Digital Marketing and Brand Image: A Case Study of Thomas Cook

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Impact of Digital Marketing on the Brand Image of
Thomas Cook
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Table of Contents
Literature Review.......................................................................................................................3
Research Methodology.............................................................................................................12
Data Presentation.....................................................................................................................17
Conclusion and Recommendation............................................................................................30
Reference List..........................................................................................................................33
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Literature Review
Introduction
The art of digital marketing provides travel and tour companies with a wider audience thus
increase their target audience. Companies, in their bid to increase profitability for the
products and services they offer to the consumer market, create advertising on the digital
media and social media to gain the attention of the global tourist demographic. The form of
digital marketing is to attract consumers with strategic tour packages and lucrative offers to
popular destinations thus increase the profitability of the tour company. In the age of
globalisation, digital media and marketing strategy, involving it widens the scope of travel
and tourism sector organisations. Considering Thomas Cook as a reputed organisation in the
travel and tourism sector, the usage of digital marketing on the brand image of the company
would be evident through this research.
Digital media provides the travel and tourism organisations with a global platform for
displaying their products and services. It allows organisations to communicate the values and
strategies of tourism planning in different destinations effectively to the target consumer
group. The marketing strategy used by organisations in the travel and tourism sector is
through social media marketing, direct communication with the target demographic and
through e-commerce sites.
The relation between digital marketing and brand image
The brand image of an organisation is developed through the perception of the consumers and
the type of communication the brand follows with their consumer demographic. The role of
digital marketing plays in the development of a brand’s image can be observed in the type of
social networking activities and online communication the company manages as a part of
their marketing campaign. The market economy of travel and tourism industry is service
based hence it is essential for brands to understand the needs and requirements of the tourists.
Social media provides companies with a platform to communicate with their customers
directly and be responsive regarding the target demographics’ preferences in travel and
tourism packages. According to the study conducted by Ahmed et al. (2015), it is observed
that the use of digital media for engaging the customers provide the company with an
improved scope of creating better marketing strategies and product variety. Digital media
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provides companies in the travel and tourism sector to communicate directly with their
consumers thus enabling them to understand the grievances, needs and requirements of the
demographic efficiently. This allows the companies to improve the quality of their services
and create better tour packages that are easily customisable and targeted toward specific
customer groups.
The digital era of marketing provides the travel and tourism organisations with an improved
opportunity for interaction with the consumer market and understand the needs and
requirements of different consumer groups. The usage of social media and the digital
framework for marketing purposes provides organisations with a wider reach in the consumer
market and companies utilise digital marketing tools and strategies that would be beneficial
for the company’s effective fulfilment of business objectives. Digital media provides the
companies and the consumers with an integrated channel of communication that enhances the
accountability of the business operations conducted by the organisations in the travel and
tourism sector. The marketing operations conducted by organisations provide them with a
cost-effective procedure that helps them to reach the maximum number of potential
purchasers at a low price. The benefits of implementing the digital framework in their
marketing function provide the companies operating in the travel and tourism sector with the
prospect of creating a loyal customer group and improve their brand image through the
appropriate display of marketing strategies and tools (Karjaluoto et al., 2015). Digital
marketing that is performed by service sector organisations such as the travel and tourism
organisations requires them to create content that is customer-centric.
The brand image of a company is developed through the perception of the consumers and the
quality of services and products the company provides to their target consumer demographic.
Brand image and equity of a company promotes business for the company as well as enables
the organisation to increase their profitability through business operations in a competitive
market economy. The digital media provides the organisations in the travel and tourism
sector with an increased opportunity to perform their business operations in the competitive
market economy through innovative marketing strategies and procedures (Camilleri, 2018).
The successful operations of travel and tourism organisations in a competitive market
economy require the involvement of the organisations with the consumers through direct
communications. The brand image of the companies is developed or degraded through the
type of business functions that the company performs in the market economy. Development
of brand equity and image through marketing strategies is possible due to the increased
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effects of a global market economy that affects companies’ performance in their internal and
external business operations. Development of brand value through the effective
implementation of business and marketing strategies ensures the companies are able to
develop their brand value in the market economy according to the perception of their clients.
Organisations in the travel and tourism industry utilise certain consumer perceived brand
value to design marketing plans and strategies to effectively earn profits from their market
economies. The successful operations of their marketing functions on the digital media are
through four efficient steps- the creation of brand personality as the target consumer
demographic perceives the brand to be. The second stage includes developing brand
affiliations according to the market value, creating a steady and strong customer base that
does not have fluctuating preferences regarding their travel and tourism locations. Creation of
brand image according to the CBBE model allows companies to develop their business
functions in a strategic way that improve their marketing strategies (Xu et al., 2017). This
benefits the business performance of the organisation in the competitive market economy for
improving the quality of products and services that are developed by the organisations.
Strategies of digital marketing provide organisations with an added benefit of creating quality
products and services according to the brand-building squares accepted by the global
marketing environment. Brand quality, the symbolism of the brand, execution of brand, brand
judgements and sentiments which leads to an effective brand reverberation, allows
organisations to function in the market economy efficiently.
The brand image development of organisations according to the needs and requirements of
the company in the market economy helps the organisation to create marketing strategies that
are beneficial for the company to function effectively by providing the consumers with
products and services that are relevant to their demands and requirements. Digital marketing
allows organisations in the travel and tourism sector to create an effective marketing
procedure to derive strategies that will lead to the operational success of the company in the
market economy. Involvement of marketing function in the digital framework has enhanced
the scope of social media marketing and digital scope of advertising. The process of
advertising products and services created by the travel and tourism organisations on the
digital framework enables the company to establish their brand image as modern and
developed enhancing their ability to reach to a wider consumer market economy.
Importance of digital marketing in the travel and tourism sector
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Digital marketing and communications are considered as a comparatively new and strategic
method of communicating with their consumers and different from the traditional method of
marketing. The effective and appropriate modes of communication with the target consumers
through the digital framework allows brands to create an improved brand image and gain
profitability through increased opportunities in the global tourism market economy. The
digital framework allows companies to market their products and services in a strategic way
towards a global consumer group. Incorporation of marketing function with the business
operations within an organisation provides the companies operating in the competitive market
economy evolves the companies’ business objectives in alignment to the aspects of digital
marketing such as the communication between stakeholders, communication regarding
customer relationship management. Increase in the interactive media and social media
promotes successful communication and efficiency among the various operational
departments as well as the stakeholders of the industry (Mohseni et al., 2018). The travel and
tourism industry prefers to utilise social media networking sites to increase their
communications with their consumers and other stakeholders. The efficiency of
communications with stakeholders, consumers and among the employees enhances the clarity
of their business operations that attract the consumers to their brand.
The travel and tourism sector organisations perform their business based on the type of
service they provide to the consumer demographics, thus the marketing strategy developed by
the companies are in accordance to the type of service they are able to provide to their
consumers. The digital framework utilised by the organisations of travel and tourism sector
usually consists of certain digital marketing theories that allow the organisations to efficiently
utilise their available resources and strategic plans for efficient achievement of their business
objectives. According to the study conducted by Zeng and Gerritsen (2014), it can be
observed that organisations primarily use four major digital marketing theories (DMT) that
provide the companies with an improved scope for growth and development in the market
economy. The DMT’s travel and tourism organisations primarily use for their marketing
purposes are a game theory, network theory, collective intelligence and generational theory.
Based on these theories, the organisations develop marketing strategies that are implemented
in their marketing function. Of these theories, the generational and collective intelligence
marketing theories are implemented to enhance the business performance by the companies
in the travel and tourism sector.
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Network theory is also utilised at times by the travel and tourism organisations in the industry
through social media marketing. Digital marketing as a form of marketing uses several
platforms for effectively communicating the business objectives and the variety of choices a
consumer can gain from an organisation. The network theory allows the organisation to
develop marketing strategies that are relevant to the consumer market by analysing the
relationship between consumers and other external elements. This allows the marketing
department of a company to identify the patterns in the market economy based on which
consumers modify their choices. Digital network allows organisations operating in the
tourism and travel sector of a market economy to categorise their target consumer
demographic and develop marketing strategies according to the specific needs of each
consumer group. This improves the efficiency of the marketing elements of the organisations
in creating and implementing appropriate marketing mixes for individual consumer groups.
The successful implementation of marketing mixes on the digital media framework is
observed as digital marketing (Kannan, 2017). Travel and tourism industry had previously
followed the traditional modes of advertising but due to the age of globalisation and
enhancement of services online strategies provide to companies, the travel and tourism
industry have resorted to integrating their marketing and customer relations operations on the
digital framework.
Digital marketing provides the companies with an added advantage of integrating a variety of
marketing mixes and strategies in their business operations that are open and clear to the
public. This enhances the efficiency of communication between the companies and the
consumers. Stakeholder communications along with the consumers ensure the companies are
able to perform their business operation effectively in a competitive market economy.
According to Moro and Rita (2018), the impact of digital marketing in the sphere of travel
and tourism sector is vast as the reach of digital media is not bound by any boundary. The
advertising strategies that the companies develop for attracting tourists and stakeholders of
the industry are usually created using the collective intelligence marketing theory that
prevails in the digital marketing platform. The collective intelligence marketing theory is a
form of crowdsourcing where consumers play an active role in deciding the aspects of the
organisation that needs improvement and creates marketing plans according to their
customised needs and requirements. Travel and tourism companies incorporate the
consumers for promoting their tour packages and decide the popular offers for renewal.
Digital marketing tools for the development of brand image
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The elements of digital marketing that promotes business for the organisation are effective
through the use of certain tools that the companies utilise in their marketing strategies in
order to perform their business operations within the market economy. The success of the
company in the digital marketing framework is evident through the effective use of these
tools. Like the traditional form of marketing, digital marketing requires the implementation of
certain attributes that enhance the functional operation of digital marketing. The companies’
utilisation of these tools provides them with an increased scope of developing their brand
image in the minds of the consumers that will allow them to earn more profits from the
market economy. The successful implementation of digital marketing tools enables the
organisation to communicate with the stakeholders and the consumers efficiently. Effective
communication between the elements in a business environment allows organisations to
function effectively that promote the growth of the company along with the industry. Some of
the digital marketing tools used by companies for promoting their business online are
observed as the integration of smart data in developing their business objectives, effective
differentiation among the available options of expanding their business into.
The organisations can also utilise creativity and innovation in their marketing strategies that
will improve the quality of their advertising and marketing mixes. Strategic partnerships with
other travel and tourism related organisation on the digital framework will enhance the
organisations to create digital advertising strategies that are unique and effective in fulfilling
the desired business objectives. The strategic implementation of tools in their digital
marketing operations provides companies in the travel and tourism sector to create an
opportunity for themselves in improving their brand image. The perception of the consumers
changes according to the type of business procedure the company performs in the competitive
market economy. The consumers’ perception regarding the brand value of an organisation in
the travel and tourism sector is based on the advertising the company utilises, the quality of
the products and services the company offers, the uniqueness of the packages the company
manages to provide to their consumers (Hudson et al., 2015). The cost-effectiveness of the
products and services offered by the company also plays a role in determining the favourable
perception of the consumers regarding the company’s brand image.
The effectiveness of the digital marketing tools that the companies implement effectively
provides the consumers with an idea about the brand image of the organisations. According
to the study on consumer psychology and digital advertising, it can be observed that the
visual aesthetics of advertising, especially in the travel and tourism industry, play an essential
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role in determining the brand image of the companies (Prayag et al., 2017). The digital
marketing strategy involved in the development of the brand image in the travel and tourism
industry provides the consumers with an array of visual delights that form the core statistics
of brand perception. The psychological effect of digital marketing on the consumer
consciousness has to be studied by organisations in the travel and tourism industry. The
effectiveness of this study would be evident in the digital marketing strategies that
companies’ implement in their business operations. The ‘push’ strategy used by organisations
in creating marketing procedures traditionally is proved to be a time-tested marketing strategy
for any industry (Kingsnorth, 2016). The strategy focuses on the products offered by the
companies towards the consumers. The concept of pushing their products regardless of
consumer needs and requirements is the core basis of the ‘push’ strategy.
As against the ‘push’ strategy, the growth of digital media has incorporated the emergence of
the ‘pull’ strategy that the organisations use in developing their marketing procedures. The
‘pull’ strategy is based on the marketing gimmick where the brands attract consumers to them
instead of taking their products and services to the customers. The recent development of
digital marketing tools provides evidence of organisations using the innovative strategy of
incorporating both ‘push’ and ‘pull’ strategies in their marketing functionality. The digital
marketing tools that organisations implement in their marketing strategy can be observed as
‘search engine optimisation’ where the companies create marketing plans according to the
popularity of the search engine words that the target consumer demographic prefers searching
for online. Paid search for Adwords, analytics, social media marketing and public relations
influence are some popular tools that are prevalent amongst the travel and tourism sector
organisations. Some organisations that operate in the competitive market economy of travel
and tourism sector prefer to use email marketing, content-based marketing and marketing
automation techniques that provide them with the desired results in the market economy.
According to the research conducted by Ryan (2016), it can be observed that the use of
digital marketing tools facilitates the marketing process of the company in the competitive
market.
Organisations affiliated to the travel and tourism sector industry have also resorted to using
other digital marketing tools such as pay-per-click; social media advertising including
influencer marketing, email marketing and direct communication with their consumers.
According to Long and Morpeth (2016), the personalised development of tour plans and
packages ensure the customers’ demands are fulfilled based on the strategic development of
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products and services according to the needs and requirements of the target demographic. The
effective fulfilment of customers’ needs and requirements through market research provides
the organisations with an appropriate idea about the type of products and services the
customers demand from the industry organisations. The understanding of the digital
marketing tools in the performance of digital marketing operations of an organisation
promotes the organisational function of conducting research regarding consumer demands
and creating appropriate plans and strategies that improve the brand image of the company in
the competitive market economy. The successful implementation of these tools in the digital
marketing plans helps in the development of a positive brand image of the company in the
market economy. Digital marketing tools act as active elements for improving or hindering
the business operations of the company in a competitive market economy.
The application of digital marketing using these tools promotes the chances of profitability of
a company operating in the travel and tourism sector of the market economy. The fulfilment
of consumer needs and demands according to market specifications is possible through the
effective implementation of marketing tools and strategies in the digital framework.
According to the study conducted by Oklobdžija and Popesku (2017), it can be stated that the
tools that most travel and tourism organisations use in their marketing strategies for the
effective fulfilment of business objectives are email marketing, direct communication and
social media influencer marketing. Implementing these tools in their marketing strategies has
benefitted their business function efficiently by increasing their communication with the
consumers and stakeholders. Incorporating consumer engagement through social media in
their business operations enables the organisations to create effective marketing plans that
allow them to develop products and services according to the fluctuating demands of the
consumer group.
Advanced digital marketing tools and their benefits on brand image
With the advancement in technology and global marketing strategies, the components of
digital marketing are changing too. Organisations operating in the travel and tourism sector
have to integrate modified tools in their digital marketing schemes in order to attract more
customers and gain market shares. The performance of travel and tourism companies in the
competitive market economy is affected due to the use of digital marketing tools and
strategies hence it is essential for companies to implement updated and innovative tools in
their marketing plans to generate profit from the competitive market economy. The digital
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marketing framework evolves with new technological advancement and organisations need to
implement better and innovative tools in their strategies in order to succeed in the market
economy. The performance of travel and tourism companies utilising DMT’s generate higher
profit and the implementation of advanced tools will enable them to function efficiently in
communicating with the consumer group. Integrating advanced digital marketing tools enable
companies to create innovative marketing strategies in the travel and tourism industry. The
success of these advanced marketing tools can be reflected in the financial report of the
companies as well as the enhanced brand image of the companies.
Advanced digital marketing tools that the travel and tourism companies can implement in
their digital marketing strategy comprise of mobile technology, smartphone applications,
integrated service providing through a single application and virtual tours of tourist
destinations. The advancement in technology has made the new generation of tourists more
aware of the products and services available to them and they have developed finer and
specific demands from the industry catering to them. In order to fulfil their specific and
fluctuating desires, travel and tourism industry operators need to integrate effective and
advanced digital marketing tools (Kim and Law, 2015). Performing appropriate marketing
strategy that is both advanced and innovative will improve the brand image of the companies
due to increased profit and high levels of customer satisfaction. Providing virtual tours of
tourist destinations and allowing customers to create tour packages that are suitable for them
and are customised to their preference enhance the business operations of the company thus
increasing the customer satisfaction level. Combination of appropriate marketing tools and
strategies along with an effective pricing strategy increase sales for a travel and tourism
company.
The implementation of effective tools and strategy within their business operations also
improve the employee engagement within the company, enhanced brand value and image
improves the efficiency of the employees, which affects the quality of services provided by
them in a positive way.
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Research Methodology
The purpose of this research is to highlight the data collection methods and techniques used
to gather the data. The main highlights of this chapter is the research approach, design,
philosophy, data collection methods, data analysis, sampling techniques, ethical
considerations, budget, timeline as well as limitations of the research.
Research Approach
For conducting this research, the approach used is deductive approach. However, there are
two types of research approaches- deductive and inductive. The inductive approach is based
on generalising some theories. This approach do not take into consideration any sort of
questions or studies any existing theories. The research is based on the observations and
through this data is derived. This data helps informulation new theories, which is in the
context of the research. On the contrary, the deductive approach helps in formulating the
questions and hypothesis. Further, this approach follows a particular strategy of collecting as
well as analysing the data, which is used for testing those questions. Hence, it can be stated
that the deductive approach helps in making the general more specific (Ormston et al., 2014).
In this particular research, the deductive approach is used, as this approach helps in forming
questions in context of the research objectives. As per this method, the data collected from
the quantitative method is analysed through different statistical representation in order to
reach the appropriate findings. The findings related to the research topic “impact of digital
marketing on the brand image of Thomas Cook” is found through this approach. Further, this
approach helps in finding the answers to the set research questions. Moreover, the deductive
approach do not influence any sort of creative or divergent thinking to evaluate the impact of
digital marketing, which shall answer the research questions.
Research Design
The research design can be categorized into descriptive, exploratory, and explanatory. The
research design includes the collecting and analysing the data of the research. The descriptive
research is used to describe a particular situation in the way it exists. It is not concerned with
finding the answers to the research question. On the other hand, the exploratory research is
used for finding new topics related to the research topic as well as lays foundation for future
researches. Further, it helps in generating significant insights in context to a situation. For
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