Electronic Marketing

Chapter 17
Electronic Marketing: Internet Marketing, Database Marketing and Direct Marketing
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458
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
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 companys Web site and comment on its marketing potential
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
Major Forces Shaping the Internet Age

Digitalization and Connectivity The Internet Explosion
New Types of Intermediaries

Customization
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 worlds 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.
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
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
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.
E-Business, E-Commerce & E-Marketing

E-business involves the use of electronic platforms to conduct a companys 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
Benefits to Buyers
Convenient Easy and private Greater product access and selection Offers comparative information Immediate and interactive
Benefits to Sellers
Builds customer relationships Reduces costs Quick and efficient Reduces communication costs
E-Commerce Domains
B2C (business to consumer) B2B (business to business) C2B (consumer to business) C2C (consumer to consumer)
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
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
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
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
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
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 guests refrigerator on returning visits If a guest had a problem, all departments in the hotel are notified, and everyone works to regain the guests confidence and loyalty
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
Reasons for Growth of Direct Marketing

Precision targeting Personalization Privacy Immediate results Measurability
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
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
Integrated Direct Marketing

A more powerful approach: execute a multiple-vehicle, multiple-stage campaign
Paid Ad with a Response Channel
Direct Mail Mechanism
Outbound Telemarketing
Face-to-Face Sales Call
Best Practices
Huli Tribe, Papua New Guinea
Saunders Hotel Group Vail Associates, Brennans of Houston Royal Caribbean Cruise Lines
Key Terms
E-commerce: B2B (business to business) B2C (business to consumer)
C2B (consumer to business) C2C (consumer to consumer)
Key Terms
Corporate Web site
Customer database Data warehouse Direct-mail marketing
Key Terms
Direct marketing Disintermediation E-business E-commerce
Key Terms
E-marketing Extranet Integrated direct marketing Internet
Key Terms
Intranet
Marketing Web site

Electronic Marketing

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Chapter 17

Electronic Marketing: Internet Marketing, Database Marketing and Direct Marketing

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Major Forces Shaping the Internet Age

New Types of Intermediaries

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Digitalization and Connectivity

The Internet Explosion

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

New Types of Intermediaries

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

E-Business, E-Commerce & E-Marketing

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Types of Web Sites

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Designing Attractive Web Sites

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Legal and Ethical Issues

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Marketing Database System

Using a Database to Create a Competitive Advantage

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Reasons for Growth of Direct Marketing

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Direct Marketing Builds Relationships

Integrated Direct Marketing

Direct Mail Mechanism

Face-to-Face Sales Call

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

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