INTRODUCTION
1.1 Background to
the Study
According to Eley and Tilley (2009), online marketing can be
simply defined as
promotional activity on the Internet, including email. It can take many forms, including
search engine marketing, email marketing, online advertising, social media, and affiliate
marketing.
promotional activity on the Internet, including email. It can take many forms, including
search engine marketing, email marketing, online advertising, social media, and affiliate
marketing.
Globally, cconsidering the current volume of internet
marketing business, it’s hard to believe how young the internet marketplace is.
While the timeline of internet marketing has been short, the cumulative events
leading up to where we are now have impacted the entire globe faster than any
marketing revolution in history (Johnston & Mayer, 2003). In 1994, spending
for internet marketing totalled nearly nothing, but increased to over $300
million in 1995. Now, little more than a decade later, marketing spending and
internet marketing business has exploded to nearly $200 billion (according to
Forrester Research). Today, it’s hard to believe in having an organization
which does not have some kind of online presence (Johnston & Mayer, 2003).
When the internet was first
introduced in the early 90s, it was not considered to be an advertising medium
at all. Instead, the internet was treated as a tool for exchanging emails and
digital information, but was not yet considered valuable for reaching customers
(Smith & Taylor, 2004). However, it was not long before marketing pioneers
began to see the potential for internet marketing business as millions of web
surfers logging on each day to find valuable and relevant information. Within
just a few years, informative and educational marketing, as well as graphically
enticing banner ads began to be show up. It was not long before results began
to flood in which proved the value of the internet marketplace to even the most
skeptical advertisers (Smith & Taylor, 2004).
Most importantly, companies which had been spending huge chunks of their
marketing budget on offline list building, begin to realize that they could
accomplish the same thing via email and for much less. It was not long before
everyone from industry giants such as Microsoft Corp to small businesses began
to build company sites and spend marketing dollars to attract qualified
traffic. Next, search engine companies like Yahoo began to create significant
profits from advertising alone.
Then came the great online marketing business bust around the year of
2000, which marked the beginning of the end for interruptive marketing such as
flashing banner ads. As interactive features were added to web pages, consumers
were given the option of turning off marketing messages at will and they did. Then
entered the age of education based invitational marketing, which crystallized
with the creation of web 2.0 technologies. Suddenly, billions of “voices” began
to rise all over the world, as the internet marketplace became as much a global
community as it was an advertising medium (Chittenden&Rettie, 2003). This
led to a relational based marketing approach which has led to one of the most
lucrative opportunities for solo entrepreneurs and small start-ups alike to
make a small fortune working from their spare bedroom. Who knows where the
internet marketing revolution will lead us, but one this is for sure: Those who
understand the principles upon which the thriving internet marketplace is built
will most likely never want for opportunities to create internet marketing
business success and to earn solid income(Chittenden&Rettie, 2003).
Online marketing is today
seen by many practitioners as the new arena for market communication and on top
of the list of users of the different mediums is Facebook, Blogs, Twitter,
YouTube and LinkedIn (Steltzner, 2009).
In Africa
countries like South Africa, Botswana, Namibia, Mauritius and Cape Verde are
the leading countries in Africa that experience large number of tourists due to
online marketing because of their most beautiful sights,
wildlife, climate, wildlife and biological reserves and countries culture.
In East
African countries like Kenya, internet in Kenya on line marketing, travelling
had been considered quite risky because tourists had limited knowledge of the places
they wanted to visit. Tourists had limited knowledge about terrain, climate,
culture, and other factors that drive or inhibit traveling. Tourism industries
like hotels, tour companies and travel agencies had old methods and ways of
making bookings and reservations. Only well-known destinations were visited and
those who dared and went to a remote place had no idea what to expect once they
arrived. Generally, lack of information about different parts of the world
limited travelling in Kenya (Kotler & Makens, 2004).
Old channel
of distribution of the internet tourists’ reservation and booking went
through the travel agency who in return accessed the internet to make bookings of airlines, car hire, and hotel and tour operations. The new system is easier and faster because tourists use the internet directly to make their own bookings and reservations. Many hotels have developed web based booking tools for both leisure and group sales(Kotler&&Makens, 2004).
through the travel agency who in return accessed the internet to make bookings of airlines, car hire, and hotel and tour operations. The new system is easier and faster because tourists use the internet directly to make their own bookings and reservations. Many hotels have developed web based booking tools for both leisure and group sales(Kotler&&Makens, 2004).
Increasingly
in Kenya, package holiday tour operators are including direct sales via the
internet
in their sales strategy, thus bypassing the travel agencies. These travel companies are
adopting both organic (internal) and acquisitive growth strategies. Other researchers
have also identified the role played by online marketing in tourism industry.
in their sales strategy, thus bypassing the travel agencies. These travel companies are
adopting both organic (internal) and acquisitive growth strategies. Other researchers
have also identified the role played by online marketing in tourism industry.
In Ugandathe tourism sector has been
identified as an important driver of economic and social transformation in
Uganda (Vision 2040; NDP11). The sector’s direct foreign exchange contribution
is estimated at UGX 2,767 billion shillings accounting for 19.6% of total
export earnings, this forecast is projected to grow by more than 5.8% by 2024
(MTWA, 2016). Tourism continues to be one of the fastest growing sectors in the
country, not just for the direct income generating potential of tourism
businesses, but also for the extensive linkages it has to the rest of the
economy (it generates demand for outputs in related sectors such as retail,
manufacturing, services, food processing, construction and agriculture) which are
important for employment generation and poverty reduction. In order to attract foreign
tourists online marketing has been used to invite them to Uganda to tour
different tourist destinations.
1.2
Statement of the Problem
Stakeholders are slow to
adopt online technologies and e-commerce as means of promoting tourism. While ICTS
are an integral component of the travel and tourism business worldwide, UWA’s
stakeholders in tourism still resent and strongly oppose UWA’s online innovations
which would bolster tourist volume and hence value in the past yet online marketing
has played a pivot role in development of tourism in Uganda. Therefore this
study intends to assess the contribution of online marketing to tourism
development in Uganda.
1.3 Objectives Of
The Study
1.3.1 General Objective
The
general objective of the study is to assess the contribution of online
marketing to tourism development in Uganda
1.3.2 Specific Objectives
The following were the specific
objectives of the study which include;
1. To determine the
number of tourists a particular tour/travel company registered in response to
online marketing for the same five years
2. To assess the trend
of online marketing in five consecutive years
3. To determine the cost incurred
in online marketing in relation to other marketing tools.
1.4 Research
Questions
The study was guided by
the following questions
1. To determine the
number of tourists a particular tour/travel company registered in response to
online marketing for the same five years
2. To assess the trend
of online marketing in five consecutive years
3. To determine the
cost incurred in online marketing in relation to other marketing tools.
1.5
Significance of the Study
The study findings are expected to be
useful in the following ways:
The
study would help the future researchers to make future references on this work
with the aim of building more knowledge on contribution of online marketing to
tourism development in Uganda and can be helpful to other researchers as a
point of reference during literature review.
The findings may be added on
to the existing literature reviews for the new students to follow up and learn
the right procedure in making research proposals to avoid making mistakes and
duplication of work.
The
study may compliment other studies and fill in certain gaps which are
uncovered. It is anticipated to be of use to a wide range of stakeholders who
include policymakers, Ministry of Tourism and Antiquities and researchers.
SECTION: TWO
LITERATURE REVIEW
2.1 Introduction
This
chapter presents the review of existing literature on the contribution of
online marketing to tourism development in Uganda. Literature was got from
journals, magazines, textbooks, internet, and previous dissertations. The
literature is reviewed basing on contributions of Tourism, forms of online marketing and various media platforms used to promote tourism.
2.2
Contributions of Tourism in Development
Tourism
continues to develop as a major economic activity boasting visitor arrivals
of 924 million in 2008, representing a growth of 2% over 2007 (United Nations
World Tourism Organization 2009a). This accounts for an increasing contribution to
Gross Domestic Product, in some cases amounting to over 10% (United Nations
World Tourism Organization 2009b). Tourism has been and continues to be regarded as a cure for the economic and developmental problems of many countries (Saveriades 2000; Andereck et al. 2005). Today, it is still being promoted by numerous developing and
developed countries as a lucrative means of diversifying their economic base
especially in these times of economic crisis (World Travel and Tourism Council, 2002).
of 924 million in 2008, representing a growth of 2% over 2007 (United Nations
World Tourism Organization 2009a). This accounts for an increasing contribution to
Gross Domestic Product, in some cases amounting to over 10% (United Nations
World Tourism Organization 2009b). Tourism has been and continues to be regarded as a cure for the economic and developmental problems of many countries (Saveriades 2000; Andereck et al. 2005). Today, it is still being promoted by numerous developing and
developed countries as a lucrative means of diversifying their economic base
especially in these times of economic crisis (World Travel and Tourism Council, 2002).
2.3
Forms of Online Marketing
Online marketing is a vast subject, to make the online marketing
business successful
companies need to find the suitable marketing strategy to reach the real target market, and
to take full advantage of online marketing. (Admin, 2010) There are numerous types of
online marketing that many companies use
companies need to find the suitable marketing strategy to reach the real target market, and
to take full advantage of online marketing. (Admin, 2010) There are numerous types of
online marketing that many companies use
Email Marketing: is
promoting the company’s products to a known database of existing
and potential customers via email (Cho, 2010). E-mail marketing is becoming an essential,
integral part of online marketing and it has become an accepted method of communication
for both consumers and businesses. Compare to the traditional direct mail, E-mail offers
more practical benefits. Firstly, it takes lower cost, which means it is possible to send
more, better targeted, to more audience, and this can help the company to reach more
traffic. Secondly, in order to keep the customers to visit back, E-mail can be used to send
reminders about a sales promotion or messages about offer to the customers. Finally, email is a two-way communication: customers can give the feedback to the company. Meanwhile, companies can improve the strategy to satisfy the customers. E-mail can be seen as a communication tool that gives more options for converting the audience to
action (Chaffey, 2003).
and potential customers via email (Cho, 2010). E-mail marketing is becoming an essential,
integral part of online marketing and it has become an accepted method of communication
for both consumers and businesses. Compare to the traditional direct mail, E-mail offers
more practical benefits. Firstly, it takes lower cost, which means it is possible to send
more, better targeted, to more audience, and this can help the company to reach more
traffic. Secondly, in order to keep the customers to visit back, E-mail can be used to send
reminders about a sales promotion or messages about offer to the customers. Finally, email is a two-way communication: customers can give the feedback to the company. Meanwhile, companies can improve the strategy to satisfy the customers. E-mail can be seen as a communication tool that gives more options for converting the audience to
action (Chaffey, 2003).
Social Media Marketing: Social
media is the most popular marketing strategy presently. It
is also a tool for the companies to obtain more traffic through interacting with the
customers. (Admin, 2010). Social media has impacted the way of communication for both
companies and customers. It offers a platform which is easily to access by everyone
through Internet. By using this platform, people can communicate and interact with each
other, share information, and it also provides wider opportunities for companies to reach
customers and build company brands.
is also a tool for the companies to obtain more traffic through interacting with the
customers. (Admin, 2010). Social media has impacted the way of communication for both
companies and customers. It offers a platform which is easily to access by everyone
through Internet. By using this platform, people can communicate and interact with each
other, share information, and it also provides wider opportunities for companies to reach
customers and build company brands.
Pay Per Click (PPC): is an
online marketing technique with costs. The companies create
different advertisements with keywords and place them on the related websites. The more
the company pays for the click the more its advertisement appears on the search engine
(Admin, 2010). In order to succeed at PPC advertising, one of the most important factors is
the ability to persuade people to take action by using just a few well-chosen words. And
this also can help the companies to discover which words and messages are most effective
at persuading customers to buy. By using this information companies can design other
online and offline campaigns. To achieve optimal results, all elements of a PPC campaign
must be in good working order, operating together synergistically (Szetela&
Kerschbaum, 2010).
different advertisements with keywords and place them on the related websites. The more
the company pays for the click the more its advertisement appears on the search engine
(Admin, 2010). In order to succeed at PPC advertising, one of the most important factors is
the ability to persuade people to take action by using just a few well-chosen words. And
this also can help the companies to discover which words and messages are most effective
at persuading customers to buy. By using this information companies can design other
online and offline campaigns. To achieve optimal results, all elements of a PPC campaign
must be in good working order, operating together synergistically (Szetela&
Kerschbaum, 2010).
Search Engine Optimization (SEO): is
the use of techniques to increase the website
traffic. By using the appropriate keywords in the content of the company website, the
search engines will display the website on the top of the search results when a reach of a
certain topic is made, and more traffic can be obtained (Cho, 2010). Search engines can be
divided into three different types, namely primary, secondary and targeted search engine
(Ledford, 2008).
traffic. By using the appropriate keywords in the content of the company website, the
search engines will display the website on the top of the search results when a reach of a
certain topic is made, and more traffic can be obtained (Cho, 2010). Search engines can be
divided into three different types, namely primary, secondary and targeted search engine
(Ledford, 2008).
Primary search engine (also called
major), is the type of search engines which is common
known by people such as Yahoo! Google, and MSN are primary search engines. Primary
search engine will bring majority of the traffic to the website of company. Each primary
search engine differs slightly from the others. (Ledford, 2008)
known by people such as Yahoo! Google, and MSN are primary search engines. Primary
search engine will bring majority of the traffic to the website of company. Each primary
search engine differs slightly from the others. (Ledford, 2008)
Secondary search engines are the
search engines with general content but targeted at
smaller, more specific audiences. Secondary search engines are useful for regional and
more narrowly focused searches to generate valuable traffic. Lycos, LookSmart, Miva,
Ask.com, and Espotting are secondary search engines. The ranking of search results will
vary in the way from one to another. (Ledford, 2008)
smaller, more specific audiences. Secondary search engines are useful for regional and
more narrowly focused searches to generate valuable traffic. Lycos, LookSmart, Miva,
Ask.com, and Espotting are secondary search engines. The ranking of search results will
vary in the way from one to another. (Ledford, 2008)
Targeted search engines (sometimes
called topical search engines) are the most specific of
all the search engines. Targeted search engines are very narrowly focused, usually to a
general topic, like medicine or branches of science, travel, sports, or some other topic. For
examples, CitySearch, Yahoo! Travel, and Music Search are targeted search engines. Same
as other types of search engines, ranking criteria will vary from one to another. (Ledford,
2008)
all the search engines. Targeted search engines are very narrowly focused, usually to a
general topic, like medicine or branches of science, travel, sports, or some other topic. For
examples, CitySearch, Yahoo! Travel, and Music Search are targeted search engines. Same
as other types of search engines, ranking criteria will vary from one to another. (Ledford,
2008)
2.4
Various Media Platforms Used To Promote Tourism Development
Social media has grown in popularity over the past 20 years to become
an integral
component of a competitive tourism marketing strategy. It is sometimes referred to as
electronic word of mouth (eWOM) because of the way that information travels and the
impact it can have on behavior (Gruen et al, 2006).
component of a competitive tourism marketing strategy. It is sometimes referred to as
electronic word of mouth (eWOM) because of the way that information travels and the
impact it can have on behavior (Gruen et al, 2006).
The volume of global social media users has increased
exponentially marked by a
simultaneous increase in the level of activity in terms of content that circulates across all
platforms (Morrison, 2014). Social media platforms are increasingly sophisticated,
improving analytics and their ability to hyper target users. This has resulted in a
marketing process for the tourism industry that can be both more efficient and more
effective than traditional marketing. (Edelman, 2010).
simultaneous increase in the level of activity in terms of content that circulates across all
platforms (Morrison, 2014). Social media platforms are increasingly sophisticated,
improving analytics and their ability to hyper target users. This has resulted in a
marketing process for the tourism industry that can be both more efficient and more
effective than traditional marketing. (Edelman, 2010).
Tourism continues to be a major contributor to the global economy,
increasing each year.
According to the United Nations World Tourism Organization (UNWTO), 1.1 billion tourists
traveled in 2014, a 4.7% increase from the previous year and the fifth consecutive year with
robust growth since the onset of the global financial downturn in 2009. Global tourism
receipts from international tourism in 2014 totaled over US$ 1.2 trillion. For example over a decade, Brazil, Russia, India and China (BRIC) have experienced economic growth
that has contributed to increased spending on travel internationally. Many tourism
destinations have invested heavily in marketing efforts targeting these new travel-ready
middle classes. However, in 2014 travel spending differed significantly within BRIC countries
(UNWTO 2015).
According to the United Nations World Tourism Organization (UNWTO), 1.1 billion tourists
traveled in 2014, a 4.7% increase from the previous year and the fifth consecutive year with
robust growth since the onset of the global financial downturn in 2009. Global tourism
receipts from international tourism in 2014 totaled over US$ 1.2 trillion. For example over a decade, Brazil, Russia, India and China (BRIC) have experienced economic growth
that has contributed to increased spending on travel internationally. Many tourism
destinations have invested heavily in marketing efforts targeting these new travel-ready
middle classes. However, in 2014 travel spending differed significantly within BRIC countries
(UNWTO 2015).
The following are the major social media platforms used by the
tourism
industry that have provided insight on significant recent transformations that have impacted how
they are being used as a marketing platform for tourism.
industry that have provided insight on significant recent transformations that have impacted how
they are being used as a marketing platform for tourism.
Facebook
Facebook is the world’s most popular social media platform with
over 1.5 billion followers. It
has been an invaluable resource for tourism marketers for almost 10 years, mainly because it is seen as a low-cost platform to consistently deliver content. In 2012, Facebook reviewed its
content and noticed that 42% of all posts were travel related.
has been an invaluable resource for tourism marketers for almost 10 years, mainly because it is seen as a low-cost platform to consistently deliver content. In 2012, Facebook reviewed its
content and noticed that 42% of all posts were travel related.
Brands can
boost the viewership
of their content
through a variety
of sophisticated paid strategies that can
hyper-target the delivery
of each Facebook post based on
demographics, interests, and habits. However,
public relations professionals
are predonlineing the
end of organic
reach for brands, that
is for content
to flow rapidly
among users without
an advertising spend.
The term “reach apocalypse” refers to this imminent shift affecting
social marketing. According to Sweeney
PR (2012), which has been tracking the decline of organic reach, 17% of
Facebook fans received posts through unpaid distribution in 2012. In 2014,
overall reach decreased to
6% and 2%
for pages with
over 500,000 followers.
The firm predon lined organic reach
to approach zero
by the end
of last year. Other social media experts are
expecting zero organic reach to occur this year.
Twitter
For many years, Twitter was the world’s fastest growing social
media network. The 140-
character “mini-blog” played important roles in both brand and political revolutions.
Currently, there are more than 300 million Twitter followers with over one billion
conversations happening every 48 hours. Twitter is a favorite travel companion; about a third of users access Twitter before or after a trip, while 39% use the platform mid-journey. And nearly 20% of users Tweet to share feedback throughout their travel experience. Because it’s used at every stage of the travel process, Twitter can help brands develop strong relationships with consumers (Twitter, 2014).
character “mini-blog” played important roles in both brand and political revolutions.
Currently, there are more than 300 million Twitter followers with over one billion
conversations happening every 48 hours. Twitter is a favorite travel companion; about a third of users access Twitter before or after a trip, while 39% use the platform mid-journey. And nearly 20% of users Tweet to share feedback throughout their travel experience. Because it’s used at every stage of the travel process, Twitter can help brands develop strong relationships with consumers (Twitter, 2014).
For many
years, Twitter was
confined only to
text, however over
the past two
years the platform has become more visual. In late 2014, Twitter
introduced Twitter Cards that allow tourism marketers to embed specific actions
for target audiences such as registering at a website, viewing and use coupons,
visiting a particular landing page, downloading an app and signing up for an
email list.
YouTube
The video-sharing
website YouTube boasts
more than 1
billion users watching
hundreds of millions of
hours every day.
YouTube has become increasingly
important in light
of the dramatic shift
towards visual content
marketing. Views of travel-related
content have increased an average of 118% year over year with nearly 30% of
videos viewed on a mobile device. 65% of leisure travellers viewed
travel-related videos when thinking about a trip, 48% when thinking about what
kind of trip to take, and 61% when choosing a destination (Google,
2014).Thoughtfully-produced
high-quality video content
can be a
significant lead generator. According to Google, and in line
with the shift to storytelling as marketing, YouTube’s parent company has
noted that “travellers
want to do
more than just
watch videos; they
want to connect with creators and
brands.” In 2014, subscriptions to top travel channels on YouTube increased
106%. Users are more interested in personal stories about travel (“vlogs”) and
less interested in content from official providers. Experience-led content,
particularly videos about food and sports, is also successful in attracting
viewers.
Instagram
Instagram is an online
mobile photo-sharing service that currently has more than 300 million
members. It is
a favourite of
tourism marketers who
are now using
more visual content
to promote destinations, activities
and amenities. As Facebook becomes a less competitive
platform, many tourism brands see Instagram as an alternative for sharing
visual content.
A 2014 Forrester study
demonstrated that Instagram generated 58 times more engagement per follower
than Facebook. Forty-two percent of brand marketers plan to increase their use
of Instagram in 2015 as global usage continues to grow (Elliott, 2014).
While Instagram
has a push
component with brands
delivering images to
users’ feeds, the Instagram community
also relies on hash tags that relate to a particular
subject matter. Tourism brands
can repurpose these images within Instagram streams or across other social
media platforms. Like on Facebook,
travel images have a large impact on Instagram.
In 2014,
Instagram strengthened its
capabilities to feature
short videos, taking
significant market share away
from Vine, and
the previous leader
in the micro-video
space. As the platform builds influence, it has also seen the introduction
of paid content, however the large price
tag makes it
out of reach
for most small
and medium-sized enterprises.
Some experts believe this will be changing soon as Instagram attempts to
build a hyper-targeting advertising platform similar to Facebook’s (Vermeren,
2015).
Pinterest
Pinterest is a visual bookmarking tool with over 40 million monthly
active users. The visual archive
that it creates
is most useful
for tourism business
and destinations in the
dreaming phase of the tourism cycle. It is most useful with actionable content
such as an itinerary that can be purchased, a campaign for participation, or
discounted products that are being offered. 45% of frequent Instagram users
found travel-related Instagram activity to be the most appealing, and 47%
stated that they had been motivated to visit a place because of a post they saw
on Instagram (Kindai, 2014). With the development of a new “Pin It” button that
can be integrated into content sharing bars on websites and other platforms,
Pinterest is expecting to see increased growth in its traffic as the process
becomes more simplified.
