: Understand the
New Customer
– Advocate your Customer to Win Customer Trust and learn who are your
Customer Advocates
– Harness the Crowd Wisdom: The customer as Co-Innovator
– From Consumer (segments) to Consumer Networks
• Keep up with technology developments: mobile,
wearable technologies, RFID, Cloud, Semantic Web
• Be ready for the `Social Data / Big Data and Neural
Marketing
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31. Thank you