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Chapter 16

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Direct and Online Marketing: Building Customer Relationships

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Business-to-business (B2B) online marketing

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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

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Business-to-consumer (B2C) online marketing

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The online selling of goods and services to final customers

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Buzz marketing

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Generates excitement, creates publicity, and communicates brand-relevant information through unexpected or outrageous means

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Consumer-to-business (C2B) online marketing

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Online and exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms

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Consumer-to-consumer (C2C) online marketing

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Online exchanges of goods and information between final consumers

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Corporate (or brand) Web site

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Web sites that seek to build customer good will and to supplement other sales channels rather than to sell the company's product directly

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Customer database

answer

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

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Data warehouse

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A central repository of an organization's customer information

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Direct-mail marketing

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Direct marketing through single mailings that include letters, ads, samples, foldouts, and other "salespeople with wings" sent to prospects on mailing lists

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E-commerce

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

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Integrated direct marketing (IDM)

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Direct-marketing campaigns that use many vehicles and multiple stages to improve response rates and profits

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Marketing Web site

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

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Online advertising

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Advertising that appears while consumers are surfing the Web, including display ads, search-resulted ads, and online classifieds

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Online marketing

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Company efforts to market products and services and build customer relationships over the Internet

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Spam

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Unsolicited, unwanted commercial e-mail messages

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Search-related advertising (or contextual advertising)

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Text-based ads and links that appear alongside search engine results on sites such as Google and Yahoo!

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Telephone marketing

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Using the telephone to sell directly to customers

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Viral marketing

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The Internet version of word-of-mouth marketing — Web sites, videos, e-mail messages, or other marketing events that are so infections that customers will want to pass them along to friends

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Direct Marketing

answer

consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Direct marketers communicate directly with consumers, often on a one-to-one interactive basis

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Growth and benefits of direct marketing

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Direct marketing continues to become more Web oriented. The Internet now accounts for about 18 percent of direct marketing—driven sales

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Benefits to customers

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Direct marketing is convenient, easy, private, and open 24 hours. Companies can access customers and find out how to design products that will better fit their customer's needs. Direct marketing is interactive, allowing customers to customize their orders

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Benefits to sellers

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Direct marketing can build relationships through personalized communication. Direct marketing is low cost, efficient, and quick. Direct marketing is private and can be measured. Finally, direct marketing gives sellers access to buyers they could not reach through other channels

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Customer Databases and Direct Marketing

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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.

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Database uses

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Companies use databases to locate good potential customers and to generate sales leads. They can mine their databases to learn about customers in detail and then fine-tune their market offerings and communications to the special preferences and behaviors of target segments or individuals. In all, a company's database can be an important tool for building stronger long-term customer relationships.

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Data warehouse

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A data warehouse is used to combine direct databases a firm might have into one integrated database

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Relationships

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Companies use databases to find relationships in the data that will help them market better to their customers

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Databases should serve the customer

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A database should allow the company to better serve the customers by developing systems and providing products that will meet their needs

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Direct Marketing Builds Relationships

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Direct marketing allows companies to develop a strong relationship with their customers, which helps prevent them from switching to competitors

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Relationship marketing has a long-term orientation

answer

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 company's departments work together with marketing as a team to serve the customer. It involves building relationships at many levels: economic, social, technical, and legal, resulting in high customer loyalty

question

Building relationships

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Relationships can be built through financial benefits, social bonds, and changing the structure of how to do business to better fit the needs of your customers

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Benefits of customer-relationship management

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The benefits of customer-relationship management comes from: building continued patronage of loyal customers, reduced marketing costs, decreased price sensitivity of loyal customers, and partnership activities of loyal customers

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Traditional Forms of Direct Marketing

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Direct-mail marketing Telephone marketing Kiosk marketing

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Direct-mail marketing

answer

Involves sending an offer, announcement, reminder, or other item to a person at a particular address. Using highly selective mailing lists, direct marketers send out millions of mail pieces each year: letters, catalogs, ads, brochures, samples, DVDs, and other "salespeople with wings." Direct mail is by far the largest direct-marketing medium

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Telephone marketing

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Involves using the telephone to sell directly to consumers and business customers. Telephone marketing now accounts for 22 percent of all direct marketing-driven sales

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Kiosk marketing

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As consumers become more and more comfortable with computer and digital technologies, many companies are placing information and ordering machines called kiosks (in contrast to vending machines, which dispense actual products) in stores, airports, and other locations

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Digital Direct-Marketing Technologies

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E-mail Mobile phones Podcasting and vodcasting Interactive TV (iTV)

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E-mail

answer

Just as databases can develop mailing addresses, they can develop e-mail addresses. Given its targeting effectiveness and low costs, e-mail can be an outstanding market investment

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Mobile phones

answer

With more than 230 million Americans now subscribing to wireless services, many marketers view mobile phones as the next big direct-marketing medium. A growing number of consumers—especially younger ones—are using their cell phones as a "third screen" for text messaging, surging the wireless Web, watching downloaded videos and shows, and checking e-mail

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Podcasting and vodcasting

answer

Are the latest on-the-go, on-demand technologies. The name podcast derives from Apple's ubiquitous iPod. With podcasting, consumers can download audio files (podcasts) or video files (vodcasts) via the Internet to an iPod or other handheld device and then listen to or view them whenever and wherever they wish

question

Interactive TV (iTV)

answer

Lets viewers interact with television programming and advertising using their promote controls

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Online marketing domains

answer

- B2C (business-to-consumer) e-commerce - B2B (business-to-business) e-commerce - C2B (consumer-to-business) e-commerce

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B2C (business-to-consumer) e-commerce

answer

The online selling of goods and services to final customers

question

B2B (business-to-business) e-commerce

answer

B2B trading includes 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

question

C2B (consumer-to-business) e-commerce

answer

Online exchanges of goods and information between final consumers

question

Setting Up an Online Presence

answer

1. Creating a Web site 2. Designing an effective Web site 3. Creating or participating in online social networks 4. Online Privacy and Security

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Creating a Web site

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For most companies, the first step in conducting online marketing is to create a Web site. However, beyond simply creating a Web site, marketers must design an attractive site and find ways to get consumers to visit the site, stay around, and come back often

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Designing an effective Web site

answer

The seven Cs provide a framework for designing a Web site: Context: the site's layout and design Content: the text, pictures, sound, and video that the Web site contains Community: the ways that the site enables user-to-user communication Customization: the site's ability to tailor itself to different users or to allow users to personalize the site Communication: the ways the site enables site-to-user, user-to-site, or two-way communication Connection: the degree that the site is linked to other sites Commerce: the site's capabilities to enable commercial transactions

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Creating or participating in online social networks

answer

The popularity of the Internet has resulted in a rash of online social networks or Web communities. Countless independent and commercial Web sites have arisen that give consumers online places to congregate, socialize, and exchange views and information. Marketers can engage in online communities in two ways: They can participate in existing Web communities or.... They can set up their own

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Online Privacy and Security

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Marketers have a responsibility to protect the privacy of customer information and make sure personal information such as credit card numbers is secure

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Chapter 17

answer

Destination Marketing

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Agritourism

answer

Agriculture-based tourism that includes farms, ranches, and wineries. It provides rural areas with a means to attract tourists

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Allocentrics

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Persons with a need for new experiences, such as backpackers and explorers

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Destination marketing organization (DMO)

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A group that promotes a specific destination. Often a local convention and visitors' bureau (CVB) serve as the DMO

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Destinations

answer

Places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market created boundaries

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Familiarization trip (Fam trip)

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A trip where travel agents or others who can send business to a tourist destination attraction, cruise, or hotel are invited to visit at a low cost or no cost

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Infrastructure

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The system according to which a company, organization, or other body is organized at the most basic level

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Macrodestinations

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Destinations such as the United States that contain thousands of microdestinations, including regions, states, cities, towns, and visitor destinations within a town

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Medical tourism

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One of the fastest-growing and most lucrative tourism markets. Tourists spend a large amount on medical treatment, stay in top hotels, and often travel around the country after their surgery

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Multiplier effect

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Tourist expenditures that are recycled through the local economy, being spent and spent again

question

National tourist organizations (NTOs)

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A national government or quasi-government agency that makes destination tourism

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Psychocentrics

answer

Persons who do not desire change when they travel. They like to visit nonthreatening places and stay in familiar surroundings

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Tourism

answer

A stay of one or more nights away from home for holidays, visit to friends or relatives, business conferences, or any other purposes, except such things as boarding, education, or semipermanent employment

question

Tourism destination is composed of:

answer

Destinations Macrodestinations

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Destinations

answer

Are places with some form of actual or perceived boundary

question

Macrodestinations

answer

such as the United States contain thousands of microdestinations, including regions, states, cities, towns, and visitor destinations within a town

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Benefits of tourism

answer

Employment Supports industries and professions Multiplier effect: Tourism expenditures are recycled through the economy Source of state and local taxes Stimulates exports of place made products

question

Destinations must maintain...?

answer

Infrastructure. Destinations that fail to maintain the necessary infrastructure or build inappropriate infrastructure run significant risks

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Sustainable tourism

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A destinations attractiveness can be diminished by violence, political instability, natural catastrophe, adverse environmental factors, and overcrowding

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Sustainable tourism examples:

answer

- Modified environments and ecotourism subsets - Industry and community cooperation - Carbon-neutral vacations

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Tourism Strategies and Investments

answer

Tourism events and attractions Sports events Attractions

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Tourism events

answer

Events that attract a desired market and harmoniously fit with a community's culture can provide beneficial results, particularly if the event regularly reoccurs over a period of years

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Tourism attractions

answer

Attractions may be natural, such as Niagara Falls or the Scottish Highlands or a beach. They can also be manufactured, such as the shopping areas of Buckingham Palace, Hong Kong, the Vatican, or a casino resort

question

Attractions

answer

Rejuvenating a destination Waterfront attractions Casinos as attractions Indian gaming Stopover tourism

question

Stopover tourism

answer

Many visitor destinations are in fact only stopover destinations for travelers on their way elsewhere

question

A decision framework

answer

event planning

question

Sports events

answer

Biking and marathon events

question

Segmenting and Monitoring the Tourist Market

answer

Tourism planners must consider: - How many tourists are desired - Which segments to attract - How to balance tourism with other industries

question

Agritourism

answer

Agriculture-based tourism that includes farms, ranches, and wineries. It provides rural areas with a means to attract tourists

question

Space tourism

answer

As private companies provide vehicles to send tourists into space, this form of tourism will develop. In the near term, it will just be for the very rich

question

Multi-day hiking and religious pilgrimages

answer

Many potential tourists are tired of traditional tourism opportunities, such as a beach resort. A huge and growing market exists for multi-day hiking. In some cases, hiking has a religious basis, such as pilgrimages to significant religious sites.

question

Volunteer vacationing

answer

Families and individuals take trips to less developed areas to help the people in the area and gain an understanding of their culture. The tourists perform tasks such as building housing, schools, and churches

question

Medical tourism

answer

Is one of the fastest-growing and most lucrative tourism markets. Tourists spend a large amount on medical treatment, stay in top hotels, and often travel around the country after their surgery. The aging baby boomers and the growing cost of health care will ensure the growth of medical tourism in the future

question

Genealogical tourism

answer

The interest in knowing more about one's ancestors has grown substantially in recent years. Many people plan vacations to visit genealogical research sites

question

Identifying target markets

answer

Collect information about its current visitors Audit the destination's attractions and select segments that might logically have an interest in them

question

Self-contained attraction and event destination

answer

Cruise ships, river paddle ship, or a special railroad... These self-contained, moving destinations, offer a variety of events for passengers and dining is particularly important. Games, gambling, theater, musicals, participatory, murder mysteries, seminars, dances, and a host of other on-board events enhance the pleasure of moving destinations.

question

Classification of visitor segments

answer

Group-inclusive tour (GIT) - ex.] organized mass tourists Independent traveler (IT) - ex.] explorers

question

Monitoring the tourist markets

answer

Tourist markets are dynamic and a marketing information system is part of any well-run tourist organization

question

Communicating with the Tourist Market

answer

Competition for visitors requires image making Developing packages of attractions and amenities UNESCO World Heritage Sites

question

Competition for visitors requires image making

answer

destination images are heavily influenced by pictorial creations used in movies or television, by music, and in some cases, by popular entertainers and celebrities.

question

Developing packages of attractions and amenities is an effective way of communicating with potential travelers

answer

Attractions alone do not attract visitors. Most places seek to deepen the travel experience by providing greater value and making the experience more significant and rewarding Competition among destinations extends to restaurants, facilities, sports, cultural amenities, and entertainment

question

UNESCO World Heritage Sites

answer

This program designates and thereby hopes to help conserve sites of outstanding cultural or natural importance to the common heritage of humanity

question

Organizing and Managing Tourism Marketing

answer

Making a destination tourist friendly is the task of a central tourist agency which may be public, quasi-public, nonprofit, or private. These agencies are referred to as national tourist organizations (NTOs), state tourist organizations (STOs), convention and visitors' bureaus (CVBs), or destination management organizations

question

Chapter 18

answer

Next Year's Marketing Plan

question

Competitive analysis

answer

An analysis of the primary strengths and weaknesses, objectives, strategies, and other information relative to competitors

question

Environmental factors

answer

Social, political, and economic factors that affect a firm and its marketing program

question

Executive summary

answer

A short summary of the marketing plan to quickly inform top executives

question

Market potential

answer

The total estimated dollars or unit value of a defined market for a defined product, including competitive products

question

Market Trends

answer

External trends of many types that are likely to affect the marketing in which a corporation operates

question

Quotas

answer

Quantitative and time-specific accomplishment measurements established for members of a sales force

question

Timetable

answer

Specific dates to accomplish strategies and tactics

question

Purpose of a Marketing Plan

answer

Serves as a road map for all marketing activities of the firm for the next year Ensures that marketing activities are in agreement with the corporate strategic plan Forces marketing managers to review and think objectively through all steps in the marketing process Assists in the budgeting process to match resources with marketing objectives

question

Tips for Writing the Executive Summary

answer

- Write it for top executives - Limit the number of pages to between two and four - Use short sentences and short paragraphs

question

Organize the Executive Summary as follows:

answer

Describe next year's objectives in quantitative terms Briefly describe marketing strategies to meet goals and objectives Identify the dollar costs necessary as well as key resources needed Read and reread before final submit

question

A marketing plan supports the company's strategic plan in several ways. Next year's marketing strategies and tactics must support strategic decisions such as the following:

answer

- Corporate goals: profit, growth, and others - Desired market share - Positioning of the enterprise or of product lines - Vertical or horizontal integration - Strategic alliances - Product-line breadth and depth

question

Marketing-related plans also include the following:

answer

Sales Advertising and promotion Marketing research Pricing Customer services

question

Departments within a company that are closely intertwined with marketing:

answer

Operations and finance

question

Corporate direction

answer

Mission statement Corporate philosophy Corporate goals

question

Positioning statement

answer

A marketing plan should provide a positioning statement of how the enterprise intends to differentiate—position itself—in the marketplace. This provides essential guidance to the rest of the plan

question

Analysis of major environmental factors

answer

Social - ex.] crime and changing demographics Political - ex.] legislation affecting taxation, pension benefits, and casino gambling. International politics. Economic - ex.] changes in economic variables such as employment and interest rate. Hospitality industry, especially lodging and cruising sectors, is highly sensitive to business-cycle movements

question

Economic drivers of growth

answer

Economic drivers of growth have the ability to rapidly affect change. Marketers must be aware of these drivers before, during, and after entry into a market. - ex.] The Aerotropolis

question

Aerotropolis

answer

The aerotropolis is a transportation and urban development concept built around an airport. An aerotropolis is designed to serve as a powerful economic development force. These centers are built to facilitate the rapid movement of fright and passengers

question

Competitive analysis

answer

List the major existing competitors confronting your firm next year List new competitors Describe the major competitive strengths and weaknesses of each competitor

question

Marketing trends

answer

Monitor visitor trends, competitive trends, related industry trends

question

Market potential

answer

Market potential should be viewed as the total available demand for a firm's product within a particular geographic market at a given price. It is important not to mix different products into an estimate of market potential Provide an estimate or guesstimate of market potential for each major product line in monetary terms such as dollars and in units such as room nights or passengers

question

Marketing research

answer

Macro-market information Micro-market information

question

Macro-market information

answer

- Industry trends - Socioeconomic and political trends - Competitive information - Industry-wide customer data

question

Micro-market information

answer

- Guest information - Product/service information - New-product analysis and testing - Intermediary buyer data - Pricing studies - Key account information - Advertising/promotion effectiveness

question

Segmentation and Targeting

answer

The selection of segments is the result of the following: - Understanding who the company is and that it wishes to be - Studying available segments and determining if they fit the capabilities and desires of the company to obtain and secure them

question

Next Year's Objectives

answer

Quantitative objectives Other objectives Sub-objectives Actions

question

Quantitative objectives

answer

Expressed in monetary terms, expressed in unit measurements, time specific and profit/margin specific

question

Other objectives

answer

Corporate goals, corporate resources, environmental factors, competitions, market trends, market potential, and available market segments and possible target markets

question

Sub-objectives

answer

Advertising, promotion, public relations, marketing research, and sales examples for hospitality industry: - avg. occupancy - avg. room rate

question

Actions

answer

List primary marketing/sales objectives for next year List sub-objectives for next year Break down objective by quarter, month, and week List other specific sub-objectives by marketing support area, such as advertising/promotion objectives

question

Next Year's Quotas

answer

- Based on next year's objectives - Individualized - Realistic and obtainable - Broken down to small units, such as each salesperson's quota per week - Understandable/measurable

question

Plan must be communicated to:

answer

- Top management - Board of directors or group of investors - Subordinates - Vendors - Other -; see next card...

question

"Other"

answer

Other departments, such as yield or revenue management, housekeeping, front desk, customer service, and maintenance will be affected by next year's plan

question

Action quotas

answer

Break down and list quotas for sales departments, sales territories, all sales intermediaries, each sales intermediary, and each salesperson

question

Action Plans: Strategies and Tactics

answer

Cluster marketing Sales strategies Advertising / promotion strategies Pricing strategy Product strategies

question

Far too often, strategies and tactics have little relationship to objectives. This is always an error and is commonly the result of the following:

answer

Desire to maintain status quo. Strategies and tactics do not change because they are perceived to be working even though solid proof of their effectiveness seldom exists Lazy, incompetent, or unsure management. These people do not wish to risk their positions through new strategies and tactics Failure to engage in marketing planning or to view the processes as serious and meaningful to decision making Undue heavy influence of outside vendors, such as advertising agencies, which do not wish to change direction or try new media Failure to understand the relationship between objectives, strategies, and tactics Myopic thinking that things are going well and one does not fix something that is not broken. Unfortunately, in the fast-paced, competitive hospitality industry,, by the time the product is demonstrable broken, it is beyond repair.

question

Cluster marketing

answer

Different properties managed by the same management company within a common market area; however, each may represent a separate flag and have different ownership

question

Sales strategies

answer

Prevent erosion of key accounts Grow key accounts Grow selected marginal accounts Eliminate selected marginal accounts Retain selected marginal accounts but provide lower-cost sales support Obtain new business from selected prospects Distribution strategies

question

The general sales strategy is supported by specific sales tactics such as the following:

answer

Outside the Company (examples) - Sales blitz of all or targeted accounts and projects - Telephone, direct mail, and personal sales calls to selected decision makers and decision influencers - Trade booths at selected travel shows - Sales calls and working with travel intermediaries: tour wholesalers, travel agencies, incentive bonuses, and international sales reps - Luncheon for customers, prospects, or decision influencers - Travel missions and other tactics Inside the Company (examples) - Training of sales staff - Involvement and support of nonsense personnel Motivational and control programs Involvement and support of management

question

Advertising / promotion strategies

answer

Select a blend or mix or media - may include commissional mass media, direct mail, trade shows, billboards, specialty advertising, social media Select or approve the message - this includes graphics, color, size, copy, and other format decisions Design a media schedule showing when each medium, including non-commissionable media, will be used Design a schedule of events - such as public relations events and familiarization (FAM) trips for travel writers Carefully transmit this information to management Supervise the development and implementation of advertising/promotion programs, with particular care given to timetables and budget constraints Ensure responsibility for the outcome - increasingly, top management is requiring those in charge of advertising/promotion to prove effectiveness and to stand behind results

question

Pricing strategy

answer

Carefully review pricing objective with departments responsible for pricing, planning, and implementation Refine pricing objectives to reflect sales and revenue forecasts Describe pricing strategies to be used throughout the year Make certain that price, sales, and promotion/advertising objectives are synchronized and working in support of corporate objectives

question

Product strategies

answer

Describe the involvement of the marketing department in major strategic product development Describe the role of marketing in new-product acquisition or product development Describe ongoing or planned product development programs for which marketing has responsibility

question

Resources Needed to Support Strategies and Meet Objectives

answer

Study and then list the need for new marketing/sales personnel, including temporary help during the next year Study and list the type and amount of equipment and space that will be needed to support marketing/sales Study and list the amount of monetary support needed next year Study and list the amount and type of other costs necessary next year Study and list the amount of outside research, consulting, and training assistance needed Prepare a marketing budget for approval by top management

question

Marketing Control

answer

Sales force members often wish to protect themselves and give lower sales estimates than are actually possible The company has certain sales objectives it expects based on the needs of the company Management may have access to marketing research information not viewed by the sales force Management may have a history of dealing with the sales force and realizes that forecasts are generally too high or too low by x percent Management may be willing to provide the marketing/sales department with additional resources that are unknown to members of the sales force

question

Marketing objectives should be periodically evaluated to ensure they are consistent with the organizations goals and overall marketing strategy. (T/F)?

answer

True

question

Marketing activity timetable

answer

Method used to ensure that tasks are completed on time This simple device lists major activities, the dates they must be completed, the person responsible, and a space for checking whether the task has been accomplished

question

Changes in tactics normally do not require top management approval and are viewed as the normal responsibility of marketing/sales managers (T/F)?

answer

True

question

Presenting and Selling the Plan - A marketing plan must be sold to...

answer

- Members of marketing/sales departments - Vendor/ad agencies and others - Top management

question

Preparing for the Future

answer

The participatory planning process allows people to understand the management process People learn to become team players during the process People learn to establish objectives and set time-tables to ensure they are met People learn the process of establishing realistic strategies and tactics to meet objectives People who approach the planning process with a receptive mind and employ the marketing plan will usually find it enhances their professional career

question

The most important features in the development of a marketing plan appear to be...

answer

Management participation and commitment at all levels Sufficient time for development Specific training in developing a marketing plan Tying incentives to the achievements of goals and objectives

Marketing Prelim 3 – Chapters 16, 17, 18 – Flashcards

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