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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 Administratione.constantinides@utwente.nl

The Biggest Challenge of (Tourism) Marketers Today is…

the changing nature of Markets and Marketing

Declining Effects of Traditional Marketing

Increasing customer power: the networked, tech-savvy consumer

Millions?

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Brand advocates and Brand detractors

Decreasing customer trust

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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Customer activism and customer attacks

Power to the people: Social media activism

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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

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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

Engage the customer

Customize your offer

Co-innovate: Get the customer involved in your NPD

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 custome

r with opennes

s, respect

Make your customer

successful

* Next to passive advocacy: Brand advocates

The Dream

The reality?

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 address their needs

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 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

-

Thank you