MARKETING COMMUNICATIONS PROJEC

viena1992

chapter_10_alternative_mktg.pptx

Home >Business & Finance homework help >Marketing homework help >MARKETING COMMUNICATIONS PROJEC

10-1

Chapter Ten

Alternative Marketing

Traditional mass media faces many challenges. Although advertisers are not ready to abandon mass media, they are looking for alternative ways to reach consumers.

10-2

Buzz Marketing

Word-of-mouth marketing

Higher credibility

Fast growth – now $1 billion annually

Buzz marketing has become one of the fastest growing areas in alternative marketing. Estimated expenditures for buzz marketing are now at $1 billion annually. Buzz marketing emphasizes consumers passing along information about a product and since it is word-of-mouth from an individual, it has a higher level of credibility. Methods of generating buzz are through consumers who use and truly like a brand, consumers who are sponsored to talk about a brand, and a company or agency generating buzz.

10-3

Consumers Who Like a Brand

Ideal ambassador

Buzz spread

In person

Internet

Chat rooms

Blogs

E-mails

A consumer who likes a brand and uses it is the ideal brand ambassador. They can spread buzz through personal conversations with people and also online through chat rooms, blogs, and e-mails. While these are the ideal ambassadors, companies have no control of what they say or who they talk to.

10-4

Sponsored Consumers

Typically individuals who already like brand

Offer incentives in exchange for advocacy

Selection based on

Devotion to brand

Size of social circles

Expected to delivery messages

Grassroots efforts

Low-cost marketing events

Online social networks

Honest about relationship

Many companies sponsor individuals as agents or advocates to introduce new products. It works best when the person likes the brand and uses it. Companies normally offer some type of incentive in exchange for the positive advocacy. It can be cash, but most of the time is merchandise. Selection of brand ambassadors is based on a person’s devotion to a brand and the size of their social circle. Since the idea is to talk to their friends and other people, the size of the social influence is important. They are expected to design their own grassroots effort on how they will promote the brand. Many will use low-cost marketing events and even online social networks. Although the individual is being sponsored, the key for success is that they are genuine and do believe in the product being pitched.

10-5

Brand Ambassadors

Sony

GPS Camera

25 ambassadors

Cheryl Gillet

Procter & Gamble

Justin Breton

100 college ambassadors

Variety of P & G products

Created own marketing plans

Earnings up to $2,500 per semester

Sony used 25 brand ambassadors to introduce its GPS camera. The 25 were selected from a pool of 2,000. Cheryl Gillet, one of the ambassadors, photographed her trip to Australia and added a map of her journey. People were able to follow her trip as she posted photos and comments on a daily basis. Procter & Gamble uses ambassadors for a number of different products and has about 100 college ambassadors. Each creates his/her own marketing plan and can earn up to $2,500 a semester towards college. Justin Benton was a student at Boston University. He spent about 15 hours a week talking to college students about PUR, a water filtration system.

10-6

House Parties

Nestle Purina

Spent $50,000 on 1,000 house parties

Chef Michael’s Canine Creations

Household

Incomes greater than $60,000

Pamper pets

Pepsi

Launch Sierra Mist Ruby Splash

Grow Marketing

Drinks delivered to 300 parties

Another approach is to use house parties. Nestle Purina spent about $50,000 on 1,000 house parties to introduce pet lovers to Chef Michael’s Canine Creations. The house party sponsors had to have incomes greater than $60,000 and believe in pampering pets. Pepsi used house parties to launch its Sierra Mist Ruby Splash. It contracted with a firm called Grow Marketing to locate individuals to host the parties. Pepsi delivered free drinks to about 300 parties.

10-7

Company Employees

Employees posing as customers

High risk approach

Word of Mouth Marketing Association (WOMMA)

Honesty of relationship

Honesty of opinion

Honesty of identity

The last approach to buzz marketing is using company or agency employees. It is a high risk strategy, especially if the person doesn’t identify himself as an employee and the public finds out. The Word of Mouth Marketing Association (WOMMA) suggests three principles to follow for any type of buzz marketing campaign. 1) Be honest about the relationship you have with the company and what you get for being a sponsor. 2) Be honest with your opinion. Don’t say just what the sponsor company wants you to day. 3) Be honest about your identity.

10-8

Stealth Marketing

Surreptitious practices

Thrives in online world

Ethical debate

Shrewd method

Dishonest approach

Stealth marketing uses surreptitious practices to introduce a product to someone or fails to reveal the true relationship with the brand. Stealth marketing thrives in the online world because people can hide their true relationship with the brand. Marketers debate if stealth marketing is ethical. Some argue it is a shrewd approach to get around all of the clutter. Others argue it is a dishonest approach since the ambassador hides his/her identity and that they are actually pitching a product.

10-9

Guerilla Marketing

Instant results with unique, low-cost approaches

Focus on region or area

Involve interacting with consumers

Create excitement

Goal is to generate buzz

Grassroots efforts

Guerilla marketing was developed by Jay Conrad Levinson. It is designed to bring instant results with low-cost, unique marketing methods. Guerilla marketing focuses on a region or area and involves interacting with consumers in a unique and different way. The goal is to create excitement and to generate buzz. It is often connected with grassroots efforts to launch a brand or to market a product. Often alternative media are used. Pink Jacket Creative used guerilla marketing to launch the caffeine chip, Engobi, which is described in the Integrated Campaigns in Action feature.

10-10

Lifestyle Marketing

Associated with hobbies and entertainment

Contacting consumers where they go for

Relaxation

Excitement

Socialization

Enjoyment

A/X Armani Exchange

Music festivals and fashion shows

Lifestyle marketing involves identifying marketing methods associated with the hobbies, entertainment, and lives of the target audience. It involves making contact with consumers were they go for relaxations, excitement, socialization, and enjoyment. The idea is to intersect with consumers during their daily lives. For instance, A/X Armani Exchange reaches young consumers through sponsoring and setting up booths at music festivals and fashion shows.

10-11

Experiential Marketing

Direct marketing through interactive connection

Engage consumers

Nickelodeon

Slime Across America tour

30,000 kids

20 million television impressions

Cotton, Inc – Jack Morton Worldwide

Traveling mall exhibit

“The Fabric of Our Lives”

Direct marketing + Field Marketing + Sales Promotions

Experiential marketing is the intersection of direct marketing, field marketing, and sales promotions. Its basic premise is increasing the experience of direct marketing through an interactive connection. Rather than just pass out samples, make it an experience the consumer will remember. Nickelodeon used experiential marketing with their Slime Across American Tour. 30,000 kids were exposed to the exhibit and 20 million television impressions resulted. Jack Morton Worldwide used a traveling mall exhibit to expose consumers to the benefits of cotton and cotton clothing. Consumers could sing and record their own version of the song “Fabrics of Our Lives.”

10-12

Product Placement

Planned insertion

Used since 1890s

Biggest surge in 1982 – E.T. and Reese’s Pieces

Product placements

Increased awareness

More positive attitude toward brand

No immediate impact on sales

Low cost per viewer

Movies

DVD movie rental

Pay-per-view television

Television

Product placement is a planned insertion in a movie, television show, book or other forms of entertainment. It has been used since the 1890s, but only recently has grown in popularity. The biggest surge in product placement came in 1982 with E. T. and Reese’s Pieces. The placement of the Reese’s Pieces in the movie spurred a 65% increase in sales following the movie’s release. Research has found that product placement increases awareness of the brand, creates a more positive attitude towards the brand, but does not have any immediate impact on sales. From a cost standpoint, product placement has a low cost per viewer of impressions. A primary advantage is that the impressions do not stop with the movie. After the movie has played in theaters it goes to DVD movie rentals, to pay-per-view television, then to the movie channels on television.

10-13

Branded Entertainment

Brand woven into the storyline

Use increased sharply with reality shows

Also found in novels, plays, songs, and movies

Branded entertainment is the integration of the entertainment and advertising by embedding the brand into the storyline of the movie, TV show, or other entertainment medium. The use of branded entertainment increased sharply with the rise of TV reality shows. It is also now found in novels, plays, songs and movies.

10-14

F I G U R E 10 . 7

Alternative Media Venues

Subways

Street and mall kiosks

Escalators

Parking lots

Airlines

Shopping bags

Clothes

Another approach to reaching consumers and breaking through ad clutter is to use some type of alternative media. This list contains some of the options advertisers have.

10-15

Mobile Phone Advertising

Growing rapidly

Types of ads

Small banner ads

Click-to-call advertising

Search ads

Special apps for mobile phones

QR codes

Mobile phone advertising is one of the fastest growing forms of advertising. Currently, it is considered an alternative media, but soon it may become part of mainstream advertising. Only 23% of the population now receives mobile advertising, but another 1/3 are open to the idea of advertising if it will reduce their phone bill. The types of ads sent to mobile phones include small banner ads, click-to-call ads, and search ads. Special apps for mobile phones are also available to consumers, designed to engage consumers with the brand.

10-16

Video Game Advertising

Very attractive market

Primary market is 17-34 year old males

Have become difficult to reach

Play shooting games

Fastest growing market is females

Now 40% of market

Play puzzle and cerebral games

Product placement in video games has become common, generating about $1 billion a year in advertising revenue. Video games are a very attractive market. About 75% of online households spend at least 1 hour per month playing online games. About 27% of online households spend 30 or more hours a month playing online games. The primary market for video games is 17-34 year old males, which has been a market segment that has been difficult for marketers to reach. The fastest growing market for video games are females. It now makes up 40% of the market.

10-17

Cinema Advertising

Ads prior to movie

Captive audience

Cinema advertising occurs prior to the movie. It is a captive audience. Most will watch the ad. HP recently used the cinema to launch its Photosmart Premium Printer. HP had a 30-second spot in the pre-feature programming on all screens in the theaters. It was shown in 17,300 theaters. HP placed 2,600 plasma screens in the lobbies of theaters and delivered 50,000 demonstrations of the printer. Just with the lobby, 700,000 gross impressions were made.

10-18

In-Store Marketing

60% of purchase decisions made in store

Funds represent small percent of budgets

Approximately 60% of all purchase decisions are made in the retail store. In a survey of consumers, 52% said that in-store signage, displays, or point-of-purchase displays influenced their purchase decision of clothing. Yet, funds allocated to in-store marketing is a very small part of marketing budgets.

10-19

F I G U R E 10 . 10

Types of Advertising that Most Influenced

Clothing Purchases

Source: Adapted from Amy Johannes, “Snap Decisions,” Promo, Vol. 18, No. 11 (October 2005), p. 16.

This graph shows the results of a survey of consumers on what most influenced their clothing purchases. In-store advertising was by far the most influential. The second closest was print ads, at 23.9% versus 52.6% for in-store advertising.

Direct mail In-store ads Online ads Print ads Radio ads Television ads Word-of-Mouth 7.3999999999999996E-2 0.52600000000000002 0.10400000000000002 0.23900000000000021 1.7999999999999999E-2 0.14100000000000001 0.15800000000000045

10-20

In-Store Marketing Tactics

In-store “make or break” time

Engage customers

Most engaging

End-aisle displays

Merchandise displays

Use color, light, sound, taste, and smell

Motion

Video screens

Television monitors

Digital signage

The in-store shopping experience has a major impact on purchase decisions. It is the “make or break” time in terms of a decision to purchase a particular brand. In-store advertising seeks to engage customers. The most engaging forms of advertising are end-aisle displays and merchandise displays. The least engaging are ceiling banners and overhead mobiles. Using color, light, sound, taste, and smell increases engagement. Motion also engages customers. The motion can be video screens, television monitors, or even digital signage.

10-21

Brand Communities

Ultimate demonstration of

Brand loyalty

Brand communities are the ultimate in brand loyalty and brand devotion. Jeep, Apple, and Harley Davidson are three brands that have developed strong brand communities. People join a brand community for several reasons. It offers symbolic meaning and provides for interaction between the brand, consumers, and companies that participate. People join because they have shared values and experiences. Brand communities cannot be created by brands or companies. It has to be customer driven. But, brands can enhance the community and provide a richer brand community experience.