Lecture: Implementation of Mobile Marketing for SMEs Kempten University of Applied Sciences, Feb. 2014

1.  Richard Adam
 Implementation
of
 Mobile Marketing
for
 Small and Medium-Sized
Tourism Enterprises
 Kempten, Feb. 6, 2014

2. Agenda
1. Objective
2. Scope and Definitions
2.1. SMTEs – Weaknesses and
Challenges
2.2. Marketing and Mobile
Marketing
2.3. Implementation
3. Context: Pre- and Post-
Implementation
4. Implementation
4.1. Take Step-by-Step Approach
towards the Big Picture
4.2. Milestones
5. The Big Picture
6. Conclusions and
Recommendations
Sources & References
Richard Adam
 Implementation
of
 Mobile Marketing
for
 Small and Medium-Sized
Tourism Enterprises
Kempten, Feb. 6, 2014

3. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
1. Objective:
 a) Understanding of the general context of the
implementation process and pre- and post-
implementation issues to be clarified prior to
implementation.
 b) Understanding of the structured process of
step-by-step implementation, the milestones,
decisions to be made and actions to be taken
along the way when implementing mobile
marketing.

4. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
2. Scope and Definitions
2.1. SMTEs

5. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
2. Scope and Definitions
2.1. SMTEs – Weaknesses and Challenges – 1
 Lack of consistency in operational management (no quality
standards for products and services)
 Financial constraints (smaller IT- and marketing budgets)
 Independent
 Weak economies of scale ratio
 Lack of bargaining power due to economies of scale (tour
operators, media, CRS, GDS)
 Lack of marketing research in terms of customers needs and
wants
 Lack of strategic vision and planning
 Lack of awareness regarding state-of-the-art marketing
techniques and tools available, tend to follow a product-oriented
approach.

6. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
2. Scope and Definitions
2.1. SMTEs – Weaknesses and Challenges - 2
 Promotional activities tend to be uncoordinated,
inconsistent, and ill targeted (low effectiveness)
 Lack of special competencies (also IT related) and
informal recruitment criteria
 Human resource management (size of operation and
seasonality problems provide little opportunities for dividing
tasks within the organization); employing professionals;
competitive salaries; training
 As a consequence, SMTEs often depend on personal
skills and enthusiasm of their staff and thus face
competitive disadvantages as larger enterprises have the
resources to attract specialized and proficient personnel
 90 % of operations in tourism are SMTE
 Most SMEs don’t have the time to figure out the
digital world.

7. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
2. Scope and Definitions
2.2. Marketing and Mobile Marketing
 “Mobile Marketing is a set of
practices that enables
organizations to communicate and
engage with their audience in an
interactive and relevant manner
through and with any mobile device
or network.”
 Definition according to the Mobile Marketing Association,
MMA, USA)

8. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
2. Scope and Definitions
2.3. Implementation
“The implementation phase involves
assignments addressing the who, where,
when and how of reaching the goals and
objectives of a business. It is the second
step in the marketing process and involves
the entire organization. “
Lorette, K.: Implementation Phase of the Strategic Marketing
Process, Demand Media
http://smallbusiness.chron.com/implementation-phase-strategic-
marketing-process-5042.html

9. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
3. Context: Pre- and Post-Implementation
“Mobile” is nowhere near a standalone medium …….
 Status Analysis, Business Strategy and Business Model
 Overall Marketing Strategy (market segmentation, target
groups, products and services, pricing, distribution)
 Marketing Mix (communications, narrative, packaging,
promotions, advertising, sales, channels, incentives, on- and
offline activities, cross selling, seasonal incentives etc.)
 Mobile Marketing Concept Development (target groups,
content, reach, features etc.)
 IMPLEMENTATION
 KPIs, controlling, revision, sustainable development and
improvement

10. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
4. Implementation
4.1. Take Step by Step towards the Big Picture
In principle, the dimensions of
implementing (mobile) marketing are …..
 Step 1: Communication tools and programs
 Step 2: Inventory Sales
(rooms, tickets, meals etc.)
 Step 3: Cash/banking transactions

11. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
4. Implementation
4.1. Take Step by Step towards the Big Picture
 Step 1: Communication tools and programs

12. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
4. Implementation
4.2. Milestones
The Value Chain Model (Porter & Miller, 1985)

13. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
4. Implementation
4.2. Milestones
Step 1 (Part 1)
 Technical and design requirements
Mobile Website
Apps (Native, Hybrid HTML 5, Web Apps)
Java Script programming, media, performance,
structure, style, testing
 Content (put content over navigation), tags, keywords
for search engines
 Budget
 Channels
 Time frame
 Personal resources (drivers and accountabilities)
 Legal issues (privacy rights, intellectual property rights)
 Language versions

14. Richard Adam
Implementation of Mobile
Marketing in SMTEs
4. Implementation
4.2. Milestones
Step 1 (Part 2)
 Make or buy
 Mobile Site?
Native Apps, Hybrid Apps?

15. Richard Adam
Implementation of Mobile
Marketing in SMTEs
4. Implementation
4.2. Milestones
Step 1 (Part 2)
 Make or buy
 Mobile Site?
Native Apps, Hybrid Apps?
full service agency OR freelance
developer?
Domain based content or external Location Based Services
(Qype, Glympse, Around Me)
Social Networks (FB, L`IN, XING, Twitter, YouTube, Instagram)
Mobile travel content sites (TripAdvisor, Holiday Check)
Mobile Banners on third party mobile sites, QR Code advertising etc.

16. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
4. Implementation
4.2. Milestones
Additional for Step 2 & 3
 Establish requirements (inventory booking interface) for
Mobile travel booking sites (HRS, Agoda)
 Eshop/Ecommerce solution, payment processing
solutions (Credit Cards, PayPal)

17. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
5. The Big Picture ……..for now
 Source: The Boston Consulting Group: Connected World – Transforming Travel,
Transportation and Supply Chain, World Economic Forum Publishings, Geneva, May
2013

18. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
6. Conclusions, Recommendations for SMTEs - 1
 Mobile Marketing is not a stand-alone path, but integrated in
the overall business strategy and the marketing mix
 Mobile Marketing is not a stand-alone-solution. Channels
and service partners are necessary to reach customers and
process transactions
 Follow a step-by-step approach and defined milestones but
consider the full picture
 Allocate sufficient financial and human resources and revise
regularly
 Try to be with the best in what you implement, otherwise
leave it in order not to damage your brand and reputation,
don´t release premature solutions
 Make the experience enjoyable and involve customers

19. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
6. Conclusions, Recommendations for SMTEs - 2
 Put content over navigation
 See it as an investment, not primarily as costs
 It is an ongoing development, improvement and
expansion process, not a “project”
 Mobile Marketing has just begun. Ensure adaption of
developments when applicable.
Mobile Connectivity will make old-school
Marketing Strategies obsolete
A key reason for failure of digital (and mobile)
efforts is, especially within SMEs, that we try to
do too much, all at the same time!

20. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
Sources and References
 GOOGLE Market Data: Utilization of Mobile Devices
 http://www.thinkwithgoogle.com/mobileplanet/de/
 GOOGLE Market Data: Case Studies Mobile Marketing
in Tourism
 http://www.google.com/think/industries/travel-tourism.html

21. Richard Adam
Implementation of
Mobile Marketing in
SMTEs
Sources and References
Literature and Scientific Surveys:

 Boston Consulting Group (Hg.). Connected World – Transforming Travel, Transportation and
Supply Chain, World Economic Forum Publishings, Geneva, May 2013
 BUTCHER, D.: How Travel, Tourism and Hospitality Companies can use SMS, A Mobile
Marketer Publication, Neustar Inc. (Hg.), Sterling, USA, 2013
 BUHALIS, D.: Enhancing the Competitiveness of Small and Medium-sized Tourism Enterprises,
in: International Journal of Electronic Commerce - University of St.Gallen - Institute for Information
Management - Switzerland Vol. 6, No. 1, 1996
 BUHALIS/JUN: E-Tourism, in: Contemporary Tourism Reviews, Goodfellow Publishers, Oxford,
UK, 2011
 BURGESS/SCOTT/MONDAY et al.: Helping SMTEs plan and implement information and
communication technology, CRC for Sustainable Tourism, Griffith University, Gold Coast,
Australia 2013
 DMAI - Destination Marketing Association International (Hg.): Digital & Mobile Marketing Toolkit,
Washington, USA, 2013
 EL-GOHARY, H.: E-Marketing – a literature review from a Small Business Perspective, in:
International Journal of Business and Social Science, Vol. Oct. 1/1, Radford, USA, 2010
 KENNEDY-EDEN/GRETZEL: A Taxonomy of Mobile Applications in Tourism, University of
Woolongong, Faculty of Business, Review of Tourism Research Vol. 10/2, 2012
LORETTE, K.: Implementation Phase of the Strategic Marketing Process, Demand Media
http://smallbusiness.chron.com/implementation-phase-strategic-marketing-process-5042.html
 MICHAEL/AGGARWAL/KENNEDY et al.: Ahead of the Curve, Lessons on Technology and
Grwoth from Small Business Leaders, The Boston Consulting Group, Oct. 2013
 MMA – Mobile Marketing Association (Hg.): The Mobile Marketing Roadmap, NYC, USA, 2013
 MOUSTAFA, M.: Evaluating the Potential of Mobile Technology in Tourism Destination Marketing,
University of Cardiff, Dissertation, 2011
 SIMUNIC/CAR/LASKARIN: Mobile Marketing and Advertising Strategies in Tourism and
Hospitality, University of Rijeka, 2013

22. Richard Adam
Implementation of
Mobile Marketing in
SMTEs