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Marketing Challenges in E-TravelDr. Efthymios Constantinides
Assistant Professor Marketing / E-Media
University of Twente
Faculty of Management and Governance / Business Administration
The Biggest Challenge of (Tourism) Marketers Today is…
the changing nature of Markets, Customers and Marketing
Declining Effects of Traditional Marketing
Increasing customer power: the networked, tech-savvy consumer
Millions?
But my customer is happy!(don’t be so sure!)
Example 1: Kryptonite
Example 2: AOL
Example 3: UA
Example 4: FedExE. Constantinides © 1004/18/2023
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
E. Constantinides ©
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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Changing: Marketand Marketing
Declining Effects of Traditional Marketing
Model
Increasing Customer
Power
Decreasing Customer
Trust
What is the right response?
Changing MarketingWhy?
Declining Effects of Traditional Marketing
Model
Increasing Customer
Power
Decreasing Customer
Trust
Online and Social Media Marketing*
Engage the customer
Customer Advocacy
RESPONSE?
* Emphasis on Content Marketing
Weblogs
SNS
Online communities
Forums
Content aggregators
© E. Constantinides
Use of Social Media as Marketing Tools
Passive: Listen the customer’s voiceActive: Engage the customer
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Active Social Media Strategies
PR, Direct Marketing, Customer Service
Reach the Influencers
Customize your offer
Engage the customer in Innovation
Changing MarketingWhy?
Declining Effects of Traditional Marketing
Model
Increasing Customer
Power
Decreasing Customer
Trust
Social Media Marketing
Engage the customer
Customer Advocacy
Changing MarketingWhy?
Declining Effects of Traditional Marketing
Model
Increasing Customer
Power
Decreasing Customer
Trust
Social Media Marketing
Engage the customer
Customer Advocacy
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
Make your customer successful
* Next to passive advocacy: Brand advocates
Learn about your customers and their needs
Source: The Travel magazine http://www.thetravelmagazine.net/i-4850--flight-stress-what-annoys-you.html
And find ways to help your customers to become successful
Advocacy Elements:
Simplicity
Benevolence
Transparency
Trustworthiness
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.
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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– From Consumer (segments) to Consumer Networks– Be ready for the Social Data / Big Data and Neuromarketing