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Chapter 17
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Electronic
Marketing:
Internet
Marketing,
Database
Marketing and
Direct
Marketing
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“Computers in the future may
weigh no more than 1.5 tons.”
- Popular Mechanics, 1949
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Describe the relationship between
Internet marketing, database marketing,
and direct marketing
• Evaluate a company’s Web site and
comment on its marketing potential
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Describe how to set up an effective
database
• Discuss the growth of e-mail marketing
• Understand how databases can be
used to develop direct marketing
campaigns
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Major Forces Shaping
the Internet Age
• Digitalization and Connectivity
• The Internet Explosion
• New Types of Intermediaries
• Customization
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Digitalization and
Connectivity
• Digitalization consists of converting text,
data, sound, and image into a stream of
bits that can be dispatched at incredible
speeds from one location to another
• Connectivity involves building networks and
expresses the fact that much of the world’s
business is carried over networks
connecting people and companies
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Types of Networks
• Intranets connect people within a
company
• Extranets connect a company with its
suppliers and customers
• The Internet connect users to an
amazingly large “information
superhighway.”
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
The Internet Explosion
• Useful as a sales outlet and it provides
a medium for communication between a
company and its customers
• The number of Web surfers worldwide
has reached 1 billion and is expected to
approach 1.5 billion by 2007
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
New Types of Intermediaries
• With the birth of dot-com sites such as
Expedia.com, Priceline.com, and
Travelocity.com the hospitality industry
has had to change how they do
business
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Customization
• Technology has been useful in
assisting companies in understanding
their customers and potential customers
on an individual level and developing
marketing to their specific wants.
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
E-Business, E-Commerce
& E-Marketing
• E-business involves the use of electronic
platforms to conduct a company‘s
business
• E-commerce involves buying and selling
processes supported by electronic means,
primarily the Internet
• E-marketing is company efforts to
communicate about, promote, and sell
products and other services over the
Intranet
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Benefits to Buyers
•
•
•
•
•
Convenient
Easy and private
Greater product access and selection
Offers comparative information
Immediate and interactive
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Benefits to Sellers
•
•
•
•
Builds customer relationships
Reduces costs
Quick and efficient
Reduces communication costs
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
E-Commerce Domains
•
•
•
•
B2C (business to consumer)
B2B (business to business)
C2B (consumer to business)
C2C (consumer to consumer)
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Types of Web Sites
• Corporate Web Sites are designed to
build customer goodwill and to
supplement other sales channels
• Marketing Web Sites engage
consumers in an interaction that will
move them closer to a direct purchase
or other marketing outcome
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Designing Attractive Web Sites
• The key is to create enough value and
excitement to get consumers to come to
the site, stick around, and come back
again
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Content
• Convey what the company is and what
the company has to offer
• Project brand image
• Easy to navigate
• Attractive
• Have a “contact us” page
• Ask permission to send information on
specials
• Able to purchase products online
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Legal and Ethical Issues
• Online 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.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Marketing Database System
• A marketing database is an organized
collection of data about individual
customers, prospects, or suspects that
is accessible and actionable for such
marketing purposes as lead generation,
lead qualification, sale of a product or
service, or maintenance of customer
relationships
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Using a Database to Create
a Competitive Advantage
• Provide the guest with a better
experience
– If on a prior visit a guest requests a certain
type of mineral water, the mineral water is
placed in the guest’s refrigerator on
returning visits
– If a guest had a problem, all departments in
the hotel are notified, and everyone works to
regain the guest’s confidence and loyalty
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Direct Marketing
• Direct marketing is an interactive
system of marketing that uses one or
more advertising media to affect a
measurable response and/or transaction
at any location
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Reasons for Growth of
Direct Marketing
•
•
•
•
•
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Precision targeting
Personalization
Privacy
Immediate results
Measurability
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
E-mail
• The greeting should be personalized and
other persons being sent the same
message should not be listed
• The name of the company should be
identified
• The subject needs to be relevant to the
reader
• E-mails need to be short
• Text message is the preferred format
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Direct Marketing Builds
Relationships
• Direct marketing allows companies to
develop a strong relationship with their
customers, which helps prevent them
from switching to competitors
• It costs four to seven times as much to
bring in a new customer as it does to
maintain an existing one
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Integrated Direct Marketing
• A more powerful approach: execute a
multiple-vehicle, multiple-stage
campaign
Paid Ad
with a
Response
Channel
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Direct
Mail
Mechanism
Outbound
Telemarketing
Face-to-Face
Sales Call
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens