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EXECUTIVE SUMMARY
The major reason hospitality and tourism companies are so successful at adapting digital marketing strategies
is because they carefully analyse how people interact with surrounding environments while travelling. These
insights help them recognize existing customer needs and give travellers what they want to create the “wow”
effect and ensure repeat sales.
Digital marketing for hotels is becoming increasingly complex. Hotel managers need not only to service
guests, manage rooms, availabilities and pricing, but now are also expected to compete for guests in new
channels and digital communities that emerge every day. Hence, many hotel managers are asking themselves
how they can expand their brand online while still having the time to run their business.
The obvious choice has been to hire additional staff, but this tactic is just a temporary solution, because demand
for digital marketing is unstoppable and the problem will continue to grow. The breakthrough solution for this
complex problem is a digital marketing architecture and tools that provide a consistent multi-channel
experience to hotel guests and prepare hotels for future digital marketing demands.
They importance to of generation Millennials and generations Z or I-gen is needs to be closely monitored.
Appropriate and updated content too needs to be provided. The importance of content creators and social
media celebrities on social media will also be important
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INTRODUCTION OF THE TOPIC
Hospitality Services: The sectors in hospitality services includes, travel and tourism and leisure sectors. The
other industries included in this sector are Food and service management, Bars, Nightclubs, Amusement parks,
hotels, Motels, Hostels, Restaurants, Self‐catering accommodation, Holiday centres and, Travel agents. It has
grown for the last 26 years and, despite the recession is determined to grow further. The sector at present
employs about 2.5 million people and provides support to other industries, like hotels and restaurants to
educational establishments Hospitality Industry in India: The Indian tourism and hospitality industry has
materialized as one of the key drivers of growth among the services sectors in India. It contributes to 7.5
percent to the National GDP and 8.78 percent of the total employment in the country. Constant transformation,
functional growth and improving standards have gained the hospitality industry of India approval all over the
world. The industry is broadly divided in two segments:
 Tourism: The tourism sector includes medical and healthcare tourism, adventure tourism, heritage
tourism, ecotourism, rural tourism, wildlife tourism and pilgrimage tourism.
 Hotels: These include business hotels, resort hotels, airport, extended apartment hotels, resort hotels,
timeshare hotels, casino hotels, convention centres and conference centres.
Tourism in India has generated immense employment opportunities and is a vital source of foreign exchange
for the country. The travel and tourism industry contributed Rs 2.21 trillion (US$ 36.21 billion) or 2.3 per cent
to the country's gross domestic product (GDP) in 2013.The figures are expected to rise to Rs 4.44 trillion (US$
72.19 billion) by 2024.The revenue from domestic tourism is likely to grow by 8.24 per cent in 2014 as
compared to 5.18 per cent a year ago, according to the World Travel and Tourism Council (WTTC). The
Indian hospitality sector has been growing at a cumulative annual growth rate of 14.12 per cent every year
adding significant amount of foreign exchange to the economy. The Travel and Tourism Competitiveness
Report of 2013, published by World Economic Forum, India, stated that the ranking of India is 11th in the
Asia Pacific region and 65th in the World Travel and Tourism Competitiveness Index 2013. As per the
Planning Commission, the sector creates more jobs per million rupees of investment than any other sector of
the economy. It is capable of providing employment to a wide spectrum of job seekers, from the unskilled to
the specialized, even in the remote parts of the country. The sector’s employment-generation potential has also
been highlighted by the World Travel & Tourism Council (WTTC), which says India’s travel and tourism
sector is expected to be the second-largest employer in the world, employing approximately 52 lac people,
directly or indirectly by 2019.
Tourism in India is economically important and is growing rapidly. The rise of the Internet and the ongoing
evolution of digital marketing has had a profound effect on the tourism and hospitality industry to such an
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extent that it has become by far the most important tool for any travel and tourism business. At the same time,
businesses need to realize that they have far less control than ever before, since consumer-generated content
has become one of the most significant trends of all. Thanks to the global and highly accessible medium that
is the modern Web, consumers are able to leave reviews, post comments on social media and spread word
about their experiences to an extent that was never possible before. This trend is particularly important in the
travel and tourism industry, due to the fact that more and more people are turning to the Internet to find
everything from destination guides to restaurant and hotel reviews.
The Internet plays an important role not only during the planning stage of a holiday abroad, but also during
the holiday itself. Thanks largely to the ubiquity of mobile devices in the last few years, consumers use their
smartphones or tablet computers while exploring their destinations and seeking out local venues and travel
tips. When they return home, they’ll likely leave reviews on popular websites such as tripadvisor.com and on
various major booking engines such as lastminute.com or booking.com. In order for travel companies to hold
on to existing customers and attract new ones, they need to work tirelessly to build and preserve their
reputations
Fortunately, the world of online marketing is far more accessible and affordable than it once was, particularly
to small businesses that don’t have the expertise or the funds to pay for professional Web development and
marketing. New tools have made publishing and promoting content easier than ever before, but while online
marketing might not require the degree of expertise that it used to, it does require a consistent, long-term
commitment, a thorough knowledge of the target audience and a spark of creativity in order to stand out in the
increasingly competitive marketplace.
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FACTORS RESPONSIBLE FOR THE GROWTH OF HOSPITALITY SECTOR
Factors:
 Households rising income
 Growth in niche tourism such as eco-tourism, luxury tourism and medical tourism
 Tourism and hospitality sector attracted second highest FDI i.e. US $3.3 billion in the year 2013
 100 percent FDI permitted through automatic route in hotel and tourism sector
 Diversity of the country which attracts an ever-increasing number of tourists every year
 Government initiatives facilitated improvement of infrastructure like airports, highways, ports and
railways
 India is a labour-intensive country
 “Lonely planet” has ranked India as the fourth most preferred travel destination, selecting the country
among the top five destinations from 167 countries.
Employment Opportunities The hospitality industry is labour intensive and India has a large concentration
of English speaking individuals, which acts as a catalyst in advancement and prosperity of the industry.
Besides the regular jobs of a travel agent, tour guide, air hostess, chef, waiter and manager’s other
opportunities await those who are keen on taking up a job in the sector. Following are the new trends that
have been emerging:
 Fast Food Joint Management and Restaurant Management
 Club Management and Recreation and Healthcare Management
 Government owned catering departments like armed forces mess, ministerial conventions and
railways services.
 Beverage, food and confectionery production
 Institutional and Industrial Catering and
 Cruise Ship Management
 Hotel Tourism and Association
The contribution of hospitality industry in Indian economy: The contribution of the entire travel and tourism
sector in India to Gross Domestic Product is estimated to rise from 8.8% (USD 118.9 billion) in 2010 to
9.16% (USD 335.7 billion) by 2020. Between 2010 and 2019 the demand for travel and tourism in India is
expected to grow annually by 8.4%, which will place India at the third position in the world. Travel and
tourism in India also accounts for 50,087,000 jobs in 2010 (about 10.22% of total employment) and is
expected to rise to 59,142,000 jobs (10.7% of total employment) by2020.Within the travel and tourism
sector, the Indian hospitality industry is one of the fastest growing and most important segments, revenue-
wise as well as employment wise. According to Economic Survey of India and Technopak, the Indian hotel
industry accounts for USD 19 billion, 71.50% (USD 11.95 billion) of which take their origin from the
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unorganized sector and the remaining 29.7% (USD 5.67 billion) from the organized sector. In 2000, India
hosted only 2.8 million international visitors. By 2009, the figure had already increased to 5.25 million
arrivals. Compared to other tourism markets in nearby Asian countries, this is still a limited success, but has
a potential to turn into a tremendous success story.
Government Initiatives
The Government of India and the Ministry of Tourism have contributed significantly to the development and
growth of the industry by providing various tax incentives, policy measures, and other supports such as:
 Making Medical Visas available for tourists coming into the country for medical treatment
 By allowing 100 percent FDI through automatic route in hotel and tourism sector
 Insuring tourist’s visas on arrival from selected countries like Finland, Japan and New Zealand
 Facilitating Capital subsidy programmes for budget hotels
 Eliminating the customs duty for import of raw materials, equipment, liquor etc.
 Declared Five-year income tax holidays for 2-4 star hotels established in specified districts having
UNESCO declared 'World Heritage Sites'
 Promotion of rural tourism by Ministry of Tourism in collaboration with the United Nations
Development Programme.
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THE INDIAN MEDIA AND ENTERTAINMENT (M&E) INDUSTRY
About media and entertainment industry:
The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting industries in the
world, has had a tremendous impact on the lives and the Indian economy. As the M&E industry widens its
reach, it plays a critical role in creating awareness on issues affecting, channelling the energy of and building
aspirations among India’s millions. As it entertains and informs the country, the M&E industry has been a
catalyst for the growth of large parts of the Indian economy. M&E industry consists of TV, Print, Films, Radio,
Music, OOH, Animation and VFX, Gaming and Digital Advertising.
The FICCI-KPMG 2014 Report 'The Stage Is Set' showing the Indian media and entertainment (M&E)
industry has grown by 15.9 per cent in 2015 while comparing with 2015 and touched Rs 1157 billion. It is
expected to touch Rs 2260 billion by 2020, with a CAGR of 14.3 per cent.
Meanwhile, digital advertising, which continued its strong run with 38.2% growth over 2014 - as a mounting
Internet user base and data usage were supplemented by increased spend allocation by marketers - is likely to
scale up to Rs 255 billion by 2020 and contribute to 25.7% of total advertising revenues.
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According to Jehil Thakkar, Partner and Head of M&E at KPMG in India said, "Print saw a slower growth in
the past year but TV and digital advertising have exceeded expectations. With the wide rollout of 4G finally
underway, coupled with the 'Digital India' initiative, the future of digital advertising is very bright.
According to the annual advertising expenditure report from Group M, advertising expenditure (adex) in India
will grow 15.5 per cent in 2016, touching Rs 57,486 crore.
This growth is higher than the 14.2 per cent that was reported by Group M in 2015, implying it will be the
highest rate of growth in six years.
"India remains the fastest-growing ad market among all key markets in the world. The year 2015 saw the best
in terms of adex growth for India in five years. But if 2016 does see the rate of growth that we have forecast,
then it tops 2015 numbers," C V L Srinivas, chief operating officer, Group M South Asia, said.
In terms of media mix, television will remain the largest contributor to adex, estimated to touch Rs 27,074
crore this year versus Rs 23,022 crore last year. The rate of growth would be 17.6 per cent, Group M said,
lower than the 18.6 per cent seen last year.
Newspapers will come next, led by a surge in e-commerce ads, touching Rs 17,099 crore this year versus Rs
16,125 crore last year. The rate of growth of newspaper advertising will be six per cent versus 5.2 per cent last
year, while digital will be the third-largest contributor to adex, touching Rs 7,300 crore versus Rs 4,950 crore
last year.
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Business Model of Industry
ATD- Agency Trading Desk DSP- Demand Side Platform SSP- Selling Side Platform
The process
Clients would give authority to agencies, to wear the shoes of clients. Agency will create ads, which may be
banner ads or videos. After the creation and getting approval from clients, agency while find out the portals or
websites where the T.G is present. Later give the order to DSP or ATD, this order contains details regarding
where to place ads or which portal is requiring to placing the ad. This DSP/ ATD will bid in ad exchange for
that portal. Otherwise agency can directly approach to ad networks and give orders. These ad networks buy
the inventories from publisher and give to agency. From publisher view he can sell inventories through Ad
networks or through SSP. If publisher give to SSP, they will place those spaces in ad exchange for bidding.
Through ad exchange DSP/ATD will buy those inventories. Bidding will not only for space but also for T.G
which required for clients.
Ad exchanges are technology platforms that facilitate the bids for buying and selling of online media
advertising inventory from multiple ad networks. The approach is technology-driven as opposed to the
historical approach of negotiating price on media inventory.
A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory to manage
multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying
online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for
the banners and the pricing for the data that they are layering on to target their audiences. A supply-side
platform or sell-side platform (SSP) is a technology platform, web publishers of the world use a supply-side
platform to automate and optimize the selling of their online media space. [9]
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Porter’s Five Model Analysis of Digital Advertising Industry
Porter’s model will help analysis the industry and understand where the power lies in the business. Here I am
using porter’s model to understand digital advertising industry in India. Generally, in the Indian advertising
industry, contracts are long termed, and customers are likely to keep going back to the same advertiser so long
as results were obtained the first time.
1) Threats of New Entry
 Full service agencies have high demand in Market.
 Lack of getting efficient work force is a threat in digital advertising.
 Cost of setting up a digital agency is low. But agencies need to invest a huge amount in backend
function like technology.
 Getting clients in the initial stage is a bit difficult, because clients will usually look the past
experience of agency.
 Government regulations in the digital advertising are low. While comparing with M&E
industry.
2) Bargaining power of suppliers
 Lot of suppliers are there, but some suppliers who have high reach and affinity will charge high
price for placing ads in their portals.
 Real time bidding will lead to increase the demand of some portals.
 Bargaining power of suppliers, who provide data and information are very high.
 Seasonal campaigns put pressure on supply side to charge high.
 Employee or work force with proper knowledge is limited.
3) Bargaining power of buyers
 Buyer are the clients of agencies, basically buyers are high idea seekers.
 Clients will choose agencies which have good experience in industry.
 Clients like long term relationships with agencies, so they also try to adjust with agencies.
 Clients can ask agencies to change pattern of campaigns at any time.
 Clients like MNC’s have high power over agencies, but SME’s will satisfy with performance
of agencies.
 Backward integration by buyers is not possible.
4) Threats of substitutes
 No. of substitutes is high, substitutes include Print media, TV, OOH and Radio.
 Substitutes are too popular among buyers. They had high demand in past years.
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 Main competitor for Digital advertising is TVC, but trends are now changing FICCI-KPMG
report of 2014 showing growth of digital is very high while comparing with others media.
 But media consumption through radio is increasing now.
5) Rivalry by existing competitors
 At present competitors are low, but it can be increase in future. Because lot new players are
coming to the industry.
 Existing competitors have high profile clients and clients loyal toward them.
 Most of the traditional agencies are now concentrating in digital also.
 Existing firms in the Industry are creating variety and unique campaign for clients.
 Most of the firms have efficient backend support in technology.
 Existing firms have the expertise manpower and firms giving good remunerations to
employees. So, employees are loyal towards employers.
 Some firms are popular due to execution of innovative campaigns.
 Few of the brands have in-house agencies, it will reduce business but not in a high level.
Conclusion of Porter’s Five Force Analysis
 Low threats for new entry.
 High bargaining power of suppliers.
 Bargaining power of buyer is medium, but in coming year there is chance for increase. Due to
lot of players are coming to industry.
 Threats of the substitutes are high, but it will change in coming years.
 Rivalry by existing competitors is high, but possible to break it by doing some unique campaign
for client.
 Indian market is a potential market for digital advertising due to high internet and mobile
penetration.
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INDIA AND THE INTERNET
India, with 1,270,272,105 (1.27 billion) people is the second most populous country in the world, while China
is on the top with over 1,360,044,605 (1.36 billion) people. The figures show that India represents almost
17.31% of the world's population, which means one out of six people on this planet live in India. Although,
the crown of the world's most populous country is on China's head for decades, India is all set to take the
numerous positions by 2030. With the population growth rate at 1.58%, India is predicted to have more than
1.53 billion people by the end of 2030.
India is currently having online population of 213M, among them 60% are males and 40% are females. In
have 110 M mobile internet users, among them 80% are males and 20% are females. 176M of the total internet
population are part of Social Medias.
India has bypassed Japan to become the world’s third largest Internet user after China and the United States,
and its users are significantly younger than those of other emerging economies, global digital measurement
and analytics firm comScore has said in a report. Riding on a 31% year-on-year increase, India’s online
population grew to 73.9 million. With an extended online universe in excess of 145 million the market is at a
tipping point for online businesses. The numbers are lower than other recent estimates, possibly reflecting
comScore’s methodology that only factors in PC and laptop-based Internet usage.
Gender Wise
India currently have online population of 213M, among them 60% are males and 40% are females. In have
110 M mobile internet users, among them 80% are males and 20% are females. 176M of the total internet
population are part of Social Medias.
According to the Internet and Mobile Association of India (IAMAI), the Internet user base in the country stood
at 190 million at the end of June, 2013. For the whole year 2013, the internet user base grew 42% to 213
million, from 150 million in 2012.With more and more people accessing the web through mobile phones, the
internet user base in the country is projected to touch 243 million by June 2014, a year-on-year growth of 28%.
Younger males and women aged 35-44 emerge as power users
India males aged between “15-24” are major users among Males and in females 35-44 are major users of
internet. Age wise distributions are given below.
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Online Behaviour of Indian Internet Users
Trends in online behaviour are changed a lot, social networking is leading now. Early people will use internet
to access email and for searching information. But now people like to be social, they are interested in sharing
their life with others. 25% of the population are doing social networking in India followed by 23% in services.
Services include emailing and instant messaging.
Mobile Internet Users
Internet penetration in India is driven largely by mobile phones, with some of the cheapest and most basic
hand-sets today offering access to the internet. According to IMAI, India has 110 million mobile internet users
of which 25 million are in rural India. The growth of internet penetration in rural India is driven largely by the
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mobile phone; 70% of rural India's active internet population access the web via mobile phones. This may
have to do with the difficulty in accessing PCs. Forty-two percent of rural India's internet users prefer using
the internet in local languages. The high prevalence of content in English is a hurdle for much of rural India.
Research report of InMobi showing the behaviour mobile user in internet, 21% of their total consumption is
for Entertainment and Social Media, which followed by Games, General Information Search and Email.
Social Networking
Social Networks capture the largest percentage of consumers’ time in the region. comScore data’s showing
86% of the Indian web user visit a social networking site. Facebook continues to be the number one social
network with a 28% increase in traffic and a reach of 86%. Average time spend by an Indian user on Facebook
is 217 minutes. LinkedIn emerges as number two, while Pinterest and Tumblr are the fastest growing networks
but growth of twitter is declined by 15% in 2013 while comparing with 2012.
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Number of Indian user on Social Networking Platform
Facebook- 195 Million Twitter – 26.7 Million LinkedIn- 35 Million
Instagram- 16 Million
Entertainment and Online Video
According to comScore data, the online video audience in India grew an astounding 27 percent in the past
years; YouTube continues to be the top video property with more than 55% share. International publishers
including Facebook, Yahoo and Dailymotion get a majority of the 54 million who watched videos. YouTube
is the most popular with 32,519 visitors.
Social Video report saying 46% of internet users watch brand related video every week. 54% watching videos
that are informative or entertaining often leads to a number of other positive activities such as visiting the
brand website. Peoples are now likely to regularly watch videos using their smart phones. Almost six in ten
internet users have gone to purchase an item after seeing it in an online video.
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Media Consumption of Indian’s
On an average, Indian consumers are spending 6.10 hours in media per day. In traditional media, Indian
audience spend only 195 min or 3.15 hours. If we see the breakup it will be 86min in television, 37 min in
newspaper and 30 min in radio. Remaining 4.55 hours or 214 min in new media or digital media. Break up of
new media will be like 102 min in mobile, 79min in online and 33 min in tablets.
From a marketer view digital platform is very important because customers have more presence in digital
media. Customers are spending more time on digital, so it is easy to catch customers in digital platform, more
than that spending digital is much cost effective while comparing with traditional.
Digital marketing is the promotion of your business, organisation or brand using channels such as the Internet,
mobile devices, television and radio in addition to using creative online advertising, video, podcasts and other
such methods to communicate your message. Internet marketing in particular plays a huge part in any digital
marketing strategy and is becoming the core of many organisations overall marketing strategies, particularly
with regard to social media and viral marketing.
Digital marketing ecosystem is not only concerned with internet marketing and social media marketing, in
introduction we discussed that peoples have a belief that internet or social media marketing are same but not
same, be clear from beginning itself. Digital marketing ecosystem consists of internet marketing and social
media marketing. They are just a channel for communication, digital ecosystem consists of integrating
channels and integrating services.
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DIGITAL ECOSYSTEM
 Search Engine
Search engine optimisation (SEO) is the art of getting a website to work better with search engines
(like Google, Bing & Yahoo), and to look for achievable, profitable, ranking opportunities through
keyword research. It is a quest for increased visibility in search engines via relevant copy, quality links,
domain trust, social popularity and search engine connectivity.
Search engine marketing (SEM) is a broader term than SEO, and is used to encompass different options
available to use a search engine’s technology, including paid ads. SEM is often used to describe acts
associated with researching, submitting and positioning a website within search engines. It includes
things such as search engine optimization, paid listings and other search-engine related services and
functions that will increase exposure and traffic to your Web site.
 Displays
Display advertising is a type of advertising that typically contains text (i.e., copy), logos, photographs
or other images, location maps, and similar items. In periodicals, display advertising can appear on the
same page as, or on the page adjacent to, general editorial content. Normal banners, Rich media banner,
Interstitials and pops are example of displays.
 Mobile Marketing
Mobile marketing is used in reference to any marketing efforts on or with a mobile device. It involves
planning, creating, and implementing a mix of initiatives to bring together sellers and buyers via mobile
devices. Mobile ads, Mobile websites, Apps and Games are some of examples for mobile marketing.
•Search Engine (SEO/SEM)
•Displays(Banners,Rich media Banners)
•MobileMarketing
•Social media
•Email
•Video
•Websites
Integrated
Channels
•Analytics
•Content management
•Advanced Targeting
•Creative
•Research + Planning
•Digital strategy
Intergrated
Services
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 Social Media Marketing
Social Media refers to any software tool that enables and encourages engagement in conversation or
sharing. Popular forms of social media include Facebook, Twitter, LinkedIn, YouTube, Pinterest,
Google + and blogs. Now all days’ social media become platform for marketer to make conversation
with customers. Brands are now engaging customers through social media.
 E-mail Marketing
email Marketing is a type of direct marketing that involves sending personalized, targeted messages to
a specific audience. email Marketing is easy to use, low cost, and effective. Most of the B2B business
in present era in following email marketing, but in B2C also email marketing is productive.
 Video
Marketers are now use video to make customers aware of brands and to sharing the experience of other
customers. YouTube ads are too popular in video ads. In social media platforms, also brands are sharing
video.
 Analysis
Analytics is the practice of evaluating data, and the process by which a company arrives at a most
advantageous decision. Here marketer analysis the integrate channel to understand the effectiveness of
communication. Analysis may be based on numbers of visitor or like in social media pages. etc.
 Content Management
After analysis, the integrate channels marketer can able to understand the problems with current
contents. Later he can manage the content to increase the engagement rate, content may be text in
banners, images or websites.
 Advanced Targeting
Advanced targeting are techniques involving the sending of targeted messages to a specific audience.
It is used to increase the effectiveness of a marketing campaign. Behavioural targeting is also a part of
advanced targeting, here marketer can target the customer based on their past behaviour in online.
Marketer can put ads in another webpage where customer is going.
 Creative
Creative is the artistic component of an ad or website. It usually includes an image and copy present
in ads or website. Marketer can make those contents attractive to customers. Marketer will sometimes
change the entire design of websites, apps, etc.
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 Research and Planning
Marketer will do some research to understand the behaviour, taste and preference to customers in
digital platform. This research may be doing by using paid-tools like ComScore...Etc. Through this
research marketer can understanding where T.G is present or what T.G would to do in online. After
research marketer, will plan new campaigns based on those research reports. These campaigns are
more effective to reach the T.G properly.
 Digital Strategy
Digital strategy is the process of specifying an organization's vision, goals, opportunities and initiatives
in order to maximize the business benefits through digital media. Strategy will be different for each
brand; it will base on the brand objective and target groups interest. It is actual a plan formulated by
the marketer to explore the opportunities. Strategy may be short term or long term, but it need to be fit
with market situations.
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TYPES OF DIGITAL MARKETING
In normal outbound marketing, we will use pull and push marketing strategy. Like that in digital marketing
also pull and push are types.
In push, digital marketing the marketer sends a message without the recipient actively seeking the content,
such as display advertising on websites and news blogs. Email, text messaging and web feeds with customized
contents can also be classed as push digital marketing when the recipient has not actively sought the marketing
message. Push marketing allows you to target your demographics and use your marketing dollars to promote
your product to the people you know are interested in what you have to sell. A push marketing campaign can
be more expensive when it comes to upfront costs, so you really need to be sure that your marketing is going
to reach the right people at the right time. Behaviour targeting is good example for push digital marketing.
In Pull digital marketing includes blogging, email marketing, social media, info graphics and other forms of
visual messaging and search engine optimization (SEO). A pull marketing campaign also includes public
relations or other ways of reaching out to potential or already realized customers who you want to keep
engaged. While a pull marketing campaign can be less expensive to get started, you will incur costs in other
ways. For example, if you are running a social media campaign, you will need to hire someone to manage
your social media and respond to people who leave comments or ask questions. Social media gets people
talking and that has a major impact on sales. Pull marketing also requires a greater investment in time, but it
gives you more ability to entertain your customers and educate them about your company.
But don't get confused by seeing Email in push and pull, there is a difference. If marketer is sending emails
with customized content or banners to specific group of customers is push digital marketing. If marketer is
sending emails with the same content or banner to all customers is pull digital marketing.
AIDMA as AISAS in Digital Era
AIDMA widely accepted model describing the psychological process leading up to the consumer’s decision
to purchase a product. This model is similar to AIDA model. The AIDMA Model was first advocated by
Roland Hall, an American economist, around 1920.
According to this model, there are five key processes: Attention, in which the consumer first notices the
product or advertisement, followed by Interest, Desire, Memory, and Action.
This model has been used extensively in the advertising and marketing industries.
Attraction Interest Desire Memory Action
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AISAS is a process model of consumers purchasing activities in the Internet age. AISAS is a consumption
behaviour model that has been advocated by Dentsu since 2004. It was developed to observe behaviours based
on the understanding that the Internet has become prevalent, and that consumers now have access to
environments in which they can obtain and transmit information themselves.
In this model, the key processes are: Attention, in which the consumer first notices the product or
advertisement, followed by Interest. After this, the consumer Searches for information, and then makes a
purchase (Action), after which information is shared with others. In comparison to “AIDMA,” the
psychological process has become more compact, and the Action process has expanded.
These changes are shown how presences in digital are important for brands. Brands can able to create
awareness and internet without digital. But it will not lead to action in current scenario. Customers need more
information in present era; they are information seeker and always search for best deal. Brands can’t sustain
without digital media.
Advantages of Digital Marketing
Digital Advertising is increasingly an inherent budgetary component of many organizations today.
Organizations of all sizes use the medium to promote their products and services. So well, why do so many
organizations use the medium? Simply put, it is due to the numerous advantages that online advertising offers.
These are discussed in the paragraphs ahead.
Reach - The ability of the online medium to target a certain demographic of users is one of the greatest
advantages of digital advertising. In addition, the geographical reach of the online medium is far greater than
that of traditional media. It’s not only cost effective to achieve a wider geographic area but the ads can also be
targeted to the desired audience. For example, if an advertiser is keen on selling his or her products targeted
to a certain demographic of people, it is quite possible through online advertising. Digital advertising has
matured to the extent that web publishers, media agencies and advertisers themselves know the optimal ways
and websites for a certain category of products or services.
Measurement - With various tools becoming available, tracking effectiveness of ad campaigns is becoming
possible today. In other words, measuring Return of Investment (ROI) is increasingly possible today.
Organizations that were previously reluctant to spend online, now realize that the online medium does offer
means to alleviate any such fears. Moreover, when properly designed online marketing campaigns generate
the desired results, advertisers are further encouraged to continue advertising online.
Interactive and Engagement - The Internet is arguably the most interactive and engaging medium among
various others. Interactive campaigns have become a norm with the power of the online medium. One such
Attraction Interest Search Action Share
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advertisement worth mentioning is the campaign by AXE where the end user could alter the smile of a woman
as he/she liked to i.e. in an interactive framework. The advertisement struck an instant chord with the youth to
which AXE the brand is positioned for Customers are basically just a click away from the advertisers. In other
words, direct response between end users and advertisers is possible through the online medium.
Time - Through the Internet, an advertiser can reach a desired target group or demographic in a much shorter
time frame. For example, if an advertiser needs to plan some sort of ambush marketing, the online med ium
can be an effective means of achieving it. Even otherwise i.e. for regular marketing campaigns, the total time
necessary to complete an online advertising campaign is less than that of traditional advertising methods.
Cost - When compared to traditional forms of advertising, digital advertising is cheaper. Various payment
models are available between the advertisers and publishers. Many a time, advertisers are charged only when
visitors click on their ads. The various payment models are discussed in detail in the next section.
Digital Advertising: Ad Avenues
 SEARCH ADVERTISEMENTS: Advertisements made up of text (displayed largely as sponsored
links on search engines) come under this category. These are backed by hyperlinks that when clicked
on, take the potential customer to the advertiser’s website.
 DISPLAY ADVERTISEMENTS: Advertisements that are placed at various points on a web page that
typically contain logos, photographs, other images or even text. Technologically these comprise of
Image, Simple flash and Rich media with& without video ads.
 MOBILE ADVERTISEMENTS: Advertisements that are viewed or consumed on mobile phones or
tablets come under this category. These comprise of Mobile Web ads, SMS, MMS, Mobile Video &
TV ads and In-App ads.
 SOCIAL MEDIA ADVERTISEMENTS: Advertisements of any type: text, display, stamp pads etc
displayed on various social media websites like: Facebook, Twitter, LinkedIn, Pinterest, Orkut etc fall
into this category.
 EMAIL ADVERTISEMENTS: Advertisements that involve sending across a commercial message to
a group of people using email comprise of this ad type. Emails are used to engage with existing
customers to get repeat business as well as to acquire new customers.
 VIDEO ADVERTISEMENTS: Advertisements that fall broadly under the display type but have video
within them and are served before, during and/or after a video stream on the internet. This type
comprises In-Video ads, Standard In-Stream ads (pre-rolls, mid rolls or post rolls) and TrueView ads.
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Some of the Basic Terms in Digital Marketing
 Impression
An impression is a measure of the number of times an ad is seen, whether it is clicked on or not. Each
time an ad displays it is counted as one impression.
 Page View
Viewing the page is known as page view. It gets counted once the page loaded.
 Leads
When one person fills his details in the given box is known as lead.
 Conversion
The percentage of people whose activity can be tracked while clicking on an ad or visiting a website
to actually purchasing a product or service. A high conversion rate indicates that the link, ad or site
was successful
 Inbound link
Link connecting to your website from a different website.
 Profiling
To build a picture of a target customer based on information from various sources including customer
transactions completed forms and demographic data.
 Unique Visitor
Unique IP address accessing a website.
 Landing Page
A custom we page designed to convert visitor into leads or sales. Email, banner ads and even offline
outbound marketing campaigns drive traffic to a landing page to capture information or trigger a sale.
Landing page is also called as destination page or splash page.
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Types of ads
 Above the Fold: Above the fold refer to banners ads which are displayed at the top of a web page.
 Rich- media: Online ads that contain motion, sounds or video are termed as rich media ads
 Interstitial Ads: Ads that appears between web pages.
 Banner Ads: Embedding an ad into a web page- known as a click through due to interactive actions
where the consumers click and is taken to the banner ad’s company websites
 Pop-up: Ads that displays in a browser window either in the front or behind the current browser
window.
Monetary term in Digital Marketing
 Cost –Per- Action (CPA): Cost of advertising based on a visitor taking some specifically defined
action in response to an ad. “Action” include such thing as a sale, transaction, a customer acquisition
or a click
 Cost- Per -Click (CPC): Cost of advertising based on the number of clicks received.
 Cost- Per-Thousand (CPM): The standard unit for buying or selling Internet advertising. The
thousand stands for ‘thousand advertising impression or views’.
 Pay- Per- Impression: Online advertising where an advertiser pays a pre-agreed price each time a user
clicks on their advertisement. The cost for the click is often negotiated through auction, with ad
placement determined by the relative size of the bid, as well as other factors.
 Pay-Per-Inclusion: Search engine marketing programs that guarantee web site listing for specific
keyword search term for a fee.
 Pay-Per-Lead: Paying to acquire leads from an outside party at a set rate or amount per lead
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BRANDING IN DIGITAL ERA
Before doing this internship, I believed marketer is responsible for building a brand or marketer is a custodian
for a brand. But while doing internship, I understood marketer is not a custodian, he is a person who guides a
product to become a brand.
Today, brand custodians are the connected users who exist across digital platforms. They are multifaceted.
They are the publishers, circulators, ambassadors, instigators and at the same time they are the custodians as
well. Their digitally connected existence has power, credibility, influence, depth, and reach. Their digital
messaging has the velocity, acceleration, and momentum required to impact brands. Yet brands and their
default custodians continue to live blissfully in an illusion about the control they exercise over their brand.
Brand is an enabler in the current age. It is the participants, the brand conversations and the platforms that
amplify the brand and drive the brand philosophy. Businesses need to, therefore, understand the consumers
and the evolving digital sphere better and continue to build brands within the digitally connected ecosystem
by focusing on the following 3 elements-
People
The digital age has democratized individuals. They are no longer passive consumers, but active and creative
participants. They expect and believe in the co-creation of an experience, thereby evolving from consumers to
users. They are becoming the most credible and reliable source of the true picture of a brand.
Consumers are beginning to seek a relationship of fair exchange between themselves and the businesses where
each contributes and everyone gains. Individuals are seeking a multidimensional relationship that provides
them with more than just the brand product/service.
The fair exchange relationship is also offering new opportunities to the business to build more human
connections. Businesses will have to become receptive to this new age definition of relationship that
consumers seek. They may do well to go a step ahead and create an environment that is receptive to this fair
relationship.
People
EngagementsChannles
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Channels
With consumers evolving into users and participating in co-creation, it is important for brands to offer those
channels and platforms that allow them to participate in this process. Users are seeking channels that offer
them more than just digital promotional activities; they want channels that allow them the freedom to be
publishers of content, information and data, that give them control over what content they produce and
consume, that allow them to co-create brand experience.
The channels also need to be device agnostic. Users are adapting to the usage of different devices throughout
the day to execute tasks at hand. They might use a smartphone or tablet to complete functional tasks etc. while
on the move, but they use a PC for heavy content creation and research. According to a google research, 90
percent of people move between devices to accomplish a task, with virtually all of them completing their task
in one day. The most popular starting point is the smartphone. In most cases, the tasks are continued on a PC
though tablets are also becoming a popular option for continuing social networking and watching videos.
Businesses and brands need to accept that it is the consumer who has become a more credible publisher by
virtue of their access to a device which is always on and active. Creating an environment of device agnostic
platforms and channels that allow co-creation of content between brands and consumers will address this shift.
Engagement
It is about creating a window with enhanced attention to influence behaviour and motivations. With every
business eyeing the opportunity to engage users, it is critical to focus on engagement by increasing brand
salience and influencing buyer behaviour and choice. Brands should be able to map a customer’s journey to
understand where they can add value and create an opportunity to engage them. Brands need to understand
that engagement is not about pushing product messages; it is about capturing the imagination and the attention
of the user. It is about designing a naturally engaging experience.
Businesses need to understand that digital environment is not about technology but about attention, where the
consumer is at the core, armed with powers like never before. Businesses and brands should, therefore, focus
on connecting the dots and realize that now, in the digital age; it is all about co-owning a brand.
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THE HOSPITALITY INDUSTRY IN THE CONTEXT OF DIGITAL MARKETING
 Hotel website and booking engine are Number One.
This is probably nothing new to anyone, but one’s hotel’s website is the best opportunity that one has
to engage and sell to one’s guests. On average, guests spend 6 minutes on hotel websites. 6 minutes is
ample opportunity to engage your future guests with bold pictures, easy-to-read room descriptions and
attractive offers that make the decision to book simple and predictable. One additional important item
is to show what guests will experience when they come to your destination: ensure video is part of
your web strategy and you will mesmerize your guests. So, when was the last time you updated your
website? If the answer is more than 2 years ago, your website could probably be a lot better.
 60% of consumers are social travellers.
According to Forrester, 60% of guests use one or more social networking platforms during their search,
shop and buy process. Hence, it is critical to manage TripAdvisor ratings, have a professional-looking
presence on Facebook, and allow guests to engage over twitter. And to use the social network to
amplify your message, ensure that good experiences your guests write about are shared on the different
digital communities. For photos, we see the best results using Flickr and for videos a dedicated
YouTube channel. And don’t forget email: it is still the most widely mechanism used to share
itineraries and ideas of trips.
 Mobile consumers will demand optimized content.
Mobile traffic is the fastest growing category in digital marketing, and to no surprise also in travel.
Google research states that 19% of all hotel searches are already executed on a mobile device. If you
deployed a mobile solution in 2011, you will realize that mobile consumers have a much more
utilitarian behaviour – they are looking for the hotel’s address, phone number, or want to book a room
for tonight or tomorrow night. Hence, the experience to conclude those tasks must be optimized in
2012. While success can be found using mobile as a stand-alone media, it provides the largest rewards
when it is used as an integrated, multi-channel engagement platform. If you can provide consistent
messages across web, social and mobile, while ensuring that the most relevant offers are prioritized
then you truly have provided multi-channel digital marketing.
 Diversify online distribution channels.
Recent studies indicate that booking.com is driving a whopping 50% of all hotel online bookings in
Europe. This dominance is threatening to hotels as they become more dependent on (and therefore
vulnerable to) a single channel that is already demanding higher commissions based on results.
Therefore, it is critical to diversify your channels. If you are the manager of a boutique property you
should consider signing up with tablethotels.com, mrandmrssmith.com or jetsetter.com. One good
source of information for the latest trends in accommodation websites you should consider signing up
for is tnooz.com’s roundup of top travel websites per market.
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 Innovate with marketing campaigns.
Digital marketing is not a one-time project. It is a new discipline that must be embraced by hotel
managers. However, digital marketing does not necessarily require learning a lot of new tools and
hiring a lot of new staff. Using the appropriate tools, hotel managers can use their existing e-commerce
and reservations staff to create campaigns, follow-up and reap the rewards of increased marketing
exposure: more and better bookings. So, choose your tools to minimize setup costs and provide
maximum flexibility when creating your campaigns.
 Importance of Mobile Presence for Hotels
Mobile search is the star trend of digital marketing. The universe of mobile users is massive – 3 in 5
people use mobile devices to search and 80% of local searches on mobile devices convert to purchase.
With Google rolling out a new ranking factor for mobile-friendly sites, it is essential that
your hotel website is optimized for mobile search and responsive on all mobile devices. The target is
to enhance mobile traffic and ensure a robust and seamless experience with content that can be shared
on social media.
 Enhancing Your Hotel’s Local Presence
Your website has to tap into the possibilities of enhanced local search. The goal is to create optimized
content and local profiles, manage quality citations and directory listings, and deliver a seamless
mobile experience across devices. It is critical that you manage your local presence across search
engines, IYPs, aggregators, business directories, local citations, and maps. Ensuring your hotel’s
marketing strategy includes optimizing your content with headers, title tags, metadata, footers with
location-based schemas, and image alt-tags will help strengthen the property’s local presence.
 Hotel Social Media Marketing
In our connected online community, the synergy of social engagement empowers your digital
marketing. Most of the world uses social media sites, including Google+, Facebook, Instagram,
Pinterest and LinkedIn. Social media is a driver of brand awareness and customer relationships and
retention. To be in the social conversation and derive traffic from social platforms, your web content
must be interesting, build connections, and inspire conversion. Ensure your site is optimized for mobile
and sharing across devices, and make sure to add OG tags and Twitter cards. Be a stand out with
robust hotel social media outreach, engaging content and visual media.
 Content Marketing – Engagement and the Customer Journey
Content marketing starts with understanding your audience and the customer journey. Content should
engage, inspire and enhance the user experience. Empower your audience with engaging content,
including local attractions and activities, visuals and trending topics. Your content should be optimized
for local and conversational search and saturate diversified channels – from your website to blogs to
Facebook. Look at KPI indicators – time spent on page, bounce and click-through rates and
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engagement patters. Once you determine top converting pages, enhance the content to encourage the
path to purchase, and ensure mobile responsiveness.
 The User Experience
The user experience is the human path to digital marketing. Audiences want to be engaged, be able to
navigate your site, and tap into social influences. Conversion optimization starts with usability factors
such as speed and performance, information architecture, legibility, colours and images. With robust
architecture, clear design and navigation, and engaging content, your site will increase conversion. A
smart way to see how the user experience relates to the conversion funnel is to implement A/B testing.
Track which pages perform better based on simple design and content evolution, including floating
buttons, drop-downs, marketing messages, and banners.
 Expanding Your Hotel’s Paid Search Presence
The key to a highly successful hotel paid search campaign is to maximize your outreach and diversify
your channels, via Facebook, Google, Yelp, and Hotel Finder. Make sure you bid on your brand or
hotel name, leverage social channels, and allocate your budget to tap into mobile conversion, which is
higher than ever! Customize marketing messages to your specific target audience, and focus on the
customer journey.
 Attribute Hotel ROI Across All Touch Points
The customer journey is evolving, so businesses need to alter their approach to measuring digital
marketing ROI. With the dramatic spike in mobile search and social signals, the conversion funnel is
not linear and the purchase journey can begin at any point along the decision path. It’s important for
hotels and businesses to tap into this dynamic, target the audience journey, and personalize the content.
With new innovations in digital tracking software, we can attribute ROI to every channel. By
understanding the conversion path, attributing ROI, and integrating a dashboard to break down the
data, we can see the value of each touch point.
 Understanding the Hotel Customer Journey
From travel inspiration and research to booking to post-stay social, understanding the customer journey
is paramount to your digital marketing strategy. In hospitality/travel, and just about any industry or
business, customers use search, websites, social channels, and reviews to plan a trip or book a room.
That’s why your hotel website has to be optimized for organic and paid search, connected to social
channels, and designed for conversion. Being present on every layer of the customer journey gives
your business the edge.
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UNDERSTANDING THE DIFFERENT GENERATIONS
Marketing through the generations:
1) Who are Baby Boomers?
The group who still leaves and listens to voicemails. Baby Boomers were born between 1946 and 1964 and
grew up during the American-dream, white-picket-fence era of post WWII. As their younger counterparts
have taught boomers how to use technology, this generation is slowly embracing it. According to Pew
Research, by 2014, 65% of adults aged 50-64 used social networking sites, with the vast majority engaging
with Facebook to revive “dormant” relationships.
The Boomers are the most likely to misunderstand Facebook remarketing ads clogging up their Newsfeeds
but still be receptive to direct marketing/sales tactics; they like to talk to real people. Boomers have the
highest value as consumers in the market today! They spend the most money on each shopping trip, and as
they are hitting retirement, they are more likely to splurge on items that aren’t on the grocery list.
Surprisingly, this generation even spends the most on technology—everything from premium cable to the
latest smartphone.
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Marketing to Baby Boomers
1. Take Advantage of Brand Loyalty
If you can prove that your product is great quality and will be necessary for an indefinite amount of time,
you should be able to acquire some Boomers as customers.
2. Go for the Up-Sell
A great way to capitalize on the extra cash Baby Boomers are dishing out is to utilize up-sells.. They tend
to like knowing the value of a service—how it will make their lives easier—without feeling pushed. What
better way to not be pushy than to ask if they’d like to add $10 per month for an extra 100GB of
storage? According to Pro salesman Jeffery Gitomer, upselling can also help build better relationships with
your customers; it’s also much easier to upsell than to generate a net-new sale!
3. Tie in Cash-Back
Cash back can be a bit of a commitment for someone who isn’t trying to spend a ton of money to earn it.
Fortunately, Boomers are used to spending enough at certain places that cash-back programs have a good
appeal. A great and obvious example of this is credit cards! 48% of baby Boomers already rely on credit
cards, and would prefer to spend more as opposed to leaving money on the table. Most of the Boomers are
I know are big fans of American Express because of the points they can generate through big purchases—
which can then fund a vacation or buy a nutribullet for their relatives.
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4. If It Ain’t Broke, Don’t Fix It
This generation is the most susceptible to traditional marketing and sales tactics. Boomers tend to want to
talk to a real person before they make a purchase! Marketing tactics seen as intrusive on their personal
lives are not welcomed, but traditional television and newspaper ads are okay! Because most Boomers
reportedly use social media to keep up with long-lost friends, they are most likely going to report your
Facebook Ad as spam.
They are also the least likely to read that long-form blog post; Baby Boomers report that the articles they
like the most are only 300 words.
It may seem obvious, but Boomers are also the least likely to make a purchase on their smartphones—but
this is a good chance to revaluate your mobile checkout. Could your grandmother get through it seamlessly?
2) Who are Generation Xers?
The neglected middle child. Gen X is the smallest generation, born between 1965 and 1980 and often
referred to as the bridge between Millennials and Baby Boomers. Gen Xers are now juggling child care,
homeownership, and reaching the peak of their careers. Think of the 40-year-old who went to high school
in the 80’s. This generation remembers how video killed the radio star and are more pessimistic about
having enough money to retire.
Gen Xers are busy! They’re dealing with children, paying mortgages and tuition, and working a LOT.
Turns out, they’re also on online—more than 80% of this generation reports that they are on Facebook and
Twitter. They are more on par with technology adoption and use with millennials, and are more likely to
be politically loyal throughout their lives than either of the other generations. Gen Xers claim to be the
most dedicated to lists while shopping, but also fessed up to making the most unplanned purchases on their
shopping excursions. This generation is our true hybrid when it comes to marketing. They grew up without
the online shopping experience, so they still enjoy a trip in-store, but have fully embraced online shopping
as well.
Marketing to Generation X
1. Everyone Loves Coupons
Gen Xers were just gaining momentum in the workforce when Great Recession hit. They didn’t think they
can rely on Social Security after retirement. Gen Xers are saving up for college, home ownership, starting
a business, and retirement—which leads to…COUPONS.
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Though email marketing seems to be old news, it is still the best way to communicate with Generation X.
This generation is already plugged into Outlook constantly for work and updates from family, it’s natural
that they would react positively to retail emails. Not to mention they are checking email at work, at home,
on tablets and iPhones and desktops.
2. Be a Goody-Two-Shoes
As Erin mentioned in her post about marketing to millennials, do-good brands have seen an upsurge—
organic, ethically produced products are in high demand. The same can be said for marketing to Generation
X. This generation is less prone to moving in the waves of trends, and is more likely to buy a service or
product that somehow benefits society or the environment. Toms is a good example of this—though not
the most attractive type of shoe, their simple message of “one for one” bolstered this brand to success. A
good way to push this branding is through Pinterest and Facebook!
3. Lifestyle Nurture Programs
Because Generation Xers are using social media so much, marketers have a lot to draw on. Thanks
to Facebook’s insane amount of targeting options, we can send ads to new moms, for anniversaries,
birthdays, and more. Some companies, like Petco, offer to send disposable items to your house at regular
intervals with is a great way to never forget to stock up on kitty litter or dog food. Babies R Us and Toys
R Us have a great email program that will send pregnant moms updates month-to-month, and then after
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birth with age-appropriate toys. This is a great way to establish brand loyalty—you know what’s going on!
—and make their busy lives a bit easier.
4. Give Gen Xer’s a Break
Though this generation are self-professed savers, they’re not saving it all for college tuition! About two-
thirds of Gen Xers with a household income of $250,000 or more and half Gen Xers with incomes of less
$250,000 plan on taking a vacation in the next 12 months. This is a big opportunity across the board! Even
if vacations aren’t directly related to service or product, consider running a sweepstakes. Advertise how
you can help while they are away—security companies, looking at you—or goods that they could use on
vacation. It’s likely that this generation isn’t buying a vacation for one or two, but instead a family-friendly
affair. Which means a lot of planning and money goes into it, use your marketing to win them over and
they may use your service for years.
5. Plot Twist: Try Direct Mail
You may not expect what seems to be an outdated form of marketing to work with this generation.
But, according to a study from InnoMedia, NuStats, and Vertis, 86% of this generation brings in the mail
every day and 68% have used coupons they received in the mail. They are more likely to be receiving paper
bills as opposed to electronic, and send birthday cards through USPS instead of email. The days of receiving
Chinese take-out menus and newspapers of coupons in your mail box are not over!
3) Who Are Millennials?
The generation that is slowly taking over the workforce and out-numbering Baby Boomers, Millennials
were born between 1981 and 1999 and came of age during the early 2000’s. This generation is most widely
talked to and about on social media and in pop culture. As Millennials began entering the workforce as the
economy crashed, and as a result, are the largest generation of entrepreneurs. They are notoriously soft-
hearted and soft-shelled, valuing social issues far ahead of economics. According to the Brookings Institute,
64% of millennials would rather make $40,000 a year at a job they love than $100,000 a year at a job they
think is boring.
That said, Millennials are an economic force! With $200B in annual buying power, smart marketers are
turning to new channels to hook this generation. They are the least frequent in-store shoppers—which I
totally understand, I just went grocery shopping for the first time in a month—but tend to spend large
amounts when they do shop. This generation is the most responsive to online shopping opportunities,
recommendations from friends and family, and are motivated by shopping ease. Millennials are reshaping
the way that goods and services are being marketed by staying unresponsive to traditional marketing tactics.
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This generation decides where to eat based on Instagram pictures, chooses hair stylists from Facebook and
has their groceries delivered to their door.
1. Focus on Innovation
Millennials love the next big thing. As comedies poke fun at trendy coffee shops and restaurants that are
becoming popular through social media, Millennials are making the business owners a lot of money! Look
at Apple—after Steve Jobs dramatically changed the way a traditional computer looked and felt, the Mac
blew up. Even now, Millennials are 21.7% more likely to own a Mac computer and this the is the same
generation that is infatuated with each new iPhone release. Think about the way the internet freaked out
when Instagram copied Snapchat’s approach of expiring, temporary shares? Or the popularity of online
dating apps and photography drones. Marketing to Millennials should take an approach that shows a new
perspective on a common problem or task.
2. Use Reviews!
Millennials are reshaping the way that goods and services are being marketed by staying unresponsive to
traditional marketing tactics. This generation decides where to eat based on Instagram pictures, chooses
hair stylists from Facebook and has their groceries delivered to their door based on a recommendation from
a friend. Millennials like to talk and plan with their friends—68% report that they won’t make a major
decision until they have discussed it with people they trust—everything from what neighbourhood to live
in and how to find it, to where to go on a first date or start a business. Yelp has become a huge source of
information for businesses and customers alike, as well as TripAdvisor and Rotten Tomatoes. A great way
to market to this generation indirectly is to make sure your online reviews and customer experiences are
up to par!
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3. Connect with Millennials through Social Media Incentives
To try and harness the power of a millennial on social media, add incentives to your marketing plan.
According to Yahoo, 63% of millennials would be more likely to “check-in” to a business on social
channels if it meant they’d receive a coupon or discount; 20% off is enough of an incentive to prompt 50%
of respondents to visit a retail location. That’s huge! Another way is to add a gateway to an opportunity—
yes, one can have the rest of this experience after sharing with 5 of your friends on Facebook or Twitter.
Not only does this generation talk about your brand or product online, it can be a great opportunity to get
sales leads for your business.
4. Utilize Rewards or Loyalty Programs
If it weren’t for the tragic e. Coli scandal at Chipotle, their new loyalty program would have been the
biggest news of the summer. Chipotle checks all the boxes for millennials; ethically farmed meats and
veggies, vegetarian options, customizable but fast food with great advertising campaigns. According to
the Harris Poll, 77% of millennials already do or are willing to participate in rewards and loyalty programs
and 73% of smartphone users are interested in using their mobile devices to interact with brands’ loyalty
programs. . Among the stores already doing this and seeing success are Starbucks, Fro-yo places like Red
Mango, and Boloco!
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5. Plot Twist: Try Radio Commercials
Though radio advertising may seem like an old-school marketing trick, maybe video really didn’t kill the
radio star; it certainly didn’t kill the podcast star. 93% of millennials report listening to the radio for a total
of around 11 hours per week. In fact, more millennials listen to the radio than Gen Xers or Baby Boomers,
and podcasts are becoming just as popular as Netflix shows (Serial, anyone?).
It is important to keep in mind that each generation is comprised of unique personalities, not all people will
respond the same way. Don’t throw your other demographic targeting and segmentation strategies out the
window! Hopefully these marketing tips will help hook your target generation.
4) Who is generation z or i-gen?
As Millennials are getting older, the Generation Z population is growing, and growing fast. Gen Zers—ages
19 and under—currently make up more than a quarter of America’s population, and are projected to account
for 40% of all consumers by 2020. The generation is growing fast, and marketers need to understand them.
Generation z characteristics:
• Diverse, and are the most multicultural generation yet.
• Open-minded in many ways, such as acceptance of all sexual orientations.
• Gender-neutral when it comes to traditional job roles and transgender issues.
• Change makers, interested in innovation and entrepreneurship.
• Dreamers, who want to follow their passions.
• Independent learners, who have the desire and know-how to self-educate.
• Do-gooders, who want to make a difference.
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Generation z’s buying power
Gen Zers represent a buying power of $44 billion, and influence an additional $600 billions of family
spending. They influence the way their parents spend more than Millennials did, including over 70%
of family food choices and 80% to 90% of items purchased are for them. They’re willing to challenge
their parents, questioning things like how much they’re going to pay for something, trying to evoke
their own price-sensitivity. Gen Zers have high expectations. With that said, if marketers focus on Gen
Zers over Millennials, using them as the barometer, they’re likely to please other generations as well.
MARKETING TO GENERATION Z
1. They’re digital natives, so marketers must act that way, too.
While Millennials use three screens on average, Generation Z uses five. Gen Zers expect brands to
move as seamlessly around digital devices as they do, and to create a unified experience across in-
store, digital, and mobile.
2. Make the message quick, to the point, and in their language.
The average Gen Zer has an attention span of about eight seconds. They’ve grown up constantly being
served enormous amounts information, and are accustomed to quickly filtering through it. In this
emoji-era, brands must communicate with snack able content that captures their attention.
3. Social media is important, but differs from Millennials’ usage.
While Millennials pioneered Facebook, Generation Z prefers privacy and anonymous social
network like Snapchat, Secret, and Whisper. They have seen the social mishaps of Millennials and
don’t want an ever-lasting social footprint.
4. Authentic experiences and two-way conversations are a must.
Initiate two-way conversations online, and create a social presence that Gen Zers can engage with.
They value the opinions of their peers, making influencer marketing a very powerful tool, but it must
appear genuine in order to be effective.
5. Humanize your brand.
Gen Zers don’t want a faceless company. Marketers need to showcase the personality of their brand.
Consider a YouTube star or Vine personality.
6. They want realistic and relatable.
They look for products that embody their beliefs, and prefer brands that reflect independence (like Free
People), rather than unrealistic messaging that projects perfection (like Abercrombie & Fitch).
38
7. Let them make it their own.
Market to Gen Zers with an understanding that they’ll want to personalize products and fashions; help
them express their individuality.
8. Quality matters.
With a world of information at their fingertips, Gen Zers conduct extensive research before buying,
and are selective in their purchase decisions.
9. Show you care, too.
Generation Z wants to make the world a better place, and they want to see that you’re truly committed
to that cause.
10. Video content and cord-cutting is big.
In a recent study, nine-out-of-ten respondents watch YouTube daily, 70% prefer streaming over
broadcast or cable TV, and more than a quarter post their own original video content on social sites
weekly.
39
REASONS FOR HOSPITALITY INDUSTRY TO CONSIDER ONLINE
MARKETING STRATEGY
1. Increasing No. of Mobile Users:
As more and more people prefer to access the internet via their smartphone having a responsive website
becomes a necessity. A recent study concluded that about 78% of business travellers use a smartphone
during the trip planning process and 67% of people going on a tour, do research online before making
any decision to make the process smooth for the target audiences, many travel agents, hotel owners,
and other travel professionals have turned to digital marketing agency. That doesn’t mean that
traditional marketing methods have completely dropped off, but with the growing trend of consumers
going online to make their travel plans, even making reservations, bookings and purchases online –
more and more travel and tourist companies are turning to online marketing strategies to reach their
target audience quickly and effectively.
2. Emerging Affordable Search Engine Optimization Services:
91% of the US population rely on a search engine to get information on any topic, including tourism.
The key to turning browsers into buyers is to have a state of the art Search Engine Optimized (SEO)
website. SEO friendly websites attract the consumer’s attention: people tend to click on the website
that is at the top of the search engine result page SERP. Therefore, making sure your website is at the
top of the SERP becomes a prime objective. The Google algorithms that decide which website gets the
top ranking on the SERP, are continually changing – therefore, to maintain top ranking the website
needs to be continually optimized. Keeping quality content, properly researched and relevant keywords
is very important, to attract visitors to your website you must post engaging content. Engaging content
invites consumers to stay on the website increasing the opportunity to turn browsers into buyers. When
choosing keywords for the SEO it is most effective to use long tail keywords, this will provide more
opportunities to match with searched words, for instance; “best places to visit in Worcester” or “things
to do in Worcester” will bring up on the SERP the websites that have matches to individual words, the
phrase or parts thereof. Simply using “visiting Worcester or “Worcester for visitors” will limit the
matches. It is not clever to just plant the keywords in your website as a way to maximize the SEO,
instead; incorporate keywords into the text, with the aim of enhancing the relevance of your website
content to users.
3. Effective Social Media Marketing Services:
Social media marketing has replaced a large section of traditional communication and is
revolutionizing the tourism industry. Consumers write reviews, publish photos and videos of their
travel experiences, both on travel sites and their own Facebook page or blog etc. The tourist industry
40
and travel businesses create content for their websites, reviews and post blogs, create Pinterest, Twitter
and Vimeo posts. All generating marketing for the tourism and travel industry. We have reached a
new interactive era with faster internet connections, advances in web technologies and social media
marketing platforms that allow information to go viral at the click of a button. For the digital marketing
agency, social media marketing platforms channel provides a very efficient, effective and inexpensive
means of distributing information. Travel industries can take advantage of social media networking
tools to help promote their business at low cost, attracting visitors to websites by generating interest in
their products and services.
4. 360-degree branding:
360-degree branding is a branding effort which tries to include the brand identity into a holistic
approach so that the brand is in touch with and visible to the customers at all the times. It’s all about
creating a distinctive brand philosophy which is centred on consumers. It helps to anticipate all aspects
of consumer needs. Especially when brand is fairly new it needs to be present everywhere to build a
brand image.
360-degree branding is a combination of integrated marketing and web 2.0 usages. Integrated
marketing follows a user centric approach and primarily focuses on use of online and offline tools to
engage and excite consumers. Integrated communication ensures that message is consistent throughout
irrespective of the channel. A web 2.0 usage pays more attention to customer rating and social media
as consumers talk about the brand outside of the boundaries of the brand.
5. Virtual reality:
If you thought VR would turn out to be a short-lived fad, think again. Likewise, if you thought it had
no relevance in the hospitality space, you couldn't be further from the mark. The VR arena is only
just getting off the ground, with devices like the HTC Vive, Oculus Rift and Samsung VR proudly
leading the charge. Soon enough though, we'll be looking at a consumer phenomenon that actually
gives people the opportunity to visit and tour your whole hotel in full VR, before making a booking.
And while it might be a while before this happens, those getting in at ground level will have a huge
advantage.
41
6. Video Marketing:
Hardly a new concept for the hospitality industry, but video marketing is nonetheless set to continue
exploding in power and prowess going forward. As the influence and value of TV, print and other
marketing platforms waver, the online video is becoming a powerhouse like nothing else. Strategic
use of video on a business website translates to lower bounce rates, longer visit times, improved
engagement and considerable better conversion rates. And that's all at the same time as painting the
prettiest picture possible of your business/establishment. Web video marketing is and will continue
to be a real game-changer.
7. Social Marketing:
Consumer studies have shown time and time again that the thoughts, opinions and pointers of both
fellow consumers and influential figures mean more to them than all the marketing spiel in the world.
Just five words and a solid star-rating from a person they don't know from Adam could do you brand's
reputation more good than all the self-promotion in the world. The web has transformed the way the
consumer public decides what it will buy, where it will buy it and how much it will buy. Content,
community, commerce – the 3Cs strategy (again, one Marriott swears by) – focuses on social
influence first, traditional marketing second.
8. Wearable Technology:
While it's true to say that the wearable technology market has gotten off to a slow (understatement)
start, it will eventually take over. It's just that the devices on the market right now like the Apple
Watch and so many imitators haven't quite nailed the magic formula. But they will. And when they
do, this will represent a spectacularly powerful new marketing platform for the hospitality sector.
Take the Disney Magic Band, which guests can use in place of papers tickets, as a key to gain access
to their hotel rooms and basically to plan their Disney World holidays from start to finish. We've
really only just begun scratching the surface with wearable technology, but one way or another,
it is the future.
9. Deeper Analytics:
Last but not least, the results of a recent CMO survey suggest that the hospitality will up its collective
marketing analytics spending by an eye-watering 60% this year. Which isn't entirely surprising, given
the way in which there's a ridiculous amount of consumer data ready and waiting to be tapped into,
which can effectively allow for the creation of fool-proof blueprints for stellar performance. From
website and social media engagement to demographic behaviour to competitor performance, the more
than happens online, the more we know about every customer we target.
42
PROJECT DETAILS
Objectives of the project
 To find out reasons for adopting digital marketing
 To find out need and implementation
 To understand the different generations and how to market to them
Limitations:
 To understand some paid tools
 Time of campaigns
 Constant changes are being made by various online platforms.
Methodology to be used:
 Descriptive Research
Sources of secondary data:
 Articles on the internet
 Existing Research papers
 Books on digital marketing
Sources of Primary data:
 Questionnaire
Data collection instrument:
 Questionnaire
43
DATA ANALYSIS AND INTERPRITATION
1. What Social media platforms do you use? (Mcq)
 YouTube
 Twitter
 Facebook
 WhatsApp
 Instagram
 LinkedIn
 Pinterest
 Any other: ___________________________
 It is seen that YouTube and WhatsApp stand as the two most popular social media platforms.
 Facebook and Instagram rank 2nd and 3rs respectively.
 Twitter, LinkedIn, Pinterest are seen as the lesser popular social media platforms.
 There is also a chance for other platforms like Flickr, Tumbler, etc. to grow.
73
39
67
73
49
19
13
2
0 10 20 30 40 50 60 70 80
YouTube
Twitter
Facebook
Whatsapp
Instagram
Linkedin
Pinterst
Any others
Chart Title
44
2. How much time do you spend on social media sites on an average daily?
 Less than 1 hour
 1-2 hours
 3-4 hours
 More than 4 hours
 On an average maximum respondent, have said that they spend 1- 2 hours on social media sites
daily.
 There is also a significant number of respondents that spend 3-4 hours or more.
Less than1hour
20%
1-2 hours
44%
3-4 hours
19%
More than 4 hours
17%
Time Spent
Less than1hour 1-2 hours 3-4 hours More than 4 hours
45
3. Do you access social networking sites more on your mobile device or Desktop/laptop?
 Mobile/ Tablet
 Desktop/ Laptop
 It is seen that a maximum respondent access social media on their mobile devices.
 There is also a good number of respondents who access through their Desktops or Laptops
76%
24%
Mobile/ Tablet Desktop/ Laptop
46
4. You use social media primarily for?
 Downloading music/video
 Uploading music/video
 Posting photos
 Blogging
 Creating polls/quizzes or surveys
 Chatting
 Submitting articles to website
 Communication with teachers/class fellows/ colleagues
 Any other: __________________________________
 Its seen that social media is primarily used by the respondents for
the purpose of Chatting/socialising followed by posting photos and
downloading music/videos.
 There is also a large number of respondents who upload content.
50%
34%
50%
25%
22%
52%
9%
27%
2%
Downloading music/ Video
Uploading music/video
Posting photos
Blogging
Creating polls/quizzes or surveys
Chatting
Submitting articles to website
Communication with teachers/classmates/colleagues
Any other
47
5. What kind of communities to do you subscribe to on social networking sites?
 Educational
 Entertainment
 Informational
 Any other --------------------
 It is seen that most subscribed community is entertainment followed by educational and then
informational with a minor difference.
50%
74%
49%
1%
Educational
Entertainment
Informational
Any other
48
6. Are you a frequent traveller?
 Yes
 No
 It is seen that a majority are frequent travellers.
61%
39%
Yes No
49
7. Have you ever booked a room through a hotel aggregator website or app?
 Yes
 No
 It is seen that a majority have booked a room via a hotel aggregator.
 There is also a significant number of respondents who never booked through an aggregator.
57%
43%
Yes No
50
8. Are you aware of any hotel that’s is present on any social media platform?
 Yes
 No
 A majority have said that they were aware of a hotels presence on a social media platform.
62%
38%
Yes No
51
9. Have you tried contacting any of the hotels via a social media platform?
 Yes
 No
 A majority of respondents have said that they have tried contacting a hotel via a social media
platform.
61%
39%
Yes No
52
10. Do reviews influence your decision in booking a hotel room?
 Yes
 No
 A majority have said that reviews/testimonials have influenced their decisions while
bookings.
72%
28%
Yes No
53
11. Do you know what a podcast is?
 Yes
 No
 It is seen that a majority do not know what a podcast is.
49%
51%
Yes No
54
12. Do you listen to any pod cast?
 Yes
 No
 It is seen that a majority do not listen to any podcast.
40%
60%
Yes No
55
13. Do you receive mailers from any hotels?
 Yes
 No
 A majority of respondents have said that they do receive mailers from a hotel.
56%
44%
Yes No
56
14. How do you get information about a hotel?
 Search engine
 Tour and travel agency
 Advertisements
 Recommendations
 It is seen that a majority of respondents get information about a hotel via search engine
followed by a tour and travel agency.
 There is also a significant number of respondents who get to know about a hotel via
advertisements and recommendations.
38%
55%
59%
32%
2%
Avertisments
Tour and Travel Agency
Search Engine
Recommendations
Others
57
15. Which of the amenities would you like your hotel to provide?
 Free Internet
 Free Parking
 Free Breakfast
 Pets Allowed
 Swimming Pool
 Airport Shuttle
 No Smoking Rooms/Facilities
 Fitness Centre
 Disabled friendly Rooms/Facilities
 Business Centre
 It is seen that free internet followed by free breakfast is the most sought after amenity.
 Swimming pool followed by free parking followed by pet friendly amenity is also sought after.
68%
45%
62%
30%
55%
25%
19%
7%
16%
Free Internet
Free Parking
Free Breakfast
Pets Allowed
Swimming Pool
Airport Shuttle
No smoking rooms/ facilities
Disabled Friendly rooms/ facilities
Business Center
58
16. Do pictures of the hotels influence your decision to book a hotel room?
 Yes
 No
 A majority have said that pictures influence their decisions.
76%
24%
Yes No
59
17. Would a hotels presence on a social media platform influence you to book a room with them?
 Yes
 No
 It is seen that 70% respondents have said that a hotels presence would influence their decision to
book a room
70%
30%
Yes No
60
18. Would you like a video or a virtual reality tour of the room you are planning to book?
 Yes
 No
 A majority have said that would like a video or a virtual realty tour of the room they are booking.
74%
26%
Yes No
61
19. Have you seen such ads as shown in the image?
 Yes
 No
 It is seen that maximum respondents have seen a paid ad on google.
78%
22%
Yes No
62
RECOMMENDATIONS
 Hoteliers need to at the very least be present on poplar social media sites.
 Marketers need to look out for trendy and upcoming content creators.
 There is also need to understand the various generations.
 Hoteliers need to have a responsive website.
 Organic conversions on one’s website is always good but at times paid conversions will help
boost reach
 Low budget hotels can use Facebook marketing or Google Ads as they are comparatively cost
efficient.
 People say the radio is dead but there exists a new form known as podcasts which work over the
internet and is also an upcoming medium.
 Marketers need to keep a close watch on the millennial and Z generation and try and connect with
them.
 Amenities like Disabled friendly or pet friendly are gaining popularity.
 Virtual reality and 3600 videos are trendy concepts.
63
CONCLUSION
The hospitality industry has made a special place in the world of hospitality because India is the most diverse
place in world, because it has different kaleidoscope of landscapes, spectacular hilly sites, varied cultures and
festivals. Hospitality in India is an old tradition, and the demand for travel and tourism in India is expected to
increase annually by 8.5%, travel and tourism in India also accounts for about 11% of total population. The
government of India has taken and taking various initiatives to strengthen the industry. A successful digital
marketing strategy must provide a consistent multi-channel experience to hotel guests. This can be achieved
by using a multitude of tools or an all-in-one hotel digital marketing platform. But no matter which tools you
select, at the core of your strategy should be a digital marketing architecture that prepares a hotel for future
digital marketing demands.
64
BIBLIOGRAPHY
 2016's Most Important Digital Marketing Trends for the Hospitality Sector | By Edward Jones. (n.d.).
Retrieved February 14, 2017, from http://www.hospitalitynet.org/news/4076477.html
 Agrawal, A. (2016, August 3). 6 things to know about marketing to Millennials. Forbes. Retrieved
from http://www.forbes.com/sites/ajagrawal/2016/08/03/6-things-to-know-about-marketing-to-
millennials/#1334ea7e6310
 2017, C. (2016, June 30). 5 things marketers need to know about gen Z. Retrieved February 14, 2017,
from B2C, https://contently.com/strategist/2016/06/30/5-things-marketers-need-to-know-gen-z/
 Retrieved February 14, 2017, from https://www.ermt.net/docs/papers/Volume_5/6_June2016/V5N6-
139.pdf
65
ANNEXURE
Questionnaire:
1. What Social media platforms do you use?
 YouTube
 Twitter
 Facebook
 WhatsApp
 Instagram
 LinkedIn
 Pinterest
 Any other: ___________________________
2. How much time do you spend on social media sites on an average daily?
 Less than 1 hour
 1-2 hours
 3-4 hours
 More than 4 hours
3. Do you access social networking sites more on your mobile device or Desktop/laptop?
 Yes
 No
4. You use social media primarily for?
 Downloading music/video
 Uploading music/video
 Posting photos
 Blogging
 Creating polls/quizzes or surveys
 Chatting
 Submitting articles to website
 Communication with teachers/class fellows
 Any other: __________________________________
66
5. What kind of communities to do you subscribe to on social networking sites?
 Educational
 Entertainment
 Informational
 Any other --------------------
6. Are you a frequent traveller?
 Yes
 No
7. Have you ever booked a room through a hotel aggregator website or app?
 Yes
 No
8. Are you aware of any hotel that’s is present on any social media platform?
 Yes
 No
9. Have you tried contacting any of the hotels via a social media platform?
 Yes
 No
10. Do reviews influence your decision in booking a hotel room?
 Yes
 No
11. Do you know what a podcast is?
 Yes
 No
12. Do you listen to any pod cast?
 Yes
 No
67
13. Do you receive mailers from any hotels?
 Yes
 No
14. How do you get information about a hotel?
 Search engine
 Tour and travel agency
 Advertisements
 Recommendations
15. Which of the amenities would you like your hotel to provide?
 Free Internet
 Free Parking
 Free Breakfast
 Pets Allowed
 Swimming Pool
 Airport Shuttle
 No Smoking Rooms/Facilities
 Fitness Centre
 Handicapped Rooms/Facilities
 Business Centre
16. Do pictures of the hotels influence your decision to book a hotel room?
 Yes
 No
17. Would a hotels presence on a social media platform influence you to book a room with them?
 Yes
 No
18. Would you like a video or a virtual reality tour of the room you are planning to book?
 Yes
 No
68
Male Female
19. Have you seen such ads as shown in the image?
 Yes
 No
Name: _________________________________________________
Gender: Age: _________

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Digital marketing in hospitality sector

  • 1. 1 EXECUTIVE SUMMARY The major reason hospitality and tourism companies are so successful at adapting digital marketing strategies is because they carefully analyse how people interact with surrounding environments while travelling. These insights help them recognize existing customer needs and give travellers what they want to create the “wow” effect and ensure repeat sales. Digital marketing for hotels is becoming increasingly complex. Hotel managers need not only to service guests, manage rooms, availabilities and pricing, but now are also expected to compete for guests in new channels and digital communities that emerge every day. Hence, many hotel managers are asking themselves how they can expand their brand online while still having the time to run their business. The obvious choice has been to hire additional staff, but this tactic is just a temporary solution, because demand for digital marketing is unstoppable and the problem will continue to grow. The breakthrough solution for this complex problem is a digital marketing architecture and tools that provide a consistent multi-channel experience to hotel guests and prepare hotels for future digital marketing demands. They importance to of generation Millennials and generations Z or I-gen is needs to be closely monitored. Appropriate and updated content too needs to be provided. The importance of content creators and social media celebrities on social media will also be important
  • 2. 2 INTRODUCTION OF THE TOPIC Hospitality Services: The sectors in hospitality services includes, travel and tourism and leisure sectors. The other industries included in this sector are Food and service management, Bars, Nightclubs, Amusement parks, hotels, Motels, Hostels, Restaurants, Self‐catering accommodation, Holiday centres and, Travel agents. It has grown for the last 26 years and, despite the recession is determined to grow further. The sector at present employs about 2.5 million people and provides support to other industries, like hotels and restaurants to educational establishments Hospitality Industry in India: The Indian tourism and hospitality industry has materialized as one of the key drivers of growth among the services sectors in India. It contributes to 7.5 percent to the National GDP and 8.78 percent of the total employment in the country. Constant transformation, functional growth and improving standards have gained the hospitality industry of India approval all over the world. The industry is broadly divided in two segments:  Tourism: The tourism sector includes medical and healthcare tourism, adventure tourism, heritage tourism, ecotourism, rural tourism, wildlife tourism and pilgrimage tourism.  Hotels: These include business hotels, resort hotels, airport, extended apartment hotels, resort hotels, timeshare hotels, casino hotels, convention centres and conference centres. Tourism in India has generated immense employment opportunities and is a vital source of foreign exchange for the country. The travel and tourism industry contributed Rs 2.21 trillion (US$ 36.21 billion) or 2.3 per cent to the country's gross domestic product (GDP) in 2013.The figures are expected to rise to Rs 4.44 trillion (US$ 72.19 billion) by 2024.The revenue from domestic tourism is likely to grow by 8.24 per cent in 2014 as compared to 5.18 per cent a year ago, according to the World Travel and Tourism Council (WTTC). The Indian hospitality sector has been growing at a cumulative annual growth rate of 14.12 per cent every year adding significant amount of foreign exchange to the economy. The Travel and Tourism Competitiveness Report of 2013, published by World Economic Forum, India, stated that the ranking of India is 11th in the Asia Pacific region and 65th in the World Travel and Tourism Competitiveness Index 2013. As per the Planning Commission, the sector creates more jobs per million rupees of investment than any other sector of the economy. It is capable of providing employment to a wide spectrum of job seekers, from the unskilled to the specialized, even in the remote parts of the country. The sector’s employment-generation potential has also been highlighted by the World Travel & Tourism Council (WTTC), which says India’s travel and tourism sector is expected to be the second-largest employer in the world, employing approximately 52 lac people, directly or indirectly by 2019. Tourism in India is economically important and is growing rapidly. The rise of the Internet and the ongoing evolution of digital marketing has had a profound effect on the tourism and hospitality industry to such an
  • 3. 3 extent that it has become by far the most important tool for any travel and tourism business. At the same time, businesses need to realize that they have far less control than ever before, since consumer-generated content has become one of the most significant trends of all. Thanks to the global and highly accessible medium that is the modern Web, consumers are able to leave reviews, post comments on social media and spread word about their experiences to an extent that was never possible before. This trend is particularly important in the travel and tourism industry, due to the fact that more and more people are turning to the Internet to find everything from destination guides to restaurant and hotel reviews. The Internet plays an important role not only during the planning stage of a holiday abroad, but also during the holiday itself. Thanks largely to the ubiquity of mobile devices in the last few years, consumers use their smartphones or tablet computers while exploring their destinations and seeking out local venues and travel tips. When they return home, they’ll likely leave reviews on popular websites such as tripadvisor.com and on various major booking engines such as lastminute.com or booking.com. In order for travel companies to hold on to existing customers and attract new ones, they need to work tirelessly to build and preserve their reputations Fortunately, the world of online marketing is far more accessible and affordable than it once was, particularly to small businesses that don’t have the expertise or the funds to pay for professional Web development and marketing. New tools have made publishing and promoting content easier than ever before, but while online marketing might not require the degree of expertise that it used to, it does require a consistent, long-term commitment, a thorough knowledge of the target audience and a spark of creativity in order to stand out in the increasingly competitive marketplace.
  • 4. 4 FACTORS RESPONSIBLE FOR THE GROWTH OF HOSPITALITY SECTOR Factors:  Households rising income  Growth in niche tourism such as eco-tourism, luxury tourism and medical tourism  Tourism and hospitality sector attracted second highest FDI i.e. US $3.3 billion in the year 2013  100 percent FDI permitted through automatic route in hotel and tourism sector  Diversity of the country which attracts an ever-increasing number of tourists every year  Government initiatives facilitated improvement of infrastructure like airports, highways, ports and railways  India is a labour-intensive country  “Lonely planet” has ranked India as the fourth most preferred travel destination, selecting the country among the top five destinations from 167 countries. Employment Opportunities The hospitality industry is labour intensive and India has a large concentration of English speaking individuals, which acts as a catalyst in advancement and prosperity of the industry. Besides the regular jobs of a travel agent, tour guide, air hostess, chef, waiter and manager’s other opportunities await those who are keen on taking up a job in the sector. Following are the new trends that have been emerging:  Fast Food Joint Management and Restaurant Management  Club Management and Recreation and Healthcare Management  Government owned catering departments like armed forces mess, ministerial conventions and railways services.  Beverage, food and confectionery production  Institutional and Industrial Catering and  Cruise Ship Management  Hotel Tourism and Association The contribution of hospitality industry in Indian economy: The contribution of the entire travel and tourism sector in India to Gross Domestic Product is estimated to rise from 8.8% (USD 118.9 billion) in 2010 to 9.16% (USD 335.7 billion) by 2020. Between 2010 and 2019 the demand for travel and tourism in India is expected to grow annually by 8.4%, which will place India at the third position in the world. Travel and tourism in India also accounts for 50,087,000 jobs in 2010 (about 10.22% of total employment) and is expected to rise to 59,142,000 jobs (10.7% of total employment) by2020.Within the travel and tourism sector, the Indian hospitality industry is one of the fastest growing and most important segments, revenue- wise as well as employment wise. According to Economic Survey of India and Technopak, the Indian hotel industry accounts for USD 19 billion, 71.50% (USD 11.95 billion) of which take their origin from the
  • 5. 5 unorganized sector and the remaining 29.7% (USD 5.67 billion) from the organized sector. In 2000, India hosted only 2.8 million international visitors. By 2009, the figure had already increased to 5.25 million arrivals. Compared to other tourism markets in nearby Asian countries, this is still a limited success, but has a potential to turn into a tremendous success story. Government Initiatives The Government of India and the Ministry of Tourism have contributed significantly to the development and growth of the industry by providing various tax incentives, policy measures, and other supports such as:  Making Medical Visas available for tourists coming into the country for medical treatment  By allowing 100 percent FDI through automatic route in hotel and tourism sector  Insuring tourist’s visas on arrival from selected countries like Finland, Japan and New Zealand  Facilitating Capital subsidy programmes for budget hotels  Eliminating the customs duty for import of raw materials, equipment, liquor etc.  Declared Five-year income tax holidays for 2-4 star hotels established in specified districts having UNESCO declared 'World Heritage Sites'  Promotion of rural tourism by Ministry of Tourism in collaboration with the United Nations Development Programme.
  • 6. 6 THE INDIAN MEDIA AND ENTERTAINMENT (M&E) INDUSTRY About media and entertainment industry: The Indian Media and Entertainment (M&E) Industry, one of the most vibrant and exciting industries in the world, has had a tremendous impact on the lives and the Indian economy. As the M&E industry widens its reach, it plays a critical role in creating awareness on issues affecting, channelling the energy of and building aspirations among India’s millions. As it entertains and informs the country, the M&E industry has been a catalyst for the growth of large parts of the Indian economy. M&E industry consists of TV, Print, Films, Radio, Music, OOH, Animation and VFX, Gaming and Digital Advertising. The FICCI-KPMG 2014 Report 'The Stage Is Set' showing the Indian media and entertainment (M&E) industry has grown by 15.9 per cent in 2015 while comparing with 2015 and touched Rs 1157 billion. It is expected to touch Rs 2260 billion by 2020, with a CAGR of 14.3 per cent. Meanwhile, digital advertising, which continued its strong run with 38.2% growth over 2014 - as a mounting Internet user base and data usage were supplemented by increased spend allocation by marketers - is likely to scale up to Rs 255 billion by 2020 and contribute to 25.7% of total advertising revenues.
  • 7. 7 According to Jehil Thakkar, Partner and Head of M&E at KPMG in India said, "Print saw a slower growth in the past year but TV and digital advertising have exceeded expectations. With the wide rollout of 4G finally underway, coupled with the 'Digital India' initiative, the future of digital advertising is very bright. According to the annual advertising expenditure report from Group M, advertising expenditure (adex) in India will grow 15.5 per cent in 2016, touching Rs 57,486 crore. This growth is higher than the 14.2 per cent that was reported by Group M in 2015, implying it will be the highest rate of growth in six years. "India remains the fastest-growing ad market among all key markets in the world. The year 2015 saw the best in terms of adex growth for India in five years. But if 2016 does see the rate of growth that we have forecast, then it tops 2015 numbers," C V L Srinivas, chief operating officer, Group M South Asia, said. In terms of media mix, television will remain the largest contributor to adex, estimated to touch Rs 27,074 crore this year versus Rs 23,022 crore last year. The rate of growth would be 17.6 per cent, Group M said, lower than the 18.6 per cent seen last year. Newspapers will come next, led by a surge in e-commerce ads, touching Rs 17,099 crore this year versus Rs 16,125 crore last year. The rate of growth of newspaper advertising will be six per cent versus 5.2 per cent last year, while digital will be the third-largest contributor to adex, touching Rs 7,300 crore versus Rs 4,950 crore last year.
  • 8. 8 Business Model of Industry ATD- Agency Trading Desk DSP- Demand Side Platform SSP- Selling Side Platform The process Clients would give authority to agencies, to wear the shoes of clients. Agency will create ads, which may be banner ads or videos. After the creation and getting approval from clients, agency while find out the portals or websites where the T.G is present. Later give the order to DSP or ATD, this order contains details regarding where to place ads or which portal is requiring to placing the ad. This DSP/ ATD will bid in ad exchange for that portal. Otherwise agency can directly approach to ad networks and give orders. These ad networks buy the inventories from publisher and give to agency. From publisher view he can sell inventories through Ad networks or through SSP. If publisher give to SSP, they will place those spaces in ad exchange for bidding. Through ad exchange DSP/ATD will buy those inventories. Bidding will not only for space but also for T.G which required for clients. Ad exchanges are technology platforms that facilitate the bids for buying and selling of online media advertising inventory from multiple ad networks. The approach is technology-driven as opposed to the historical approach of negotiating price on media inventory. A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. A supply-side platform or sell-side platform (SSP) is a technology platform, web publishers of the world use a supply-side platform to automate and optimize the selling of their online media space. [9]
  • 9. 9 Porter’s Five Model Analysis of Digital Advertising Industry Porter’s model will help analysis the industry and understand where the power lies in the business. Here I am using porter’s model to understand digital advertising industry in India. Generally, in the Indian advertising industry, contracts are long termed, and customers are likely to keep going back to the same advertiser so long as results were obtained the first time. 1) Threats of New Entry  Full service agencies have high demand in Market.  Lack of getting efficient work force is a threat in digital advertising.  Cost of setting up a digital agency is low. But agencies need to invest a huge amount in backend function like technology.  Getting clients in the initial stage is a bit difficult, because clients will usually look the past experience of agency.  Government regulations in the digital advertising are low. While comparing with M&E industry. 2) Bargaining power of suppliers  Lot of suppliers are there, but some suppliers who have high reach and affinity will charge high price for placing ads in their portals.  Real time bidding will lead to increase the demand of some portals.  Bargaining power of suppliers, who provide data and information are very high.  Seasonal campaigns put pressure on supply side to charge high.  Employee or work force with proper knowledge is limited. 3) Bargaining power of buyers  Buyer are the clients of agencies, basically buyers are high idea seekers.  Clients will choose agencies which have good experience in industry.  Clients like long term relationships with agencies, so they also try to adjust with agencies.  Clients can ask agencies to change pattern of campaigns at any time.  Clients like MNC’s have high power over agencies, but SME’s will satisfy with performance of agencies.  Backward integration by buyers is not possible. 4) Threats of substitutes  No. of substitutes is high, substitutes include Print media, TV, OOH and Radio.  Substitutes are too popular among buyers. They had high demand in past years.
  • 10. 10  Main competitor for Digital advertising is TVC, but trends are now changing FICCI-KPMG report of 2014 showing growth of digital is very high while comparing with others media.  But media consumption through radio is increasing now. 5) Rivalry by existing competitors  At present competitors are low, but it can be increase in future. Because lot new players are coming to the industry.  Existing competitors have high profile clients and clients loyal toward them.  Most of the traditional agencies are now concentrating in digital also.  Existing firms in the Industry are creating variety and unique campaign for clients.  Most of the firms have efficient backend support in technology.  Existing firms have the expertise manpower and firms giving good remunerations to employees. So, employees are loyal towards employers.  Some firms are popular due to execution of innovative campaigns.  Few of the brands have in-house agencies, it will reduce business but not in a high level. Conclusion of Porter’s Five Force Analysis  Low threats for new entry.  High bargaining power of suppliers.  Bargaining power of buyer is medium, but in coming year there is chance for increase. Due to lot of players are coming to industry.  Threats of the substitutes are high, but it will change in coming years.  Rivalry by existing competitors is high, but possible to break it by doing some unique campaign for client.  Indian market is a potential market for digital advertising due to high internet and mobile penetration.
  • 11. 11 INDIA AND THE INTERNET India, with 1,270,272,105 (1.27 billion) people is the second most populous country in the world, while China is on the top with over 1,360,044,605 (1.36 billion) people. The figures show that India represents almost 17.31% of the world's population, which means one out of six people on this planet live in India. Although, the crown of the world's most populous country is on China's head for decades, India is all set to take the numerous positions by 2030. With the population growth rate at 1.58%, India is predicted to have more than 1.53 billion people by the end of 2030. India is currently having online population of 213M, among them 60% are males and 40% are females. In have 110 M mobile internet users, among them 80% are males and 20% are females. 176M of the total internet population are part of Social Medias. India has bypassed Japan to become the world’s third largest Internet user after China and the United States, and its users are significantly younger than those of other emerging economies, global digital measurement and analytics firm comScore has said in a report. Riding on a 31% year-on-year increase, India’s online population grew to 73.9 million. With an extended online universe in excess of 145 million the market is at a tipping point for online businesses. The numbers are lower than other recent estimates, possibly reflecting comScore’s methodology that only factors in PC and laptop-based Internet usage. Gender Wise India currently have online population of 213M, among them 60% are males and 40% are females. In have 110 M mobile internet users, among them 80% are males and 20% are females. 176M of the total internet population are part of Social Medias. According to the Internet and Mobile Association of India (IAMAI), the Internet user base in the country stood at 190 million at the end of June, 2013. For the whole year 2013, the internet user base grew 42% to 213 million, from 150 million in 2012.With more and more people accessing the web through mobile phones, the internet user base in the country is projected to touch 243 million by June 2014, a year-on-year growth of 28%. Younger males and women aged 35-44 emerge as power users India males aged between “15-24” are major users among Males and in females 35-44 are major users of internet. Age wise distributions are given below.
  • 12. 12 Online Behaviour of Indian Internet Users Trends in online behaviour are changed a lot, social networking is leading now. Early people will use internet to access email and for searching information. But now people like to be social, they are interested in sharing their life with others. 25% of the population are doing social networking in India followed by 23% in services. Services include emailing and instant messaging. Mobile Internet Users Internet penetration in India is driven largely by mobile phones, with some of the cheapest and most basic hand-sets today offering access to the internet. According to IMAI, India has 110 million mobile internet users of which 25 million are in rural India. The growth of internet penetration in rural India is driven largely by the
  • 13. 13 mobile phone; 70% of rural India's active internet population access the web via mobile phones. This may have to do with the difficulty in accessing PCs. Forty-two percent of rural India's internet users prefer using the internet in local languages. The high prevalence of content in English is a hurdle for much of rural India. Research report of InMobi showing the behaviour mobile user in internet, 21% of their total consumption is for Entertainment and Social Media, which followed by Games, General Information Search and Email. Social Networking Social Networks capture the largest percentage of consumers’ time in the region. comScore data’s showing 86% of the Indian web user visit a social networking site. Facebook continues to be the number one social network with a 28% increase in traffic and a reach of 86%. Average time spend by an Indian user on Facebook is 217 minutes. LinkedIn emerges as number two, while Pinterest and Tumblr are the fastest growing networks but growth of twitter is declined by 15% in 2013 while comparing with 2012.
  • 14. 14 Number of Indian user on Social Networking Platform Facebook- 195 Million Twitter – 26.7 Million LinkedIn- 35 Million Instagram- 16 Million Entertainment and Online Video According to comScore data, the online video audience in India grew an astounding 27 percent in the past years; YouTube continues to be the top video property with more than 55% share. International publishers including Facebook, Yahoo and Dailymotion get a majority of the 54 million who watched videos. YouTube is the most popular with 32,519 visitors. Social Video report saying 46% of internet users watch brand related video every week. 54% watching videos that are informative or entertaining often leads to a number of other positive activities such as visiting the brand website. Peoples are now likely to regularly watch videos using their smart phones. Almost six in ten internet users have gone to purchase an item after seeing it in an online video.
  • 15. 15 Media Consumption of Indian’s On an average, Indian consumers are spending 6.10 hours in media per day. In traditional media, Indian audience spend only 195 min or 3.15 hours. If we see the breakup it will be 86min in television, 37 min in newspaper and 30 min in radio. Remaining 4.55 hours or 214 min in new media or digital media. Break up of new media will be like 102 min in mobile, 79min in online and 33 min in tablets. From a marketer view digital platform is very important because customers have more presence in digital media. Customers are spending more time on digital, so it is easy to catch customers in digital platform, more than that spending digital is much cost effective while comparing with traditional. Digital marketing is the promotion of your business, organisation or brand using channels such as the Internet, mobile devices, television and radio in addition to using creative online advertising, video, podcasts and other such methods to communicate your message. Internet marketing in particular plays a huge part in any digital marketing strategy and is becoming the core of many organisations overall marketing strategies, particularly with regard to social media and viral marketing. Digital marketing ecosystem is not only concerned with internet marketing and social media marketing, in introduction we discussed that peoples have a belief that internet or social media marketing are same but not same, be clear from beginning itself. Digital marketing ecosystem consists of internet marketing and social media marketing. They are just a channel for communication, digital ecosystem consists of integrating channels and integrating services.
  • 16. 16 DIGITAL ECOSYSTEM  Search Engine Search engine optimisation (SEO) is the art of getting a website to work better with search engines (like Google, Bing & Yahoo), and to look for achievable, profitable, ranking opportunities through keyword research. It is a quest for increased visibility in search engines via relevant copy, quality links, domain trust, social popularity and search engine connectivity. Search engine marketing (SEM) is a broader term than SEO, and is used to encompass different options available to use a search engine’s technology, including paid ads. SEM is often used to describe acts associated with researching, submitting and positioning a website within search engines. It includes things such as search engine optimization, paid listings and other search-engine related services and functions that will increase exposure and traffic to your Web site.  Displays Display advertising is a type of advertising that typically contains text (i.e., copy), logos, photographs or other images, location maps, and similar items. In periodicals, display advertising can appear on the same page as, or on the page adjacent to, general editorial content. Normal banners, Rich media banner, Interstitials and pops are example of displays.  Mobile Marketing Mobile marketing is used in reference to any marketing efforts on or with a mobile device. It involves planning, creating, and implementing a mix of initiatives to bring together sellers and buyers via mobile devices. Mobile ads, Mobile websites, Apps and Games are some of examples for mobile marketing. •Search Engine (SEO/SEM) •Displays(Banners,Rich media Banners) •MobileMarketing •Social media •Email •Video •Websites Integrated Channels •Analytics •Content management •Advanced Targeting •Creative •Research + Planning •Digital strategy Intergrated Services
  • 17. 17  Social Media Marketing Social Media refers to any software tool that enables and encourages engagement in conversation or sharing. Popular forms of social media include Facebook, Twitter, LinkedIn, YouTube, Pinterest, Google + and blogs. Now all days’ social media become platform for marketer to make conversation with customers. Brands are now engaging customers through social media.  E-mail Marketing email Marketing is a type of direct marketing that involves sending personalized, targeted messages to a specific audience. email Marketing is easy to use, low cost, and effective. Most of the B2B business in present era in following email marketing, but in B2C also email marketing is productive.  Video Marketers are now use video to make customers aware of brands and to sharing the experience of other customers. YouTube ads are too popular in video ads. In social media platforms, also brands are sharing video.  Analysis Analytics is the practice of evaluating data, and the process by which a company arrives at a most advantageous decision. Here marketer analysis the integrate channel to understand the effectiveness of communication. Analysis may be based on numbers of visitor or like in social media pages. etc.  Content Management After analysis, the integrate channels marketer can able to understand the problems with current contents. Later he can manage the content to increase the engagement rate, content may be text in banners, images or websites.  Advanced Targeting Advanced targeting are techniques involving the sending of targeted messages to a specific audience. It is used to increase the effectiveness of a marketing campaign. Behavioural targeting is also a part of advanced targeting, here marketer can target the customer based on their past behaviour in online. Marketer can put ads in another webpage where customer is going.  Creative Creative is the artistic component of an ad or website. It usually includes an image and copy present in ads or website. Marketer can make those contents attractive to customers. Marketer will sometimes change the entire design of websites, apps, etc.
  • 18. 18  Research and Planning Marketer will do some research to understand the behaviour, taste and preference to customers in digital platform. This research may be doing by using paid-tools like ComScore...Etc. Through this research marketer can understanding where T.G is present or what T.G would to do in online. After research marketer, will plan new campaigns based on those research reports. These campaigns are more effective to reach the T.G properly.  Digital Strategy Digital strategy is the process of specifying an organization's vision, goals, opportunities and initiatives in order to maximize the business benefits through digital media. Strategy will be different for each brand; it will base on the brand objective and target groups interest. It is actual a plan formulated by the marketer to explore the opportunities. Strategy may be short term or long term, but it need to be fit with market situations.
  • 19. 19 TYPES OF DIGITAL MARKETING In normal outbound marketing, we will use pull and push marketing strategy. Like that in digital marketing also pull and push are types. In push, digital marketing the marketer sends a message without the recipient actively seeking the content, such as display advertising on websites and news blogs. Email, text messaging and web feeds with customized contents can also be classed as push digital marketing when the recipient has not actively sought the marketing message. Push marketing allows you to target your demographics and use your marketing dollars to promote your product to the people you know are interested in what you have to sell. A push marketing campaign can be more expensive when it comes to upfront costs, so you really need to be sure that your marketing is going to reach the right people at the right time. Behaviour targeting is good example for push digital marketing. In Pull digital marketing includes blogging, email marketing, social media, info graphics and other forms of visual messaging and search engine optimization (SEO). A pull marketing campaign also includes public relations or other ways of reaching out to potential or already realized customers who you want to keep engaged. While a pull marketing campaign can be less expensive to get started, you will incur costs in other ways. For example, if you are running a social media campaign, you will need to hire someone to manage your social media and respond to people who leave comments or ask questions. Social media gets people talking and that has a major impact on sales. Pull marketing also requires a greater investment in time, but it gives you more ability to entertain your customers and educate them about your company. But don't get confused by seeing Email in push and pull, there is a difference. If marketer is sending emails with customized content or banners to specific group of customers is push digital marketing. If marketer is sending emails with the same content or banner to all customers is pull digital marketing. AIDMA as AISAS in Digital Era AIDMA widely accepted model describing the psychological process leading up to the consumer’s decision to purchase a product. This model is similar to AIDA model. The AIDMA Model was first advocated by Roland Hall, an American economist, around 1920. According to this model, there are five key processes: Attention, in which the consumer first notices the product or advertisement, followed by Interest, Desire, Memory, and Action. This model has been used extensively in the advertising and marketing industries. Attraction Interest Desire Memory Action
  • 20. 20 AISAS is a process model of consumers purchasing activities in the Internet age. AISAS is a consumption behaviour model that has been advocated by Dentsu since 2004. It was developed to observe behaviours based on the understanding that the Internet has become prevalent, and that consumers now have access to environments in which they can obtain and transmit information themselves. In this model, the key processes are: Attention, in which the consumer first notices the product or advertisement, followed by Interest. After this, the consumer Searches for information, and then makes a purchase (Action), after which information is shared with others. In comparison to “AIDMA,” the psychological process has become more compact, and the Action process has expanded. These changes are shown how presences in digital are important for brands. Brands can able to create awareness and internet without digital. But it will not lead to action in current scenario. Customers need more information in present era; they are information seeker and always search for best deal. Brands can’t sustain without digital media. Advantages of Digital Marketing Digital Advertising is increasingly an inherent budgetary component of many organizations today. Organizations of all sizes use the medium to promote their products and services. So well, why do so many organizations use the medium? Simply put, it is due to the numerous advantages that online advertising offers. These are discussed in the paragraphs ahead. Reach - The ability of the online medium to target a certain demographic of users is one of the greatest advantages of digital advertising. In addition, the geographical reach of the online medium is far greater than that of traditional media. It’s not only cost effective to achieve a wider geographic area but the ads can also be targeted to the desired audience. For example, if an advertiser is keen on selling his or her products targeted to a certain demographic of people, it is quite possible through online advertising. Digital advertising has matured to the extent that web publishers, media agencies and advertisers themselves know the optimal ways and websites for a certain category of products or services. Measurement - With various tools becoming available, tracking effectiveness of ad campaigns is becoming possible today. In other words, measuring Return of Investment (ROI) is increasingly possible today. Organizations that were previously reluctant to spend online, now realize that the online medium does offer means to alleviate any such fears. Moreover, when properly designed online marketing campaigns generate the desired results, advertisers are further encouraged to continue advertising online. Interactive and Engagement - The Internet is arguably the most interactive and engaging medium among various others. Interactive campaigns have become a norm with the power of the online medium. One such Attraction Interest Search Action Share
  • 21. 21 advertisement worth mentioning is the campaign by AXE where the end user could alter the smile of a woman as he/she liked to i.e. in an interactive framework. The advertisement struck an instant chord with the youth to which AXE the brand is positioned for Customers are basically just a click away from the advertisers. In other words, direct response between end users and advertisers is possible through the online medium. Time - Through the Internet, an advertiser can reach a desired target group or demographic in a much shorter time frame. For example, if an advertiser needs to plan some sort of ambush marketing, the online med ium can be an effective means of achieving it. Even otherwise i.e. for regular marketing campaigns, the total time necessary to complete an online advertising campaign is less than that of traditional advertising methods. Cost - When compared to traditional forms of advertising, digital advertising is cheaper. Various payment models are available between the advertisers and publishers. Many a time, advertisers are charged only when visitors click on their ads. The various payment models are discussed in detail in the next section. Digital Advertising: Ad Avenues  SEARCH ADVERTISEMENTS: Advertisements made up of text (displayed largely as sponsored links on search engines) come under this category. These are backed by hyperlinks that when clicked on, take the potential customer to the advertiser’s website.  DISPLAY ADVERTISEMENTS: Advertisements that are placed at various points on a web page that typically contain logos, photographs, other images or even text. Technologically these comprise of Image, Simple flash and Rich media with& without video ads.  MOBILE ADVERTISEMENTS: Advertisements that are viewed or consumed on mobile phones or tablets come under this category. These comprise of Mobile Web ads, SMS, MMS, Mobile Video & TV ads and In-App ads.  SOCIAL MEDIA ADVERTISEMENTS: Advertisements of any type: text, display, stamp pads etc displayed on various social media websites like: Facebook, Twitter, LinkedIn, Pinterest, Orkut etc fall into this category.  EMAIL ADVERTISEMENTS: Advertisements that involve sending across a commercial message to a group of people using email comprise of this ad type. Emails are used to engage with existing customers to get repeat business as well as to acquire new customers.  VIDEO ADVERTISEMENTS: Advertisements that fall broadly under the display type but have video within them and are served before, during and/or after a video stream on the internet. This type comprises In-Video ads, Standard In-Stream ads (pre-rolls, mid rolls or post rolls) and TrueView ads.
  • 22. 22 Some of the Basic Terms in Digital Marketing  Impression An impression is a measure of the number of times an ad is seen, whether it is clicked on or not. Each time an ad displays it is counted as one impression.  Page View Viewing the page is known as page view. It gets counted once the page loaded.  Leads When one person fills his details in the given box is known as lead.  Conversion The percentage of people whose activity can be tracked while clicking on an ad or visiting a website to actually purchasing a product or service. A high conversion rate indicates that the link, ad or site was successful  Inbound link Link connecting to your website from a different website.  Profiling To build a picture of a target customer based on information from various sources including customer transactions completed forms and demographic data.  Unique Visitor Unique IP address accessing a website.  Landing Page A custom we page designed to convert visitor into leads or sales. Email, banner ads and even offline outbound marketing campaigns drive traffic to a landing page to capture information or trigger a sale. Landing page is also called as destination page or splash page.
  • 23. 23 Types of ads  Above the Fold: Above the fold refer to banners ads which are displayed at the top of a web page.  Rich- media: Online ads that contain motion, sounds or video are termed as rich media ads  Interstitial Ads: Ads that appears between web pages.  Banner Ads: Embedding an ad into a web page- known as a click through due to interactive actions where the consumers click and is taken to the banner ad’s company websites  Pop-up: Ads that displays in a browser window either in the front or behind the current browser window. Monetary term in Digital Marketing  Cost –Per- Action (CPA): Cost of advertising based on a visitor taking some specifically defined action in response to an ad. “Action” include such thing as a sale, transaction, a customer acquisition or a click  Cost- Per -Click (CPC): Cost of advertising based on the number of clicks received.  Cost- Per-Thousand (CPM): The standard unit for buying or selling Internet advertising. The thousand stands for ‘thousand advertising impression or views’.  Pay- Per- Impression: Online advertising where an advertiser pays a pre-agreed price each time a user clicks on their advertisement. The cost for the click is often negotiated through auction, with ad placement determined by the relative size of the bid, as well as other factors.  Pay-Per-Inclusion: Search engine marketing programs that guarantee web site listing for specific keyword search term for a fee.  Pay-Per-Lead: Paying to acquire leads from an outside party at a set rate or amount per lead
  • 24. 24 BRANDING IN DIGITAL ERA Before doing this internship, I believed marketer is responsible for building a brand or marketer is a custodian for a brand. But while doing internship, I understood marketer is not a custodian, he is a person who guides a product to become a brand. Today, brand custodians are the connected users who exist across digital platforms. They are multifaceted. They are the publishers, circulators, ambassadors, instigators and at the same time they are the custodians as well. Their digitally connected existence has power, credibility, influence, depth, and reach. Their digital messaging has the velocity, acceleration, and momentum required to impact brands. Yet brands and their default custodians continue to live blissfully in an illusion about the control they exercise over their brand. Brand is an enabler in the current age. It is the participants, the brand conversations and the platforms that amplify the brand and drive the brand philosophy. Businesses need to, therefore, understand the consumers and the evolving digital sphere better and continue to build brands within the digitally connected ecosystem by focusing on the following 3 elements- People The digital age has democratized individuals. They are no longer passive consumers, but active and creative participants. They expect and believe in the co-creation of an experience, thereby evolving from consumers to users. They are becoming the most credible and reliable source of the true picture of a brand. Consumers are beginning to seek a relationship of fair exchange between themselves and the businesses where each contributes and everyone gains. Individuals are seeking a multidimensional relationship that provides them with more than just the brand product/service. The fair exchange relationship is also offering new opportunities to the business to build more human connections. Businesses will have to become receptive to this new age definition of relationship that consumers seek. They may do well to go a step ahead and create an environment that is receptive to this fair relationship. People EngagementsChannles
  • 25. 25 Channels With consumers evolving into users and participating in co-creation, it is important for brands to offer those channels and platforms that allow them to participate in this process. Users are seeking channels that offer them more than just digital promotional activities; they want channels that allow them the freedom to be publishers of content, information and data, that give them control over what content they produce and consume, that allow them to co-create brand experience. The channels also need to be device agnostic. Users are adapting to the usage of different devices throughout the day to execute tasks at hand. They might use a smartphone or tablet to complete functional tasks etc. while on the move, but they use a PC for heavy content creation and research. According to a google research, 90 percent of people move between devices to accomplish a task, with virtually all of them completing their task in one day. The most popular starting point is the smartphone. In most cases, the tasks are continued on a PC though tablets are also becoming a popular option for continuing social networking and watching videos. Businesses and brands need to accept that it is the consumer who has become a more credible publisher by virtue of their access to a device which is always on and active. Creating an environment of device agnostic platforms and channels that allow co-creation of content between brands and consumers will address this shift. Engagement It is about creating a window with enhanced attention to influence behaviour and motivations. With every business eyeing the opportunity to engage users, it is critical to focus on engagement by increasing brand salience and influencing buyer behaviour and choice. Brands should be able to map a customer’s journey to understand where they can add value and create an opportunity to engage them. Brands need to understand that engagement is not about pushing product messages; it is about capturing the imagination and the attention of the user. It is about designing a naturally engaging experience. Businesses need to understand that digital environment is not about technology but about attention, where the consumer is at the core, armed with powers like never before. Businesses and brands should, therefore, focus on connecting the dots and realize that now, in the digital age; it is all about co-owning a brand.
  • 26. 26 THE HOSPITALITY INDUSTRY IN THE CONTEXT OF DIGITAL MARKETING  Hotel website and booking engine are Number One. This is probably nothing new to anyone, but one’s hotel’s website is the best opportunity that one has to engage and sell to one’s guests. On average, guests spend 6 minutes on hotel websites. 6 minutes is ample opportunity to engage your future guests with bold pictures, easy-to-read room descriptions and attractive offers that make the decision to book simple and predictable. One additional important item is to show what guests will experience when they come to your destination: ensure video is part of your web strategy and you will mesmerize your guests. So, when was the last time you updated your website? If the answer is more than 2 years ago, your website could probably be a lot better.  60% of consumers are social travellers. According to Forrester, 60% of guests use one or more social networking platforms during their search, shop and buy process. Hence, it is critical to manage TripAdvisor ratings, have a professional-looking presence on Facebook, and allow guests to engage over twitter. And to use the social network to amplify your message, ensure that good experiences your guests write about are shared on the different digital communities. For photos, we see the best results using Flickr and for videos a dedicated YouTube channel. And don’t forget email: it is still the most widely mechanism used to share itineraries and ideas of trips.  Mobile consumers will demand optimized content. Mobile traffic is the fastest growing category in digital marketing, and to no surprise also in travel. Google research states that 19% of all hotel searches are already executed on a mobile device. If you deployed a mobile solution in 2011, you will realize that mobile consumers have a much more utilitarian behaviour – they are looking for the hotel’s address, phone number, or want to book a room for tonight or tomorrow night. Hence, the experience to conclude those tasks must be optimized in 2012. While success can be found using mobile as a stand-alone media, it provides the largest rewards when it is used as an integrated, multi-channel engagement platform. If you can provide consistent messages across web, social and mobile, while ensuring that the most relevant offers are prioritized then you truly have provided multi-channel digital marketing.  Diversify online distribution channels. Recent studies indicate that booking.com is driving a whopping 50% of all hotel online bookings in Europe. This dominance is threatening to hotels as they become more dependent on (and therefore vulnerable to) a single channel that is already demanding higher commissions based on results. Therefore, it is critical to diversify your channels. If you are the manager of a boutique property you should consider signing up with tablethotels.com, mrandmrssmith.com or jetsetter.com. One good source of information for the latest trends in accommodation websites you should consider signing up for is tnooz.com’s roundup of top travel websites per market.
  • 27. 27  Innovate with marketing campaigns. Digital marketing is not a one-time project. It is a new discipline that must be embraced by hotel managers. However, digital marketing does not necessarily require learning a lot of new tools and hiring a lot of new staff. Using the appropriate tools, hotel managers can use their existing e-commerce and reservations staff to create campaigns, follow-up and reap the rewards of increased marketing exposure: more and better bookings. So, choose your tools to minimize setup costs and provide maximum flexibility when creating your campaigns.  Importance of Mobile Presence for Hotels Mobile search is the star trend of digital marketing. The universe of mobile users is massive – 3 in 5 people use mobile devices to search and 80% of local searches on mobile devices convert to purchase. With Google rolling out a new ranking factor for mobile-friendly sites, it is essential that your hotel website is optimized for mobile search and responsive on all mobile devices. The target is to enhance mobile traffic and ensure a robust and seamless experience with content that can be shared on social media.  Enhancing Your Hotel’s Local Presence Your website has to tap into the possibilities of enhanced local search. The goal is to create optimized content and local profiles, manage quality citations and directory listings, and deliver a seamless mobile experience across devices. It is critical that you manage your local presence across search engines, IYPs, aggregators, business directories, local citations, and maps. Ensuring your hotel’s marketing strategy includes optimizing your content with headers, title tags, metadata, footers with location-based schemas, and image alt-tags will help strengthen the property’s local presence.  Hotel Social Media Marketing In our connected online community, the synergy of social engagement empowers your digital marketing. Most of the world uses social media sites, including Google+, Facebook, Instagram, Pinterest and LinkedIn. Social media is a driver of brand awareness and customer relationships and retention. To be in the social conversation and derive traffic from social platforms, your web content must be interesting, build connections, and inspire conversion. Ensure your site is optimized for mobile and sharing across devices, and make sure to add OG tags and Twitter cards. Be a stand out with robust hotel social media outreach, engaging content and visual media.  Content Marketing – Engagement and the Customer Journey Content marketing starts with understanding your audience and the customer journey. Content should engage, inspire and enhance the user experience. Empower your audience with engaging content, including local attractions and activities, visuals and trending topics. Your content should be optimized for local and conversational search and saturate diversified channels – from your website to blogs to Facebook. Look at KPI indicators – time spent on page, bounce and click-through rates and
  • 28. 28 engagement patters. Once you determine top converting pages, enhance the content to encourage the path to purchase, and ensure mobile responsiveness.  The User Experience The user experience is the human path to digital marketing. Audiences want to be engaged, be able to navigate your site, and tap into social influences. Conversion optimization starts with usability factors such as speed and performance, information architecture, legibility, colours and images. With robust architecture, clear design and navigation, and engaging content, your site will increase conversion. A smart way to see how the user experience relates to the conversion funnel is to implement A/B testing. Track which pages perform better based on simple design and content evolution, including floating buttons, drop-downs, marketing messages, and banners.  Expanding Your Hotel’s Paid Search Presence The key to a highly successful hotel paid search campaign is to maximize your outreach and diversify your channels, via Facebook, Google, Yelp, and Hotel Finder. Make sure you bid on your brand or hotel name, leverage social channels, and allocate your budget to tap into mobile conversion, which is higher than ever! Customize marketing messages to your specific target audience, and focus on the customer journey.  Attribute Hotel ROI Across All Touch Points The customer journey is evolving, so businesses need to alter their approach to measuring digital marketing ROI. With the dramatic spike in mobile search and social signals, the conversion funnel is not linear and the purchase journey can begin at any point along the decision path. It’s important for hotels and businesses to tap into this dynamic, target the audience journey, and personalize the content. With new innovations in digital tracking software, we can attribute ROI to every channel. By understanding the conversion path, attributing ROI, and integrating a dashboard to break down the data, we can see the value of each touch point.  Understanding the Hotel Customer Journey From travel inspiration and research to booking to post-stay social, understanding the customer journey is paramount to your digital marketing strategy. In hospitality/travel, and just about any industry or business, customers use search, websites, social channels, and reviews to plan a trip or book a room. That’s why your hotel website has to be optimized for organic and paid search, connected to social channels, and designed for conversion. Being present on every layer of the customer journey gives your business the edge.
  • 29. 29 UNDERSTANDING THE DIFFERENT GENERATIONS Marketing through the generations: 1) Who are Baby Boomers? The group who still leaves and listens to voicemails. Baby Boomers were born between 1946 and 1964 and grew up during the American-dream, white-picket-fence era of post WWII. As their younger counterparts have taught boomers how to use technology, this generation is slowly embracing it. According to Pew Research, by 2014, 65% of adults aged 50-64 used social networking sites, with the vast majority engaging with Facebook to revive “dormant” relationships. The Boomers are the most likely to misunderstand Facebook remarketing ads clogging up their Newsfeeds but still be receptive to direct marketing/sales tactics; they like to talk to real people. Boomers have the highest value as consumers in the market today! They spend the most money on each shopping trip, and as they are hitting retirement, they are more likely to splurge on items that aren’t on the grocery list. Surprisingly, this generation even spends the most on technology—everything from premium cable to the latest smartphone.
  • 30. 30 Marketing to Baby Boomers 1. Take Advantage of Brand Loyalty If you can prove that your product is great quality and will be necessary for an indefinite amount of time, you should be able to acquire some Boomers as customers. 2. Go for the Up-Sell A great way to capitalize on the extra cash Baby Boomers are dishing out is to utilize up-sells.. They tend to like knowing the value of a service—how it will make their lives easier—without feeling pushed. What better way to not be pushy than to ask if they’d like to add $10 per month for an extra 100GB of storage? According to Pro salesman Jeffery Gitomer, upselling can also help build better relationships with your customers; it’s also much easier to upsell than to generate a net-new sale! 3. Tie in Cash-Back Cash back can be a bit of a commitment for someone who isn’t trying to spend a ton of money to earn it. Fortunately, Boomers are used to spending enough at certain places that cash-back programs have a good appeal. A great and obvious example of this is credit cards! 48% of baby Boomers already rely on credit cards, and would prefer to spend more as opposed to leaving money on the table. Most of the Boomers are I know are big fans of American Express because of the points they can generate through big purchases— which can then fund a vacation or buy a nutribullet for their relatives.
  • 31. 31 4. If It Ain’t Broke, Don’t Fix It This generation is the most susceptible to traditional marketing and sales tactics. Boomers tend to want to talk to a real person before they make a purchase! Marketing tactics seen as intrusive on their personal lives are not welcomed, but traditional television and newspaper ads are okay! Because most Boomers reportedly use social media to keep up with long-lost friends, they are most likely going to report your Facebook Ad as spam. They are also the least likely to read that long-form blog post; Baby Boomers report that the articles they like the most are only 300 words. It may seem obvious, but Boomers are also the least likely to make a purchase on their smartphones—but this is a good chance to revaluate your mobile checkout. Could your grandmother get through it seamlessly? 2) Who are Generation Xers? The neglected middle child. Gen X is the smallest generation, born between 1965 and 1980 and often referred to as the bridge between Millennials and Baby Boomers. Gen Xers are now juggling child care, homeownership, and reaching the peak of their careers. Think of the 40-year-old who went to high school in the 80’s. This generation remembers how video killed the radio star and are more pessimistic about having enough money to retire. Gen Xers are busy! They’re dealing with children, paying mortgages and tuition, and working a LOT. Turns out, they’re also on online—more than 80% of this generation reports that they are on Facebook and Twitter. They are more on par with technology adoption and use with millennials, and are more likely to be politically loyal throughout their lives than either of the other generations. Gen Xers claim to be the most dedicated to lists while shopping, but also fessed up to making the most unplanned purchases on their shopping excursions. This generation is our true hybrid when it comes to marketing. They grew up without the online shopping experience, so they still enjoy a trip in-store, but have fully embraced online shopping as well. Marketing to Generation X 1. Everyone Loves Coupons Gen Xers were just gaining momentum in the workforce when Great Recession hit. They didn’t think they can rely on Social Security after retirement. Gen Xers are saving up for college, home ownership, starting a business, and retirement—which leads to…COUPONS.
  • 32. 32 Though email marketing seems to be old news, it is still the best way to communicate with Generation X. This generation is already plugged into Outlook constantly for work and updates from family, it’s natural that they would react positively to retail emails. Not to mention they are checking email at work, at home, on tablets and iPhones and desktops. 2. Be a Goody-Two-Shoes As Erin mentioned in her post about marketing to millennials, do-good brands have seen an upsurge— organic, ethically produced products are in high demand. The same can be said for marketing to Generation X. This generation is less prone to moving in the waves of trends, and is more likely to buy a service or product that somehow benefits society or the environment. Toms is a good example of this—though not the most attractive type of shoe, their simple message of “one for one” bolstered this brand to success. A good way to push this branding is through Pinterest and Facebook! 3. Lifestyle Nurture Programs Because Generation Xers are using social media so much, marketers have a lot to draw on. Thanks to Facebook’s insane amount of targeting options, we can send ads to new moms, for anniversaries, birthdays, and more. Some companies, like Petco, offer to send disposable items to your house at regular intervals with is a great way to never forget to stock up on kitty litter or dog food. Babies R Us and Toys R Us have a great email program that will send pregnant moms updates month-to-month, and then after
  • 33. 33 birth with age-appropriate toys. This is a great way to establish brand loyalty—you know what’s going on! —and make their busy lives a bit easier. 4. Give Gen Xer’s a Break Though this generation are self-professed savers, they’re not saving it all for college tuition! About two- thirds of Gen Xers with a household income of $250,000 or more and half Gen Xers with incomes of less $250,000 plan on taking a vacation in the next 12 months. This is a big opportunity across the board! Even if vacations aren’t directly related to service or product, consider running a sweepstakes. Advertise how you can help while they are away—security companies, looking at you—or goods that they could use on vacation. It’s likely that this generation isn’t buying a vacation for one or two, but instead a family-friendly affair. Which means a lot of planning and money goes into it, use your marketing to win them over and they may use your service for years. 5. Plot Twist: Try Direct Mail You may not expect what seems to be an outdated form of marketing to work with this generation. But, according to a study from InnoMedia, NuStats, and Vertis, 86% of this generation brings in the mail every day and 68% have used coupons they received in the mail. They are more likely to be receiving paper bills as opposed to electronic, and send birthday cards through USPS instead of email. The days of receiving Chinese take-out menus and newspapers of coupons in your mail box are not over! 3) Who Are Millennials? The generation that is slowly taking over the workforce and out-numbering Baby Boomers, Millennials were born between 1981 and 1999 and came of age during the early 2000’s. This generation is most widely talked to and about on social media and in pop culture. As Millennials began entering the workforce as the economy crashed, and as a result, are the largest generation of entrepreneurs. They are notoriously soft- hearted and soft-shelled, valuing social issues far ahead of economics. According to the Brookings Institute, 64% of millennials would rather make $40,000 a year at a job they love than $100,000 a year at a job they think is boring. That said, Millennials are an economic force! With $200B in annual buying power, smart marketers are turning to new channels to hook this generation. They are the least frequent in-store shoppers—which I totally understand, I just went grocery shopping for the first time in a month—but tend to spend large amounts when they do shop. This generation is the most responsive to online shopping opportunities, recommendations from friends and family, and are motivated by shopping ease. Millennials are reshaping the way that goods and services are being marketed by staying unresponsive to traditional marketing tactics.
  • 34. 34 This generation decides where to eat based on Instagram pictures, chooses hair stylists from Facebook and has their groceries delivered to their door. 1. Focus on Innovation Millennials love the next big thing. As comedies poke fun at trendy coffee shops and restaurants that are becoming popular through social media, Millennials are making the business owners a lot of money! Look at Apple—after Steve Jobs dramatically changed the way a traditional computer looked and felt, the Mac blew up. Even now, Millennials are 21.7% more likely to own a Mac computer and this the is the same generation that is infatuated with each new iPhone release. Think about the way the internet freaked out when Instagram copied Snapchat’s approach of expiring, temporary shares? Or the popularity of online dating apps and photography drones. Marketing to Millennials should take an approach that shows a new perspective on a common problem or task. 2. Use Reviews! Millennials are reshaping the way that goods and services are being marketed by staying unresponsive to traditional marketing tactics. This generation decides where to eat based on Instagram pictures, chooses hair stylists from Facebook and has their groceries delivered to their door based on a recommendation from a friend. Millennials like to talk and plan with their friends—68% report that they won’t make a major decision until they have discussed it with people they trust—everything from what neighbourhood to live in and how to find it, to where to go on a first date or start a business. Yelp has become a huge source of information for businesses and customers alike, as well as TripAdvisor and Rotten Tomatoes. A great way to market to this generation indirectly is to make sure your online reviews and customer experiences are up to par!
  • 35. 35 3. Connect with Millennials through Social Media Incentives To try and harness the power of a millennial on social media, add incentives to your marketing plan. According to Yahoo, 63% of millennials would be more likely to “check-in” to a business on social channels if it meant they’d receive a coupon or discount; 20% off is enough of an incentive to prompt 50% of respondents to visit a retail location. That’s huge! Another way is to add a gateway to an opportunity— yes, one can have the rest of this experience after sharing with 5 of your friends on Facebook or Twitter. Not only does this generation talk about your brand or product online, it can be a great opportunity to get sales leads for your business. 4. Utilize Rewards or Loyalty Programs If it weren’t for the tragic e. Coli scandal at Chipotle, their new loyalty program would have been the biggest news of the summer. Chipotle checks all the boxes for millennials; ethically farmed meats and veggies, vegetarian options, customizable but fast food with great advertising campaigns. According to the Harris Poll, 77% of millennials already do or are willing to participate in rewards and loyalty programs and 73% of smartphone users are interested in using their mobile devices to interact with brands’ loyalty programs. . Among the stores already doing this and seeing success are Starbucks, Fro-yo places like Red Mango, and Boloco!
  • 36. 36 5. Plot Twist: Try Radio Commercials Though radio advertising may seem like an old-school marketing trick, maybe video really didn’t kill the radio star; it certainly didn’t kill the podcast star. 93% of millennials report listening to the radio for a total of around 11 hours per week. In fact, more millennials listen to the radio than Gen Xers or Baby Boomers, and podcasts are becoming just as popular as Netflix shows (Serial, anyone?). It is important to keep in mind that each generation is comprised of unique personalities, not all people will respond the same way. Don’t throw your other demographic targeting and segmentation strategies out the window! Hopefully these marketing tips will help hook your target generation. 4) Who is generation z or i-gen? As Millennials are getting older, the Generation Z population is growing, and growing fast. Gen Zers—ages 19 and under—currently make up more than a quarter of America’s population, and are projected to account for 40% of all consumers by 2020. The generation is growing fast, and marketers need to understand them. Generation z characteristics: • Diverse, and are the most multicultural generation yet. • Open-minded in many ways, such as acceptance of all sexual orientations. • Gender-neutral when it comes to traditional job roles and transgender issues. • Change makers, interested in innovation and entrepreneurship. • Dreamers, who want to follow their passions. • Independent learners, who have the desire and know-how to self-educate. • Do-gooders, who want to make a difference.
  • 37. 37 Generation z’s buying power Gen Zers represent a buying power of $44 billion, and influence an additional $600 billions of family spending. They influence the way their parents spend more than Millennials did, including over 70% of family food choices and 80% to 90% of items purchased are for them. They’re willing to challenge their parents, questioning things like how much they’re going to pay for something, trying to evoke their own price-sensitivity. Gen Zers have high expectations. With that said, if marketers focus on Gen Zers over Millennials, using them as the barometer, they’re likely to please other generations as well. MARKETING TO GENERATION Z 1. They’re digital natives, so marketers must act that way, too. While Millennials use three screens on average, Generation Z uses five. Gen Zers expect brands to move as seamlessly around digital devices as they do, and to create a unified experience across in- store, digital, and mobile. 2. Make the message quick, to the point, and in their language. The average Gen Zer has an attention span of about eight seconds. They’ve grown up constantly being served enormous amounts information, and are accustomed to quickly filtering through it. In this emoji-era, brands must communicate with snack able content that captures their attention. 3. Social media is important, but differs from Millennials’ usage. While Millennials pioneered Facebook, Generation Z prefers privacy and anonymous social network like Snapchat, Secret, and Whisper. They have seen the social mishaps of Millennials and don’t want an ever-lasting social footprint. 4. Authentic experiences and two-way conversations are a must. Initiate two-way conversations online, and create a social presence that Gen Zers can engage with. They value the opinions of their peers, making influencer marketing a very powerful tool, but it must appear genuine in order to be effective. 5. Humanize your brand. Gen Zers don’t want a faceless company. Marketers need to showcase the personality of their brand. Consider a YouTube star or Vine personality. 6. They want realistic and relatable. They look for products that embody their beliefs, and prefer brands that reflect independence (like Free People), rather than unrealistic messaging that projects perfection (like Abercrombie & Fitch).
  • 38. 38 7. Let them make it their own. Market to Gen Zers with an understanding that they’ll want to personalize products and fashions; help them express their individuality. 8. Quality matters. With a world of information at their fingertips, Gen Zers conduct extensive research before buying, and are selective in their purchase decisions. 9. Show you care, too. Generation Z wants to make the world a better place, and they want to see that you’re truly committed to that cause. 10. Video content and cord-cutting is big. In a recent study, nine-out-of-ten respondents watch YouTube daily, 70% prefer streaming over broadcast or cable TV, and more than a quarter post their own original video content on social sites weekly.
  • 39. 39 REASONS FOR HOSPITALITY INDUSTRY TO CONSIDER ONLINE MARKETING STRATEGY 1. Increasing No. of Mobile Users: As more and more people prefer to access the internet via their smartphone having a responsive website becomes a necessity. A recent study concluded that about 78% of business travellers use a smartphone during the trip planning process and 67% of people going on a tour, do research online before making any decision to make the process smooth for the target audiences, many travel agents, hotel owners, and other travel professionals have turned to digital marketing agency. That doesn’t mean that traditional marketing methods have completely dropped off, but with the growing trend of consumers going online to make their travel plans, even making reservations, bookings and purchases online – more and more travel and tourist companies are turning to online marketing strategies to reach their target audience quickly and effectively. 2. Emerging Affordable Search Engine Optimization Services: 91% of the US population rely on a search engine to get information on any topic, including tourism. The key to turning browsers into buyers is to have a state of the art Search Engine Optimized (SEO) website. SEO friendly websites attract the consumer’s attention: people tend to click on the website that is at the top of the search engine result page SERP. Therefore, making sure your website is at the top of the SERP becomes a prime objective. The Google algorithms that decide which website gets the top ranking on the SERP, are continually changing – therefore, to maintain top ranking the website needs to be continually optimized. Keeping quality content, properly researched and relevant keywords is very important, to attract visitors to your website you must post engaging content. Engaging content invites consumers to stay on the website increasing the opportunity to turn browsers into buyers. When choosing keywords for the SEO it is most effective to use long tail keywords, this will provide more opportunities to match with searched words, for instance; “best places to visit in Worcester” or “things to do in Worcester” will bring up on the SERP the websites that have matches to individual words, the phrase or parts thereof. Simply using “visiting Worcester or “Worcester for visitors” will limit the matches. It is not clever to just plant the keywords in your website as a way to maximize the SEO, instead; incorporate keywords into the text, with the aim of enhancing the relevance of your website content to users. 3. Effective Social Media Marketing Services: Social media marketing has replaced a large section of traditional communication and is revolutionizing the tourism industry. Consumers write reviews, publish photos and videos of their travel experiences, both on travel sites and their own Facebook page or blog etc. The tourist industry
  • 40. 40 and travel businesses create content for their websites, reviews and post blogs, create Pinterest, Twitter and Vimeo posts. All generating marketing for the tourism and travel industry. We have reached a new interactive era with faster internet connections, advances in web technologies and social media marketing platforms that allow information to go viral at the click of a button. For the digital marketing agency, social media marketing platforms channel provides a very efficient, effective and inexpensive means of distributing information. Travel industries can take advantage of social media networking tools to help promote their business at low cost, attracting visitors to websites by generating interest in their products and services. 4. 360-degree branding: 360-degree branding is a branding effort which tries to include the brand identity into a holistic approach so that the brand is in touch with and visible to the customers at all the times. It’s all about creating a distinctive brand philosophy which is centred on consumers. It helps to anticipate all aspects of consumer needs. Especially when brand is fairly new it needs to be present everywhere to build a brand image. 360-degree branding is a combination of integrated marketing and web 2.0 usages. Integrated marketing follows a user centric approach and primarily focuses on use of online and offline tools to engage and excite consumers. Integrated communication ensures that message is consistent throughout irrespective of the channel. A web 2.0 usage pays more attention to customer rating and social media as consumers talk about the brand outside of the boundaries of the brand. 5. Virtual reality: If you thought VR would turn out to be a short-lived fad, think again. Likewise, if you thought it had no relevance in the hospitality space, you couldn't be further from the mark. The VR arena is only just getting off the ground, with devices like the HTC Vive, Oculus Rift and Samsung VR proudly leading the charge. Soon enough though, we'll be looking at a consumer phenomenon that actually gives people the opportunity to visit and tour your whole hotel in full VR, before making a booking. And while it might be a while before this happens, those getting in at ground level will have a huge advantage.
  • 41. 41 6. Video Marketing: Hardly a new concept for the hospitality industry, but video marketing is nonetheless set to continue exploding in power and prowess going forward. As the influence and value of TV, print and other marketing platforms waver, the online video is becoming a powerhouse like nothing else. Strategic use of video on a business website translates to lower bounce rates, longer visit times, improved engagement and considerable better conversion rates. And that's all at the same time as painting the prettiest picture possible of your business/establishment. Web video marketing is and will continue to be a real game-changer. 7. Social Marketing: Consumer studies have shown time and time again that the thoughts, opinions and pointers of both fellow consumers and influential figures mean more to them than all the marketing spiel in the world. Just five words and a solid star-rating from a person they don't know from Adam could do you brand's reputation more good than all the self-promotion in the world. The web has transformed the way the consumer public decides what it will buy, where it will buy it and how much it will buy. Content, community, commerce – the 3Cs strategy (again, one Marriott swears by) – focuses on social influence first, traditional marketing second. 8. Wearable Technology: While it's true to say that the wearable technology market has gotten off to a slow (understatement) start, it will eventually take over. It's just that the devices on the market right now like the Apple Watch and so many imitators haven't quite nailed the magic formula. But they will. And when they do, this will represent a spectacularly powerful new marketing platform for the hospitality sector. Take the Disney Magic Band, which guests can use in place of papers tickets, as a key to gain access to their hotel rooms and basically to plan their Disney World holidays from start to finish. We've really only just begun scratching the surface with wearable technology, but one way or another, it is the future. 9. Deeper Analytics: Last but not least, the results of a recent CMO survey suggest that the hospitality will up its collective marketing analytics spending by an eye-watering 60% this year. Which isn't entirely surprising, given the way in which there's a ridiculous amount of consumer data ready and waiting to be tapped into, which can effectively allow for the creation of fool-proof blueprints for stellar performance. From website and social media engagement to demographic behaviour to competitor performance, the more than happens online, the more we know about every customer we target.
  • 42. 42 PROJECT DETAILS Objectives of the project  To find out reasons for adopting digital marketing  To find out need and implementation  To understand the different generations and how to market to them Limitations:  To understand some paid tools  Time of campaigns  Constant changes are being made by various online platforms. Methodology to be used:  Descriptive Research Sources of secondary data:  Articles on the internet  Existing Research papers  Books on digital marketing Sources of Primary data:  Questionnaire Data collection instrument:  Questionnaire
  • 43. 43 DATA ANALYSIS AND INTERPRITATION 1. What Social media platforms do you use? (Mcq)  YouTube  Twitter  Facebook  WhatsApp  Instagram  LinkedIn  Pinterest  Any other: ___________________________  It is seen that YouTube and WhatsApp stand as the two most popular social media platforms.  Facebook and Instagram rank 2nd and 3rs respectively.  Twitter, LinkedIn, Pinterest are seen as the lesser popular social media platforms.  There is also a chance for other platforms like Flickr, Tumbler, etc. to grow. 73 39 67 73 49 19 13 2 0 10 20 30 40 50 60 70 80 YouTube Twitter Facebook Whatsapp Instagram Linkedin Pinterst Any others Chart Title
  • 44. 44 2. How much time do you spend on social media sites on an average daily?  Less than 1 hour  1-2 hours  3-4 hours  More than 4 hours  On an average maximum respondent, have said that they spend 1- 2 hours on social media sites daily.  There is also a significant number of respondents that spend 3-4 hours or more. Less than1hour 20% 1-2 hours 44% 3-4 hours 19% More than 4 hours 17% Time Spent Less than1hour 1-2 hours 3-4 hours More than 4 hours
  • 45. 45 3. Do you access social networking sites more on your mobile device or Desktop/laptop?  Mobile/ Tablet  Desktop/ Laptop  It is seen that a maximum respondent access social media on their mobile devices.  There is also a good number of respondents who access through their Desktops or Laptops 76% 24% Mobile/ Tablet Desktop/ Laptop
  • 46. 46 4. You use social media primarily for?  Downloading music/video  Uploading music/video  Posting photos  Blogging  Creating polls/quizzes or surveys  Chatting  Submitting articles to website  Communication with teachers/class fellows/ colleagues  Any other: __________________________________  Its seen that social media is primarily used by the respondents for the purpose of Chatting/socialising followed by posting photos and downloading music/videos.  There is also a large number of respondents who upload content. 50% 34% 50% 25% 22% 52% 9% 27% 2% Downloading music/ Video Uploading music/video Posting photos Blogging Creating polls/quizzes or surveys Chatting Submitting articles to website Communication with teachers/classmates/colleagues Any other
  • 47. 47 5. What kind of communities to do you subscribe to on social networking sites?  Educational  Entertainment  Informational  Any other --------------------  It is seen that most subscribed community is entertainment followed by educational and then informational with a minor difference. 50% 74% 49% 1% Educational Entertainment Informational Any other
  • 48. 48 6. Are you a frequent traveller?  Yes  No  It is seen that a majority are frequent travellers. 61% 39% Yes No
  • 49. 49 7. Have you ever booked a room through a hotel aggregator website or app?  Yes  No  It is seen that a majority have booked a room via a hotel aggregator.  There is also a significant number of respondents who never booked through an aggregator. 57% 43% Yes No
  • 50. 50 8. Are you aware of any hotel that’s is present on any social media platform?  Yes  No  A majority have said that they were aware of a hotels presence on a social media platform. 62% 38% Yes No
  • 51. 51 9. Have you tried contacting any of the hotels via a social media platform?  Yes  No  A majority of respondents have said that they have tried contacting a hotel via a social media platform. 61% 39% Yes No
  • 52. 52 10. Do reviews influence your decision in booking a hotel room?  Yes  No  A majority have said that reviews/testimonials have influenced their decisions while bookings. 72% 28% Yes No
  • 53. 53 11. Do you know what a podcast is?  Yes  No  It is seen that a majority do not know what a podcast is. 49% 51% Yes No
  • 54. 54 12. Do you listen to any pod cast?  Yes  No  It is seen that a majority do not listen to any podcast. 40% 60% Yes No
  • 55. 55 13. Do you receive mailers from any hotels?  Yes  No  A majority of respondents have said that they do receive mailers from a hotel. 56% 44% Yes No
  • 56. 56 14. How do you get information about a hotel?  Search engine  Tour and travel agency  Advertisements  Recommendations  It is seen that a majority of respondents get information about a hotel via search engine followed by a tour and travel agency.  There is also a significant number of respondents who get to know about a hotel via advertisements and recommendations. 38% 55% 59% 32% 2% Avertisments Tour and Travel Agency Search Engine Recommendations Others
  • 57. 57 15. Which of the amenities would you like your hotel to provide?  Free Internet  Free Parking  Free Breakfast  Pets Allowed  Swimming Pool  Airport Shuttle  No Smoking Rooms/Facilities  Fitness Centre  Disabled friendly Rooms/Facilities  Business Centre  It is seen that free internet followed by free breakfast is the most sought after amenity.  Swimming pool followed by free parking followed by pet friendly amenity is also sought after. 68% 45% 62% 30% 55% 25% 19% 7% 16% Free Internet Free Parking Free Breakfast Pets Allowed Swimming Pool Airport Shuttle No smoking rooms/ facilities Disabled Friendly rooms/ facilities Business Center
  • 58. 58 16. Do pictures of the hotels influence your decision to book a hotel room?  Yes  No  A majority have said that pictures influence their decisions. 76% 24% Yes No
  • 59. 59 17. Would a hotels presence on a social media platform influence you to book a room with them?  Yes  No  It is seen that 70% respondents have said that a hotels presence would influence their decision to book a room 70% 30% Yes No
  • 60. 60 18. Would you like a video or a virtual reality tour of the room you are planning to book?  Yes  No  A majority have said that would like a video or a virtual realty tour of the room they are booking. 74% 26% Yes No
  • 61. 61 19. Have you seen such ads as shown in the image?  Yes  No  It is seen that maximum respondents have seen a paid ad on google. 78% 22% Yes No
  • 62. 62 RECOMMENDATIONS  Hoteliers need to at the very least be present on poplar social media sites.  Marketers need to look out for trendy and upcoming content creators.  There is also need to understand the various generations.  Hoteliers need to have a responsive website.  Organic conversions on one’s website is always good but at times paid conversions will help boost reach  Low budget hotels can use Facebook marketing or Google Ads as they are comparatively cost efficient.  People say the radio is dead but there exists a new form known as podcasts which work over the internet and is also an upcoming medium.  Marketers need to keep a close watch on the millennial and Z generation and try and connect with them.  Amenities like Disabled friendly or pet friendly are gaining popularity.  Virtual reality and 3600 videos are trendy concepts.
  • 63. 63 CONCLUSION The hospitality industry has made a special place in the world of hospitality because India is the most diverse place in world, because it has different kaleidoscope of landscapes, spectacular hilly sites, varied cultures and festivals. Hospitality in India is an old tradition, and the demand for travel and tourism in India is expected to increase annually by 8.5%, travel and tourism in India also accounts for about 11% of total population. The government of India has taken and taking various initiatives to strengthen the industry. A successful digital marketing strategy must provide a consistent multi-channel experience to hotel guests. This can be achieved by using a multitude of tools or an all-in-one hotel digital marketing platform. But no matter which tools you select, at the core of your strategy should be a digital marketing architecture that prepares a hotel for future digital marketing demands.
  • 64. 64 BIBLIOGRAPHY  2016's Most Important Digital Marketing Trends for the Hospitality Sector | By Edward Jones. (n.d.). Retrieved February 14, 2017, from http://www.hospitalitynet.org/news/4076477.html  Agrawal, A. (2016, August 3). 6 things to know about marketing to Millennials. Forbes. Retrieved from http://www.forbes.com/sites/ajagrawal/2016/08/03/6-things-to-know-about-marketing-to- millennials/#1334ea7e6310  2017, C. (2016, June 30). 5 things marketers need to know about gen Z. Retrieved February 14, 2017, from B2C, https://contently.com/strategist/2016/06/30/5-things-marketers-need-to-know-gen-z/  Retrieved February 14, 2017, from https://www.ermt.net/docs/papers/Volume_5/6_June2016/V5N6- 139.pdf
  • 65. 65 ANNEXURE Questionnaire: 1. What Social media platforms do you use?  YouTube  Twitter  Facebook  WhatsApp  Instagram  LinkedIn  Pinterest  Any other: ___________________________ 2. How much time do you spend on social media sites on an average daily?  Less than 1 hour  1-2 hours  3-4 hours  More than 4 hours 3. Do you access social networking sites more on your mobile device or Desktop/laptop?  Yes  No 4. You use social media primarily for?  Downloading music/video  Uploading music/video  Posting photos  Blogging  Creating polls/quizzes or surveys  Chatting  Submitting articles to website  Communication with teachers/class fellows  Any other: __________________________________
  • 66. 66 5. What kind of communities to do you subscribe to on social networking sites?  Educational  Entertainment  Informational  Any other -------------------- 6. Are you a frequent traveller?  Yes  No 7. Have you ever booked a room through a hotel aggregator website or app?  Yes  No 8. Are you aware of any hotel that’s is present on any social media platform?  Yes  No 9. Have you tried contacting any of the hotels via a social media platform?  Yes  No 10. Do reviews influence your decision in booking a hotel room?  Yes  No 11. Do you know what a podcast is?  Yes  No 12. Do you listen to any pod cast?  Yes  No
  • 67. 67 13. Do you receive mailers from any hotels?  Yes  No 14. How do you get information about a hotel?  Search engine  Tour and travel agency  Advertisements  Recommendations 15. Which of the amenities would you like your hotel to provide?  Free Internet  Free Parking  Free Breakfast  Pets Allowed  Swimming Pool  Airport Shuttle  No Smoking Rooms/Facilities  Fitness Centre  Handicapped Rooms/Facilities  Business Centre 16. Do pictures of the hotels influence your decision to book a hotel room?  Yes  No 17. Would a hotels presence on a social media platform influence you to book a room with them?  Yes  No 18. Would you like a video or a virtual reality tour of the room you are planning to book?  Yes  No
  • 68. 68 Male Female 19. Have you seen such ads as shown in the image?  Yes  No Name: _________________________________________________ Gender: Age: _________