Transcript Chapter 20

Chapter Twenty
Interactive Marketing:
Internet and Database
Marketing
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The First Generation of
Electronic Marketing
(E-Marketing)
 Based
on the one-on-one
relationship
– Started with airline reservation system
in the 1970s
– Manager travel agent + GDS
Internet
– Travel agent employment expected to
decline
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Role of the Internet in
Transforming Marketing
 In
1996 11% of households had
Internet access
 Now 80% of households have
Internet access
 From distributing information to
marketing and direct selling
 Now every major brand has an
Internet strategy
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
The Role of the Internet in
Transforming Marketing (cont.)

Early stages of Internet booking to now:
– “Third party” sites or “online travel agencies”
bookings were cumbersome and usually via
email
– Many sites were unsecured
– Post 9/11/2001 travel decreased, discounts
increased, Internet bookings increased
– From traditional commission to merchant
model of pre-negotiated prices
– Brands created their own websites to compete
– Now shift back to fundamental customer oneon-one relationships
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
An Overview of Hospitality
Website Design
 Portrays
the firm’s image
 Web design is complex
 Content should be consistent with
customer needs
 Feel of the website should be
considered
 Should be easy to navigate
 Design also for the search engine
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
An Overview of Hospitality
Website Design (cont.)
 Four
best practices for website in
hospitality
– The reservation mask should be on the
front page to allow for online bookings
– Email acquisition should be on the front
page
– Should convey the best value to capture
the customer from the competition
– Convey security with transactions
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Managing Customer Information

Information is transferred into the hotel’s
Property Management System
– Email data: spam or consensual
 The
CAN-SPAM Act 2003
 Permission-based marketing
 Can “opt out”
 Send newsletter or other direct communication
 Some email addresses come from booking engines
 The top ten successful secrets of email marketing
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Database Marketing
 Involves
two-way communication
 Managing relevant data
 Includes internal data and
purchasing data
 Augments traditional marketing
 Email marketing is integral part
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Database Marketing (cont.)
 Benefits:
– Strategic advantage through effective
internal information
– Improves use of customer and market
data
– Better long-term relationships with
customers
– Better customer behavior tracking
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Database Marketing (cont.)
 Database
marketing components
– Strategy: development of objectives
– Data: names, addresses
– Information: analysis of data
– Knowledge: segmentation, clustering,
and modeling
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Database Marketing (cont.)

Using the database
1.
2.
3.
4.
5.
6.
To contact past customers
To build the database
To segment customers
Collateral email created and sent
Track the marketing
New customers found by profiling past
customers
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Database Marketing (cont.)
 Ways
to use the database
– Customer segmentation
– Communicate with the customer
– Customer management
– Improve the delivery of sales
promotions
– Conduct customer and product research
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.
Shoemaker, Lewis, and Yesawich: Marketing
Leadership in Hospitality and Tourism, 4th edition
© 2007 Pearson Education, Upper Saddle
River, NJ 07458. All Rights Reserved.