Chapter 17 alternative marketing
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This document discusses various alternative marketing techniques including buzz marketing, guerrilla marketing, product placement, branded entertainment, and brand communities. It provides examples of how companies have used these techniques successfully, such as Red Bull's use of buzz marketing through extreme sporting events. The document also outlines factors that make alternative marketing programs effective and discusses international implications.
Chapter 17 alternative marketing
- 1. 17 Chapter -17 10-1 Alternative Marketing
- 2. Red Bull’s Buzz • Launched in Australia, 1984 • By 2001, held 70% of energy drink market in U.S. ($140 million in sales) • Entry in United States • Buzz marketing • Consumer educators -- parties • Extreme sporting events • Competitive reaction slow • Recently – more traditional advertising 17 10-2
- 3. Chapter Overview • Traditional media declining • Alternative media rising • Ugg – fashion conscious consumers • Alternative approaches • Buzz marketing • Guerilla marketing • Product placement • Branded entertainment • Lifestyle marketing • In-store marketing • Brand communities Discussion Slide 17 Alternative Marketing
- 4. Alternative Media Programs • Requires creativity and imagination • Identify intersect paths • Alternative media programs • Buzz marketing • Guerilla marketing • Product placement • Lifestyle marketing
- 5. Buzz Marketing • Word-of-mouth marketing • Higher credibility • Fast growth – now $1 billion annually • Methods of generating buzz • Consumers who like a brand • Sponsored consumers • Company or agency generated buzz
- 6. Consumers Who Like a Brand • Ideal ambassador • Buzz spread • In person • Internet • Chat rooms • Blogs • E-mails
- 7. Sponsored Consumers • Agent or advocate for a new brand • Dawn Direct Foam (P & G) • Sony • Brand ambassadors or customer evangelists • 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 • Lee jeans
- 8. Company Employees • Employees posing as customers • High risk approach • Word of Mouth Marketing Association (WOMMA) • Honesty of relationship • Honesty of opinion • Honesty of identity
- 9. Buzz Marketing Stages • Three stages 1. Inoculation 2. Incubation 3. infection • Buzz marketing difficult during inoculation stage • Must use brand ambassadors or customer evangelists • True customer-generated buzz occurs after awareness • Awareness generated through traditional advertising
- 10. Buzz Marketing Preconditions • Brand must be unique, new, or perform better • Brand must stand out • Memorable advertising helps • Intriguing, different, and unique • Customers must get involved • Buzz marketing works because • People trust someone’s else’s opinion • People like to give their opinion
- 11. Guerilla Marketing • Developed by Jay Conrad Levinson • Instant results with unique, low-cost approaches • Focus on region or area • Create excitement • Involve interacting with consumers • Goal is to generate buzz • Harley Davidson “Cat shoot” • Grassroots efforts • Alternative media
- 12. Reasons for Using Guerilla Marketing • To find new ways to communicate with customers • To interact with customers • To make advertising accessible to consumers • To impact a spot market • To create buzz • To build relationships with consumers F I G U R E 10 . 3 Source:Adapted from Lin Zuo and Shari Veil, “Guerilla Marketing and theAqua Teen Hunger Force Fiasco,” Public Relations Quarterly, Vol. 51, No. 4 (Winter 2006/.2007), pp. 8-11
- 13. Product Placement • Advertisers believe • Increased brand awareness • Positive attitude towards the brand • No immediate impact on sales • Nielsen Research • “Emotionally engaging” TV shows recognized by 43% more viewers • “Highly enjoyed programs” brand recognition increased 29% compared to 21% for commercial spots • Positive brand feelings increased 85% compared to 75% for commercial spots. • Low cost per viewer
- 14. Branded Entertainment • Brand woven into the storyline • Use increased sharply with reality shows • Also found in novels, plays, songs, and movies
- 15. F I G U R E 10 . 5 Key Factors in Product Placement and Branded Entertainment • Media • Supporting promotional activities • Consumer attitudes toward placements • Placement characteristics • Regulations Source:Adapted from Simon Hudson and David Hudson, “Branded Entertainment:A New Advertising Technique or Product Placement in Disguise?” Journal of Marketing Management, Vol. 22, No. 5/6 (July 2006), pp. 489-504.
- 16. Product Placement and Branded Entertainment • Work because no call to action • Goal is to increase brand awareness and liking • Placements work best when logical fit • Negative/positive scene impacts reaction • Bypasses legislation • Increase in placement budgets • Brand’s appeal stronger in non-advertising context • Perception of what others think is important to consumers • Provides postpurchase reassurance • Program can provide evidence of a brand’s advantage
- 17. Video Game Advertising • $1 billion per year spent on in-game ads • Very attractive market • 75% of online households spend at least 1 hour per month playing online games • 27% average 30 hours or more • Primary market is 17-34 year old males • Have become difficult to reach • Play shooting games • Fastest growing market is females • Now 20% of market • Play puzzle and cerebral games
- 18. F I G U R E 10 . 6 Video Game Advertising • In-game advertisements • Rotating in-game advertising • Interactive ads • Game-related Web sites • Advergames • Sponsored downloads
- 19. Video Game Advertising • Benefits • Online games allow Web analytics • Ads can be targeted to match audience • Disadvantage • Ads soon become static • New technologies • Ad rotations within game • New ads can be added to online games • Time-sensitive ads can be used • Ads can be made interactive
- 20. Alternative Media Venues • Cinema • In-tunnel, subway • Parking lot • Escalator • Airline in-flight • Leaflets and brochures • Carry home menus • Carry home bags • Clothing • Mall signs • Kiosks
- 21. F I G U R E 10 . 7 Types of Advertising that Most Influenced Clothing Purchases • In-store advertising (52.6%) • Print ads (23.9%) • Word-of-mouth communications (15.8%) • Television ads (14.1%) • Internet ads (10.4%) • Direct mail (7.4%) • Radio ads (1.8%) Source:Adapted fromAmy Johannes, “Snap Decisions,” Promo, Vol. 18, No. 11 (October 2005), p. 16.
- 22. In-Store Marketing • 70% of purchase decisions made in store • In-store atmospherics • Sight, sound, and scent • Video screens and television monitors • Customize messages • The Salon Channel • Wal-Mart • 127 million shoppers per week • Unilever
- 23. Point-of-Purchase Displays • Location is key • Last chance to reach buyer • Facts • 70% of decisions are in store • 50% of money spent at mass-merchandisers and supermarkets is unplanned • 50% of Coca-Cola products from displays • Average increase in sales is 9% • Half of POP displays not effective • Half that are effective – 20% increase in sales
- 24. F I G U R E 10 . 8 Effective Point of Purchase Displays • Integrate the brand’s image into the display. • Integrate the display with current advertising and promotions. • Make the display dramatic to get attention. • Keep the color of the display down so the product and signage stand out. • Make the display versatile so it can be easily adapted by retailers. • Make the display re-usable and easy to assemble. • Make the display easy to stock. • Customize the display to fit the retailer’s store.
- 25. Measuring POP Effectiveness • Both retailers and manufacturers want displays that are effective • Point-of-sales (POS) data • For retailers • Indicates time to withdraw or change display • Identify POP displays with largest impact • Test market different displays • For manufacturers • Data can improve quality of displays • Strengthen relationships with retailers
- 26. Combination Approaches • Digital, LED displays • Interactive displays • Integration of advertising and marketing with POP • Interface of digital technology with in-store networks • Interface with retail computers
- 27. Brand Communities • Ultimate demonstration of • Brand loyalty • Brand devotion • Symbolic meaning • Interactions between brand and consumer • Shared values and experiences • Cannot be created by brands itself • Marketing can enhance community experience
- 28. F I G U R E 10 . 9 Reasons Brand Communities Form • Affirmation of the buying decision. • Social identity and bond. • Swap stories. • Swap advice and provide help to others. • Feedback and new ideas.
- 29. Harley Davidson Brand Community Click to play clip from Harley Davidson VIDEO
- 30. F I G U R E 10 . 10 Ways to Enhance a Brand Community • Create benefits to encourage new customers to join. • Provide materials not available anywhere else. • Involve firm representatives in the groups. • Sponsor special events and regular meetings. • Promote communications among members. • Build a strong brand reputation. Source:Adapted from “Brand Communities,” Bulletpoint, No. 133 (July 2006), pp. 12-16.
- 31. International Implications • Alternative marketing - U.S. minorities • Alternative media used in other countries • “A Sunny Day” – China (Pepsi and Starbucks) • Brand communities developing in other countries • Jeep - China • Ad clutter a global problem • Growing use of alternative media tactics • New alternative marketing programs