Harness the power of viral marketing in hotel industry: a network discount strategy

Harness the power of viral marketing in hotel industry: a

network discount strategy

Group 10

• Online advertising campaigns and messages that uses social network which depends on peer to peer forwarding to spread like a virus.

video

Audio

Flash

Joke

E-mail

CREATIVITY

Evian roller babies international version

Why Viral Marketing?

Opportunity for differentiation

Traditional advertising Vs. Viral marketing

Reach a large audience

More credibility

Better return on investment

Viral marketing mainly use for

Increase brand awareness.

Achieve other marketing objectives such as product sale.

Internet searching engine 

Mobile smart phone integration

Free email services

Social network

Through famous  websites.

You Tube

Uses of viral marketing

Social networks used in viral marketing

Uses of viral marketing

1. Viral marketing provides a reciprocal benefit to message sender and receiver

2. Network discount strategy

Television commercial of coca-cola polar bears

3.Network externality THREE REASONS FOR NETWORK

EXTERNALITY Nature of the influence episode Role of the influencer Quantity pricing strategy

Quantity based sales in viral marketing have identified hotel industry as the ideal context

This is because of three reasons1. Customers are acceptable to the dynamic

pricing strategies when making purchase decisions

2. Control of inventory and price integrity

3. Pricing strategy

viral marketing

In Internet and online advertising viral marketing is a type of marketing technique that relies on and encourages people to pass along a marketing message by word-of-mouth (or word-of-e-mail) marketing.

viral marketing in Hotel Industry

Viral Marketing is used for promotion messages through their social networks.

social networks which use in hotel industry

• FACEBOOK• TWITTER• Word of mouth• YouTube• Google+• FOURSQUARE

FACEBOOK

Facebook is one of social media which helps to present hotel brand, events, promotions, local activities/events and hotel features and services to future visits.

TWITTER

• Posting about local attributes such as tourist spots, restaurants and events are as critical as responding to a customer complaint through Twitter.

Word of mouth

• Word of mouth is one of the most powerful forms of viral marketing

Viral MarketingVs

Traditional Mass Media

Cost

Social Interaction

Interactivity

Target Market

Customer Services

There are Five main advantages:

Cost

“Reducing Advertising Cost by using

social networks”

Social Interaction

“People spend time with Social Media related to Internet

rather than traditional mass media”

Interactivity

“How many times one customer going through the particular media”

Target Market

“When go through internet, You can clearly identify needs and attributes of your Customer”

Customer Services

We’re Here to help..!!

• Online Payment System

• Customer Care

• Credit Card Facilities

PRACTICE OF USING DISCOUNT AS A MEANS TO INFLUENCE BUYER’S

PURCHASE BEHAVIOUR

DISCOUNT

IS AN ALLOWANCE OR CONCESSION IN PRICE

WHY ???DEPENDS ON THE TYPE OF DISCOUNT GIVEN

TYPES OF DICOUNTS

DISCOUNTS

CASH DISCOUNT TRADE DISCOUNT

PURCHASING BEHAVIOUR

THE STUDY OF WHEN, WHY, HOW, WHERE, WHAT PEOPLE MAKE TO BUY OR NOT TO BUY A PRODUCT

FACTORS AFFECTS:- • CULTURAL FACTORS•SOCIAL FACTORS•PSYCHOLOGICAL AND PERSONAL FACTORS

RELATIONSHIP

VIRAL MARKETING IN HOTEL INDUSTRY

WHY VIRAL MARKETING IS IMPORTANT TO HOTEL INDUSTRY

A large portion of the target audience is already online.Many properties can leverage existing networks for success.It engages users around their passions.Can reduce promotion cost.

We went for a breakfast at coffee shop at Galadare hotel to celebrate our mothers birthday. Breakfastwas very nice & so many varieties. All staff members were very friendly & helpful , especially who are at the action station making pan cakes were very supportive.We got separate lobby table to celebrated b’ day &got a delicious cake as we ordered. If you wish to find a good place to celebrate a birthday you should not miss the galadare hotel. Our sincere thanks to all the staff.

Shiro Niro (Face book)

Customer base is high

More customer, More ordersLarge discount

Customer base is low

Less customer, Less ordersSmall discount

Experiment Design

PRICING STRATEGY FOR HOTELS

Before implementing the pricing strategies it is important to measure demand elasticity and then can predict the best price to charge for hotel

rooms.

The important thing is that hotels need to be able to have a ‘price varying’ pricing strategy without upsetting their customers.

Eg: Park Plaza Westminster Bridge London

Month of July Month of November

ONLINE BOOKING SYSTEM FOR HOTELS

Effect Of

Viral Marketing

Positively…

Negatively…

Thank you