E-marketing In The Hospitality Industry Prospect And Challenges (A Case Study Of Lagos State, Nigeria)

Project and Seminar Material for Tourism and Hospitality

E-marketing In The Hospitality Industry Prospect And Challenges (A Case Study Of Lagos State, Nigeria)


Abstract


This study explores e-marketing in the hospitality industry prospect and challenges (a case study of Lagos state, Nigeria). This included reviewing some of the concepts, processes and issues involved in carrying out business or commerce over the Internet supported by different information and communication technologies (ICTs) especially bearing in mind the relevance of e-commerce in Nigeria. Additionally, the study attempts to examine e-marketing in detail being the centre focus of commercial transaction online and the prospects for the hospitality industry. Moreover, various models of e-marketing, technologies used to deliver e-marketing as well as business security were deliberated. Subsequently, the study discussed benefits and drawbacks of e- marketing to both the hospitality industry. The chapter was concluded by discussing some challenges and prospects of e- marketing in Nigeria.


Table Of Content


Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background To The Study
  • 1.2 Statement Of The Problem
  • 1.3 Objective Of The Study
  • 1.4 Research Question
  • 1.5 Significance Of The Study
  • 1.6 Scope Of The Study
  • 1.7 Limitation Of The Study
  • 1.8 Definition Of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Conceptual Review
  • 2.2 The Nigerian Tourism And Hospitality Industry
  • 2.3 The Tourism System
  • 2.4 The Tasks Involved In Tourism And Hospitality Management
  • 2.5 Analysis Of Market, Resources, & Competitors Environment
  • 2.6 Strategies For An Efficient Tourism And Relaxation Management
  • 2.7 The Challenges In Marketing Tourism & Relaxation Services In Nigeria

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Study Area
  • 3.3 Sources Of Data

Chapter Four

4.0 Results And Discussion

  • 4.1 E-Marketing In The Hospitality Industry
  • 4.2 Challenges Of E-Marketing In Nigeria
  • 4.3 Prospect Of E-Marketing In Nigeria

Chapter Five

5.0 Conclusion And Recommendation

  • 5.1 Conclusion
  • 5.2 Recommendations
  • References

Chapter One


1.0 Introduction

1.1 Background To The Study

According to the definition provided by the American Marketing Association (2008), marketing refers to “an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. In essence, marketing is a consumer-oriented philosophy or way of doing business; companies that are consumer oriented will put consumers’ needs and wants on their top priority. From this perspective, the ultimate goal of marketing is therefore to create and retain profitable customers by satisfying their demands. It is worth noting that the goal of retaining profitable customers is particularly challenging in Asia including Hong Kong. This is because people in this region tend to be more group oriented and the word-of-mouth effects are especially strong.

E-Marketing

Hospitality marketing is unique because it deals with the tangible product, like a bed in the hotel or food in the restaurant, but it also deals with the intangible aspects of the hospitality and tourism industry. It is about the experience in a trip and social status it brings eating in a fine-dining restaurant. Hospitality marketing is very critical in the success of any hospitality and tourism product, organization and tourist destination. Proper marketing effort promotes a product or service that fills the needs and wants of the consumers and at the same time, bring profits to the organization or country that features it. E-Marketing

E-marketing is any marketing done online via websites or other online tools and resources. E-Marketing can include paid services while other methods are virtually free. A wide variety of e-Marketing methods are at your disposal, including: direct email, SMS/text messaging, blogs, webpages, banners, videos, images, ads, social media, search engines, and much, much more.

The increasing presence of the Internet in daily lives has resulted in the Internet an essential media in marketing communication. To gain competitive advantage in the demanding tourist market, it is important nowadays for a hotel company to have its own website, promote its products through social networks and mobile applications, use e-mail as a channel of communication with its business partners and customers, and apply all available information-communication technology (ICT). It needs to provide all information for potential clients in one place at any time of day, from anywhere in the world. That can be possible by using innovative ways of communication and by adapting business operations to demanding requirements of the modern tourist market. This imposes the innovation of practices and the implementation of new technologies in business processes. Therefore, there is a need for awareness about the necessity of applying ICT in the hotel business.

Previous studies have highlighted the importance of ICT in the tourism and hospitality industry (Sigala, 2003; Pitoska, 2013). They were mainly focused on the role and importance of websites in the marketing of a tourist destination (Govers, Go, 2004; Wang, 2008; Woodside et al. 2011), the importance of social media for destination marketing organisations (Ružić, Biloš, 2010), and destination choice (Tham et al. 2013) etc. In addition, previous studies cover topics related to the application of e-marketing in hospitality such as the effect of e-marketing on consumer behaviour (Andrlić, Ružić, 2010), the application of e-mail marketing (Dobrača, 2011) and web promotion in the hospitality industry (Ružić et al. 2011). A set of papers are related to website quality in the hotel industry (Law, Cheung, 2006; Panagopoulos et al. 2011; Schmidt et al. 2008).

However, “as the theory in the field of e-marketing is still in its infancy and not yet well established, there is a need for having more well-established studies that could be considered as a step towards theory building in the field of e-marketing” (El-Gohary, 2012: 1257). Since there is a lack of publications which deal with a general level of implementation of e-marketing in the hotel industry, it seemed justified to conduct research on the application of e-marketing in the hotel industry and thereby contribute to the study of this issue.


1.2 Statement Of The Problem

Marketing is all about identifying, anticipating and satisfying customers need profitably. Tackling the challenges of e-marketing in Nigeria and being effective with digital marketing has posed a serious challenges for the hospitality industries in Nigeria.

The challenges of e-marketing in Nigeria include:

  1. Understanding the rural customer
  2. Making the right technology and marketing choices
  3. Having a compelling proposition for rural customers
  4. Adequately modeling return on investment from e-marketing.

1.3 Objective Of The Study

Thus, the objective of this study are stated as follows:

  1. To determine the level of e-marketing implementation in the hostility industry.
  2. To examine the benefit of e-marketing in the hospitality industry.
  3. To know the challenges of e-marketing.

1.4 Research Question

  1. What are the benefit of e-marketing in your hotel?
  2. How correct is the internet assertion that e-marketing has helped in widening the knowledge and scope of the staffs?
  3. How relevant is e-marketing to the hotel?

1.5 Significance Of The Study

In today’s internet age, building an online presence is imperative for all businesses to be competitive. E-marketing provides businesses with access to mass markets at an affordable price and allows them to undertake a personalized marketing approach. The flexible and cost-effective nature of e-marketing makes it particularly suitable for small businesses.


1.6 Scope Of The Study

This research work examine ‘E-marketing in the hospitality industry: prospects and challenges. This study reveals the importance, prospects and challenges of the E-marketing in the hospitality industry. It also highlights that E-marketing is an important tool to improve the hospitality sales and revenue.


1.7 Limitation Of The Study

In carrying out this study, a number of constraints were encountered.

Firstly, sufficient data posed hindrance due to shortage of textbooks and journals as the few textbooks available in the library were borrowed and not returned immediately.

Secondly, some copies of the questionnaires were not returned by the respondents. This limited the number of responses which the researcher had hoped to work within the project.


1.8 Definition Of Terms

Assessment:

The process of considering all the information about a situation or a person and making a judgement.

E-Marketing:

“Electronic marketing (E-marketing) can be viewed as a new modern business practice associated with buying and selling goods, services, information and ideas via the Internet and other electronic means.


Chapter Five


5.0 Conclusion And Recommendation

5.1 Conclusion

This study presented an overview of the concept of e-business and related technologies, as well as the state of e-Marketing in the Nigerian hospitality industry. The findings have shown that the wide digital divide existing among developed, developing and less developed countries can be narrowed down or completely bridged by the application of e-Marketing and related technology. Also a developing country can leverage on the application of IT to enhance productivity and international competitiveness, develop e- Commerce, e-Business and e-Governance. With IT and related technologies, a developing country can become industrialized and more competitive.

Moreover, various types of e-marketing models were discussed based on two perspectives – based on market relationship and based on technology used. Moreover, the chapter discusses various benefits accrued to e-Marketing organizations among which are efficiency of cost reduction, market benefits, better service delivery and competitive advantage. Conversely, e- marketing organizations may faces challenges of initial development cost, risk of failure, risk of losing focus, opportunity cost, finance, sustainability, and technology challenges most of which are common to new business start-ups.

Meanwhile, a firm preparing to go online should take into cognizance the hardware and software requirement and pay maximum attention to the security issues online in order to succeed in an e-environment. Additionally, e-business software plays a pivotal role in the success of e-marketing transaction due to constant advancement in the software than hardware counterpart. However, considering the rate at which digital products are being accepted, as well as the internet and mobile penetration rate in Nigeria, there is high optimism that e-marketing has a bright future and has come to stay not only Nigeria but also in Africa at large.


5.2 Recommendations

  1. New legislation should be enacted that will conforms to international regulations and best practices. In response to the current political and ethnic instability in the country, the government must embark on a countrywide sensitization and orientation program that is geared towards uniting the various ethnic and religious groups. Such campaign could be launched through the religious leaders, community leaders and schools instructors. Local residents in the different regions of Nigeria must be sensitized on the need to be friendly, accommodative and the need to develop positive attitude in dealing with incoming visitors.
  2. In relation to the marketing mix of product, the government of Nigeria must embrace on nationwide infrastructure rehabilitation. Such infrastructure must include tourism related infrastructure such as the roads, pipe borne water, amusement parks, museums, electricity, internet and communication facilities and the hotels and relaxation joints. Such feat could be achieved by embarking on a public and partnership program in order to reduce the financial burden that such rehabilitation program might pose on the government.
  3. Regarding the marketing mix of promotion, government efforts must be focused on promoting tourism. Even with rich cultural diversity, and immense tourism attraction potentials, an efficient promotion and marketing is needed to further enhance the growth of the industry. Hence it is important that the Nigerian government adopt its position as a cultural tourism destination in the market place through aggressive marketing of its tourism products. Marketing activities should focus on markets that will offer the best prospect – the United Kingdom, United States, Caribbean, West Africa, South America and South Africa. Furthermore, public relation and promotion campaigns must be undertaken to counteract the negative image of Nigeria. Such medium as the internet, the cable network news (CNN), British broadcasting corporation (BBC) and the Ajazeera network could be employed as a means of publicity of the country, as major tourist destination.
  4. Also, the strict regulations on tourist entry visa must be reviewed to appropriately comply with what is obtained in popular tourist countries such as Thailand, Malaysia, France and the United Arab Emirate. Regarding this, it is recommended that an online based platform through which tourist visas can be applied and secured should be initiated by the Government or concerned authorities.
  5. Finally, human development is a key determinant in the activities involved in the preparation, packaging and offering of tourism related goods and services to the market. In this case, the Nigerian government should initiate a training and development program aimed at equipping staffs/personnel in tourism establishment with the required skills and expertise to deliver the most effective products and services in the market place.

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