SlideShare a Scribd company logo
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 reasons
1. 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 Marketing
Vs
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. Breakfast
was 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 orders
Large discount
Customer base is low
Less customer,
Less orders
Small 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
Positively…
Negatively…
Thank you

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