© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Chapter Twenty Interactive Marketing: Internet and Database Marketing

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Role of the Internet in Transforming Marketing  In % 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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 –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 one- on-one relationships

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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 – acquisition should be on the front page –Should convey the best value to capture the customer from the competition –Convey security with transactions

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Managing Customer Information  Information is transferred into the hotel’s Property Management System – data: spam or consensual  The CAN-SPAM Act 2003  Permission-based marketing  Can “opt out”  Send newsletter or other direct communication  Some addresses come from booking engines  The top ten successful secrets of marketing

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Database Marketing  Involves two-way communication  Managing relevant data  Includes internal data and purchasing data  Augments traditional marketing  marketing is integral part

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Database Marketing (cont.)  Database marketing components –Strategy: development of objectives –Data: names, addresses –Information: analysis of data –Knowledge: segmentation, clustering, and modeling

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Database Marketing (cont.)  Using the database 1. To contact past customers 2. To build the database 3. To segment customers 4. Collateral created and sent 5. Track the marketing 6. New customers found by profiling past customers

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition