Impact of Facebook Promotion on the Decision Making Process of Tourists: A Case Study of Panama City
CHAPTER 1: INTRODUCTION
Tourism, marketing and technology are moving together and changing their dynamics, moving from passive destination advertisements on television or magazine to a new era of online social media. Promoting a touristic destination trough traditional media is slimming down. These days tourist use the internet to find information and compare deals before making a decision about holiday destination, with special attention to other userrsquo;s opinions and comments who have visited those places.
As put forward by Google commissioned Ipsos Media CT，nearly 70% travelers make travel planning assisted by search engine. Companies in the tourism sector are renewing their marketing strategies for online promotion. Tourist destinations are more and more depending on internet and social media to spread their images and market their products.
Using social media, travelers, create communities where can be shared their own experiences as travelers and forms informational networks that allow potential tourists to collect desired knowledge from several sources as well as take advantage of other touristacute;s experience. Based on the research, Social media impact on holiday travel planning, provided by Fotis, Buhalis and Rossides (2011), “Potential consumers depend on other travelers experiences during they make a decision”
According to the 2014 Social Media Marketing Industry Report, published by Social Media Examiner, The most popular Social Media are: Facebook, LinkedIn, Twitter and Instagram. Only from these popular Social media, Facebook, offer to companies advertising tools such as target segmentation, sales promotion and shopping cart.
Social media offers many benefits to companies that use them as a communication channel and promoting tool. Providing: lower cost compared to other media such as television, newspapers; Brand interaction, as a result of user features and facilities of the platform; Then the process of obtaining feedback from users; Increase the presence of brand; Strengthen position in the Internet.
There is some information that must be understood by companies in the Tourism industry also as tourism authorities. Simple questions as what information do potential tourists look for?, will help to understand their needs, create a road map of customer making decision process and to delivery maximum value through social media to potential clients.
The purpose of this chapter is to give an overview of the topic with the scope of research and to provide readers an outline of the paper. Begin with the introduction and a discussion about the background and research problem, along with the study objectives and research questions. The boundaries of the study subject are also mentioned.
CHAPTER 2: LITERATURE REVIEW
In this chapter, the literature review will be built to narrow down the scope of theory by collecting of previous relevant researches. The literature review will contribute to the knowledge of the studied subject which help the reader have a better understanding of the study.
2.1 Role of Digital Marketing in Tourism: Panama City Perspective
An effective digital marketing strategy, in the tourism industry, seeks to integrate the objectives of tourism companies and travelersrsquo; needs. The use of the internet and thus social media in the tourism industry is increasing and covers much more than the general information on destinations and companies. In fact, every day more people are choosing and buy over the Internet, due to the agility and convenience provided by the new communication technologies. Bovykina, Katya (2014) established that 'Hospitality and tourism is one of the industries that is most affected by digital development. Transportation and accommodation companies are
among the first ones to utilize digital marketing techniques in their practices to engage communities and make sure their customers have the best possible away-from-home experience.' Digital Marketing is the application of all marketing strategies undertaken to digital media. All techniques off-line are imitated and translated into a new world, the online world. In the digital media we have new tools like the immediacy, the new networks that arise every day, and the possibility of measurements each strategy employed.
Another definition of digital marketing is presented by Drsquo;Mello, Dixon 'Digital Marketing is all about promoting the brands or products via the electronic media such as the Internet, Social Media, etc. It has tremendously enhanced the applicability, where messages can be easily communicated and spread among the targeted audiences, letting them know about the actual intention of the campaign.'
Travelers can find information on the internet about places to visit, restaurant, hotels, casinos and shopping centers. Many companies are aware that travelers use the internet and Facebook to find this type of information and are integrating their traditional marketing strategies with digital marketing strategies. Traditional marketing still occupies an important place, but promoting in traditional media involves a significant cost while digital marketing price are very low.
The marketing techniques used by Panamanian companies and the Tourism Authority must change their paradigm. In the past the distributors, media, and the producers were those who had the power of opinion, now the focus must change to the user. These days, travelers are able to find what they want through the power of the search engines such as Google, Yahoo and Bing. Also the user has the ability to read reviews, comments and ratings of other usersrsquo; review in communitiesrsquo; websites such TripAdvisor, Expedia and Booking.
2.2 Social Media
Social media is becoming an indispensable part of the marketing mix for man
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