Tag Archives: digital marketing

Key Dimensions in Social Media Communication

This is an excerpt from one of my latest contributions that will be published in Emerald’s “Strategic Corporate Communication in the Digital Age”.

Suggested Citation: Capriotti, P., Zeler, I., & Camilleri, M. A. (2021). Corporate communication through social networks: The identification of key dimensions for dialogic communication. In M. A. Camilleri (Ed.), Strategic corporate communication in the digital age. Bingley: Emerald, pp. 33-52. DOI 10.1108/978-1-80071-264-520211003

The relevant literature suggests that there is dialogic communication between organizations and their followers on social media, when both parties are willing to establish a communicational exchange (Kent & Taylor, 2002; Taylor & Kent, 2014). This may result in a dialogue when organizations respond and engage with other social media subscribers. There are two main dimensions that can determine the effectiveness of dialogic communications through social networks: The organizations’ “Predisposition to Interaction” and their “Effective Interaction” with the publics. The first one includes three determinants: “Active Presence”, “Interactive Attitude” and “Interactive Resources”. The second has two determinants: “Responsiveness” and “Conversation” as reported in Figure 1. These are five key dimensions that are influencing the effectiveness of dialogic communications through social networks:

  • Predisposition to interact in social networks

The basis for dialogic communication lies in the subjects’ readiness and willingness to interact with one another. A consistent digital presence and an ongoing dialogue with online users via social networks can help organizations to reinforce their stakeholder relationships. The organizations’ active presence and their interactive content can facilitate the online users’ engagement and may foster two-way conversations (Eberle, Berens & Li, 2013). Their predisposition towards online interactions through social media networks involves three core dimensions: the active presence (that necessitates a continuous online activity that facilitates interaction), the interactive attitude (that manifests the willingness to interact) and the interactive resources (this includes the resources that are used to disseminate content that is intended to promote interaction). Hence, a higher predisposition of organizations towards interaction on social networks is based on a greater level of these three dimensions (active presence, interactive attitude, and interactive resources).

  • Active presence

The active presence suggests that maintaining a consistent presence and activity in social networks increases the possibility of generating conversations with users (Bezawada, Rishika, Kumar & Janakiraman, 2013). The companies can use the social networks as a vehicle to promote their online content including live broadcasts, podcasts, recorded videos, images and stories. It also allows them to create events, conduct surveys and to engage with online users in real-time. Their active presence on social networks enables them to respond and interact with the different publics. The more active their online presence, the higher the likelihood of generating interactive conversations with individuals and organizations. Therefore, a first key dimension is measuring the organizations’ active presence, by identifying whether they have an interactive presence in social networks and to determine what is their level of activity.

The ‘active presence’ analyses the active and consistent use of social networks that enable, facilitate and encourage online users to share the organizations’ information with others. Therefore, the organizations’ ‘active presence’ comprises two variables: (a) the level of presence: to determine whether companies have official corporate profiles on social networks; (b) the level of activity: to analyse the weekly and daily average of publications of organizations on the social networks (e.g. posts and updated statuses). A greater active presence would involve a higher predisposition towards interaction.

Several authors agree that social networks are increasingly being incorporated in corporate communication plans as organizations can use these channels to spread content, practice active listening, take part in online conversations, thereby engaging with online users’ and building a relationship with them (Bortree & Seltzer, 2009; Castillo-Esparcia & Smolak Lozano, 2013; Chu, 2011; Neill & Moody, 2015; Rodríguez Fernández, 2012; Waters, Burnett, Lamm & Lucas, 2009). Other authors contend that the organizations’ presence on social networks ought to be part of their communication strategy (Losada-Díaz & Capriotti, 2015; Viñarás Abad & Cabezuelo Lorenzo, 2012). The practitioners themselves are well aware that there is scope in using social networks in order to enhance their organizations’ communications with stakeholders (Wigley & Zhang, 2011).

Cohen (2015) maintained that it is difficult to quantify the most effective frequency of social media posts. If the organizations post too frequently, they risk annoying their followers, whilst if they post infrequently, their audience may forget that they exist. Various experts, including Capriotti & Ruesja, 2018; Jordan, 2017; Myers, 2019; Patel, 2016; Shane, 2018; Social Report, 2018; Zeler & Capriotti, 2017; Zeler, Oliveira & Malaver, 2019, among others, have put forward their recommendations about the most appropriate publication frequency in different social networks. For example, Kemp (2019) suggested that the posting frequency in Facebook should be between 1 and 2 posts per day, in Twitter between 3 and 5 tweets per day, in YouTube between 1 and 2 videos per week and in Instagram between 1 and 2 posts per day.

Different studies have reported a huge disparity in terms of the outcomes about the presence and activity of organizations on social networks. Some researchers indicated that the activity of organizations on social networks reaches a frequency of less than 1 post per day (Devaney, 2015; Losada-Díaz & Capriotti, 2015; Quintly, 2016; Statista, 2017). Conversely, others found that companies are publishing at least one post per day (Estudio de Comunicación, 2017; Kim, Kim & Hoon Sung, 2014). This disparity in the results is because the researchers may have explored different contexts. Alternatively, they could have used different methodologies and sampling frames to investigate the organizations’ activity on social media networks.

  • Interactive attitude

The interactive attitude is focused on the need to promote actions and content that can enhance online conversations with online users (Safko & Brake, 2009). The organizations may encourage their online followers to cocreate content or simply to share their positive experiences with others and to engage in positive word-of-publicity. They are in a position to foster dialogic, two-way communications on social networks in order to build their reputation and trust from their publics (Camilleri, 2015; Camilleri, 2018b). At the same time, they can demonstrate that they care to respond to their stakeholders’ queries or concerns.

Therefore, a second key dimension involves measuring the interactive attitude, by examining the organizations’ communication approaches on social networks. The organizations’ ‘interactive attitude’ is based on two approaches: (a) informative approach: This refers to the creation and presentation of informative content. Such content is descriptive/expository and encourages unidirectional communications; (b) interactive approach: This refers to the creation and dissemination of content that is intended to trigger conversations and the exchange of information. Hence, interactive approaches facilitate two-way communications (as online users are motivated to participate in online discussions, to disseminate viral content, subscribe to particular activities, share their reviews, opinions and/or recommendations, answer questions, etc.). The interactive approaches necessitate that the organizations’ demonstrate a higher predisposition towards interacting with the publics.

Several authors (Bortree & Seltzer, 2009; Diga & Kelleher, 2009; Eyrich, Padman & Sweetser, 2008; Muckensturm, 2013; Wang, 2015) emphasise that social networks promote dialogic communications, which in turn could improve the relationships with stakeholders. Various studies have reported that many organizations are already using the Internet for corporate communication purposes, as they disseminate information about their business with their publics through corporate websites (Kent & Taylor, 1998; Moreno & Capriotti, 2006), blogs (Seltzer & Mitrook, 2007) and social networks (Bortree & Seltzer, 2009; Ji, Li, North & Liu, 2016; Pace, Buzzanca & Fratocchi, 2014; Waters et al., 2009). Their bidirectional communication is possible as long as there are ongoing conversations and a regular dialogue with stakeholders (Valentini, 2015). For this to happen, it is necessary to share relevant content that appeals to the targeted audiences. This way, the corporate communication messages will result in increased stakeholder engagement and may inspire further interactions with the publics (Abitbol & Lee, 2017).

  • Interactive Resources

The interactive resources include those resources that are required to produce relevant, interactive content (Zeler & Capriotti, 2018, 2019). Theunissen & Wan Noordin (2012) maintain that successful organizations design appropriate dialogic environments that are intended to facilitate stakeholder engagement.  Their corporate communications can be presented through different media including written content and graphics through printed materials, hypertexts and/or audiovisual formats that can be accessed through digital and mobile technologies, etc. Anderson et al. (2016) noted that the communication experts were using writing skills to build relationships with their publics. The author argued that the corporate communications content ought to be relevant, concise and easily understood by online users. The organizations’ creative messages may include certain keywords that appeal to their followers, to foster their interaction (Abitbol & Lee, 2017). Hence, online users may be intrigued to engage in conversations through their comments and replies.

Therefore, a third key dimension is to measure the interactive resources, by studying the information resources used by organizations to spread their content on social networks. The ‘interactive resources’ are a key dimension for corporate communication, as organizations use them to convey information to their publics. Organizations rely on the usage of interactive resources to spread their content to their audiences. The interactive resources, including the social networks can be used to facilitate the interaction and dialogue with online users. The social media enable the exchange of information as they can feature different formats. These formats may usually be combined within the same message. For example, the communication formats include (1) graphic resources: These are composed of fixed images, texts, and emojis. Such resources may be used to foster the dissemination of information in a mono-logic manner; (2) audiovisual resources: These include videos, podcasts and/or animated images (GIFs). Such resources have potential to reach greater audiences because they have a greater capacity to appeal to the individuals’ emotions (as they can increase their attention span); (3) hypertextual resources: These comprise links, hashtags and user tags. They include resources that can trigger the exchange of information. Online users may be enticed to participate, interact and engage in online conversations. The greater access, ease of use and availability of hypertextual and audiovisual resources have led many organizations as well as individuals to use these formats and to present them in social networks.

A few studies indicated that there is a significant increase in individuals who are watching videos  online and/or via social networks. According to the Global Web Index (2017), more than 90% of Internet users watch online videos every month (Smith, 2017), and more than 50% watch videos on the main social networks. These findings represent an increase of almost 20% when compared to the previous year. Valentine (2017) posited that the social media networks have been augmented with the audiovisual resources. The authors argued that the videos add value to the social network strategies as they provide greater levels of engagement. Hence, organizations are encouraged to use the videos to enhance their corporate communication messages (Pletikosa Cvijikj & Michahelles, 2013).

Currently, we are witnessing an exponential growth in the use of audiovisual resources that are posted on social networks (this may be due to the increase in connection speeds coupled with the technological improvements of the mobile devices). However, a review of the relevant literature reported that the fixed image is still the most used resource among organizations (Twenge, Martin & Spitzberg, 2019; Luarn, Lin & Chiu, 2015; Waters et al., 2009). A few studies found that institutional websites were posting more images in social media posts rather than videos and links (Capriotti, Carretón & Castillo, 2016; McCorkindale, 2010). These findings suggest that organizations are using their available resources to publish visual (graphic) content. Some practitioners were not utilizing other formats including interactive, audiovisual resources, in their corporate communication. These latter resources could improve the organizations’ engagement with online users.

  • Effective communicative exchange in social networks

The effective communicative exchange involves continuous interactions between the organizations and the online users, and among the online users themselves, within social networks. The successful dialogic exchanges rely on the parties’ responsiveness as well as on ongoing conversations (Anderson et al., 2016; Kiousis, 2002; Rafaeli, 1988; Walther, Deandrea, Kim & Anthony, 2010). Thus, the communicational exchange between the organizations and their publics is dependent on various forms of interactive engagement (e.g. likes, comments, follows, tagging, mentions with hashtags, group memberships, etc.). The greater implementation of the conversational exchange will represent a higher level of interaction.

  • Responsiveness

The responsiveness is evidenced when the recipients react to the communications that they receive. This is usually demonstrated when there is a response or reply (from the part of the recipient of the information) to an original message. For example, the ‘likes’ and ‘shares’ of the social media networks would clearly indicate the online users’ responsiveness to the organizational communications (Anderson et al., 2016; Macnamara, 2014). The likes suggest that the individuals are (somehow) appreciating the posted content (within social media), albeit in a passive manner. Recently, Facebook has introduced other features in addition to its popular like function, including love, care, haha, wow, sad and angry emojis.  Similarly, Linkedin has included the like, celebrate, love, insightful and curious emojis. Yet, these forms of communication do not involve any verbal expression from the social media users. On the other hand, when individuals share posts (and links) of organizations, or of third parties in their profile, they become volunteer spokesmen for them as they promote their content (Abitbol & Lee, 2017; Cho, Schweickart & Haase, 2014). Therefore, a fourth key dimension is to measure Responsiveness, by studying the rate of support and viralization generated by organizations on social networks.

Organizations are encouraged to measure their social media users’ responsiveness to their digital content that they share via social networks. For instance, individuals may exhibit different ‘levels of responsiveness’ toward the organizations’ posts through social media platforms. Their degree of responsiveness may be evaluated  by the social media users’ engagement, in terms of: 1) Rate of Likes: obtained from the average of total likes by company and post in relation to the number of followers of companies; (2) Rate of Shares: obtained from the total average of shares by company and post in relation to the number of companies’ followers. Hence, organizations can use these quantitative measures to better understand the level of responsiveness to their social media activity.

  • Conversation

The conversation dimension involves interactive communicative exchanges between two or more parties. The recipients of the communication interact with the communicator and engage in conversations. For example, online users can dialogue and exchange their insights with organizations through the social networks (Anderson et al., 2016; Kiousis, 2002; Walther et al., 2010). The conversation on social networks is usually manifested through ‘comments’. The comments are the most genuine expression of the online users’ interaction on social networks. They are considered as most relevant element as they provide a rich source of qualitative data to organizations. They require much more commitment than likes and shares, as organizations are expected to respond to the social media users’ comments and to engage in direct conversations with them. Hence, online conversations facilitate the communicative exchange between the organizations and the publics (Abitbol & Lee, 2017; Cho et al., 2014).  Therefore, a fifth key dimension analyse the rate of conversation generated by organizations on social networks.

The digital conversations provide qualitative insights to organizations about their followers or other online users. The organizations may capture and analyse the interpretative content of online users through social media posts and comments. The quantitative measures may include: a) Intensity: this refers to the total general number of exchanges between an organization and their publics, based on the rate of comments. (b) Reciprocity: this refers to measuring whether there is equitable communication between an organization and its followers, analysing the level of balance in the exchange between an organization and its publics, obtained from the total percentage of comments made by users and companies. Thus, the more balanced the communicational exchange between an organization and its publics, the greater the quality of the interaction. And the more imbalanced the communicational exchange between an organization and its publics, the poorer the quality of interaction. Thus, it is in the interest of organizations to maintain a balanced communicational exchange with their publics.

The full version of this chapter (a pre-publication version of this contribution) is available through ResearchGate and Academia.edu.

Advertisement

Leave a comment

Filed under corporate communication, digital media, social media

A taxonomy of online marketing terms

This is an excerpt from one of my latest chapters on online marketing methods.

Photo by Stephen Phillips – Hostreviews.co.uk on Unsplash

Suggested Citation: Hajarian, M., Camilleri, M. A., Diaz, P., & Aedo, I. (2021). A taxonomy of online marketing methods for corporate communication. In M. A. Camilleri (Ed.), Strategic corporate communication in the digital age. Bingley: Emerald, pp. 235-250. DOI: 10.1108/978-1-80071-264-520211014

One of the well-known online marketing methods is the use of email marketing. It is one of the most popular digital tactics. Despite the current popularity of social media, many individuals still prefer to receive the news about the brands via emails (Camilleri, 2018a). Email marketing is very effective in terms of return on investment (ROI). However, there are many ways that can improve the email marketing performance (Conceição & Gama, 2019). Sahni, Wheeler and Chintagunta (2018) found that by personalizing email marketing (e.g. adding the name of the receiver to the email subject), the probability that the receiver reads the email increases by 20%. Conceição and Gama (2019) have developed a classification algorithm to predict the effectiveness of email campaign. The authors suggested that the open rates were based on the keywords that were featured inside the email. They maintained that the utilization of personalized messages and the inclusion of question marks in the subjects of the email can increase the chance of opening an email. Moreover, they hinted that there are specific times during the day where there are more chances that the marketing emails will be noticed and read by their recipients. These times can be identified by using data mining technologies.

Direct emails could be forwarded to specific users for different reasons. Evans, (2018) described advertising emails in three categories: (i) promotional emails that raise awareness about attractive offers, including discounts and reduced prices of products and services. This type of email is very helpful to increase sales and customer loyalty. Some innovative marketers are using disruptive technologies, including gamification to reward and incentivize online users to click their email links; (ii) electronic newsletters that are aimed at building consumer engagement. Hence, these emails ought to provide high-quality, interactive content to online users. These emails are also known as relational emails that are intended to build a rapport with online users; (iii) confirmation emails that are used to confirm to the customers that their online transactions were carried out successfully. These types of emails are very valuable in terms of branding and corporate image. In sum, the electronic newsletters are intended to redirect online users to the businesses’ websites.

Another major online marketing method is the social network marketing. Brands and corporations can feature their page on social media networks (e.g. Facebook or Instagram) to communicate with their customers and/or promote their products and services to their followers. This can result in an improved brand awareness and a surge in sales. On the other hand, customers can write their reviews about brands or even purchase products online (Smith, Hernández-García, Agudo Peregrina & Hair, 2016). Thus, social network marketing can have a positive impact on electronic positive eWOM advertising in addition to enhancing the customers’ loyalty (Smith et al, 2016).

There are other forms of social network marketing including influencer marketing, video marketing and viral marketing, among others. The social networks are providing various benefits to various marketers as they can use them to publish their content online. Their intention is to influence online users and to entice them to purchase their products or services. Liang, Wang and Zhao (2019) have developed a novel algorithm that can identify the effects of influencer marketing content. Notwithstanding, various social networks such as Facebook and Instagram are increasingly placing the businesses’ video ads for their subscribers. In both cases, the advertisers may use Facebook marketing (Instagram is owned by Facebook) to identify the most appropriate subscribers to serve their ads (Camilleri, 2019). The social networks are a very suitable place for targeted advertising because they have access to a wide range of user information such as their demographical details, and other relevant information (Hajarian, Bastanfard, Mohammadzadeh & Khalilian, 2019a). However, online users may not always be interested in the marketers’ social media messages. As a result, they may decide to block or filter ads (Camilleri, 2020).

One of the most profitable and interesting online marketing methods is the Electronic Word of Mouth (eWOM) (see Hajarian, Bastanfard, Mohammadzadeh & Khalilian, 2017). The internet users are increasingly engaging in eWOM. More individuals are sharing their positive or negative statements about products or services (Ismagilova, Dwivedi, Slade & Williams, 2017). Hence, the individual users’ reviews in online fora, blogs, and social media can be considered as eWOM. Ismagilova et al. (2017) stated that the businesses would benefit through positive eWOM as this would improve their positioning in their consumers’ minds. Moreover, eWOM is also useful to prospective consumers as they rely on the consumers’ independent comments about their experience with the businesses’ products or services. The consumers’ reviews and ratings can reduce the risk and search time of prospective consumers. In addition, individuals can use the review platforms to ask questions and/or interact with other users. These are some of the motivations that lure online users to engage in eWOM.

Influencer marketing is another type of online marketing that is conspicuous with the social media. The influencers may include those online users who are promoting products or brands to their audiences. Hence, influencer marketing is closely related to eWOM advertising. However, in this case, the influencer may be a popular individual including a celebrity, figurehead or an athlete who will usually have a high number of followers on social media. The influencers may be considered as the celebrities of online social networks. They are proficient in personal branding (Jin & Muqaddam, 2019). Hence, the social media influencers will promote their image like a brand. Thus, the influencer marketing, involves the cooperation of two brands, the social media influencer and the brand that s/he are promoting (Jin & Muqaddam, 2019). Social media influencers can charge up to $250,000 for each post (Lieber, 2018), although this depends on the number of their audience and the platform that they are active on. The influencers work on different topics such as lifestyle, fashion, comedy, politics and gaming (Stoldt, 2019). It is projected that influencer marketing will become a $5 to $10 billion market by 2020 (Mediakix, 2019). It is worth to mention that the gaming influencers are also becoming very successful in online marketing.

Viral marketing is another method of online marketing that can be performed by regular social media users (not necessarily influencers). The social media subscribers can disseminate online content, including websites, images and videos among friends, colleagues and acquaintances (Daif & Elsayed, 2019). Their social media posts may become viral (like a virus) if they are appreciated by their audiences. In this case, the posts will be shared and reshared by third parties. The most appealing or creative content can turn viral in different social media. For example, breaking news or emotional content, including humoristic videos have the potential to become viral content as they are usually appreciated and shared by social media users.

The social networks as well as the messengers like Facebook messenger, WhatsApp, et cetera are ideal vehicles of viral marketing as online users and their contacts are active on them. Similarly, other marketing methods such as email marketing can also be used as a tool for viral marketing. In viral marketing the influencers can play a very important role as they can spread the message among their followers. Hence, the most influential people could propagate online content that can turn viral. Nguyen, Thai and Dinh (2016) have developed algorithms that identify the most effective social media influencers that have more clout among their followers. In a similar way, businesses can identify and recruit influential social media users to disseminate their promotional content (Pfeiffer & Zheleva, 2018). Their viral marketing strategies may involve mass-marketing sharing incentives, where users receive rewards for promoting ads among their friends (Pfeiffer & Zheleva, 2018). There are business websites that are incentivizing online users, by offering financial rewards if they invite their friends to use their services. 

Videos are one of the best methods for marketing. Abouyounes (2019) estimated that over 80% of internet traffic was related to videos in 2019. He projected that US businesses will spend $28 billion on video marketing in 2020. The relevant literature suggests that individuals may be intrigued to share emotional videos. Such videos may even go viral (Nikolinakou & King, 2018). The elements of surprise, happiness as well as other factors such as the length of the video can affect whether a video turns viral or not. Abouyounes’s (2019) reported that the individuals would share a video with their friends if they found it to be interesting. Alternatively, they may decide to disseminate such videos on social media to share cognitive (informational) and/or emotional messages among their contacts. Hence, the term social video marketing refers to those videos that can increase the social media users’ engagement with video content. Over 77% of the business that have used social video marketing have reported a positive direct impact on their online metrics (Camilleri, 2017).

With the rise of social media, many online users have started to refine the content of their online messages to appeal to the different digital audiences. The online users’ content marketing involves the creation of relevant messages that are shared via videos, blogs and social media content. These messages are intended to stimulate the recipients’ interest. The content marketers’ aim is to engage with existing and potential customers (Järvinen & Taiminen, 2016). Therefore, their marketing messages ought to be relevant for their target audiences. The online users may not perceive that the marketed content is valuable and informative for them. Thus, the content should be carefully adapted to the targeted audience. The content marketers may use various interactive systems to engage with online users in order to gain their trust (Montero, Zarraonandia, Diaz, & Aedo, 2019; Díaz, Aedo & Zarraonandia, 2019a; Díaz, Zarraonandía, Sánchez-Francisco, Aedo & Onorati, 2019b; Díaz & Ioannou, 2019c; Baltes, 2015). To this end, the advertisers should analyze the interests of their target audience to better understand their preferred content. Successful content marketing relies on the creation of convincing and timely messages that appeal to online users. Zarrella (2013) study suggested that some Facebook and Twitter content is more effective during particular times of the day and in some days of the week.

Native advertising present promotional content including articles, infographics, videos, et cetera that are integrated within the platforms where they are featured (e.g. in search engines or social media). In 2014, various business invested more than $3.2 billion in this type of digital advertising (Wojdynski & Evans, 2016). Native ads may include banners or short articles that are presented in webpages. However, online users would be redirected to other webpages if they click on them. Parsana, Poola, Wang and Wang (2018) has explored the click-through rates (CTR) of native advertisements as they examined the historic data of online users. Other studies investigated how native ads were consistent in different situations and pages (Lin, 2018).

The advertorials are similar to native ads as they are featured as reports or as recommendations within websites. They are presented in such a way that the reader thinks that they are part of the news (Charlesworth, 2018). This type of advertising can be featured as video or infographic content that will redirect the online users to the advertisers’ websites. Besides, these ads may indicate a small “sponsored by” note that is usually ignored by the online users. In some regards, this is similar to the editorial content marketing, where editors write promotional content about a company or a website. However, in the case of editorial marketing, the main purpose is to educate or to inform the readers about a specific subject. Therefore, such a news item is usually presented free of charge as it appears at the discretion of the editor. Nevertheless, both advertorial and editorial marketing can have a positive impact on brand awareness and brand equity.

Various technologies companies including Google and Facebook are providing location-based marketing opportunities to many businesses. However, this innovative marketing approach relies on the individuals’ willingness to share their location data with their chosen mobile applications (apps). For example, foursquare, among other apps, can send messages to its mobile users (if they enable location sharing). It can convey messages about the users favorite spots, including businesses, facilities, et cetera, when they are located in close proximity to them (Guzzo, D’Andrea, Ferri & Grifoni, 2012).

Currently, the messengers are growing at a very fast pace. It may appear that they are becoming more popular than the social networks. Messengers such as WhatsApp, Viber, Telegram, Facebook Messenger, WeChat, and QQ, among others, have over 4.6 billion active users in a month (Mehner, 2019). This makes them a very attractive channel for online marketing. Since messengers can provide a private, secure connection between the business and their customers, they are very useful tools for marketing purposes. Moreover, the messengers can be used in conjunction with other advertisement methods like display (or banner) marketing, viral marketing, click-to-message ads, et cetera. Online or mobile users can use the messengers to communicate with a company representative (or bot) on different issues. They may even raise their complaints through such systems. Some messengers like Apple Business Chat and WeChat, among others have also integrated in-app payments. Hence, the messengers have lots of possible features and can be used to improve the business-to-consumer (B2C) relationships. In addition, other messengers like Skype, Google Meet, Zoom, Microsoft Teams, Webex, et cetera can provide video conferencing platforms for corporations and small businesses. These systems have become very popular communication tools during COVID-19.

Other online marketing approaches can assist corporations in building their brand equity among customers. Various businesses are organizing virtual events and webinars to engage with their target audience. They may raise awareness about their events by sending invitations (via email) to their subscribers (Harvey & An, 2018). The organization of the virtual meetings are remarkably cheaper than face-to-face meetings (Lande, 2011). They can be recorded and/or broadcast to wider audiences through live streaming technologies via social media (Veissi, 2017). Today, online users can also use Facebook, Instagram and LinkedIn live streaming facilities to broadcast their videos in real time and share them amongst their followers.

The display (or banner) marketing may usually comprise promotional videos, images and/or textual content. They are usually presented in webpages and applications. Thus, online banners may advertise products or services on internet websites to increase brand awareness (Turban et al, 2018). The display ads may be created by the website owners themselves. Alternatively, they may have been placed by Google Adsense on behalf of their customers (advertisers).

The display advertisements may also be featured in digital and mobile games. Such online advertisements are also known as in-game marketing.  The digital ads can be included within the games’ apps and/or may also be accessed through popular social networks. The in-game marketing may either be static (as the ads cannot be modified after the game was released) or dynamic (where new ads will be displayed via Internet connections) (Terlutter & Capella, 2013). Lewis and Porter (2010) suggested that in-game advertising should be harmonious with the games’ environments. There are different forms of advertisements that can be featured in games. For instance, advergames are serious games that have been developed in close collaboration with a corporate entity for advertising purposes (Terlutter & Capella, 2013), e.g. Pepsi man game for PlayStation.

The latest online marketing technologies are increasingly using interactive systems like augmented reality. These innovations are being utilized to enhance the businesses’ engagement with their consumers (Díaz et al., 2019b). The augmented reality software can help the businesses to promote their products (Turban et al, 2018). For example, IKEA (the furnishing company) has introduced an augmented reality application to help their customers to visualize how their products would appear in their homes. Similarly, online fashion stores can benefit from augmented reality applications as their customers can customize their personal avatars with their appearance, in terms of size, length and body type, to check out products well before they commit to purchase them (Montero et al., 2019).

The banner advertising was one of the earliest forms of digital marketing. However, there were other unsophisticated online marketing tactics that were used in the past. Some of these methods are still being used by some marketers. For instance, online users can list themselves and/or their organization in an online directory. This marketing channel is similar to the traditional yellow pages (Guzzo et al., 2012). The online directory has preceded the search engine marketing (SEM). This form of online advertising involves paid advertisements that appear on search engine results pages (like native ads). Currently, SEM is valued at $70 billion market by 2020 (Aswani, Kar, Ilavarasan & Dwivedi, 2018). The advertisements may be related to specific keywords that are used in search queries. SEM can be presented in a variety of formats, including small, text-based ads or visual, product listing ads. The advertisers bid on the keywords that are used in the search engines. Therefore, they will pay the search engines like Google and Bing to feature their ads alongside the search results.

The search engine optimization (SEO) is different than SEM. The individuals or organizations do not have to pay the search engine for traffic and clicks. SEO involves a set of practices that are intended to improve the websites’ visibility within the search results of search engines. The search engines algorithms can optimize the search results of certain websites, (i) if they have published relevant content, (ii) if they regularly update their content, and (iii) if they include link-worthy sites. Although, SEO is a free tool, Google AdWords and Bing ads are two popular search engine marketing platforms that can promote websites in their search engines (through their SEM packages). Various researchers have relied on different scientific approaches to optimise the search engine results of their queries. For example, Wong, Collins and Venkataraman, (2018) have used machine learning methods to identify which ad placements and biddings were yielding the best return of investment from Google Adwords.

Download your free chapter here.

Leave a comment

Filed under digital media, Google, Marketing, Mobile, online, Small Business, social media

My Latest Edited Book on Destination Marketing

An Excerpt from the Preface of “Strategic Perspectives in Destination Marketing” (forthcoming):

The marketing of a destination relies on planning, organization and the successful execution of strategies and tactics. Therefore, this authoritative book provides students and practitioners with relevant knowledge of tourism planning and destination marketing. The readers are equipped with a strong pedagogical base on the socio-economic, environmental and technological impacts on the attractiveness of tourist destinations. At the same time, this publication presents contemporary conceptual discussions as well as empirical studies on different aspects of the travel and tourism industries.

The readers of this book will acquire a good understanding of the tourism marketing environment, destination marketing and branding, pricing of tourism products, tourism distribution channels, etourism, as well as on sustainable and responsible tourism practices, and among other topics. They will appreciate that the tourism marketers, including destination management organizations (DMOs) are increasingly using innovative tools, including; digital media and ubiquitous technologies to engage with prospective visitors. Hence, this book also sheds light on the latest industry developments in travel, tourism, hospitality and events.

Chapter 1 introduces the readers to the tourism concept as it describes the travel facilitators and motivators. Afterwards, it explains several aspects of the tourism product, including; the visitors’ accessibility, accommodation, attractions, activities and amenities. It categorizes different travel markets; including; adventure tourism, business tourism (including meetings, incentives, conferences and events), culinary tourism, cultural (or heritage) tourism, eco-tourism (or sustainable tourism), educational tourism, health (or medical tourism), religious tourism, rural tourism, seaside tourism, sports tourism, urban (or city) tourism, wine tourism, among other niche areas.

Chapter 2 examines how foreign tourist intermediaries perceive Portugal as a tourist destination. It analyzes the promotional information that they use to attract visitors to this Southern European destination. This contribution recognizes that the tour operators have an important role in intermediating the relationship between the tourists and the tourism service providers. The authors suggest that tourism relies on the destination’s image that is often being portrayed by the foreign tourism intermediaries.

Chapter 3 explores the cruising consumers’ behaviors and their decision-making processes. The authors maintain that the destination, the social life on board as well as the cruise features are very important factors for consumer loyalty. In conclusion, they recommend that cruise lines should create synergies with local institutions in tourist destinations.

Chapter 4 investigates the Spanish inhabitants’ opinions on the tourism industry’s seasonality issues. The findings suggest that the local residents who live in the coastal destinations were in favor of having tourism activity throughout the year; as opposed to other host communities from urban and rural destinations (in Spain) who indicated that they would enjoy a break from tourist activity during the low / off peak seasons.

Chapter 5 provides a critical review about the pricing and revenue management strategies that are increasingly being adopted within the tourism and hospitality contexts. The authors introduce the readers to the concept of “rate fencing”. This proposition suggests that businesses ought to differentiate among various customer segments, as they should attract and develop relationships with the most profitable ones.

Chapter 6 appraises the use of qualitative reviews and quantitative ratings in interactive media. The authors also engage in a discussion on the content analysis of the online users’ generated content (UGC). They posit that it is in the interest of tourism and hospitality businesses to respond to positive and negative word of mouth publicity in reasonable time, as they may have to deal with fake and unverified reviews.

Chapter 7 clarifies how online travel businesses, including; AirTickets, AirBnB and TripAdvisor among others, are continuously investing in their communication technologies and infrastructures to improve their online users’ experience. The author contends that innovative technologies, such as recommender systems and control frameworks are supporting the travel businesses’ in their customer-centric approaches.

Chapter 8 discusses about the concept of the brand identity of destinations from the suppliers’ perspective. The author puts forward a case study on the city of Porto, in Portugal. She explicates how this tourist destination has used an authenticity-based approach to leverage itself as a distinct brand identity among other destinations.

Chapter 9 proposes an ambitious plan to attract visitors to Buxton, Derbyshire. Firstly, the authors focus on the marketing endeavors of a local renovated hotel. Secondly, they provide relevant examples of how other wellness and spa towns in Britain, including; Bath and Harrogate are organizing events and festivals to attract international tourists throughout the year.

Chapter 10 explains how a perceived (positive) image can provide a sustainable competitive advantage to tourism destinations. The authors argue that the historical events as well as other socio-political factors can possibly affect the visitors’ (pre-)conceptions of the Gallipoli peninsula in Turkey. However, they imply that the tourists’ positive experiences could translate to positive publicity for this destination.

Chapter 11 elucidates the notion of destination branding in the rural context. The author maintains that there are both opportunities and challenges for tourism policy makers to preserve the traditional farms and rural dwellings, in order to safeguard their distinct identity. He posits that the rural environment can add value to the tourist destinations and their branding.

Chapter 12 posits that today’s tour operators are highly driven by technology as prospective travelers are searching for online information about their destinations prior to their visits. The authors describe the digital marketing strategies and tactics that are used to promote Malawi, in Africa. They suggest that the inbound tour operators are increasingly using relevant content marketing through interactive technologies and social media to engage with prospective visitors.

Chapter 13 evaluates potential strategies that could be used to develop the tourism product in Adiyaman, Turkey. The authors identify the core responsibilities of the tourism stakeholders and put forward their key recommendations for the branding of this rural destination.

In sum, this authoritative publication is written in an engaging style that entices the curiosity of prospective readers. It explains all the theory in a simple and straightforward manner. This book reports on the global tourism marketing environments that comprise a wide array of economic, socio-cultural and environmental issues. It explains how technological advances have brought significant changes to the tourism industry and its marketing mix.

This book was written by academics for other scholars, researchers, advanced under-graduate and post-graduate students; as it provides a thorough literature review on different tourism topics, including; destination marketing and branding, sustainable and responsible tourism, tourism technologies, digital marketing, travel distribution and more. It is also relevant to the industry practitioners, including consultants, senior executives and managers who work for destination management organizations, tourism offices, hotels, inbound / outbound tour operators and travel agents, among others.

Leave a comment

Filed under destination marketing, digital media, Marketing, tourism, Travel

Tourism Futures: Targeting Customers in the Digital Age

This is an excerpt from: Camilleri’s latest book on Travel Marketing (2018)

How to Cite: Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism Economics and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland.

The advances in technology have enabled many businesses to reach their potential customers by using digital and mobile applications.

Google, Facebook, Ebay and Amazon, among others are dominating digital marketing; and are pushing the entire field of advertising to new levels. The use of personal info, web-browsing, search history, geographic location, apps and eCommerce transactions have gone mainstream. For example, Google has begun using transaction records to prove that its ads are working, and are pushing people to make more online purchases. This allowed the technology giant to determine the effectiveness of its digital ad campaigns and to verify their conversion rates.

All individuals leave a “digital trail” of data as they move about in the virtual and physical worlds. This phenomenon is called, “data exhaust”. Initially, this term that was used to describe how Amazon.com has used predictive analytics as it suggested items to its customers. However, pre­dictive analytics cannot determine when and why individuals may decide to change their habitual behaviours, as the possibility of “one off” events must never be discounted. Yet, a firm with sufficient scarce resources could be in a position to exploit big data and analytics to improve its businesses operations.

For instance, Deloitte Consulting have developed a mobile app that has enabled Delta Airlines’ executives to quickly query their operations. For instance, when users touch an airport on a map, the system brings up additional data at their disposal. Executives could also drill further down to obtain granular information on staffing requirements. and customer service levels, as they identify and predict problems in their airline operations.

Nevertheless, business intelligence and predictive analytics could possibly raise a number of concerns. Many customers may be wary of giving their data to the businesses and their stakeholders. Very often, the technological advances anticipate legislation, and its deployment. These contingent issues could advance economic and privacy concerns that regulators will find themselves hard-pressed to ignore. Some academics argue that the digital market and its manipulation may be pushing the limits of consumer protection law. Evidently, society has built up a set of rules that are aimed to protect personal information. Another contentious issue is figuring out the value of data and its worth in monetary terms. In the past, companies could have struggled to determine the value of their business; including patents, trade secrets and other intellectual property.

Targeted Segmentation through Mobile Devices

The mobile is an effective channel to reach out to many users. Portable devices, including smart phones and tablets are surely increasing the productivities and efficiencies of individuals as well as organisations. This has led to the growth of mobile applications (apps). As a result, the market for advertising on mobile is still escalating at a fast pace. Moreover, there are niche areas as new applications are being developed for many purposes on different mobile platforms.

Recent advances in mobile communication and geo-positioning technologies have presented marketers with a new way how to target consumers. Location-targeted mobile advertising involves the provision of ad messages to mobile data subscribers. This digital technology allows marketers to deliver native ads and coupons that are customised to individual consumers’ tastes, geographic location and the time of day. Given the ubiquity of mobile devices, location-targeted mobile advertising are increasingly offering tremendous marketing benefits.

In addition, many businesses are commonly utilising applications, including browser cookies that track consumers through their mobile devices, as they move out and about. Very often, when internet users leave the sites they visited, the products or services they viewed will be shown to them again in retargeted advertisements, across different websites. Several companies are using browsing session data combined with the consumers’ purchase history to deliver “suitable” items that consumers like. There are also tourism businesses who are personalising their offerings as they collect, classify and use large data volumes on the consumers’ behaviours. As more consumers carry smartphones with them, they may be easily targeted with compelling offers that instantaneously pop-up on their mobile screens.

Furthermore, consumers are continuously using social networks which are indicating their geo-location, as they use mobile apps. This same data can be used to identify where people tend to gather. This information is valuable to brands as they seek to improve their consumer engagement and marketing efforts. Therefore, businesses are using mobile devices and networks to capture important consumer data. For instance, smart phones and tablets interact with networks and convey information on their users’ digital behaviours and physical movements to network providers and ISPs. These devices have become interactive through the proliferation of technologies, including; near-field communication (NFC). Basically, embedded chips in the customers’ mobile phones are exchanging data with the retailers’ items possessing such NFC tags. The latest iPhone, Android and Microsoft smartphones have already incorporated NFC ca­pabilities. The growth of such data-driven, digital technologies is surely adding value to the customer-centric marketing. The latest developments in analytics are enabling businesses to provide a deeper personalisation of content as they use socio-demographic and geo-data that new mobile technologies are capable of gathering.

For example, mobile service companies are partnering with local cinemas, in response to the location-targeted mobile advertising; as cinema-goers may inquire about movie information, and could book tickets, and select their seats through their mobile app. These consumers who are physically situated within a given geographic proximity of the participating cinemas may receive location-targeted mobile ads. The cinemas’ ads will inform prospects what movies they are playing and could explain how to purchase tickets through their smart phone. The consumers may also call the cinemas’ hotlines to get more information from a customer service representative. Besides location-targeted advertising, the mobile companies can also promote movie ticket sales via mobile ads that are targeted to individuals, according to their behaviour (not by location). Therefore, companies may direct their mobile-ad messages to those consumers who had previously responded to previous mobile ads (and to others who had already purchased movie tickets, in the past months). Moreover, the cinema companies can also promote movies via Facebook Messenger Ads if they logged in the companies’ websites, via their Facebook account. Mobile users may also receive instant message ads via pop-up windows whenever they log into the corporate site of their service provider.

It is envisaged that such data points will only increase in the foreseeable future, as the multi-billion dollar advertising monopolies are being built on big data and analytics that are helping businesses personalise immersive ads as they target individual customers. The use of credit card transactions is also complementing geo-targeting and Google Maps, with ads; as the physical purchases are increasingly demanding personalisation, fulfillment and convenience. There may be consumers and employees alike who out of their own volition, are willing to give up their data for value. Therefore, the businesses need to reassure them through concise disclosures on how they will use personal data. They should clarify the purpose of maintaining their consumer data, as they are expected to provide simple user controls to opt in and out of different levels of data sharing. This way, they could establish a trust-worthy relationship with customers and prospects.

Companies are already personalising their shopping experience based on the user situation and history. Tomorrow’s tourism businesses are expected to customise the user experiences of their mobile applications and web interfaces, according to the specific needs of each segment. Big data and analytics capabilities are increasingly allowing businesses to fully leverage their rich data from a range of new digital touchpoints and to turn them into high impact interactions. Those businesses that are able to reorient their marketing and product-development efforts around digital customer segments and behaviours will be in a position to tap into the hyper-growth that mobile, social media and the wearables markets are currently experiencing.

Leave a comment

Filed under Airlines, Analytics, Big Data, digital media, Education, Hospitality, ICT, Marketing, tourism, Travel

The Travel Products’ Price Determinants

This is an excerpt from my latest tourism textbook, entitled; ‘Travel Marketing, Tourism Economics and the Airline Product’. This publication will be available through Springer and Amazon.com.


Price Determinants
The type of pricing strategy which marketing managers consider is determined by a number of factors, including: organisatonal and marketing objectives; types of pricing objectives; cost levels; other marketing mix variables; market demand; competition, and legal and regulatory issues, among other matters.

Organisational and Marketing Objectives

Company policy and image, target profit margins and staff count could influence the type of pricing policy which the marketing managers will apply. Company policy and image will play an important role when determining a pricing strategy. The price set must be consistent with the general corporate objectives and the strategic direction of the company. For example, a full-service airline may want to be associated with the top-end of the market by providing a high-quality service to the business travel segment. To price below the average rate for such a service may imply an inferior and poor-quality service.

Any airline which would like to target the business market should provide an extensive schedule and a high-quality service. Therefore, it will require considerable resources and capabilities to do so.

Pricing Objectives

The most fundamental pricing objective is that of survival pricing. When experiencing severe competition, businesses may be forced to offer lower prices than their rivals. This way they will generate revenue, and improve their chances of survival. A tourism service or sub-product will not generate revenue if it is not used over a given period of time (it will perish) . While the service or sub-products may be available for sale at some later point in time, the revenue that was originally lost, can never be regained. For example, a hotel had thirty empty rooms on a specific date. These empty rooms cannot be sold at a later date because the service has been completed, and perished. Similarly, an airline could depart with empty seats which cannot be sold at a later date.

Moreover, the demand for tourism products is usually seasonal. For example, many north Americans flee south to Hawaii and to the Caribbean, during the winter months; whilst Australasians travel to Europe during the summer months of June, July and August. Of course, seasonality may be due to other factors, other than climate, including; vacation and holiday periods. For example, families may habitually travel at the same time of the year, usually over Christmas, Easter or summer periods. This is the usual close-down time period for schools, industry and commerce, in many countries. Since tourism is highly seasonal, suppliers may reduce their prices during off-peak times. Hence, a low price strategy assists in creating demand particularly among price-sensitive customers. Conversely, operators may charge higher prices when there are peaks in demand, due to major attractions and special events.

Profit maximisation is another pricing objective. However, it may prove difficult to measure, as businesses could not be in a position to determine when they have reached maximum profit. As a result, profit maximisation may be evaluated according to a certain ‘level of satisfaction’. A change in profit relative to previous periods may be considered as satisfactory or unsatisfactory for the businesses. The setting of prices to obtain a fixed rate of return on a company’s investment is a profit-related objective. Many businesses could be aiming to achieve a specific profit.

Another possible pricing objective is that of increasing market share. Many companies may design pricing policies which will enable them to improve their market share. However, at times, they may be satisfied with their current status in the market. In this case, their objective would be to retain their status quo. Companies with such an objective may not use pricing as a competitive tool. They will probably maintain a steady market share by nurturing their brand equity.

Cost Levels

The marketing managers should be careful to analyse all costs so that they will be included in the total cost. Therefore, the pricing of products should be based on the company’s direct and indirect costs (and may consider overhead expenses) if they are projecting a certain profitability margin.

Other Marketing Mix Variables

The marketing mix elements, including; promotions (the integrated marketing communication mix) and place (distribution channels), could determine the target customers’ perceptions of the firms’ products (or services), in a given competitive context.

The extent to which a product is promoted can have a huge effect on consumer demand. The products’ price will usually determine their target market. Low-priced products may attract price-sensitive markets. Such products will be promoted through different marketing communications channels other than high-priced, better quality, premium services. The more expensive the products; the higher the customers’ expectations. Considerable thought and action must go into product development so as to provide the customer with a valuable service which reflects the product’s price. One of the most significant promotional tools is word-of-mouth publicity. For instance, online reviews and ratings are increasingly playing a major role in tourism marketing.

When making a pricing decision, the businesses should consider their distribution costs. The companies’ intermediaries, including; tour operators, online travel agents, and the like, will expect financial compensation for selling travel products. Alternatively, they will expect discounts and special incentives to push the businesses’ products to consumers. For example, they may book large seat orders and place substantial mark-ups on seats which they have bought from the airline (these products may be demanded for inclusive tours). These factors must always be taken into consideration by the airline marketing managers, as they have to add mark-ups to the cost price of seats, when selling them to intermediaries.

Market Demand

There is a highly segmented market for tourism products. Each of the market segments vary in terms of elasticity, and service requirements. These variables will influence the way in which prices a set.

The business travel segment is generally more inelastic in demand. Fluctuations in prices will not affect demand to any great extent. However, the business travel segment expects a high-quality service. Generally, business travellers are prepared to pay a higher price for such services. The higher fares will not only cover the costs of the superior service, but will also convey an image of a premium, prestige product.

The passengers from the leisure travel segment are usually price-sensitive. Their expectations are somewhat lower than those of the business travellers. Demand is extremely elastic in this segment; and an increase in price may result in lower demand.

The socio-political factors may affect market demand. If a destination is politically or socially unstable, tourists may not want to go there. Most people like to feel safe and comfortable. For instance, many destinations have experienced dramatic reductions in the number of tourist arrivals, following the terrorist activities in certain countries.

Economic factors, including the individuals’ income and well-being, will affect their propensity to travel. However, this may not necessarily translate to an increased demand for all tourism products. For instance, if leisure travellers receive an increase in income, they may decide to travel to long-haul destinations rather than short-haul itineraries. Alternatively, these clients may increase the quality and standard rather than to increase their frequency of travel. Such customers may decide to upgrade their hotel accommodation, or to travel in higher classes. Income may affect demand according to the purpose of travel. For business travellers it may not make much difference, whilst for leisure travellers it can make quite a substantial difference. Their demand may also be influenced by the availability of substitute products. If there are no substitutes for the product, then consumers will be forced to buy regardless of price.

In addition, customers may develop perceptions about tourism products. Whether they are accurate or not, they could influence their purchase behaviours. Therefore the travellers’ perceptions, the online ratings and reviews should be carefully considered, as tourism products must always be purchased in advance.

Competition

The businesses should be aware of their competitors’ prices. They may decide to respond to their rivals’ pricing strategies, or to be proactive by taking the pricing initiative, themselves.

Responding to the Competitors’ Pricing Initiatives

There is no rigid method of responding to a price initiative taken by competitors. Every situation is unique. However, businesses are capable of making confident decisions if they examine the situation from different viewpoints:

At times, competitors may decide to lower their prices: It is not wise for other businesses to follow suit, unless they establish why their competitors are pursuing such a pricing strategy. It may be the case that the competitors have made a bad decision. It must be determined whether the competitors’ pricing initiative was a long term or a short term one. For instance, an airline’s poor fleet planning may result in the company changing its prices on a long-term basis. In such situations, rivals will have to respond or risk losing their market share. Price reductions will eventually lead to lower yields for the airline. As a result, this will have a negative impact on the airline and its long-term sustainability prospects. If the pricing initiative appears to be a short-term action, it is advisable to ignore it, and to avoid de-stabilising the market.

The price reductions on certain products may be questioned by the airline’s customers. As discussed above, the airlines may usually charge higher prices for their business and first class as these services are considered as prestige products. The airlines can differentiate themselves from competitors when they provide superior services; that are perceived as an index of quality and corporate image.

On the other hand, the airlines’ should continuously monitor those competitors who are resorting to price-cutting policies. Certain leisure markets may be more price-sensitive than others, as they may exhibit higher price-elasticity levels. The lower prices could result in an increase in demand for the economy class of service.

Taking the Price Initiative

Generally, businesses may avoid lowering their fares, as this will affect their bottom lines. Price wars have destroyed the profitability of many businesses. However, there may be a tendency toward price competition: when firms have low variable costs; when there is little differentiation among the competitors’ products; when industry growth rate is low, and; when the economies of scale are important. The businesses need to consider their cost levels before taking the initiative to lower their prices. The lean businesses who may have less costs, will usually be in a much stronger position to lower their prices than other competitors with high costs. However, more established high-cost businesses may have stable financial backing, which will enable them to meet, if not undercut, the new companies’ prices. They could eventually push their competitors out of the market.

An increase in price may be required if the business is facing controllable or uncontrollable costs. For example, if the airlines’ uncontrollable costs, include; increased airport landing fees and air traffic control charges; they may either decide to absorb these costs or alternatively, they may increase their fares as a means of covering these added costs. Of course, rival airlines will also face the same pressure. In such cases, the airlines could inform their customers about their uncontrollable costs, which have forced them to increase their fares. Ongoing corporate communications and public relations will help them to maintain their customers’ goodwill. On the other hand, the airlines’ controllable costs, including the employees’ salaries and wages, are under their direct responsibility. Such costs may not justify taking pricing initiatives to improve the organisation’s financial performance. They may even aggravate the airline’s profitability, in the long-term.

Legal and Regulatory Issues

Legal and regulatory issues may have an impact on a company’s pricing structure. Although, the airline industry has experienced deregulation and liberalisation in the past decades, there is still some government intervention, in certain areas. In international markets, air service agreements between governments necessitate that national airlines should meet and agree on the fares and rates to be charged to passengers. The agreed fare is brought back to both the airline’s governments who have the right to veto the fare. Should this happen, the airline concerned must seek to re-open negotiation.

Deregulation and liberalisation have affected the airlines’ pricing policies in many contexts. For example, liberalisation has changed the fares regime in the United States of America, in the European Union and in many other places. Today, several airlines have introduced lower fares which have contributed to increased travel. Moreover, the rise of the low-cost carriers has often resulted in lower air fares within pre-agreed zones. Evidently, pricing is increasingly being used as a competitive tool, in many contexts.

Leave a comment

Filed under Airlines, Marketing, tourism, Travel

Call for Chapters on Tourism Marketing

This book will be published by Routledge

(subject to the publisher’s peer review)

Abstract Submission Deadline: April 30, 2017

Full Chapters Due: October 31, 2017

Submit your Chapter here.

tIntroduction

This academic book will be presenting a critical analysis of the key theoretical underpinnings in the tourism literature. The contributors are expected to engage in conceptual discussions that cover the operational and strategic perspectives of the travel, tourism, hospitality and leisure industries. The rationale behind this student-centered textbook is to instill a strong pedagogical application of the socio-economic, environmental and technological impacts of tourism and its related sectors. This textbook’s content is intended to prepare undergraduate students and aspiring managers with a thorough exposure on the latest industry practices and research developments. It will allow both prospective as well as experienced tourism practitioners to make appropriate decisions in their workplace environments.

It is envisaged that the themes of this textbook could be covered in a university semester. At the start of each chapter, the readers will be presented with relevant learning outcomes that will help them focus and organize their thoughts. The important terms should be defined and clearly explained. This will provide the readers with a convenient source for learning and reviewing the tourism and hospitality vocabulary. Experiential exercises and descriptive case studies shall be illustrating real situations that are meant to help aspiring managers in their future employment prospects. All chapters should contain a succinct summary at the end. This way the readers could review and retain vital information. Finally, all chapters ought to provide relevant suggestions for further insights by featuring web resources that are rich in information.

This comprehensive book will allow its readers to acquire relevant knowledge and skills in tourism management topics, including; Airline Management; Airline Marketing; Destination Marketing; Eco-Tourism; eTourism / Digital Tourism; Events Management; Hospitality; Hospitality Management; Hospitality Marketing; Hospitality Operations; Meetings, Incentives, Conferences and Events; Responsible / Sustainable Tourism; Revenue Management; Sharing Economy; Sports Tourism; Tourism; Tourism Administration; Tourism Economics; Tourism Education; Tourism Geographies; Tourism Management; Tourism Marketing; Tourism Operations; Tourism Planning; Tourism Policy; Tourism Product; Tourism Strategy; Travel; Travel Management; Travel Marketing; among others.

Objective

This book shall be a generic, authoritative guide on the business of tourism. The underlying objective of this book is to explain, in plain words; the tourism processes, strategies and tactics within the travel, leisure and hospitality industries. This publication will highlight some of the opportunities and challenges facing the tourism industry, including; eTourism and digital media, the sharing economy, destination marketing, and tourism planning for the future. It is hoped that the style of this book and its extensive use of case studies, illustrations and links will maintain the reader’s interest through visual aids to learning.

This publication ought to be written in an engaging style that entices the curiosity of prospective readers. It will be clarifying the main concepts in a simple and straightforward manner. Descriptive cases should set the theory in context as they will be chosen to represent the diversity of the industry; the cases may range from small travel agents to large legacy airlines or from multi-national hotel chains to accommodation establishments – that are increasingly advertising on websites like Airbnb. This book shall possibly report on the global tourism marketing environments that are increasingly affected by economic, socio-cultural, political and environmental issues. It could explain how technological advances have brought significant changes in the tourism industry sectors and its marketing mix. Moreover, it is advisable that the authors feature interesting illustrations, including diagrams and color images. Notwithstanding, the contributors are encouraged to provide direct links to further readings on the web to aid both teaching and learning.

Target Audience

This book introduces the students and aspiring practitioners to the subject of tourism studies in a structured manner. It is primarily intended to undergraduate and / or post-graduate students in tourism (including tourism management, hospitality management, airline management and travel agency operations). It is also relevant to airline employees, hoteliers, inbound / outbound tour operators, travel agents and all those individuals who are willing to work within the tourism industry.

Academics in higher education institutions including universities and vocational colleges, small tourism business owners, tourism and hospitality consultants, non-profit tourism organizations, policy makers and legislators.

Submission Procedure

Researchers and practitioners are invited to submit a 300-word abstract on or before the 30th April, 2017. The authors will be notified by the 31st May, 2017 about the status of their abstract. Their full (8,000 word) chapters could be submitted by the 31st October, 2017. All submitted chapters will be reviewed on a double-blind peer-review editorial process. Contributors may also be requested to serve as reviewers of other chapters.

Note: There are no submission or acceptance fees to submit manuscripts for this book.

Publisher

Taylor & Francis Group (an Informa Business) publishes Social Science and Humanities books under the Routledge, Psychology Press and Focal Press imprints.

Important Dates

April 30, 2017: Proposals Submission Deadline

May 31, 2017: Notification of Acceptance

October 31, 2017: Full Chapter Submission

December 31, 2017: Review Results Returned

January 31, 2018: Final Acceptance Notification

February 28, 2018: Final Chapter Submission

For Further Inquiries

Mark Anthony Camilleri, M.B.A., Ph.D. (Edinburgh), I.A.T.A.

Email: Mark.A.Camilleri@um.edu.mt

 

Leave a comment

Filed under Business, Hospitality, Marketing, tourism, Travel

Corporate Communication, Stakeholder Engagement and Corporate Social Responsibility

comm

Companies are increasingly dedicating their time and resources to promote their public relations initiatives. Corporate Communication Managers and executives have a wide array of media channels at their disposal. These may  be used to communicate their corporate social responsibility CSR credentials. As a matter of fact, businesses are continuously being scrutinised by media, customers, monitoring groups, consumer forums and blogs (Du et al., 2010).

Very often, businesses disclose their CSR activities through official documents, such as annual corporate responsibility or sustainability reports, media releases, dedicated sections of their corporate websites; as well as in social media pages or groups. CSR communication is produced, translated, and integrated according to the companies’ contexts and their specific reality constructions (Schultz and Wehmeier, 2010).

Companies could use broadcast advertising, including TV and radio commercials. Businesses could also utilise print media (e.g. newspapers, magazines) to disseminate their message to their target audience. Newspaper articles reflect corporate ideas of social responsibilities and assumptions about public expectations, and react herewith to what they perceive as the public’s expectations (Schultz and Wehmeier, 2010). Alternatively, they may use outdoor advertisements such as billboards and signage on brick-and-mortar premises. These traditional media are based on a hierarchical one‐to‐many communication; with a clear distinction between producer and consumer of information. Notwithstanding, there are other communication channels that are not entirely controlled by the company. For this reason, businesses are encouraged to become more proficient in the use of digital media in addition to traditional media to increase their impact of their corporate communication.

Evidently, the internet has reshaped communication at different levels. It has enabled the emergence of a new participatory public sphere that is based on a many‐to‐many communication where everybody can dialogically and publicly interact and collaborate in the creation of content and the definition of the agenda (Colleoni, 2013; Jenkins, 2006). In a relatively short period of time, the internet has become an essential tool for organisational communication (Capriotti & Moreno, 2007a; Stuart & Jones, 2004).

Moreover, in today’s digital era, the engagement between the public and the organisation is one of the main characteristics of the internet (Colleoni, 2013). Many corporate websites already possess a high degree of interactivity; including their ability to disseminate information and to generate relationships between the different publics and the organisation (Capriotti & Moreno, 2007). In the first approach, the level of interactivity is low, and the use of the Internet is unidirectional; as its essential objective is to diffuse information and to try to improve the corporate image of the business. However, in the second approach, the degree of interactivity is high, and the Internet is used to facilitate bidirectional communication and to nurture relationships by allowing dialogue and interaction between the organisation and its stakeholders.

Interactive communication is becoming one of the most important information channels for corporations as it is changing social dynamics (Fieseler & Fleck, 2013; O`Reilly, 2005; 2006). Web-based co‐operation and data exchanges have empowered the communication between businesses and their stakeholders (Buhalis & Law, 2008; O´Riley, 2006, Fieseler et al., 2010). It enables them to engage with online users and to take advantage of positive publicity arising from word-of-mouth marketing and digital platforms. Corporations can maintain legitimacy better as they engage with stakeholders via social media; and take on the gate keeping function of traditional media (Fieseler et al. 2010). At the same time, there are protest actors; who have become more powerful online as they disrupt the corporations’ legitimacy by using social media (Castelló, Morsing & Schultz, 2013; Bennett 2003).

Societies are currently undergoing a fundamental transformation toward globally networked societies (Castelló, Morsing, & Schultz, 2013). Unsurprisingly, the public relations and corporate communications of business have benefited of social networking software (Etter, Morsing, and Castello, 2011; Pressley (2006). Of course, these technological advances also have consequences for CSR communication; as companies can reach out to stakeholders in a more interactive way. In a similar vein, the use of social networks have offered the businesses new forms of interactivity and enable them to address the CSR information toward a variety of stakeholders (Isenmann, 2006). A powerful stakeholder group, the consumers serve as an informal yet highly credible CSR communication channel. In particular, the power of consumer word-of-mouth has been greatly magnified given the popularity and vast reach of interactive communication.

Companies such as Stonyfield Farm and Ben & Jerry’s have been benefiting from consumer ambassadors who raved, in the virtual world, about their social responsibility endeavours. For example, one consumer wrote enthusiastically about Ben & Jerry’s butter pecan ice cream and its support for an educational foundation, ‘besides the great flavour that the Ben & Jerry’s Butter Pecan Ice Cream offers you, a portion of the proceeds go to the Tom Joyner Foundation . . . [that] provides financial support to students attending historically black colleges and universities’ (Associated Content 2008). Companies can be proactive in using social media to engage consumers to be their CSR advocates.

Timberland, a company that is known for its environmental stewardship, launched the Earthkeeper campaign in 2008 to recruit one million people to become part of an online network designed to inspire real environmental behaviour change. As part of the Earthkeeper programme, Timberland launched an innovative global network of online social networking tools, including a strong Facebook presence, a YouTube Earthkeeper Brand Channel and a richly populated Earthkeeper blog, as well as an Earthkeeper product collection which serves as the pinnacle expression of the company’s environmental commitment (CSRWire 2008). Through this campaign, Timberland not only effectively communicating its sustainability initiative, but also engaging consumers to spread the word about this initiative and, importantly, the company’s involvement in this initiative.

Fieseler et al. (2010) suggested that communication through social media is dynamic in relation to traditional media. The global diffusion of social software like blogs, RSS feed, wikis, electronic forum, social networks have facilitated companies to attract prospects and consumer groups. Social media have the technological potential to speed up communication processes (Kaplan & Haenlein, 2010) and to increase direct interaction, dialogue and participation across organisations and various audiences (Colleoni 2013; Schultz et al. 2011). Such interactive communications are referred to as “viral” because ideas and opinions spread like epidemic diseases through the network via word‐of‐mouth and are perceived as highly trustworthy sources (Colleoni et al., 2011; Schultz and Wehmeier, 2010).

Accordingly, social media has transformed the communicative dynamics within and between corporations and their environment.  Social media networks are effective monitoring tools as they could feature early warning signals of trending topics. These networks may help business communicators and marketers identify and follow the latest sustainability issues. Notwithstanding, CSR influencers are easily identified on particular subject matters or expertise. For example, businesses and customers alike have learned how to use the hashtag (#) to enhance the visibility of their shareable content16 (Some of the most popular hashtags comprise: #CSR #StrategicCSR, #sustainability, #susty, #CSRTalk, #Davos2016, #KyotoProtocol, #SharedValue et cetera). Hashtags could be used to raise awareness on charities, philanthropic institutions and green non-governmental organisations. They may also help during fund raising events. Hence, there are numerous opportunities for businesses to leverage themselves through social networks as they engage with influencers and media.

The ubiquity of Facebook and Google Plus over the past years has made them familiar channels for many individuals around the globe. These networks have become very popular communication outlets for brands, companies and activists alike. These social media empower their users to engage with business on a myriad of issues. They also enable individual professionals or groups to promote themselves and their CSR credentials in different markets and segments.

Moreover, LinkedIn is yet another effective tool, particularly for personal branding. However, this social network helps users identify and engage with influencers. Companies can use this site to create or join their favourite groups on LinkedIn (e.g. GRI, FSG, Shared Value Initiative among others). They may also use this channel for CSR communication as they promote key initiatives and share sustainability ideas. Therefore, LinkedIn connects individuals and groups as they engage in conversations with both academia and CSR practitioners.

In addition, Pinterest and Instagram enable their users to share images, ideas with their networks. These social media could also be relevant in the context of the sustainability agenda. Businesses could illustrate their CSR communication to stakeholders through visual and graphic content. Evidently, these innovative avenues provide sharable imagery, infographics or videos to groups who may be passionate on certain issues, including CSR.

Moreover, digital marketers are increasingly uploading short, fun videos which often turn viral on internet. YouTube, Vimeo and Vine seem to have positioned themselves as important social media channels for many consumers, particularly among millennials. These sites offer an excellent way to humanise or animate CSR communication through video content. These digital media also allow their users to share their video content across multiple networks. For instance, videos featuring university resources may comprise lectures, documentaries, case studies and the like.

This contribution suggests that corporate communications managers and executives are in a position to amplify the effectiveness of their company’s CSR communication efforts. They are expected to create relevant content and to engage with stakeholders through different marketing communications channels.

 

Leave a comment

Filed under Business, Corporate Social Responsibility, Corporate Sustainability and Responsibility, CSR, digital media, Marketing, Stakeholder Engagement

Unleashing Corporate Social Responsibility through Digital Media

csr

Companies are increasingly focusing their attention on content and inbound marketing. In a nutshell, content marketing necessitates an integrated marketing communications approach involving different media (1). Content strategists and marketers who care about their online reputation are realising that they have to continuously come up with fresh, engaging content with a growing number of quality links. They have to make sure that their websites offer great content for different search engines. Consistent high quality content ought to be meaningful and purposeful for target audiences (2).

Successful marketers are capable of enhancing customer loyalty, particularly if their businesses are delivering ongoing value propositions to promising prospects (on their website). Such businesses are continuously coming up with informative yet interesting content through digital channels, including blogs, podcasts, social media networking and e-newsletters. Online content often include refreshing information which tell stakeholders how to connect the dots. It may appear that many companies are becoming quite knowledgeable in using social media channels to protect their reputation from bad publicity or misinformation.

Several online businesses often tell insightful stories to their customers or inspire them with sustainable ideas and innovations. Corporate web sites could even contain their latest news, elements of the marketing-mix endeavours as well as digital marketing fads.
Most social media networks are effective monitoring tools as they could feature early warning signals of trending topics (3). These networks may help business communicators and marketers identify and follow the latest sustainability issues. Notwithstanding, CSR influencers are easily identified on particular subject matters or expertise. For example, businesses and customers alike have also learned how to use the hashtag (#) to enhance the visibility of their shareable content (4). Some of the most popular hashtags comprise: #CSR #StrategicCSR, #sustainability, #susty, #CSRTalk, #Davos2015, #KyotoProtocol, #SharedValue et cetera. Hashtags could possibly result in financial support to charity, philanthropic or stewardship principles. They may even help to raise awareness of the overall CSR communications. Hence, there are numerous opportunities for businesses to leverage themselves through social networks as they engage with influencers and media.

  • The ubiquity of Facebook and Google Plus over the past years has made them familiar channels for many individuals around the globe. These networks have become very popular communication outlets for brands, companies and activists alike. These social media empower their users to engage with business on a myriad of issues. They also enable individual professionals or groups to promote themselves and their CSR credentials in different markets and segments.
  • Moreover, Linkedin is yet another effective tool, particularly for personal branding. However, this social network helps users identify and engage with influencers. Companies can use this site to create or join their favourite groups on LinkedIn (e.g. GRI, FSG, Shared Value Initiative among others). They may also use this channel for CSR communication as they promote key initiatives and share sustainability ideas. Therefore, LinkedIn connects individuals and groups as they engage in conversations with both academia and CSR practitioners.
  • In addition, Pinterest and Instagram enable their users to share images, ideas with their networks. These social media could also be relevant in the context of the sustainability agenda. Businesses could illustrate their CSR communication to stakeholders through visual content. Evidently, these innovative social networks provide sharable imagery, infographics or videos to groups who may be passionate on certain issues, including CSR.
  • Moreover, digital marketers are increasingly uploading short, fun videos which often turn viral on internet (5). YoutubeVimeo and Vine seem to have positioned themselves as important social media channels for many consumers, particularly among millennials. These sites offer an excellent way to humanise or animate  SR communication through video content. These digital media also allow their users to share their video content across multiple networks. For instance, videos featuring university resources may comprise lectures, documentaries, case studies and the like.

CSR practices may provide a good opportunity for businesses to raise their profile in the communities around them.  Genuine businesses communicate their motives and rationales behind their CSR programmes. In this case, there are numerous media outlets where businesses can obtain decent coverage of their CSR initiatives, especially on the web (e.g. CSRwire and Triple Pundit among others). Although, there are instances  where consumers themselves, out of their own volition are becoming ambassadors of trustworthy businesses; at the same time certain stakeholders are becoming increasingly acquainted and skeptical on certain posturing behaviours and greenwashing (6).

Generally, digital communications will help to improve the corporate image of firms. Positive publicity can lead to reputational benefits and long lasting relationships with stakeholders (7). Online content and inbound marketing can be successfully employed for CSR communication1. Corporate sites should be as easy as possible, with user-centred design that enables interactive information sharing on CSR activities. Inter-operability and collaboration across different social media can help businesses to connect with stakeholders (1). 

Marketers can create a forum where prospects or web visitors can engage with the business in real time. These days, marketing is all about keeping and maintaining a two-way relationship with consumers. Digital marketing is an effective tool for consumer engagement.

A growing number of businesses are learning how to collaborate with consumers about product development, service enhancement and promotion. These companies are increasingly involving customers in all aspects of marketing. They listen to and join online conversations as they value their stakeholders’ opinions and perceptions.

Today, pervasive social media networks are being used by millions of customers every day. In a sense, it may appear that digital marketing tools have reinforced the role of public relations. These promotional strategies complement well with CSR communication and sustainability reporting.

This contribution encourages businesses to use digital media to raise awareness of their societal engagement and environmentally sustainable practices. Further research may possibly identify how successful businesses are using digital channels to forge genuine relationships with their stakeholders.

References

  1. Camilleri, M.A. “Unleashing Shared Value Through Content Marketing.” Triple Pundit, 10th February 2014. http://www.triplepundit.com/2014/02/unleashing-shared-value-content-marketing/
  2. Camilleri, M.A. “A Search Engine Optimization Strategy for Content Marketing Success.” Social Media Today 28th May, 2014. http://www.socialmediatoday.com/content/search-engine-optimization-strategy-content-marketing-success
  3. Kietzmann, Jan H., Kristopher Hermkens, Ian P. McCarthy, and Bruno S. Silvestre. “Social media? Get serious! Understanding the functional building blocks of social media.” Business horizons 54, no. 3 (2011): 241-251.
  4. Small, Tamara A. “What the hashtag? A content analysis of Canadian politics on Twitter.” Information, Communication & Society 14, no. 6 (2011): 872-895.
  5. Guadagno, Rosanna E., Daniel M. Rempala, Shannon Murphy, and Bradley M. Okdie. “What makes a video go viral? An analysis of emotional contagion and Internet memes.” Computers in Human Behavior 29, no. 6 (2013): 2312-2319.
  6. Laufer, William S. “Social accountability and corporate greenwashing.” Journal of Business Ethics 43, no. 3 (2003): 253-261.
  7. Camilleri, M.A. “The Business Case for Corporate Social Responsibility” (paper presented at the American Marketing Association in collaboration with the University of Wyoming, Oklahoma State University and Villanova University: Marketing & Public Policy as a Force for Social Change Conference. Washington D.C., 5th June 2014): 8-14, Accessed June 26, 2015. https://www.ama.org/events-training/Conferences/Documents/2015-AMA-Marketing-Public-Policy-Proceedings.pdf

Leave a comment

Filed under Corporate Sustainability and Responsibility, CSR, Marketing

Crunching Big Data and Analytics from Web2.0

social media

The use of data and its analyses are becoming ubiquitous practices. As a result, there has been a dramatic surge in the use of business intelligence and analytics. These developments have inevitably led to endless opportunities for marketers to leverage themselves and gain a competitive advantage by untangling big data. Relevant data could help businesses to better serve customers as they would better know what they need, want and desire. This knowledge will lead to customer satisfaction and long lasting relationships.

Businesses are increasingly collecting and analysing data from many sources for many purposes. Much of the value of data is derived from secondary uses that were not intended in the first place. Very often datasets can possess intrinsic, hidden, not-yet-unearthed value. According to a research from IBM and the Saïd Business School at the University of Oxford; nearly nine in 10 companies were using transactional data, and three-quarters were collecting log data in 2012. This study suggested that business practitioners also gathered data from events, emails and social data (eMarketer, 2012).

This data is being collected and stored in massive amounts by search engines including Google, Bing and Yahoo as well as by e-commerce conglomerates such as eBay and Amazon. For instance, Security First boosted its productivity and customer satisfaction by using content analytics to bridge social media and the claims process. Similarly, Banco Bilbao Vizcaya Argentaria has improved its online reputation with analytics that quickly responded to online feedback (IBM, 2015).

In addition, users can easily access multiple sources of digital data that is readily available through websites, social networks, blogs, as well as from mobile devices, including smart phones and tablets. Big data is being gathered from social media content and video data from Facebook, Twitter, LinkedIn and Google Plus among others. These modern digital marketing tools are helping business to engage in social conversations with consumers. Social networks have surely amplified the marketers’ messages as they support promotional efforts. Here are some of the unique pieces of data each social network is collecting:

  • “Facebook’s interest/social graph: The world’s largest online community collects more data via its API than any other social network. Facebook’s “like” button is pressed 2.7 billion times every day across the web, revealing what people care about.
  • Google+’s relevance graph: The number of “+1s” and other Google+ data are now a top factor in determining how a Web page ranks in Google search results.
  • LinkedIn’s talent graph: At least 22% of LinkedIn users have between 500-999 first-degree connections on the social network, and 19% have between 301-499.The rich professional data is helping LinkedIn build a “talent graph.”
  • Twitter’s news graph: At its peak late last year the social network was processing 143,199 tweets per second globally. This firehose of tweets provide a real-time window into the news and information that people care about. Fifty-two percent of Twitter users in the U.S. consume news on the site (more than the percent who do so on Facebook), according to Pew.
  • Pinterest’s commerce graph: More than 17% of all pinboards are categorized under “Home,” while roughly 12% fall under style or fashion, these are windows into people’s tastes and fashion trends.
  • YouTube’s entertainment graph: What music, shows, and celebrities do we like? YouTube reaches more U.S. adults aged 18 to 34 than any single cable network, according to Nielsen. YouTube knows what they like to watch.
  • Yelp’s and Foursquare’s location graphs: These apps know where we’ve been and where we’ll go. Foursquare has over 45 million users and 5 billion location check-ins” (Business Insider, 2014).

Big data is fundamentally shifting how marketers collect, analyse and utilise data to reach out to customers. Business intelligence and analytics are helping companies to get new insights into how consumers behave. It is envisaged that the IT architecture will shortly develop into an information eco-system: a network of internal and external services where information is shared among users. Big data can support business in their decision making. It could be used to communicate meaningful results and to generate insights for an effective organisational performance. New marketing decision-making ought to harness big data for increased targeting and re-targeting of individuals and online communities. On-demand, direct marketing through digital platforms has already become more personalised than ever. The challenge for marketers is to recognise the value of big data as a tool that drives consumer in-sights.

Every customer contact with a brand is a moment of truth, in real-time. Businesses who are not responding with seamless externally-facing solutions will inevitably lose their customers to rivals. This contribution posits that a strategic approach to data management could drive consumer preferences. An evolving analytics ecosystem that is also integrated with web2.0 instruments could lead to better customer service and consumer engagement.

Leave a comment

Filed under Analytics, Big Data, Marketing

Untangling Big Data for Digital Marketing

customers
The web and its online communities are expanding the use of big data. Ecommerce conglomerates including Amazon and eBay have already transformed the market through their innovative, highly scalable digital platforms and product recommender systems. Moreover, internet giants like Google and Facebook are leading the development of web analytics, cloud computing and social media networks. The emergence of user-generated content in fora, newsgroups, social media and crowd-sourcing platforms are offering endless opportunities for researchers and practitioners to “listen” to marketplace stakeholders; including customers, employees, suppliers, investors and the media.

Unlike the traditional transactional records that were conspicuous in past legacy systems, e-commerce systems continuously gather insightful data from the web. Much of the value of data is derived from secondary uses that were not intended in the first place. Every dataset can possess some intrinsic, hidden, not-yet-unearthed value. Having said that, many potential applications could skim along the edges of what might be ethical, moral or even legal.

In addition, online review sites and personal blogs often contain opinion-rich information that may be explored through textual and sentiment analysis. Arguably, consumer sentiment analysis may not be designed for automation but could be better adapted for the real-time monitoring of the marketing environment. Successful businesses strive to understand their customers’ personas so that they target them the right content with the relevant tone, imagery and value propositions.

Therefore, advertisers continuously gather consumer data and use it well to personalise every aspect of their users’ experience. They strive to take advantage of their consumers’ cognitive behaviour as they try to uncover and trigger consumer frailty at their individual level. It may appear that companies gather data on their customers in order to manipulate the market. They need to establish processes which determine when specific decisions are required. Firms use big data to delve into enormous volumes of information that they collect, generate or buy. Marketers need to realise that it’s important to analyse, decide and act expeditiously on data and analytics. It’s simply not enough to be able to monitor a continuing stream of information. Businesses should be quick in their decision making and take action.

Companies may use what they know about human psychology and consumer behaviour to set prices. Behavioural targeting is nothing new in digital marketing. When firms hold detailed information about their consumers, they may customise every aspect of their interaction with them. On the other hand, there could be instances when certain marketing practices could lead to unnecessary nuisances. Nowadays, customers are frequently bombarded with marketing endeavours including email promotions that are often picked up as spam. Therefore, one-size-fits-all messages could also have negative implications on prospective customers.

Eventually, firms could use this database to deliver promotional content to remind customers on their offerings. Consumer lists whether they are automated or in the cloud should always be used to deliver enhanced customer experiences. Customer-centric marketing is all about satisfying buyers. Customers may in turn become advocates for the business. Hence, technology has become instrumental for marketers in their ongoing interactions with people.

Evidently, without data, businesses could not keep a track record of their marketing effectiveness and performance stats. Engagement metrics; including, email-open rates, click through rates, pay per click and the like enable marketers to continually fine tune their individual customer targeting. Today, many individuals are becoming quite active on review sites, such as Yelp.com or Tripadvisor; and on social media channels; including Facebook, Twitter, Linkedin or Google Plus.These modern digital marketing tools are helping business to engage in social conversations with consumers. Social media networks are often rich in customer opinion and contain relevant behavioural information. Moreover, the social media analytics could capture fast-breaking trends on customer sentiments toward products, brands and companies.

Businesses may be interested in knowing whether there are changes in online sentiment and how these correlate with sales changes over time. Digital media is supporting many businesses to map out how customers receive promotions, messages, newsletters and even advertisements. Relevant data is also helping these businesses to keep a focus on their customer needs and wants.

This contribution suggests that there is scope for businesses to consider realigning (and personalising) their incentives toward individual consumers by using data-driven marketing. Many businesses have become proficient on the use of maintaining databases of prospects and customer lists. They gather this valuable information to communicate and build relationships. This data collection may possibly drive new revenue streams and build long-term loyalty.

Leave a comment

Filed under Analytics, Big Data, Marketing