Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

Direct and Online Marketing: Building Customer

Relationships
Chapter 16

Learning Objectives
1. Define direct marketing and discuss its benefits to
customers and companies.
2. Identify and discuss the major forms of direct
marketing.
3. Explain how companies have responded to the Internet
and other powerful new technologies with online
marketing strategies.
4. Discuss how companies go about conducting online
marketing to profitably deliver more value to
customers.
5. Understand how databases can be used to develop
direct marketing campaigns.
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Direct Marketing
Many companies are adopting Direct Marketing
as a primary marketing approach
Direct marketers usually seek a direct, immediate,
and measureable consumer response

Direct Marketing consists of connecting

directly with carefully targeted individual
consumers to both obtain an immediate
response and cultivate lasting customer
relationships
Marketing for Hospitality and Tourism, 6e
Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Benefits of Direct Selling

Benefits to Customers

Benefits to Companies

Convenient, Easy & Private

Powerful Tool for Building Customer

Relationships

Ready Access to a Wealth of

Products

Can Target Small Groups or

Individual Consumers

Systems & Products that Better

Serve Guest Needs

Can Tailor Products and Services to

Specific Customer Tastes

Interactive & Immediate

Low-Cost, Efficient & Speedy

Alternative for Reaching Markets

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Customer Databases

Business
to
Consumer

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Customer
Database
s

Business
to
Business

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Direct Marketing Builds Relationships

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Customer Value-Binding Approaches

Structural Ties, Social Benefits &
Financial Benefits
Social Benefits & Financial
Benefits

Financial Benefits

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Types of Customers
Low Frequency

High Frequency

High
Profitability

Try to get these customers

to come more often

These are your best

customers, reward them

Low
Profitability

These customers follow

promotions make sure
your promotions make
money

Some of these guests have

the potential to become more
profitable

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Traditional Forms of Direct Marketing

Direct Mail

Kiosk

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Telephone

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Digital Direct Marketing Technologies

E-Mail
Podcasts &
Vodcasts

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Digital
Direct
Marketing
Technologie
s

Mobile
Phone
Marketing
Interactive
TV (iTV)

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Online Marketing Domains

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Setting up an Online Marketing

Presence

Creating a
Website

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Placing Ads
&
Promotions
Online

Creating or
Participating
in Social
Networks

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms
Banners Banner-shaped ads found
at the top, bottom, left, right, or center
of a Web page.
Business to business (B2B) online
marketing Using B2B trading
networks, auction sites, spot
exchanges, online product catalogs,
barter sites, and other online resources
to reach new customers, serve current
customers more effectively, and obtain
buying effectiveness and better prices.
Business to consumer (B2C) online
marketing The online selling of goods
and services to final consumers.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Consumer to business (C2B)

online marketing Online and
exchanges in which consumers search
out sellers, learn about their offers, and
initiate purchases, sometimes even
driving transaction terms.
Consumer to consumer (C2C) online
marketing Online exchanges of
goods and information between final
consumers.
Corporate (or brand) Web site Web
sites that seek to build customer
goodwill and to supplement other sales
channels rather than to sell the
companys product directly.

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms (cont.)

Customer database An organized

Direct marketing Direct

collection of comprehensive data about

individual customers or prospects,
including geographic, demographic,
psychographic, and behavioral data.

communications with carefully targeted

individual consumers to obtain an
immediate response and cultivate
lasting customer relationships.

Data warehouse A central repository

of an organizations customer
information.

E-commerce The general term for a

buying and selling process that is
supported by electronic means,
primarily the Intranet.

Direct-mail marketing Direct

marketing through single mailings that
include letters, ads, samples, foldouts,
and other salespeople with wings sent
to prospects on mailing lists.

Marketing for Hospitality and Tourism, 6e

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Integrated direct marketing (IDM)

Direct-marketing campaigns that use
many vehicles and multiple stages to
improve response rates and profits.

2014 by Pearson Higher Education, Inc

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Key Terms (cont.)

Internet The vast and burgeoning

Online marketing Company efforts

global web of computer networks with

no central management or ownership.

to market products and services and

build customer relationships over the
Internet.

Interstitials Online display ads that

appear between screen changes on a
Web site, especially while a new screen
is loading.
Marketing Web site Web sites
designed to engage consumers in an
interaction that will move them closer to
a purchase or other marketing
outcome.
Online advertising Advertising that
appears while consumers are surfing
the Web, including display ads, searchrelated ads, online classifieds, and
other forms.

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Pop-unders New windows that evade

pop-up blockers by appearing behind
the page being viewed.
Pop-ups Online ads that appear
suddenly in a new window in front of the
window being viewed.
Search-related ads (or contextual
advertising) Text-based ads and links
that appear alongside search engine
results on sites such as Google and
Yahoo!.

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms (cont.)

Telephone marketing Using the
telephone to sell directly to customers.
Viral marketing The Internet version
of word-of-mouth marketingWeb
sites, videos, e-mail messages, or other
marketing events that are so infectious
that customers will want to pass them
along to friends.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved