Download Part 10

Direct and Online Marketing
Objective: Discussing the latest developments in the
communication technologies and their use and impacts in
tourism and hospitality.
Direct Marketing

Direct marketing is the new way of marketing
communications. Here, the company markets
through various advertising media that interact
directly with consumers, generally encouraging
the consumer to make a direct response. In
other words, direct marketing consists of direct
communications with carefully targeted
consumers to obtain an immediate response.




As the name implies, direct marketing is targeted
at individual users rather than through
intermediaries.
The most famous form of direct marketing is
direct mail.
The major purpose of direct marketing is to get
information on both current and potential
customers from the responses they make to
direct “calls to action”.
A call to action may be delivered through a
number of media.

The purpose of them would be;
Make a purchase
 Request a brochure
 Visit a website
 Send in details



However, the ultimate purpose of direct
marketing is to establish and manage direct
relationships with customers by capturing
personal information in a database.
Since it can be segment-specific, it is costeffective.
Advantages



Direct marketing can help sales to grow when
used along with sales promotions and advertising
campaigns.
It is also useful for small businesses through
guest books, visitors lists, and lists of enquiries.
These operations rely on repeat business.
Direct marketing builds relationships; it is an
important tool in customer relationship
management (CRM).


Direct marketing can be directed towards
specific publics.
The message can be personalized.
Disadvantages


It can produce negative response in consumers,
when the message does not reach the targeted
individuals and if people suspect that they are
junk mail.
This may cause customers to react unfavorably
to future communications.
Traditional Forms of Direct
Marketing

Traditional forms of direct marketing used in
tourism and hospitality industry are;
 Direct-mail marketing
 Telephone marketing
 Kiosk marketing

Direct-Mail Marketing;
involves mailing of letters, ads, samples,
foldouts… sent to potential customers on mailing
lists.
 The mailing lists are developed from customer
lists or obtained from mailing-list houses.
 It permits high target market selectivity, can be
personalized, is flexible and allows easy
measurement of results.
 It costs more than TV or magazine advertising per
person.
 E-mail is booming as a direct marketing tool.


Telemarketing;
Using the telephone to sell directly to consumers.
 Outbound telephone marketing is used directly to
consumers and businesses. Inbound too-free 800
numbers are used to receive orders from television
and radio ads, direct mail, or catalogs.
 Provides purchasing convenience and increased
product or service information.
 However, too much use it can annoy customers.
 It is also a major fund-raising tool for nonprofit
organizations.


Kiosk Marketing;
Information and ordering machines called kiosks (in
contrast to vending machines which dispense actual
products) are used heavily in recent years at airports,
stores and other locations.
 Kiosks at Hilton hotels help customers to see their
reservations, get room keys, view pre-arrival
messages, check in and out.
 Kiosks can read customer data from encoded
registration badges and produce useful data that can
be printed.

Digital Direct Marketing
Technologies

Due to new digital technologies, direct marketers
today can reach customers anywhere, anytime,
about almost anything. New digital tools include;
 E-mail
 Mobile phone marketing
 Podcasts and vodcasts
 Interactive TV
Online Marketing



Online marketing is the fastest growing from of
direct marketing.
Marketing strategy and practice today are
changing to take advantage of widespread use of
Internet.
Online computer shopping is conducted through
interactive online computer systems which link
consumers with sellers electronically. Consumers
use a home computer to hook into the system
through cable or telephone lines.
Setting Up and Online Marketing
Presence

Companies can conduct online marketing in the
following four ways:
Creating a Web site
 Placing ads and promotions online
 Setting up or participating in online social networks
 Using e-mail

Sources




McCabe, S. (2009). Marketing Communications in
Tourism and Hospitality: Concepts, Strategies and
Cases. Butterworth-Heinemann: Oxford.
Kotler, P.; Bowen, J. and Makens, J. (1999). Marketing
for Hospitality and Tourism (2nd ed.). Prentice Hall:
New Jersey.
Kotler, P.; Bowen, J. and Makens, J. (2010). Marketing
for Hospitality and Tourism (5th ed.). Prentice Hall:
New Jersey.
Kotler, P. and Armstrong, G. (2010) Principles of
Marketing (13th ed.). Prentice Hall: New Jersey.