Direct and Online Marketing: Building Customer Relationship

Marketing for Hospitality and Tourism, Fifth EditionBy Philip Kotler, John Bowen and James Makens

© 2010 Pearson Higher Education, Inc.Pearson Prentice Hall - Upper Saddle River, NJ 07458

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Computer in the future may weigh no more than 1.5 tons.

- Popular Mechanics, 1949-

Foreword:Direct and Online Marketing: Building Customer Relationship



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• Define direct marketing and discuss its benefits to customer sand companies.

• Identify and discuss the major forms of direct marketing.

• Explain how companies have responded to the Internet and other powerful new technologies with online marketing strategies.

• Discuss how companies go about conducting online marketing to profitably deliver more customer value.

• Understand how databases can be used to develop direct marketing campaigns.

After reading this chapter, you should be able to:OBJECTIVES



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• Wiley Eiya, tribal chief of the Huli tribe in Papua New Guinea (PNG), is online as he presents his Web site on a laptop screen at the International Tourism Fair in Berlin.

• The Internet allows places such as PNG, with a low tourism budget, access to tourists around the world.

• While the government has not made a major effortto promote tourism in PNG, individual touroperators can have a presence on the Internet.

• Tourists all over the world are discovering remote destinations through the Internet.

Papua New GuineaDirect & Online Marketing: Customer Relationships

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• Papua New Guinea is a remote island off coast of Australia with a population of a little over 5 million.– most living in rural villages

• With over 860 distinct tribal languages, PNG is home to more than a fourth of the world’s languages.

• Settled ten thousand years ago, its early residents credited as being the first farmers on earth.

• Europeans did not come to the country until the 1930s, and tribes of the highlands had little contact with the outside world until the mid-20th century.


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• Rich culture is only one of many tourist attractions, as PNG is rapidly becoming known for diving that rivals the diving at the Great Barrier Reef.

• Other activities are white-water rafting in mountain streams and coastal and river cruising offer tourists the comfort of modern ships. – it also has many unique species of birds & mammals

• Though potential for tourism in PNG is great, the government continues to focus on other industries.

• Tourism potential is largely untapped, with only about 20,000 tourists yearly.


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• While the Internet provides PNG great opportunityto build its tourism, growth still has to be managed.

• A country such as Papua New Guinea must make sure it has the infrastructure to support tourism.– and policies in place to create sustainable tourism

activities that don’t destroy its culture & natural beauty • The Internet can be a two-edged sword, bringing

more tourists, but forcing the destination to ensureit is able to support the tourists when they arrive.


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• Many of the marketing & promotion tools examined in previous chapters were developed in the contextof mass marketing.– targeting broad markets with standardized messages

and offers distributed through intermediaries• Many companies are adopting direct marketing

as a primary marketing approach. • Direct marketing consists of direct connections with

carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

IntroductionDirect Marketing

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• Direct marketers communicate directly with customers, often on a one-to-one, interactive basis. – they tailor marketing offers & communications to

narrowly defined segments or even individual buyers• Airlines, hotels, and others are building strong

customer relationships through award programs, using customer database to match offers more carefully to individual customers.

• They are approaching a stage where offers are sent only to those customers and prospects most able, willing, and ready to buy the product.

DescriptionDirect Marketing

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• Beyond brand and relationship building, direct marketers usually seek a direct, immediate, and measurable consumer response.

• In 2006 US companies spent $166.5 billion on direct marketing, for an estimated $1.94 trillion in sales, making it the fastest growing form of marketing.

• The DMA estimates direct marketing sales willgrow 6.3% annually through 2011, compared witha projected 4.8% annual growth for total US sales.

Growth and BenefitsDirect Marketing

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• Direct marketing is becoming more web-oriented, and Internet marketing now accounts for about 18% of direct marketing-driven sales.

• Whether employed as a complete business model or as a supplement to a broader integrated marketing mix, direct marketing brings many benefits to both buyers and sellers.

Growth and BenefitsDirect Marketing

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• For customers, direct marketing is convenient, easy, and private & direct marketers never close. – travelers can book airline flights & reserve hotel

rooms on web sites at any time of the day or night – managers can learn about products & services without

tying up time with salespeople• Unrestrained by physical boundaries, marketers can

offer an almost unlimited selection to consumers almost anywhere in the world, and informationabout companies, products & competitors.

Benefits to CustomersDirect Marketing

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• Companies use direct marketing to access guestsand gain information that will develop systems & products to better serve their guests.

• Direct marketing is interactive & immediate & buyers interact with sellers by phone or on the web.– to create the configuration of information, products,

or services they desire & then order them on the spot• Direct marketing gives consumers a great measure of

control, as they decide which catalogs they will browse and which web sites they will visit.

Benefits to CustomersDirect Marketing

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• Direct marketing is a powerful tool for building customer relationships.

• Using database marketing, marketers can targetsmall groups or individual consumers & promote their offers through personalized communications.

• Because of the one-to-one nature, companies can learn more about customer needs & tailor products and services to specific tastes. – customers can ask questions & volunteer feedback

• Direct marketing offers sellers a low-cost, efficient, speedy alternative for reaching their markets.

Benefits to SellersDirect Marketing

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• Direct marketing has grown rapidly in business-to- business marketing, partly in response to ever-increasing costs of marketing via the sales force.

• It permits privacy because the marketer’s offer & strategy are not visible to competitors.

• In periods of low demand, companies can use direct marketing to target known customers and produce quick results.

• Another benefit of direct marketing is measurability. – a manager can track response to a particular campaign

and usually determine the revenue that it produced


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• Direct-marketing efforts are measured three ways: – the number of inquiries generated– ratio of conversions or purchases realized from

inquiries generated– communication impact

• Direct marketing can also offer greater flexibility.– allowing marketers to make ongoing adjustments to

prices & programs, or make immediate, timely offers• Direct marketing is compatible & often works best

when used with other elements of the promotional mix in a multiple-stage campaign.


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• Direct marketing gives sellers access to buyers that they could not reach through other channels.

• Internet marketing is a truly global medium that allows buyers & sellers to click from one country to another in seconds.

• Online direct marketing is an equalizer that independent restaurants, inns, and hotels haveagainst the brands, giving small marketers ready access to global markets.


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• Effective direct marketing begins with a good customer database, a relationship-building tool.– data about individual customers or prospects, including

geographic, demographic, psychographic & behavioral • In consumer marketing, the database might contain

demographics, psychographics & buying behavior. • In business-to-business marketing, it might contain

products & services the customer has bought; key contacts, past volumes & prices and much more.– some of these databases are huge, like Harrah’s

Entertainment 30 terabytes of customer information

IntroductionCustomer Databases and Direct Marketing

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• Companies use their databases to locate good potential customers & generate sales leads. – they can mine their databases to learn about customers

in detail & fine-tune market offerings– they can target communications to the special

preferences & behaviors of segments or individuals • A database management problem in the hospitality

industry is that a company may have a number of databases that do not talk to each other and/or arenot relational.

DescriptionCustomer Databases and Direct Marketing

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• A hotel could have sales department, reservations, accounting, and front-desk databases.– if they not integrated, it is very costly to

develop a complete profile of each customer• Consolidation in the hotel industry has created a need

for companies to build a centralized data warehouse for all their brands, for the purpose of data mining.– which stores data the company receives in a central

repository– once stored, companies use the relational database

to look at relationships in the data

Data MiningCustomer Databases and Direct Marketing

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• Data mining is the exploration & analysis of a database by automatic or semiautomatic means to discover patterns or rules.

• Data mining can predict which customers are most likely to respond to an offer, to segment a market, and identify a company’s most loyal customers.

• It is not limited to relationships a marketing manager may think exists; it explores all relationships with a variety of techniques, a major benefit.

• Data mining has increased the effectiveness and efficiency of direct marketing in the industry.

Data MiningCustomer Databases and Direct Marketing

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• To be useful the data stored in a database must be accurate, so it is important that everyone using the database understand the importance of accurate data.

• A clean database starts with accurate entry, and to be effective, duplicate files have to be combined & addresses must be accurate.

• Employee training to ensure the database is clean isa critical, ongoing part of an effective system.

• A well-managed database should lead to sales and customer-relationship gains more than covering cost.

MaintenanceCustomer Databases and Direct Marketing

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• Finally, you should answer the question:– “If you were a customer, why would you want to

be in our database?” • Answering this tells you if your database has a

strategic focus or used mainly for tactical purposes.– most marketers use their database tactically, one

of the most frequent uses being direct marketing • Direct marketing campaigns often target recent

customers, inviting returns or offering incentives.– as well as encouraging loyal customers to come

during soft periods

UseCustomer Databases and Direct Marketing

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• While there is nothing wrong with this use, and it often produces worthwhile results, much of the power of database marketing will be untapped.

• The database is also used for service recovery, and companies who use a database to provide the guest with a better experience are gaining a major benefit.– companies need to provide benefits to customers

for being in their database

UseCustomer Databases and Direct Marketing

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• Direct marketing is an important tool in customer relationship management (CRM) programs.

• Airlines, hotels, travel agents, restaurants, and rental car companies operate in very competitive markets, and the major way to grow market share is to steal it from the competition.

• Managers recognize that spending to develop loyalty among current customers can be more effective than spending to attract new guests, which costs four to seven times as much.

IntroductionDirect Marketing Builds Relationships

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• Relationship marketing is creating, maintaining, and enhancing strong relationships with customers. – the concept has expanded to include relationships with

all stakeholders who can help the company serve its customers

DescriptionDirect Marketing Builds Relationships

tabTable 16-2 Relationship Marketing compared to Traditional Marketing.



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• Relationship marketing has a long-term orientation, to deliver long-term value to customers, and measure of success in long-term customer satisfaction.

• It requires that all departments work together to serve the customer, and involves building relationships at many levels, resulting in high customer loyalty.– economic, social, technical, legal

DescriptionDirect Marketing Builds Relationships

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– Basic - selling the product with no follow-up – Reactive - the company sells the product & encourages

the customer to call with questions or problems– Accountable - the company’s rep phones the customer

after the booking to check-up & answer questions – Proactive - the rep or others in the company phone

the customer from time to time with suggestions about improvements that have been made or creative suggestions for future events

– Partnership - the company works continuously withthe customer and others to discover ways to deliver better value

Five Levels of Customer RelationshipsDirect Marketing Builds Relationships

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– The first relies primarily on adding financial benefitsto the customer relationship

– The second approach is to add social, as well asfinancial benefits

– The third is to add structural ties, as well as financialand social benefits

Three Customer Value-Binding ApproachesDirect Marketing Builds Relationships

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• A company can adopt any of three customer value-binding approaches use to develop stronger customer bonding and satisfaction:

• Building relationships with customers by creating value is part of relationship marketing.



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• Traditional forms of direct marketing in hospitality are direct-mail, telephone, and kiosk marketing.

• Direct-mail marketing - involves sending an offer, announcement, reminder, or other item to a personat a particular address.

• By far the largest direct marketing medium, the DMA reports direct mail (catalog & noncatalog) drives over a third of all US direct marketing sales.

• E-mail and other new forms deliver direct mail at incredible speeds compared to the post office’s “snail mail” pace.

Direct MailTraditional Forms of Direct Marketing

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• Telephone Marketing - involves using the phone to sell directly to consumers and business customers.– now accounting for 22% of direct marketing sales

• Marketers use outbound telephone marketing tosell directly to consumers & businesses.

• Inbound toll-free numbers to receive orders from television and print ads, direct mail, or catalogs.

• The use of toll-free numbers has taken off in recent years, and to accommodate this growth, additional toll-free area codes, such as 888, 877 & 866, have been added.

Tele-MarketingTraditional Forms of Direct Marketing

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• The explosion in unsolicited outbound telephone marketing annoyed many consumers, and in 2003, U.S. lawmakers responded with a National Do-Not-Call Registry, managed by the Federal Trade Commission (FTC).

• Consumers responded enthusiastically & have to date, registered more than 132 million numbers at www.donotcall.gov or by calling 888-382-1222. – businesses that break do-not-call laws can be fined

up to $11,000 per violation

Tele-MarketingTraditional Forms of Direct Marketing

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https://www.donotcall.gov/

https://www.donotcall.gov/



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• Many companies are placing information and ordering machines—called kiosks—in stores, airports, and other locations. – from self-service hotel & airline check-in devices to

in-store ordering of merchandise not in sold the store• Business marketers also use kiosks.

– Dow Plastics places kiosks at trade shows to collectsales leads & provide information on its 700 products

Kiosk MarketingTraditional Forms of Direct Marketing

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• E-mail - customer databases contain a field for ane-mail address. Databases can generate mailing addresses; they can also create e-mailing lists.

• Given its targeting effectiveness and low costs, e-mail can be an outstanding marketing investment.

• According to a recent study, return on e-mail marketing investment is $52 for every dollar spent.– compared with direct mail at $15 per dollar spent

• E-mail is a quick, good way to sell excess inventory. – Holland America Lines sent out 250,000 e-mails one

May to try to fill up its spring and summer cruises

E-MailDigital Direct Marketing Technologies

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• E-mail marketers walk a fine line between addingvalue for consumers & being intrusive.

• The explosion of spam—unsolicited, unwanted commercial e-mail messages that clog our inboxes—has produced consumer irritation and frustration. – according to one research company, spam now accounts for

88% of all e-mail sent • A recent study found that the average consumer

received four thousand spam messages a year. – more & more e-mail goes unopened & gaining permission

to send someone e-mail is becoming more important

E-Mail - SpamDigital Direct Marketing Technologies

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• Greeting should be personalized & other persons being sent the same message should not be listed.

• Identify the the company sending the e-mail. – if an outside supplier is used, it is important that the

organization sponsoring the e-mail has its name listed before the supplier

• Subject needs to be relevant to the reader.• E-mails need to be short, with no more than 65

characters per line, to avoid formatting problems.• Text format is preferred, because some browsers

cannot accept enhanced HTML messages.

E-Mail - Effectiveness ChecklistDigital Direct Marketing Technologies

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• More than 230 million Americans now subscribe to wireless services, so many marketers view mobile phones as the next big direct marketing medium.

• A growing number of consumers are using their cell phones as a “third screen” for messaging, web surfing, watching downloaded videos, and e-mail.

• Some companies are customizing 10-second video ads that are edging their way onto mobile phones.

• Wireless gadgets are always-on, ever-present, and users can respond instantly to offers. – the mobile phone is very personal and always with you

Mobile Phone MarketingDigital Direct Marketing Technologies

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• Companies must use mobile marketing responsibly or risk angering already ad-weary consumers. – most people are initially skeptical about cell phone ads

• They often change their minds if the ads deliver value, useful information, entertaining content, or discounted prices and coupons.

• A recent study found that 42% percent of cell phone users are open to mobile advertising, if it’s relevant.– used properly, mobile marketing can greatly enrich the

buyer’s experience

Mobile Phone Marketing - ResponsibilityDigital Direct Marketing Technologies

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• Podcasting and vodcasting are the latest on-the-go, on-demand technologies. – podcast derives from Apple’s now-everywhere iPod

• Consumers can download audio (podcasts) or video files (vodcasts) to an iPod or other handheld device & play them whenever, wherever they wish.

• They can search for podcast topics through sites like iTunes or podcast networks such as PodTrac, Podbridge, or PodShow. – sitcom episodes, current sports features, National Public

Radio shows, latest music videos, or commercials & more

Podcasts and VodcastsDigital Direct Marketing Technologies

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• Interactive TV (ITV) lets viewers interact with television programming and advertising using their remote controls. – in the past, ITV has been slow to catch on

• Satellite broadcasting systems such as DirecTV, Echostar, and Time Warner are now offering ITV.– it appears poised to take off as a direct marketing medium

• As with other forms, marketers must target their direct marketing offers carefully, bringing real value to customers rather unwanted intrusions.

Interactive TVDigital Direct Marketing Technologies

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• Much of the world’s business today happens over digital networks connecting people & companies, with a dramatic impact on buyers and the marketers who serve them.

• The web has fundamentally changed customer notions of convenience, speed, price, product information, and service. – it has given marketers a whole new way to create value

for customers and build relationships with them• US 2008 Internet household penetration reached 69%

– almost 500 million worldwide now have Internet access

The InternetOnline Marketing

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• Shows are the four major online marketing domains– B2C (business to consumer); B2B (business to business)– C2C (consumer to consumer); C2B (consumer to business)

DomainsOnline Marketing

tabFigure 16-1 Online domains.



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• The popular press has paid the most attention to business-to-consumer (B2C) online marketing—selling goods and services online to final consumers.

• Online consumer buying continues to grow at a healthy rate, as 65% of US online users now usethe Internet to shop. – consumers can buy almost anything online—clothing,

kitchen gadgets, airline tickets, computers and cars• In 2007, U.S. consumers generated an estimated $259

billion in online retail sales, up 18% from the previous year.

Business to Consumer (B2C)Online Marketing

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• B2B marketers use B2B Web sites, e-mail, online product catalogs & trading networks, to reach new business clients, serve current ones more effectively, and obtain buying efficiencies & better prices.

• Major B2B marketers offer product information, customer purchasing, and support services online. – restaurants use their sites to sell gift cards & take

reservations • Table 16–4 on page 486 show three basic principles of

online marketing which apply to both B2C and B2B online marketing.

Business to Business (B2B)Online Marketing

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• The Internet provides a means by which consumers can buy or exchange goods or information directly with one another.

• In other cases, it interchanges of information via forums appealing to specific special-interest groups. – organized for commercial or noncommercial purposes

• Currently about 15 million active Web logs, or blogs, online journals which can be about anything, are read by 57 million people. – such numbers give blogs substantial influence

Consumer to Consumer (C2C)Online Marketing

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• Consumers are finding it easier to communicate with companies by Internet, and most companies now invite prospects and customers to send in suggestions and questions via company web sites.

• Beyond this, consumers can search out sellers, learn about offers, make purchases & give feedback. – consumers can even drive transactions with business

• Using Priceline.com, would-be buyers can bid for airline tickets, hotel rooms, rental cars, cruises, and vacation packages, leaving the sellers to decide whether to accept their offers.

Consumer to Business (C2B)Online Marketing

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• All companies need to consider moving online, and can conduct online marketing in several ways:– creating a Web site; using e-mail– placing ads and promotions online– setting up or participating in online social networks

• For most companies, the first step in conducting online marketing is to create a Web site.

Setting Up an Online Marketing PresenceOnline Marketing

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• Web sites vary greatly in purpose & content, and Marketers must design an attractive site and find ways to get consumers to visit the site, stay around, and come back often.

• The most basic type is a corporate (or brand) site, designed to build customer goodwill, collect feedback, and supplement other sales channels.

• They typically offer a rich variety of information& features in an effort to answer customer questions, build closer customer relationships, and generate excitement about the company or brand.

Creating a Web SiteOnline Marketing

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• Other companies create a marketing site to engage consumers in an interaction that will move them closer to a purchase or other marketing outcome. – Expedia, Priceline, and Sheraton are examples

• To attract visitors, companies aggressively promote their Web sites in line print & broadcast advertising, and through ads & links on other sites. – users are quick to abandon a site that doesn’t measure up

• Companies must constantly update their sites to stay current & useful, and provide enough excitement to get consumers to stick around, and come back again.


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– Context: site layout and design– Content: text, pictures, sound, and video on the site– Community: ways the site enables user-to-user

communication– Customization: the site’s ability to tailor itself to users

or to allow users to personalize the site– Communication: ways the site enables site-to-user, user-

to-site, or two-way communication– Connection: degree to which the site is links to other sites– Commerce: capabilities to enable commercial transactions

Creating a Web Site - The Seven Cs of DesignOnline Marketing

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• To attract new visitors & encourage revisits, online marketers should pay attention to:



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• To keep customers coming back to the site, companies need to embrace yet another “C”:– constant change

• Ultimately, web sites must be useful, because when surfing & shopping, most people prefer substance over style and function over flash.

• Effective Web sites contain deep, useful information, interactive tools to help buyers find & evaluate products, links to other related sites, changing promotional offers & entertaining features lending relevant excitement.


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• Major forms of online advertising include display ads, search-related ads, and online classifieds.

• Online display ads might appear anywhere on a user’s screen, with the most common form being banners, found at the top, bottom, left, right, or even center of a web page. – interstitials are display ads appearing between screen

changes on a web site, while a new screen is loading • Visit marketwatch.com and you’ll probably see a

ten-second ad for Visa, Verizon, Dell, or another sponsor before the home page loads.

Placing Ads and Promotions OnlineOnline Marketing

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http://www.marketwatch.com/

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• Pop-ups are online ads that appear suddenly in anew window in front of the window being viewed.– these can multiply out of control, a major annoyance

• Internet services & web browser providers have developed applications to block most pop-ups, so many advertisers have now developed pop-unders.– new windows that evade pop-up blockers by appearing

behind the page you’re viewing• As broadband access increases, many companies

are developing rich media display ads, which use animation, video, sound, and interactivity.


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• Another hot growth area is search-related ads (or contextual advertising), in which text-based ads and links appear alongside search engine results on sites such as Google and Yahoo!– advertisers buy search terms from the search site and

pay only if consumers click through to their site • Search-related ads account for some 42% of all online

advertising expenditures.– more than any other category of online advertising

• Online marketers also use viral marketing, the Internet version of word-of-mouth marketing.


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• The popularity of the Internet has resulted in a rash of online social networks or web communities.– over 100 million people visit a social network daily

• These days, it seems, almost everyone is buddyingup on MySpace or Facebook, tuning into the hottest videos at YouTube, or even living a surprisinglyreal fantasy life as an avatar on Second Life.

• Participating successfully in existing online social networks presents challenges, as online social networks are new & results are hard to measure.

Creating or Participating in Online Social NetworksOnline Marketing

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• The company’s goal is to make the brand a part of consumers’ conversations and their lives.– web communities are largely user controlled & marketers

can’t simply muscle into online interactions• Rather than intruding, marketers must learn to

become a valued part of the online experience.– they need to earn the right to be there

• Listening to the conversation customers are having about your operation can provide valuable information—and free marketing intelligence!

Creating or Participating in Online Social NetworksOnline Marketing

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• Ardent apostles envision a time when Internet and online marketing will replace magazines, news papers, and even stores as sources for information and buying – most marketers hold a more realistic view

• Online marketing is successful for some companies, and creates a good business model for retailers such as Travelocity and Orbitz.

• For most companies, online marketing will remain just one important approach that works alongside others in a fully integrated marketing mix.

Promises and Challenges of Online MarketingOnline Marketing

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• Most e-marketers have become skilled at collecting and analyzing detailed consumer information, and can easily track site visitors.

• Many consumers who participate in web activities provide extensive personal information, which may leave them open to information abuse if companies make unauthorized use of the information.

• Online privacy is perhaps the #1 e-commerce concern, and many consumers and policy makers worry that marketers have stepped over the line and are violating consumers’ right to privacy.

Legal and Ethical IssuesOnline Marketing

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• In response to such online privacy and security concerns, the federal government is considering legislative actions to regulate how Web operators obtain and use consumer information.

• Many companies have responded to consumer privacy & security concerns with actions of their own, and have conducted voluntary audits of their privacy and security policies.

• It is important to protect the privacy and rights of consumers, as trust is one of the most important assets of a manager and a company.

Legal and Ethical IssuesOnline Marketing

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• Banners. Banner-shaped ads found at the top, bottom, left, right, or center of a Web page.

• Business to business (B2B) online marketing. Using B2B trading networks, auction sites, spot exchanges, online product catalogs, barter sites, and other online resources to reach new customers, serve current customers more effectively, and obtain buying effectiveness and better prices.

• Business to consumer (B2C) online marketing. The online selling of goods and services to final consumers.

KEY TERMS

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• Consumer to business (C2B) online marketing. Online and exchanges in which consumers search out sellers, learn about offers, initiate purchases, sometimes even driving transaction terms.

• Consumer to consumer (C2C) online marketing. Online exchanges of goods and information between final consumers.

• Corporate (or brand) Web site. Web sites that seek to build customer goodwill and to supplement other sales channels rather than to sell the company’s product directly.

KEY TERMS

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• Customer database. An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

• Data warehouse. A central repository of an organization’s customer information.

• Direct mail marketing. Direct marketing through single mailings that include letters, ads, samples, foldouts, and other“salespeople with wings” sentto prospects on mailing lists.

KEY TERMS

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• Direct marketing. Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

• E commerce. The general term for a buying and selling process that is supported by electronic means, primarily the Intranet.

• Integrated direct marketing (IDM). Direct marketing campaigns that use many vehicles and multiple stages to improve response rates and profits.

KEY TERMS

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• Internet. The vast and burgeoning global web of computer networks with no central managementor ownership.

• Interstitials. Online display ads that appear between screen changes on a Web site, especially while a new screen is loading.

• Marketing Web site. Web sites designed to engage consumers in an interaction that will move them closer to a purchase or other marketing outcome.

KEY TERMS

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• Online advertising. Advertising that appears while consumers are surfing the Web, including display ads, search related ads, online classifieds & other forms.

• Online marketing. Company efforts to market products and services and build customer relationships over the Internet.

• Pop-unders. New windows that evade popup blockers by appearing behind the page being viewed.

KEY TERMS

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• Pop-ups. Online ads that appear suddenly in a new window in front of the window being viewed.

• Search related ads (or contextual advertising). Text based ads and links that appear alongside search engine results on sites such as Google and Yahoo!

• Telephone marketing. Using the telephone to sell directly to customers.

KEY TERMS

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• Viral marketing. The Internet version of wordof mouth marketing—Web sites, videos, email messages, or other marketing events that are so infectious that customers will want to pass them along to friends.

KEY TERMS

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• Sign up for a frequency club for hospitality or travel organization. (If you cannot find one, you can go to the book’s Internet site and sign up online.) – what information did they request from you? – did the information seem useful?

• Is there information they should have asked for that they did not? Did they ask you if it was all right if they sent you information?– see if you receive any response back from the

company after signing up

EXPERIENTIAL EXERCISESTry This !

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Support for this exercise can be found on the Web site for Marketing for Hospitality and Tourism, www.prenhall.com/kotler

INTERNET EXERCISESTry This !

• Go to two Web sites for the same type of hospitality or tourism organization. – go to two restaurants, two destination

marketing organizations, etc.• Evaluate the Web sites according to the “7

Cs” of effective Web site design.

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END

CHAPTER END

Direct and Online Marketing: Building Customer Relationship

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