Chapter 16Direct and Online Marketing: Building

Customer Relationships

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Direct MarketingMany companies are adopting Direct

Marketing as a primary marketing approachDirect 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

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Benefits to Customers

Convenient, Easy & Private

Ready Access to a Wealth of Products

Systems & Products that Better Serve Guest Needs

Interactive & Immediate

Benefits to CompaniesPowerful Tool for Building

Customer RelationshipsCan Target Small Groups or

Individual ConsumersCan Tailor Products and

Services to Specific Customer Tastes

Low-Cost, Efficient & Speedy Alternative for Reaching

Markets

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Customer Databases

Customer Database

s

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Direct MarketingBuilds customer relationships

Basic- The company sells the product but does not follow up

Reactive- Encourages the customer to call with questions or problems

Accountable- Immediate call to clientProactive- Salesperson calls from time to time

with improvementsPartnership- Company and customer work

together to deliver better value

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Customer Value-Binding Approaches

Structural Ties, Social Benefits & Financial Benefits

Social Benefits & Financial Benefits

Financial Benefits

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Traditional Forms of Direct MarketingDirect-mail marketing

One-to-one communication Postage cost is high and pace is slow

Telephone marketing Do-not-call registry www.donotcall.com Opt-in system

Kiosk marketing (selling)

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Digital Direct Marketing Technologies

Digital Direct

Marketing Technologi

es

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Setting up an Online Marketing Presence

Creating a Website

Placing Ads &

Promotions Online

Creating or

Participating in Social

Networks

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Social MediaSocial – instinctual

need to connect with other human beings

Media – how we make those connections through the use of technology

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Social Media for BusinessUse technology to effectively reach out and

connect with other humans, create relationships, build trust and be there when the people in those relationships are ready to purchase our product offering (Safko, 2010) 2 way communicationListen first, understand the conversation,

speak lastParticipating in the conversation

Legal and Ethical IssuesOnline Privacy and Security

Online privacy is perhaps the number-one e-commerce concern

Identification theft and commercial espionage are security fears of consumers and companies alike

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

ConclusionOnline marketing is a must

You must be active and engage clients

Be professional. Keep your business profile business related and your personal sites personal.