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

2. Chapter Copyright © 2009 by Nelson Education Limited. 10 Internet Marketing 10-2 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 Topics

3. Chapter Copyright © 2009 by Nelson Education Limited. 10 Internet Marketing 10-3 Direct e-mail marketing (permission marketing)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 The Use of the Internet in Tourism and Hospitality

4. Chapter Copyright © 2009 by Nelson Education Limited. 10 Internet Marketing 10-4 SpamSpam –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 The Use of the Internet in Tourism and Hospitality

5. Chapter Copyright © 2009 by Nelson Education Limited. 10 Internet Marketing 10-5 Four distinct advantages: 1.Targetability focus on people who want information about certain goods and services 2.Tracking has high response rates and is easy to measure 3.Deliverability and flexibility 4.Interactivity Online Advertising

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

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

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

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

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

11. Chapter Copyright © 2009 by Nelson Education Limited. 10 Direct Marketing and Internet Marketing 10-11 Permission marketingPermission 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 Customer Service and Relationship Marketing

12. Chapter Copyright © 2009 by Nelson Education Limited. 10 Direct Marketing and Internet Marketing 10-12 Marketing ResearchMarketing 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 Customer Service and Relationship Marketing