10 INTERNET MARKETING Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 10-1 Copyright © 2009 by Nelson Education Limited.

10 Topics role of the Internet as part of a communications strategy Internet Marketing Topics role of the Internet as part of a communications strategy ways in which the Internet is being used by tourism and hospitality organizations for e-mail marketing, advertising, provision of information, distribution and sales, delivering customer service, building relationships, and for market research 10-2 Copyright © 2009 by Nelson Education Limited.

10 The Use of the Internet in Tourism and Hospitality Internet Marketing The Use of the Internet in Tourism and Hospitality Direct e-mail marketing (permission marketing) one of the most promising applications in online advertising user chooses to receive messages from a particular advertiser relatively inexpensive advertising has high response rates and is easy to measure targeted at people who want information about certain goods and services 10-3 Copyright © 2009 by Nelson Education Limited.

10 The Use of the Internet in Tourism and Hospitality Spam Internet Marketing The Use of the Internet in Tourism and Hospitality Spam unsolicited e-mail, including advertising junk e-mail because of low cost of sending e-mail, users receive an increasing number of unwanted messages; consequence is that more and more e-mail goes unopened, and gaining permission to send someone an e-mail is becoming more important 10-4 Copyright © 2009 by Nelson Education Limited.

10 Online Advertising Four distinct advantages: Targetability Tracking Internet Marketing Online Advertising Four distinct advantages: Targetability focus on people who want information about certain goods and services Tracking has high response rates and is easy to measure Deliverability and flexibility Interactivity 10-5 Copyright © 2009 by Nelson Education Limited.

10 Direct Marketing and Internet Marketing Convergence of Traditional Advertising and Direct Response Marketing 10-6 Copyright © 2009 by Nelson Education Limited.

10 Internet Marketing Advertising Banner ad an ad placed as a narrow band across the top of a Web page 10-7 Copyright © 2009 by Nelson Education Limited.

Ten Tips for a Better Web site 10 Internet Marketing Ten Tips for a Better Web site Table 10.1 10-8 Copyright © 2009 by Nelson Education Limited.

10 The Use of the Internet in Tourism and Hospitality Direct Marketing and Internet Marketing The Use of the Internet in Tourism and Hospitality Provision of Information Planners Bookers Travel trade Travel media 10-9 Copyright © 2009 by Nelson Education Limited.

10 The Use of the Internet in Tourism and Hospitality Direct Marketing and Internet Marketing The Use of the Internet in Tourism and Hospitality Distribution and sales Booking activity dominated by airline reservations In US, concentration of online agencies: Expedia, Travelocity, Priceline = 90% of market Online partnerships 10-10 Copyright © 2009 by Nelson Education Limited.

10 Customer Service and Relationship Marketing Permission marketing Direct Marketing and Internet Marketing Customer Service and Relationship Marketing Permission marketing consumers volunteer to be marketed to on the Internet in return for some kind of reward many consumers are looking to build relationships on the Web uses the interactivity offered by the Web to engage customers in a dialogue and in a long-term interactive relationship 10-11 Copyright © 2009 by Nelson Education Limited.

10 Customer Service and Relationship Marketing Marketing Research Direct Marketing and Internet Marketing Customer Service and Relationship Marketing Marketing Research 2 options for questionnaire distribution: e-mail and web Advantages: speed, flexibility, reach Disadvantages: increasing difficulty to secure survey respondents, use of incentives increases methodological concerns: response bias, multiple entry, and unwanted entries 10-12 Copyright © 2009 by Nelson Education Limited.