After the
launch of a major Canadian discount hotel reservation company in June 2002, the company experienced
relatively flat sales. Analysis of the web site revealed that
potential problems occurred with web site design, corporate
branding, and Internet marketing strategy.
Site
design was improved by providing travelers with information
showing the advantages of Canada Discount Hotels over
Travelocity and Expedia. Analysis of competitor product
offerings also suggested that corporate branding would be
strengthened through the following: vertical marketing
agreements with WestJet; adjustments to pay-for-performance
advertising; and matching the pricing strategy utilized by Six
Continents Hotels.
After implementing these strategic
adjustments, sales exceeded $500,000 in July. Only a
few adjustments were required to nearly double sales at this
company. Understanding the psychology behind consumer purchasing
decisions is an important element of web site design and
profitable Internet marketing strategy. PW Internet
Marketing is a Vancouver, BC based Internet Marketing
firm.
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50.2%
of Canadian SMEs* are currently using or implementing
Internet Based Solutions. A Further 20.3% intend to
adopt IBS within three years.
(Canadian eBusiness Initiative, 2002) |
* SME refers to
small to medium size enterprises having less than 500 employees.
|