Chapter 16: Direct, Online, Social Media, and Mobile Marketing
Chapter Objectives
1. Define direct marketing and discuss its benefits to customers and companies.
3. Explain how companies have responded to the Internet and other powerful new
technologies with online marketing strategies.
5. Understand how databases can be used to develop direct marketing campaigns.
Teaching Suggestions
The following explanations and suggestions are outlined based on the Chapter Objectives.
1. Define direct marketing and discuss its benefits to customers and companies.
Many companies are adopting direct marketing as a primary marketing approach. Direct
Marketing consists of connecting directly with carefully targeted individual consumers to
both obtain an immediate response and cultivate lasting customer relationships.
Benefits to Customers:
o For customers, direct marketing is convenient, easy, and private
Benefits to Sellers:
o Direct marketing is a powerful tool for building customer relationships
2. Identify and discuss the major forms of direct marketing.
The traditional forms of direct marketing used in the hospitality industry are direct-mail
marketing, telephone marketing, and kiosk marketing.
Direct-Mail Marketing: Involves sending an offer, announcement, reminder, or
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3. Explain how companies have responded to the Internet and other powerful new
technologies with online marketing strategies.
Today, thanks to a wealth of new digital technologies, direct marketers can reach and
interact with consumers just about anywhere, at any time, about almost anything.
E-mail: One advantage of e-mail is that it is quick and thus a good way to get rid
of excess inventory
4. Discuss how companies go about conducting online marketing to profitably deliver
more value to customers.
In one way or another, most companies have now moved online.
Creating a Website: For most companies, the first step in conducting online
marketing is to create a Website
o Corporate (or brand) Website: This is the most basic type of website and is
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5. Understand how databases can be used to develop direct marketing campaigns.
Effective direct marketing begins with a good customer database. A customer database is
an organized collection of comprehensive data about individual customers or prospects,
including geographic, demographic, psychographic, and behavioral data. A good
customer database can be a potent relationship-building tool (Ex. Aruba).
Chapter Outline
I. Direct And Digital Marketing [Slide 16-3] involves engaging directly with carefully
targeted individual consumers and customer communities to both obtain an immediate
response and build lasting customer relationships. Companies use direct marketing to
tailor their offers and content to the needs and interests of narrowly defined segments or
individual buyers. In this way, they build customer engagement, brand community, and
sales.
CC. The New Direct Marketing Model. The spate of online social and mobile
media-direct marketing has undergone a dramatic transformation. Direct and
DD. Rapid Growth of Direct and Digital Marketing. Direct and digital
marketing have be-come the fastest-growing form of marketing. Direct marketing
EE. Benefits of Direct and Digital Marketing to Buyers and Sellers. For buyers, direct
and digital marketing are convenient, easy, and private. They give buyers
II. Forms of Direct and Digital Marketing. Traditional direct marketing tools include face-
to-face selling, direct-mail marketing, catalog marketing, telemarketing, direct-response
television marketing, and kiosk marketing. In recent years, however, a new set of digital
and direct marketing tools have emerged. These include Web sites, online ads,
promotional e-mail, online videos, blogs, social media marketing, and mobile marketing.
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III. Digital and Social Media Marketing. [Slides 16-4 to 16-5] Digital marketing tools and
platforms directly engage consumers anywhere at any time via their computers,
smartphones, tablets, Internet-ready TVs and other digital devices. The use of the Internet
and digital technology impact both buyers and the marketers who serve them.
E. Marketing, the Internet, and the Digital Age. The digital age has fundamentally
F. Online Marketing. [Slide 16-4] Online marketing refers to marketing via the
Internet using company Web sites, online advertising and promotions, e-mail
marketing, online video, and blogs.
1.Web Sites and Branded Web Communities. For most companies, the first
step in conducting online marketing is to create a Web site. Some websites
2.Online Advertising. Online advertising has become a major promotional
3.E-Mail Marketing. E-mail can be the ultimate direct marketing medium.
Marketers can send highly targeted, tightly personalized, relationship–
4.Online Videos. Online videos engage consumers and are a form of
5.Blogs and Other Online Forums. Blogs (or Web logs) are online journals
where people and companies post their thoughts and other content, usually
G. Social Media Marketing. [Slide 16-5] For travel products, it can be argued that
social media entails a change from one-to-one recommendations from individuals
to many-to-many conversations. In the past, these personal sources often came
from talking with a friend, relative, or local res-ident. Social media has now
expanded the conversation, in terms of both breadth and depth.
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1.Using Social Media. Marketers can engage in social media in two ways:
2.Social Media Marketing Advantages and Challenges. Social media are
targeted and personal-they allow marketers to create and share tailored
brand content with individual consumers and customer communities.
3.Managing User Generated Social Media Content. User generated content
is valuable, whether it is positive or negative. The positive comments
4.Listening to Customers on Social Media. One of the
5.International Social Media. Social media managers working
6.Integrated Social Media Marketing. Companies that use social media
H. Mobile Marketing. Mobile marketing features marketing messages, promotions,
IV. Customer Databases and Traditional Direct Marketing. [Slide 16-6] Effective direct
marketing begins with a good customer database. A customer database is an organized
collection of comprehensive data about individual customers or prospects, including
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A. Database Uses. Companies use databases to locate good potential customers and
to generate sales leads. They can mine their databases to learn about customers in
V. Relationship Marketing and Loyalty Programs. [Slide 16-7] Direct marketing allows
companies to develop a strong relationship with their customers, which helps prevent
them from switching to competitors. Relationship Marketing Has A Long-Term
Orientation. The goal is to deliver long-term value to customers, and the measure of
success is long-term customer satisfaction. Relationship marketing requires that all the
involves building relationships at many levels: economic, social, technical, and legal,
resulting in high customer loyalty.
A. Benefits of Customer-Relationship Management. The benefits of customer–
relationship management comes from building continued patronage of loyal
VI. Traditional Forms of Direct Marketing. [Slide 16-8] The traditional forms of direct
marketing used in the hospitality industry are direct-mail marketing, telephone marketing,
kiosk marketing and interactive TV.
A. Direct-Mail Marketing. Involves sending an offer, announcement, reminder, or
other item to a person at a particular address. Using highly selective mailing lists,
B. Telephone Marketing. Involves using the telephone to sell directly to consumers
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VII. Online Privacy and Security. Marketers have a responsibility to protect the privacy of
secure.
Answers to Discussion Questions
1. Discuss the benefits of direct marketing to both buyers and sellers.
For buyers, direct marketing is convenient, easy, private, and frequently something that
2. Find an example of a video for a hospitality or travel company on YouTube. Why
do you feel it was effective?
3. Define data warehouse and explain why it is a popular data management tool.
Data warehouses store the information a company receives about its customers in a
4. Discuss ways an Internet site can collect and use information from its visitors. For
reference purposes you may frame the question so you are referring to the site of a
hotel, restaurant, club, or a destination marketing organization.
This could be an interesting research topic for your students. For example, a hotel site can
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5. Find an example of a hospitality of travel company effectively using social media.
Again, this is a great assignment for your students, as well as a good topic for class