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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

e.constantinides@utwente.nl

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?

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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: FedExE. Constantinides © 1004/18/2023

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

customer with openness, respect

Make your customer successful

* Next to passive advocacy: Brand advocates

The Dream

The reality?

Steps towards Customer Advocacy

Learn about your customers and their needs

Source: The Travel magazine http://www.thetravelmagazine.net/i-4850--flight-stress-what-annoys-you.html

http://jayharishshah.blogspot.se/2013/10/one-night-in-paris.html?utm_content=buffer80fe6&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer#!/2013/10/one-night-in-paris.html

Avoid “Ryanairization”of your business

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

Thank you