Digital marketing and branding MKT2013 Assignment 2 By Fahad Shabbir 8Th May 2017 Introduction Website marketing is the use of a company web site in together with online advertising tools that include banner advertising, search engines, e-mail and links or services from other web sites with the aim of obtaining new clients (Sanchez, p.45). Australia is the second country with the highest penetration of internet users in with 61.3% internet penetration after North America that has 77.4% internet penetration. Europe is third with 58.4% internet penetration (Internet World Stats, p. 12). Part #1 My Report – Fahad Shabbir (U10174015) Sector: Automotive Name of enterprise / company: Subaru Type of channel: Website Visual Representation: Subaru Website homepage Website Website marketing provides a good platform for marketing since it has as large number of audience and so the high the internet usage, the higher the potential customers or clients for a given company. Website is usually perceived as the main tool of internet marketing. All the other strategies usually attempt to promote the website and thereby get more visitors to the web presentation. Therefore, to convert the visitors who visit the website into customers, the website should contain all the necessary information regarding the company and its products (Singh, Veron-Jackson and Cullinane, p. 286). To implement Internet marketing, various steps include defining the online opportunity, selecting of the strategic approach and delivery result online need to be out in place. The key components to an effective digital marketing are differentiation, targeting, segmentation and positioning (Brodie, p. 6). Nowadays, we can find the link of a corporate web site presentation more often and can be seen on billboards, TV advertisements, e-mails or discussion forums. Web presentations is thus an indivisible part of every firm’s marketing activities. Therefore, marketing activities of the company can be supported by utilizing the internet services (Stuchlik and Dvoracek, p. 186). Web marketing is a revolutionary process for all types of business operations. Website is usually perceived as the main tool of internet marketing. All the other tools usually try to promote the website and bring more visitors to the web presentation (Chang, p. 423). Internet is extensively used by organizations to boost the performance of business and online promotion is one of the most successful and economical techniques of marketing for businesses. Main advantage of all strategies of internet marketing is that companies can conquer the barriers of distances and management team can not only promote their products and services all over the world but sell them and generate huge revenues (Gilmore et al, 241). Internet is used as a primary source of advertising by some companies. Jim’s Report - Student Number 0061022247 Sector: Automotive Name of enterprise / company: Subaru Type of channel: Social Media Visual Representation: Subaru Logo, Subaru text, slogan “Confidence in Motion” Target Market: Channel in relation to the target market, knowledge, ideas and judgements in relation to the Target Market Subaru is an automotive company originating out of the 50’s. Their target market is as diverse as their history is long, with dedicated communities embedded in all types of social media networks. Their iconic logo, the 6 stars of Pleiades floating on a blue background has become the standout symbol for their massive following. A following that has amassed such a wide range of brand communities using social media. Social Media is the terminology used to describe how humans connect with each other through technologies (Safko 2010). Currently some of the most popular social media platforms are Facebook, Instagram and Twitter (Marketing of Higher Education via Word-of-Mouth 2015). These platforms provide a place where anybody can write anything about any organisation (Brenn-White, 2015). They allow people to not only connect and identify with brands without geographical, social or economic bounds, but also connect with each other affirming their social identity. The insatiable need to connect, intertwines with a theory developed by Bagozzi & Dholakia (2006, p. 49) called social identity theory. The theory investigates how members of  brand communities act upon the collective goal or expressed commitments of the group (Zaglia 2013, p. 217). How this relates to Subaru’s target market is through the communities which they “assist” or have developed. Starting with their own Facebook page, Subaru Australia have close to 78,000 members (Facebook, 2017). Building on that, the brand communities of Subaru have social media sub-groups and communities that stretch out into the hundreds. These communities are so diverse they reach different demographics ranging from gender to location and inclusive of all socioeconomic levels. It's not just demographic or socioeconomic indicators that comprise of the sub-groups and communities, with such a strong following there are sub-groups and communities for nearly every model of Subaru vehicle made. 78,000 members, For Subaru, connecting to these brand communities through social networks allows not only Subaru as a brand, but the members of communities to communicate their stories. Validating their qualities and values (Marketing of Higher Education via Word-of-Mouth 2015), members use #subaru, #subielife, #mysubie when posting through social media platforms. An example of the amount of reach this imposes; stats from keyhole.co show that in 1 day with the hashtag #Subaru there was 120 posts reaching 328,236 users (Keyhole, 2017). As each user personalities their post, tailoring the Subaru brand to what it means to them, they further create a relevant and authentic platform for Subaru as a company to engage them. Saud’s Report - Student Number: 0061069299 Sector: Automotive Name of enterprise / company: Subaru Type of channel: Store Visual Representation: Photo of dealership Subaru Subaru can be referred to as the automobile manufacturing division of Japanese transportation conglomerate Subaru Corporation. According to the data that was collected in 2012, it was ranked as the twenty-second largest automaker production in the world. The word Subaru is derived from the Japanese name for the constellation that is referred to as Taurus in the Western world. The constellation’s cluster is a representation of the five companies that merged in 1953 for the formation of the FHI. That said, it will be imperative to delve into the different types of channels used by the organization as well as the target market and an analysis of the channel in relation to the target market. Marketing Channels After the production of goods and services, there is the need for a channel to exist in which the product or service can use to reach the consumer (Boone, & Johnson, 2012). In the past, the manufacturing organizations often focused on the production of goods and services, but when it came to the marketing channel they often outsourced the services to marketing companies (Pellegrini, & Reddy, 2013). However, now the trend is changing with different organizations diversifying and taking up the challenge of also carrying out marketing on their own (Kurylko, 2013). That is not to say that there are organizations that do not outsource the services to marketing organizations. There are different marketing channels that are employed by Subaru in ensuring that their consumers get the services and products. To begin with, Subaru employs the store channel that can fall under the dual distribution or sell through intermediaries. To have an in-depth understanding of how store channel works under the two channels mentioned above, it is important to define the dual distribution and to sell through intermediaries (Pellegrini, & Reddy, 2013). The marketing channel of selling through intermediaries involves the use of retailers and wholesalers in making the product available to the consumer. Often the channel is composed of the producer, agent, wholesaler, retailer, and consumers. However, the level of the channel varies. Given that it is an automobile there will be the producer, agent, and consumer. The reason for having a short level of the channel is to ensure efficiency (Boone, & Johnson, 2012). In most cases, the agents of are known as the dealers and situated in different parts of the world. On the other hand, dual distribution refers to a variety of marketing arrangements in which the manufacturer employs more than one channel simultaneously in reaching the consumer (Kurylko, 2013). There are different ways in which the product reaches the market such as selling directly. One of the examples, of dual distribution in business, is the format of franchising in which the franchisors license of the operation of a number of its units while at the same time owning and operating some of the units themselves (Pellegrini, & Reddy, 2013). The case is no different when it comes to Subaru since they have also franchised their operations in which dealers are allowed to act on behalf of the Subaru Corporation. Store Channel The store channel is employed by Subaru Corporations where the products are placed in stores which can be in the form of showrooms for cars. These showrooms are of importance since they are used by the car dealers and the Subaru Corporation to show the clients the different ranges of Subaru cars that they have (Boone, & Johnson, 2012). In this light, when it comes to the selling through intermediaries in which the car dealers come in. The car dealers can employ different marketing strategies such as the use of online platforms in which they reach a wider audience that is interested in Subaru products. To begin with, there is the Facebook Subaru Page for America that has around two million followers is just but an example of how the organization uses the online platform in reaching its clients. Retrieved from https://web.facebook.com/subaruofamerica/?_rdc=1&_rdr The above picture is taken from the Facebook page of Subaru America Inc. It is an example of how the Subaru Inc., uses the online platform in conjunction with store channel in ensuring that their consumers get their goods and services (Mertl, 2016). The other channel that is incorporated in the store channel is the dual distribution where there is the use of agents. It is important to understand that the car dealers also use the store channel where after getting the products from Subaru Corporation they store them in their showrooms (Boone, & Johnson, 2012). For example in Australia there are different Subaru care dealers such as Murray Bridge Subaru, Subaru Interactive @ Docklands, and Capital Subaru just but to mention a few. They have been licensed by Subaru Corporation to carry out transactions on behalf of the organization. The above picture is a screenshot of the Subaru of America Inc., Facebook page. Type of Target Market The type of target market plays an integral role as far pushing sales of Subaru products is concerned. In this light, the type of target market is the urban adventurers (Mertl, 2016). Often this group is made up of young people who want to explore and love sports. The Subaru Corporation are trying to have a share of the market since there is still growing small sports utility and crossover vehicle market (Kurylko, 2013). Besides, the organization is also meeting the needs of different segments based on the different geographical features. Additionally, the different segments also have different needs making it important for the organization to carry out research on the markets available and identify the niche to penetrate. The store channel and the target market are complementary since it shows how they are related. To begin with, the store channel allows for the different segments of the market to access the different Subaru products available and identify that which meets their needs (Kurylko, 2013). Also, it allows for the potential clients to have sight on the products that might attract them. The store channel also allows the management to show a wide variety of the products present and so a client can make their decision based on the product present (Mertl, 2016). The clients are also updated on the different products that have been unveiled into the market. Daniel’s Report - Student Number: 0061059811 Sector: Automotive Name of enterprise / company: Subaru Type of channel: YouTube/Blog based Visual Representation: Youtube Logo Subaru is a Japanese Automobile manufacturer, selling vehicles internationally and manufacturing them in Japan, America, Europe, Oceania and Asia. (Where Are Subaru Cars Built?, 2017) (Subaru Australia: New Cars, Used Cars, Test Drives, 2017) Subaru targets these geographical quadrants heavily, as they are the highest in automobile consuming population, therefore guaranteeing Subaru the highest potential return on their investment. (Where Are Subaru Cars Built?, 2017) Subaru states that the company has a strong hold on the gay and lesbian demographics, as well as environmentally conscious individuals, potentially due to the eco-friendly nature, with some factories emitting no waste to surrounding ecological areas and ‘freedom’ based ideals of these demographics, which many of Subaru’s vehicles cater to, such as the WRX or Forester. (TeamSubaru - Marketing Strategy, 2017) While Subaru is aware that the niche gay/lesbian and eco-friendly demographics are both viable market demographics, they have opted to target a much larger demographic, estimated to be up to 60 million persons in size. (TeamSubaru - Marketing Strategy, 2017) This demographic of an estimated 60 million persons is comprised of individuals who are generally relatively educated and affluent, with an average household income of $88,000 USD (Just below $120,000 AUD). This demographic generally bears traits such as frugality, with many of this demographic being relatively unaffected by the Global Financial Crisis that occurred in 2008-2009, with as much as an estimated 36% (Over 1/3) of this demographic purchasing Subaru vehicles in cash. (TeamSubaru - Marketing Strategy, 2017) (Center, 2017) Psychographic and behavioural mannerisms of the target market are persons who are conscious about the environment, and the by-product waste produced through the process of creating an automobile, as well as individuals focussed on ‘freedom’ and ‘adventure’, who purchase a vehicle as an avenue for experiences it brings, rather than purchasing a vehicle as a product. (TeamSubaru - Marketing Strategy, 2017) Subaru states that it is aware that traditional dealerships and automotive manufacturers at large are guilty of collectively over supplying marketing information to consumers – they state that digital technology assists Subaru in breaking that mould, by sharing what is unique about them as a company and automobile manufacturer, as opposed to simply advertising a product. (Lacoste, 2017) Subaru has differentiated themselves from competitors by utilizing media as an avenue to find likeminded persons with mutual interests, passions, requirements that Subaru can meet – using media as a personalized avenue to share content with the target demographics, and capture interest in Subaru. (Lacoste, 2017) One of the avenues being utilized by Subaru is YouTube, a video hosting and sharing website that allows anybody to upload and/or view media content for free. Subaru has used YouTube as an avenue to reach its target demographic, and much more – with time spent on YouTube more than doubling for 18+ year olds between 2015-2016, and almost tripling for 55+ year olds. In addition, the gender of viewers is a 50/50 split, with YouTube users more likely to have a college degree than the general population – which is exactly what Subaru has identified as being a key part of their target demographic. (The Latest YouTube Stats on Audience Demographics, 2017) YouTube users are also more likely to have children than non-users, which also is potentially a part of Subaru’s target market, of a household earning a combined $88,000 USD. (The Latest YouTube Stats on Audience Demographics, 2017) Subaru has key markets within both Japan and Canada, and therefore utilizes a dedicated channel to cater to both markets. There is both a Japanese-based and Canadian-based YouTube channel which Subaru manages and uploads content to – in order to more accurately target these geographic demographics.  (Where Are Subaru Cars Built?, 2017) (Heritage | Our Story | SUBARU, 2017) (SubaruCanada, 2017) (SUBARU On-Tube, 2017) The Canadian channel aims to strike an affinity with Canadians, through videos such as ‘Vice Versa’, an edited action sports video, depicting the Canadian professional freestyle mountain biker, Brandon Semenuk, driving a Subaru up a windy mountain side at dizzying speeds, with bike in tow, only to barrel down the mountain side aboard his bike – with several scenes depicting the Subaru in a controlled slide, displaying the ‘sporty’ nature of the vehicle. Overall, the video depicts the potential the vehicle has to facilitate experiences and the consumer’s lifestyle easily and in a fun manner. (Vice Versa, 2017) (SubaruCanada, 2017) (Brandon Semenuk, 2017) This video will surely land an affinity with Canadians and Mountain Bikers abroad, with Canada being known both nationally and internationally for being one of the most desired locales for mountain bikers to ride, in the world.  (Greenwood, 2017) In summary, YouTube’s viewer base contains persons that are also applicable to Subaru’s target market. Therefore, Subaru has seized the opportunity to pursue their target market by utilizing YouTube. Subaru has taken a unique approach to this, by not utilizing advertisements designed to encourage purchases, but by sharing media content that their target demographics may find interesting, which shows entertaining and/or interesting footage, showcasing intangible factors that the demographic value, such as experiences that a consumer may utilize a Subaru vehicle to obtain, or show a lifestyle that it may facilitate. (The Latest YouTube Stats on Audience Demographics, 2017) (Lacoste, 2017) (TeamSubaru - Marketing Strategy, 2017) (Greenwood, 2017) Part #2 Strategies used in website marketing for Subaru ⦁ Social Media Marketing - Viral marketing Social media marketing is marketing using online platforms, social networks, blog marketing among others. People spend more and more time in the Internet by using social media sites. They share the news, upload photos and videos, search products, check email and communication to each other. The number of social media users are growing every year. In 2015 the number of active users was around 2.206 Billion with a global penetration. Social media marketing offers an additional customer support channel and easy and trusted client response channel (Xiang and Gretzel, p. 182). Social media marketing comprises of the effort to use social media to persuade customers to buy a company’s products or services. Social media marketing commonly attempts to build content that draws attention and encourages the people reading to share it through their social networks. Social media marketing has several advantages; it provides an opportunity for marketers to present their products and services to clients; the customers’ grievances and suggestions becomes easier to be addressed by the company; the marketers can easily identify several peer groups among different groups, who help to further advertise the brand at virtually zero cost since most of the social networking sites are free. (Borges, p. 123). Popular social media platforms that can be incorporated to website marketing include Facebook, LinkedIn, Twitter, YouTube and Myspace among others. The website content is created and linked with social media to enhance reach to wider target audience. Users interested in specific topics highlighted in the company website can make comments and offers feedbacks by designing website to have option for customers to contribute. These users might want to share this content also with their friends (Fernando Angelo, p. 7). That is why the Subaru Company must adopt option on their website to allow customers share content on social media marketing platforms. The users get the chance to share the content with their friends, and which can also increase the reputation of the Subaru Online e-shop itself. E-shop allows the customers to shop online and share their experience with friends. The most efficient and simple method how to promote the website and let users share the content with other users is by using Social Plugins on company website. Facebook is one of the most popular networks. Nowadays, Facebook is actively used for creating and increasing the brand or company awareness. Subaru Online creates web pages and post news, share photos and videos and make updates of important changes and events Social plugins enable one to see what their friends have liked, shared on or have commented on sites across the internet (Kontaxis, p. 1). For Subaru, Online, options such as “Like button” and “Like box” suits best company and customer’s needs and can significantly help to improve the performance of the e-shop. Twitter is another most popular social network. In Twitter messages, can be post that are no longer than 140 characters. Users use Twitter because they want to be on top of latest trends, news and events. The users want to be updated about what is going on around them (Scherer, p. 3). The brand awareness can be increased by going to the source. The posts consist information about latest trends and technologies, future sector development, events that important for the company. Moreover, Twitter helps to monitor feedback of companies, customer support, in order to learn more about customers’ problems and reviews. Online videos offer a great prospect for a company’s business marketing. Online videos are interactive, create more impact on the viewer and make it easily memorable; and this is the main advantage of using online videos (Dobele-Angela et al., p. 239). The online videos are incorporated to company websites demonstrating current Subaru models in the market which can be shared easily with anybody. Online videos are not expensive to create and these attributes of online video make it widely reachable. Online video incorporates many features of YouTube that allows a single click on video to play (Bscheid, p. 6). Online video is one of the easiest way to produce targeted and constant addition of content to the website. Investing on advance technology allows Subaru Online to adopt a low-cost video marketing. Making a simple video and placing it online is rather inexpensive and it has the advantage, that the video will stay online forever unless removed by administrator. Once posted, people can find the video in several years to come making it less expensive for administration thereby accumulating huge useful content for the customers. Online Video Marketing is a sphere which is on rise. The consumption of online video continues to rise tremendously giving opportunity for Subaru to reach the digital consumers. For instance, 146 million Americans watched videos online, streamed a total of 12.6 billion video clips in November 2008 which is nearly double the number they streamed in less than two years earlier (Helft, p. 2). ⦁ Store Marketing Store is the dealership part of the Subaru, to show off their great cars to the consumers they need to display them somewhere. Store allows consumers to interact with people who know everything about Subaru cars and store is a place where you end up buying your car from. Subaru experts will walk you through the details like specs, abilities and pricing off the cars. It makes it easier for you to decide which type of car you want to buy. For a Automotive brand it is important to have a place to sell you cars at, and dealerships/store is the best place. This multi-channel strategy is important for the automotive brands and without this strategy there is no way they can market and sell anything. ⦁ Email marketing This type of marketing allows use of electronic mail to connect with customers (Sterne, J. and Priore, p. 13). Subaru Online sends out emails mainly to develop strong relationship with the old and new consumers. Subaru Online collects a list of client’s email addresses and sends direct promotional messages to the clients. It may also enlist the services of email service providers such as yahoo, Gmail, Hotmail etc. and rent a list of email addresses from the service companies. Advertisement or newsletter with the aim of enticing older or new clients to buy or let them know of new services and products will be emailed to the clients. Since one can generate emails depending on the behavior of customers, the promotional material will be tailored to their needs and to present appropriate to potential buyers. ⦁ Blog-Based Marketing/YouTube A blog is a website that details personal views of individuals on a particular topic (Wright, p. 25). The blog for Subaru Online comprises of web pages, text, images, and links to other blogs and media related to the marketing of Subaru. It also includes photos, video, audio and podcasts. Blog is more effective through its content. One report revealed that 57 million of American adults representing 39% of the population are blog readers (Dawson and Dawson, p. 24). The outcomes of blog marketing are excellent as these boost website search engine ranking and popularity, drawing in customers. Through blogs, Subaru Online e-shop will share its information, update its customers on new products and provide links to the main sales channels by using blogs in order to promote its brand awareness. The Blogs makes it easy for posting of comments and feedbacks and to allow fans and critics to post opinions and questions which can help the company adopt the best service delivery to its clients. This promotes the interchange of ideas among peers and can also encourage honest dialogue between clients and the company to mend in any shortcomings (Hafele, p. 5). YouTube is always a useful way as well for consumers to look up videos on the great cars Subaru makes. I think YouTube and blog based marketing is very important for automotive giants like Subaru. These days a lot of people use Blogs and YouTube. By doing this, Subaru can reach out to more people. ⦁ Website marketing for Subaru Subaru Online is an electronic store that has changed its focus to match new trends in automobiles of the 21st century. The e-shop offers its customers mainly information on the new models of the Subaru automobiles in Australia and spare parts. Subaru Online also offer consultancy services to its customers in terms of providing solutions to customers’ queries and giving detailed information about Subaru, manuals on how to take care of the automobile and linked video demonstrations and many other demonstrative pictures (Alvy and Calvert, p. 711). Subaru can offer excellent information to customers in Australia by posting different models, their prices and where they can get the cars. Another part employed in website marketing is incorporating a Frequently Asked Questions (FAQ) combined with discussion forum to solve frequent questions and clear misconception. Microsite, also sometimes referred to as Minisite made as a supplementary internet marketing tool with the aim to promote the main site of the e-shop. The reason why microsite is chosen for promoting the main page is, that there is no other simple tool, that can provide optimized page for a specific topic that cannot be covered by the main e-shop page. Part #3 Search engine optimization This is used to improve the quality of the information which comes to the Subaru Online website from search engines. This enables the Subaru Online to be visible on the first page of search engine results whenever users search for a specific key word and find a match (Boulay, p. 3). In this way, the company has a better chance of being noticed by potential clients. The effectiveness lies in the fact that creating content respecting search engine optimization techniques does not cost relatively anything, the user is usually searching for. 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