Transcript 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.