©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Major Forces Shaping the Internet Age Digitalization and Connectivity The Internet Explosion New Types of Intermediaries Customization ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Digitalization and Connectivity Digitalization consists of converting text, data, sound, and image into a stream of bits that can be dispatched at incredible speeds from one location to another Connectivity involves building networks and expresses the fact that much of the world’s business is carried over networks connecting people and companies ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Types of Networks Intranets connect people within a company Extranets connect a company with its suppliers and customers The Internet connect users to an amazingly large “information superhighway.” ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens The Internet Explosion Useful as a sales outlet and it provides a medium for communication between a company and its customers The number of Web surfers worldwide has reached 1 billion and is expected to approach 1.5 billion by 2007 ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens New Types of Intermediaries With the birth of dot-com sites such as Expedia.com, Priceline.com, and Travelocity.com the hospitality industry has had to change how they do business ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Customization Technology has been useful in assisting companies in understanding their customers and potential customers on an individual level and developing marketing to their specific wants. ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens E-Business, E-Commerce & E-Marketing E-business involves the use of electronic platforms to conduct a company‘s business E-commerce involves buying and selling processes supported by electronic means, primarily the Internet E-marketing is company efforts to communicate about, promote, and sell products and other services over the Intranet ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Benefits to Buyers Convenient Easy and private Greater product access and selection Offers comparative information Immediate and interactive ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Benefits to Sellers Builds customer relationships Reduces costs Quick and efficient Reduces communication costs ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens E-Commerce Domains B2C (business to consumer) B2B (business to business) C2B (consumer to business) C2C (consumer to consumer) ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Types of Web Sites Corporate Web Sites are designed to build customer goodwill and to supplement other sales channels Marketing Web Sites engage consumers in an interaction that will move them closer to a direct purchase or other marketing outcome ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Designing Attractive Web Sites The key is to create enough value and excitement to get consumers to come to the site, stick around, and come back again ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens The greeting should be personalized and other persons being sent the same message should not be listed The name of the company should be identified The subject needs to be relevant to the reader s need to be short Text message is the preferred format ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens