Devising a Digital Marketing Strategy (Pass Criteria)
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This report analyzes the digital marketing landscape in the hospitality industry by conducting a critical analysis of two hospitality SMEs. It reviews relevant academic literature, compares overall marketing functions, and analyzes digital marketing strategies and practices. The report provides quality recommendations based on comparative analysis.
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A Digital Marketing Strategy
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Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Review of the relevant academic literature pertaining to digital marketing in the tourism and hospitality industries...............................................................................................................1 Comparative analysis of the overall marketing functions of the selected hospitality firms...3 Comparative analysis of digital marketing strategies and practices at the selected hospitality business firms.........................................................................................................................5 Recommendations..................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Digital marketing refers to the action of completing marketing activities with the use of internet and other digital technologies. Digital marketing has become an important element of the overall marketing strategies of business firms because it provides the firm cost effective ways of reaching international consumers. This report aims to understand the digital marketing landscape in the hospitality industry by conducting critical analysis of two hospitality SME’s in context of current digital marketing practices and strategies adopted at the organizations. The objective of this report is to provide quality recommendations on the basis of comparative analysis. Marketing is an important operation for the tourism and hospitality sector. This is because attracting and retaining consumers in the highly competitive industry, establishments in this sector have to adopt creative and unique marketing strategies. The digital marketing landscape in case of the tourism and hospitality industry is consciously evolving because of high intensity of co0mpetitive rivalry. Every type of enterprise in the tourism and hospitality industry utilizes digital marketing practices and strategies to connect with consumers. This depicts that the usage of digital marketing is commonplace is the tourism and hospitality industry because it supports competitive progress of the firms. The first SME hospitality firm selected for this report is Maranton House Hotel located in Kensington London. This is family run small hospitality Boutique Hotel with garden square and refurbished rooms. The facilities offered at the Maranton House Hotel include free high speed internet, high chairs and metered parking. The second SME hospitality firms which will be included in this report is The Chester Hotel which is situated near Victoria station. It is family owned establishment which offers consumers hygienic accommodation services along with high speed internet connection. MAIN BODY Review of the relevant academic literature pertaining to digital marketing in the tourism and hospitality industries According to the Tembi M. Tichaawa, 2021, tourism industry is one of the fastest growing industry in this world the business in this industry is gaining advantage of advance and modern technology. It is essential for the companies in tourism sector to focus on their current trends and adopt strategies to meet their requirements. One of the major change which help 1
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tourism industry to grow well is digital technology where companies use digital ways to promote their business and products to their customers. Digital tool like social media platforms such as Instagram, Facebook and many others will help tourism industry to grow well because here companies promote their products and services to aware their customers. Social media platforms are having global reach which means if a hotel located in UK upload the pictures and information about their hotel services on social media then customers at worldwide level can see the information. On the others hand, face recognition digital technology will also help hotels to analyse whether the customers who is arriving at hotel is their new customers or arrived earlier too. This digital technology will further help the hotel to make their new customers more aware about their served facilities and services. Hence, digital technology plays an important role in the development of hospitality and tourism industry. From the perspective of H.M. Moyeenudin, 2018, hospitality and tourism industry is one of the most important industry which adopted best usage of digital technology in their companies for growth. One of the biggest of use digital technology in tourism and hospitality industry is to aware their customers through social media, advertising on google and many others. It also helps hotels and resorts to communicate well with their customers and get to know their needs and wants. With the help of e-mails and social media platforms customers can express their experience while using any hospitality service. They also complaint on these platforms and companies reply them and take actions to minimize their complaints. There are various kind of ways by which a tourism customer can use digital technology like booking online tickets of flights and hotels where they want to stay, collect information about the reviews and other customer’s perception on particular hotel and many others. Comparing one tourism company's services with another hotel's services is also done through digital technology like digital screens and laptops. Digital technology also used to analyse the customer’s perception and behaviour while purchasing any hospitality services and facilities. For example, when customer's search for any particular hotel through google and social media content then this will help hotels to get to know that which platform is commonly used by customers to search about their hotel so that they will advertise their products more on these platforms. Secondly, hotels also send their feedback form to their customers through digital tools and ask them to fill and resend it to analyse which particular service help them to satisfy more and which one is dissatisfying them. It is also seen 2
that with the advanced software and new features to develop website, most of the hotels and restaurants develop their official website in such a way which will look so attractive and interesting for customers to go through to their websites and read the content to aware them self about offered services. There are various kind of digital tool which can be used to analyse traffic on website like how many customers reached the website of a particular hotel and what source they used like direct open the website through link or searching it on google. One of the example of such kind of tools is SEMRush which is considered as one of the most effective tool to analyse the traffic. This digital tool helps hotels to analyse how many new customers reach at their websites and the performance of their competitors. Secondly, it also helps to analyse which keywords are used by customers to search about particular services of their hotel. Hence, there are various kind of digital tools to monitor the performance of particular hotel. Therefore, digital technology helps tourism and hospitality industries to analyse customer’s behaviour as well to determine their overall performance by monitoring well. Comparative analysis of the overall marketing functions of the selected hospitality firms The function of marketing activities in the hospitality sector is expansive because marketing helps the hospitality firm differentiate itself from other competitors present in the highly saturated industry(De Pelsmacker, Van Tilburg and Holthof, 2018). The overall functions of marketing at Maranton House Hotel and hospitality Boutique Hotel are competitively analysed below: Advertising This is the main and most recognized function of marketing because it is directly related with the consumer.Thisfunction of marketing at hospitality firms is defined as the process of bringing products, services or brands in the notice of the public eye specifically the target consumer base in order to increase sale of the hospitality establishment (Kapoor and et. al., 2021) (Lam and Law, 2019). In case of the first small and medium sized enterprise in the hospitality industry Maranton House Hotel, this function is completed through digital marketing by using digital media channels such as social media to advertise the brand name of the Hotel. The positiveimpact of this marketing function at Maranton House Hotel is that it helps the company create brand name in the London hospitality market in a cost effective manner. Thenegative impact of using digital marketing for the advertisement function is that it reduces the viewership 3
of the advertisement, This is because old age consumers who are not active on social media are not able to see. Compared to this, The Chester Hotel utilizes official company website as a platform for completing the adverting function of marketing. The company has created a multi- lingual website which help the firm advertises its accommodation services to international as well as domestic consumers. Thepositiveimpact of this function is that it increases the reach of the company. Thenegativeimpact of this function on The Chester Hotel is that in order to ensure that the consumer reach the website of the company, the firm has to engage in order digital marketing practices. Branding In the current corporate environment building a suitable brand image is essential in order to succeed in the hospitality industry. This is because branding helps attract loyal consumers and create positive consumer perception the minds of the consumer which supports increase in profitability of the company (Moro, Rita and Oliveira, 2018). Branding is defined as the process of giving meaning to specific company by shaping consumer perception and developing a specific image of the company in the public eye.Maranton House Hotel utilizes digital marketing to create brand image of affordable boutique Hotel which is suitable for vacations. The Hotel has emphasised on the official website that the building of the establishment has classic Georgian architecture and provides historical ambiance to the consumer. There are also pictures to evidence this claim on the website of the company. Thepositiveimpact of this type of branding of the hospitality firm is that it will help the firm create historical perception in the minds of the consumers and distinguish itself from other modern hotels to attract more consumers (Myat, Sharkasi and Rajasekera, 2019). Thenegativeimpact of this marketing function on the Maranton House Hotel is that while it helps the firm create a distinguished brand image it also limits the consumer interested in staying at the hospitality firm. This is because consumers who are seeking non-historical establishment for accommodation will avoid this enterprise and this will give rival hospitality establishment advantage. In comparison to this the approach of The Chester Hotel is heavily digitized. The firm has utilized this marketing function to develop modern and affordable image of the hotel. In addition to this the focus of branding in case of The Chester Hotel is not the building or physical atmosphere of the Hotel but the lucrative position of the Hotel. The Chester Hotel is present on different social media sites such as Instagram, Facebook, google Review, Pinterest and Twitter. These social media sites are 4
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utilized by The Chester Hotel to promote the lucrative location of the Hotel as it is located in Westminster and crate brand image of affordable Hotel at one of the most visited areas of London.Thepositiveimpact of this type of branding in case of The Chester Hotel is that it helps the company showcase features of the establishment to large number of consumers and influencethemto considertheHotela suitableplacefor accommodationwhilevisiting Westminster. The negative impact of heavy usage of social media sites to promote the branding of hospitality establishment is that fake negative reviews on social media platforms can be planted and lead to consumer backlash (Pelet, Lick and Taieb, 2021). Social media backlash is highs harmful for hospitality establishments and lead to decrease in overall sales of the company. Comparative analysis of digital marketing strategies and practices at the selected hospitality business firms Different digital marketing and strategies are utilized by Hospitality firms to connect with consumers on online channels and increase online bookings. Room bookings are the main source of profitability of the company which means that digital marketing and consumers gained though digital marketing efforts of the firm make important contribution to the overall profits gained by the company. Comparative analysis of digital marketing strategies and practices used at The Chester Hotel and Maranton House Hotel is completed below: ď‚·Social media marketing: This digital marketing practice involves usage of social media channels to interact with the consumes and direct them to making online bookings using the company website. In case of Maranton House Hotel, the company is not completely dependent on social media for accomplishing digital marketing objectives and generating online leads. The company is only present on Instagram as a part of its social media presence. Thepositiveimpact of this treatment of social media marketing is that it matches with the specific branding of the Maranton House Hotel. This is because the Maranton House Hotel is able to crate niche social media brad image related to the historical and Georgian environmental aspects of the enterprise. This helps the connect with the target audience who are interested in gaining accommodation at a Hotel with Georgian and historical physical atmosphere. Thenegativeimpact of this type of limited treatment of social media marketing is that the company is not able to enhance the brand awareness of the company (Ramaj and Ukaj, 2017). This can significantly hurt the profitability of the firm in holiday occasion. 5
The utilization of social media marketing by The Chester Hotel is completely opposite. This is because the company is present on every social media network. This includes the primary social media channels such as Facebook, Instagram and Pinterest. The company actively posts on these social media channels to communicate with the consumers and make the consumers aware of the offers and affordability provided by the Hotel in the posh area of Westminster, London. Thepositiveimpact of such heavy usage of social media marketing by The Chester Hotel is that it helps the firm interact with as nanny consumers as possible. This isbeneficialfor the firm as it seeks to create a modern hotel brand image in the minds of the consumer and attract consumers on the basis of its lucrative location. The heavy promotion using social media marketing helps crate this brand perception and exploit the profitability opportunities provided by posh location of the Hotel. Thenegativeimpact of this type of social media usage is that it introduces that company to the that if cyber attacks ad cyber fraud. This type of attack on a small and medium sized enterprise can cause huge damage to the reputation of already lesser known brand and can also lead to complete closure of the establishment (Tsourgiannis and Valsamidis, 2019). ď‚·Email marketing: This is a useful digital marketing practice for Hospitality firms as it helps the company introduce the element of personalization in their marketing activities and build strong relationship with consumers with the help of personalization. The definition of email marketing is given as the act of spreading commercial messages and information through mails. This is great way of sending personalized marketing messages to individual consumers and influencing them to take positive action for the profit of the company such as make a subscription or book a service (Wikhamn, Armbrecht and Wikhamn, 2018). In case of the Maranton House Hotels, the treatment given to this digital marketing practice is to utile email marketing to contact with existing consumers and provide potential consumers a channel for reaching the company. Maranton House Hotel has displayed its official email address on the official website and social media page. Thepositiveimpact of such limited treatment given to email marketing is that it helps the company reduce spending on email marketing an still cultivate loyal consumer base through organic interaction. Thenegativeimpact of this type of usage of email marketing is that it is not useful for aching continuous growth as it does not affect lead generation. 6
In opposition to the treatment of email marketing by Maranton House Hotels, The Chester Hotel focuses on treatment email marketing as a way of reaching maximum number of audience. This is done by sending emails on mass scale to different consumer segment in order to gain positive response ad enhance sale of the company. Thepositiveimpact of this type of email marketing is that the company is able to gain desired result in increase in online bookings of the establishment by interacting with large number of consumers. Thenegativeof this type of treatment on email marketing is that it sending emails on massive scale can lead to commercial emails being recorded as spam emails which lead to wastage of digital marketing efforts (Yang, Min and Garza-Baker, 2019). Recommendations ď‚·TheChesterHotelandMarantonHouseHotelsneedtoinvestinsearchengine optimization.Thisissuitabledigitalmarketingpracticesforsmallhospitality organizations as it increases visibility of the firm on search engine pages. ď‚·It is recommended that Maranton House Hotels invest in influencer marketing and collaboratewithinfluencerswhoposthistoricalcontenttointeractwithaudience interested in historical buildings. This is because influencer marketing is able to affect consumer perception and persuade them to take specific action. ď‚·It is suggested for The Chester Hotel to increase digital security in order to gain protection from digital fraud and cyber-attacks. This is justified recommendation as it will increase security of the company and avoid frauds in digital marketing efforts of the firm. 7
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CONCLUSION From the above information it is concluded that digital technology plays an important role in the development of hospitality and tourism industry because with the help of various digital tools hotels and restaurants can analyse the behaviour of their customers, monitor the performance of their employees and many others. Social media marketing is one of the most used digital marketing which is used by hospitality industry. Hotels and restaurants upload the contents and pictures of their hotels and available services on social media platforms such as Instagram, Twitter and many others to aware customers at worldwide level because the reach of social media of across the world. It is also concluded that hotels get to know about the experience of their customers through digital tools because customers send them feedback and rate their ratings as well as write comments. It is also concluded that digital technology also used to analyse the performance of website of a hotel. SEMRush is one of the fastest growing digital tool to analyse traffic on website and performance of competitors. It is also essential that hotels and restaurants must compare their marketing functions and make changes in case any function did not help them to aware and satisfy their targeted customers. Digital marketing strategies help a hospitality and tourism company to grow well in their industry. It is essential for hotels and restaurants to analyse their key trends in digitalization and make their hotels and their functioning more familiar with digital technology to grow well. It is also essential for hotels and restaurants to train their staff members well to operate digital tools so that they can minimize the mistakes and become more familiar with available digital tools. 8
REFERENCES Books and Journals De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online reviews and hotel performance.International Journal of Hospitality Management,72. pp.47-55. Kapoor and et. al., 2021. Effectiveness of Travel Social Media Influencers: A Case of Eco- Friendly Hotels.Journal of Travel Research, p.00472875211019469. Lam, C. and Law, R., 2019. Readiness of upscale and luxury-branded hotels for digital transformation.International Journal of Hospitality Management,79. pp.60-69. Moro, S., Rita, P. and Oliveira, C., 2018. Factors influencing hotels’ online prices.Journal of Hospitality Marketing & Management,27(4). pp.443-464. Myat, A. A., Sharkasi, N. and Rajasekera, J., 2019. Myanmar’s tourism: Sustainability of ICT to support hotel sector for online booking and digital marketing.Benchmarking: An International Journal. Pelet, J. É., Lick, E. and Taieb, B., 2021. The internet of things in upscale hotels: its impact on guests’sensoryexperiencesandbehavior.InternationalJournalofContemporary Hospitality Management. Ramaj, B. and Ukaj, F., 2017. The Review of Theoretical Aspect of E-Marketing.International Journal of Economic Perspectives,11(4). Tsourgiannis, L. and Valsamidis, S., 2019. Digital marketing in tourism: why Greek tourists use digital marketing applications like Airbnb.International Journal of Culture, Tourism and Hospitality Research. Wikhamn,W.,Armbrecht,J.andWikhamn,B.R.,2018.InnovationinSwedish hotels.International Journal of Contemporary Hospitality Management. Yang, K., Min, J. H. and Garza-Baker, K., 2019. Post-stay email marketing implications for the hotel industry: Role of email features, attitude, revisit intention and leisure involvement level.Journal of Vacation Marketing,25(4). pp.405-417. Online Digitalmarketinginhotelindustry,2018[online].availablethrough <https://www.researchgate.net/publication/325117493_Digital_marketing_in_hotel_in dustry> 9
Tourism Digital Marketing Tools and Views on Future Trends: A Systematic Review of Literature,2021[online].availablethrough< https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_21_10_2_712-726.pdf> 10