(GhaniKunto.me) Download: Youth Marketing 101
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This document provides an introduction to the concepts of youth marketing. It discusses how marketing to youth is a marathon, not a sprint. It explores some timeless marketing truths, including that people buy social context rather than just products. Youth are motivated by emotions and the desire for belonging and significance. Marketing should focus on how a product enables social benefits rather than just touting product features. Examples are given of how cigarettes and mobile phones both fulfill social needs despite very different products. The document emphasizes understanding the difference between product content and social context in effective youth marketing.
(GhaniKunto.me) Download: Youth Marketing 101
- 2. Youth Marketing 101 By Graham Brown Ghani Kunto Freddie Benjamin
- 3. Graham Brown, Ghani Kunto, Freddie Benjamin Copyright © 2012 The Youth Marketing Academy (mobileYouth) All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of mobileYouth Authors grant fair use of book’s materials according to conventions of “fair use” covering printed materials ii
- 4. ACKNOWLEDGMENTS Thank you to the Youth Marketing Academy students. Your stories and insights from all over the world helped made this book possible. www.YouthMarketingAcademy.com i
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- 6. Introduction Youth Marketing Ain’t No Sprint In his book “The Dip”, Seth Godin wrote that no runner gives up on the Boston Marathon at the 25th mile mark. Statistically, the worst point for drop-out is the 13 mile half-way point, the point at which you’re neither motivated by the excitement of the start nor within view of the finish line. Think of this book as a coach to help you get through the race that is youth marketing. A benign dictator, if you will, shouting encouragement from the sidelines with a smile on its face as you get on your bike Sunday morning. We need encouragement because marketing is, let’s face it, hard work. Marketing’s hard work because it’s a lot easier to sit on a couch watching TV, eat a bowl of nachos and worry about other people doing the running for us. We 1
- 7. Graham Brown, Ghani Kunto, Freddie Benjamin need encouragement because youth marketing today is forever at that 13-mile halfway point. Talk to your ad agency and they’ll pitch you the idea that youth marketing is the 100m dash: fun, exciting and sexy. Ad agencies take the pain away. Ad agencies are the ab-trainers on late night TV infomercials that seduce you with the promise of “getting ripped” for summer with only 30 minutes of exercise. It’s the bank manager in a pair of jeans, girls in roller blades on campus, industry awards or Lady Gaga turning up at your product launch. What I’d like to share with you in this book is, however, a different reality: what works and what is commonly practiced aren’t two of the same. If advertising was so good, why don’t ad agencies advertise? The reason is that youth marketing isn’t Usain Bolt at the 100m; it’s the harder, less glamorous slog of the Boston marathon. For the last 50 years we’ve been practising the sprints. Our whole industry is based around short-term results (or “campaigns” to use the vernacular). We run out of puff after the first 10 minutes and wonder why the field is passing us, so we go back to the agency and beg for “the next big thing”. It worked in the era of TV and the “Big Idea” but not today. Marketing needs to win customers not awards. The economics of winning customers today means that success is determined not in your choices between “social” or “traditional” media or how you incorporate “social” into your advertising but in choices of mindset. A boring old bank using a print magazine to help young customers tell their story is far more relevant than an exciting mobile startup using social media to talk about its latest 2
- 8. Youth Marketing 101 campaign or product launch. The overused maxim “the medium is the message” no longer applies: what counts is the mindset. That means moving from viewing youth as destinations for your marketing messages to treating them as partners in its production. This timeless truth holds true regardless of the medium you employ to convey the message. And when youth are your partners, it doesn’t become a solo race anymore, it’s a relay. They’ll carry you across the finish line. Lessons Learned on the Rocky Road to Youth Marketing Success We easily forget that getting youth to buy your stuff is very easy. The real challenge is the gap between acknowledging youth’s importance to your business and doing something about it. It’s at this point youth marketers face a chasm of risk. It’s easier to turn back and simply let others do the hard work but it doesn’t help you next time round when you encounter the same challenges. Youth marketing is a mindset not a strategy. You can’t do “youth marketing” by hiring an agency to create a monkey-on-a-bike campaign for your Facebook page. Quick fixes land you right back where you started. What you need to cross is the right mindset, and that’s what you’ll get from this book. Once you have the right mindset, you start asking the right questions. Once you start asking the right questions you avoid the potholes that knock you out of the race. When you stay in the race, 3
- 9. Graham Brown, Ghani Kunto, Freddie Benjamin you win the youth marketing game because your competitors inevitably drop out. We discovered this simple truth to this game in our research that is the only strategy you have to know: you win the youth marketing game by not losing. Losing means capitulating and handing your marketing budget over to the creative agency because “you’ll never get fired for booking a TV campaign.” Losing is blowing your budget on a “Big Idea”, wondering why it didn’t work and then concluding that “youth are fickle / difficult to reach” or, worse still, “the only thing they understand is cheap.” Many of these mistakes are obvious and avoidable because the history of youth marketing is littered from them. You don’t have to repeat these mistakes. You can learn from the successes and failures of 10+ years working with organizations like MTV, UNICEF, Nokia, Apple, Red Bull, Vodafone, Monster and Threadless. It’s 10+ years of youth research and consultancy across 65 markets that we’ll share in a nutshell in this book. Curious I’m hoping you’re reading this book because you’re curious. You’re curious about what’s working today and what may be tomorrow. You’re curious about what’s the truth in marketing and what’s hype. Our goal in writing this book has not been to quell your curiosity with a single bite-sized answer that “youth marketing is X” but to equip you with the right questions and tools to propel that curiosity on a journey of discovery. 4
- 10. Youth Marketing 101 Well, you’ve taken the first step. If you want the sprint, go buy a book about social media or the “secrets” of brand management. This, however, is the marathon. But that doesn’t mean it’s going to need a Herculean effort to read this book. In contrast, you could devour this book in less time than it takes the average runner to run the marathon, all from the comfort of your armchair or airline seat (with or without nachos). Why complicate matters with a 200-page essay about social media when social media isn’t the main thing? If we can provide you with the right tools and questions to address the main thing in 50 pages rather than 200, are you going to be disappointed? No, of course not. I’m hoping that, as with many of the ideas raised in this book, we’ll save you precious time. Graham Brown 5
- 11. Part 1: Timeless Marketing Truths The Pepsi Challenge Back in the 80s, Pepsi reached its zenith as a youth brand. Stealing market share from its rival infused the company with a growing sense of confidence. The company launched the “Pepsi Challenge,” aimed to assert this upstart cola as the de facto youth brand of choice. In the Challenge, customers took blind taste tests and were asked to choose between Pepsi and Coke. 60% said Pepsi tasted better. In Pepsi’s mind, the better product won out. Researchers in the 90s repeated the Pepsi Challenge but employed a subtle twist. Rather than making the subjects wear blindfolds and drinking anonymous colas, they told the subjects which brands they were drinking first. The result? Four times as many people said they 6
- 12. Youth Marketing 101 preferred the taste of Coke. Pepsi tasted better, but Coke had the better story. The simple marketing truth that is as relevant as it was in the 80s as it is today in the 21st century is as follows: youth don’t buy stuff, they buy what stuff does for them. While companies sell products (Content) people actually buy the social package (Context). As Seth Godin pointed out, “blind taste tests are only good if you have blind customers,” and “people drink the can not the soda.” The can is the social packaging – the ability to use this product as a Social Tool, to help tell the customer’s own story. Don’t Fall in Love with Your Product Much of what we’ll share in this book is about exploding the myths because as we’ve already mentioned, getting youth to buy the stuff is 7
- 13. Graham Brown, Ghani Kunto, Freddie Benjamin actually very easy. The challenge is the pitfalls that lie en route to the finish line like, for example, the myth that your product Content is any good. This may sound harsh but it’s a refreshing taste of reality that will help you cast off any ideas you have about self-importance in the lives of your target customer. The first step towards being a good youth marketer is understanding this difference between Content and Context. Call it humble pie. You live in a brand bubble whether you like it or not – you wake up thinking about that marketing meeting, product launch memos, emails to your creative agency and PR people. You wake up thinking about your brand, youth don’t. Nobody cares about your product (like you do). And that’s okay because great brands accept this truth and work within these new parameters. When the product manager tells you “but ours has 3x the memory” you know that you haven’t even reached first base. When an agency runs a campaign highlighting the product’s key features you need to ask yourself who is this benefitting – the agency or the customer? What they should be doing is emphasizing this product’s benefits as a Social Tool. How will using this product help me belong? How will it help me be significant? Don’t tell me that your youth “are different here”. These are Universal drivers experienced by every youth in every country. Don’t fall in love with your product, fall in love with what your product does for them. 8
- 14. Youth Marketing 101 What Marketers Think vs. Reality What marketers think Reality People buy... Stuff What stuff does for them What’s Content Context important? A youth brand Cool Relevant has to be... Good Award-winning, clever, Helping youth tell marketing is... funny, ad campaigns with their story and celebrities with social media connect with each element other • Youth don’t buy stuff, they buy what stuff does for them • People drink the can not the soda • Blind taste tests are only good if you have blind customers Cigarettes vs. Mobile Phones Why would people buy a product that killed them? It doesn’t make sense. If people were really buying the Content of cigarettes, whole generations of young people would avoid the perils of tobacco. Young smokers know the health risks but the Context of cigarettes - the sense of belonging afforded among fellow smokers, the brand stories, the rituals of smoking, cigarette sharing – can be more important than life itself. While youth smoking in general is declining, the need for the Context that the cigarette provided remains. Youth aren’t suddenly becoming 9
- 15. Graham Brown, Ghani Kunto, Freddie Benjamin less social or less concerned about their importance in the Universe; they’re turning to other forms of Content to offer similar Context those cigarettes once provided. Mobile phones check many of these boxes. At the level of Content, these two products are worlds apart but consider their Context. Consider the ritual, talking about phones, the camaraderie, the brand identities and the visual displays. When young people used to stand waiting for friends outside station exits they’d smoke a cigarette – they’re virtual friend. Now they check imaginary text messages. A study by World Bank in Philippines shows purchasing a mobile phone led to a decrease of tobacco consumption by 32.6% in households. Data from mobileYouth also shows that, from late 1990’s, the number of youth smokers in USA decreased as more young people purchased mobile phones. Content is interchangeable, the Context is not. Mobile phones and cigarettes are Social Tools that offer similar Context: belonging, ritual, sharing, emancipation, and independence. When we stop thinking about our stuff as products and start thinking about it as a Social Tool we consider it in a new light. As a Social Tool it’s a means to achieve a social end. When it’s not the most effective tool out there, youth will replace it. When we think about Social Tools we also think about whether we’re selling the benefits of the Content or the Context: How will this help a young person to belong? How will this help a young person be significant? 10
- 16. Youth Marketing 101 Our behavior is shaped by social needs - the most powerful of which is the drive for belonging and significance. We make choices based on these drivers that can appear irrational e.g.; buying a product that kills us. That’s because we buy on emotion and justify with logic. • Youth buy on emotion and justify with logic • Social context can be more important than life itself 11
- 17. Graham Brown, Ghani Kunto, Freddie Benjamin Content Is Interchangeable Cars Cigarettes Mobile Phones Belonging Give ride to Hang out with Call, message, friends, drive to smokers, share photos, friends house back of bus, same brand, same brand, ritual, txtspk ritual Significance Old enough to Old enough Old enough to drive, to smoke, own, independence, rebellion, independence, status symbol, image of cool, status symbol knowledge knowledge Tools help us fulfill these social needs; a mobile phone can help us stay in touch with friends or be a status symbol. Mobile phones, however, are just one of many products that can fulfill these needs; seemingly unrelated products can also be competitors e.g. a car, a mobile phone and Lego bricks. 12
- 18. Youth Marketing 101 Comparison Of Content And Context Content Context What is it? Product Social Package What we buy Why we buy Drivers Logic Emotion Examples Price, Touchscreen Need to belong keyboards, Offer, Need to be significant Design Marketing Advertising, Communities, Social tools Campaigns, Programs, Events, Projects Sponsorship, Celebrities, PR Who Companies Users, customers, fans creates it? Experience Content experience Context experience starts starts after the before the purchase, exists purchase & exists only even when not interacting during direct interaction with the product, lasts way with the product. beyond the end of product usage. The Pepsi Generation Pepsi understood the difference between Content and Context well. Pepsi knew that youth drank the can, not the soda. It was one of the first companies to employ storytelling in its marketing to help develop specific market segments. Pepsi was the first beverage brand to overtly target African Americans. It was also the first of its kind to depart from pushing the physical benefits (Content) of the product and start talking about lifestyle (Pepsi was originally a cure for 13
- 19. Graham Brown, Ghani Kunto, Freddie Benjamin Dyspepsia – a stomach condition). In 1963, advertising executive Alan Pottasch convinced Pepsi to move away from advertising these product features to highlighting the intangible benefit that had little to do with the product’s medicinal origins. To Pottasch, the growing importance of media in teen lives presented an opportunity for advertising to play a bigger role in helping this lost generation find their voice. The Pepsi Generation was born. Pepsi’s invitation, “Come Alive! You’re the Pepsi Generation!” helped young Baby Boomers growing up in post-war America find their place in the Universe. Not only did the message create a sense of belonging among teens, it also differentiated a whole generation from their parents. Where parents were concerned about the ever- present specter or war and loss, teens in the 50s and 60s sought to celebrate the moment through free time, consumerism and Rock’n’Roll. Advertising created Context by telling stories that people identified with. Pepsi gave a lost generation a place in a rapidly changing world. Advertising also became headlines news (MTV Pepsi Generation Madonna 1989). Advertising gave us identity, conversation and we, the consumers, looked forward to seeing it on television. Youth marketing has changed fundamentally within the last generation in 2 ways and we’ll look at these 2 changes in section 2. 1) The New Attention Economy: The cost of youth attention has increased exponentially 2) Advertising is no longer the only way of creating Context 14
- 20. Youth Marketing 101 1) The New Attention Economy: The Cost of Youth Attention Has Increased Exponentially Advertising’s success, however, has been its own undoing; the model of “tell them you’re cool, tell them in a big way and keep telling them” is one easily copied by any brand wanting to win consumer mindshare. It’s a successful format easily translated to all media formats leading to an exponential rise in supply that outstripped demand (we only had 24 hours a day to give and 2 eyes and ears to consume it with.) When CPG brands recruited the best young blood from B-School the question they were continuously challenged with by these new upstarts was “how big will my marketing budget be?” The game became less about creativity (that was outsourced to the agency) and all about the depth of your pockets. It was an era of “Go big or go home” and the “Big Idea”. He who had the biggest ad budget won because he could afford the best ad agency, the most media space and the best celebrities to drown out the competition. Cost of youth attention eventually hit a breaking point – a point at which it was no longer profitable to employ traditional marketing to reach youth. The average youth is already an expert at blocking advertising from even entering her field of consciousness. Of the small amount of messages that do reach her awareness, she trusts little. Less than 34% of American youth trust advertising. The average American will have seen 170,000 marketing messages by age 17. When you have a whole generation adept at filtering out these messages the whole marketing model changes. No longer can you simply buy youth trust and attention, you have to earn it. We’ll cover these changes in section 2 under Earned Media. 15
- 21. Graham Brown, Ghani Kunto, Freddie Benjamin Today, when teens want to know about a brand, they ask each other, look up YouTube or search Google. Pepsi’s TV advertising campaign is just one of many brand narratives happening right now. Digital media has also opened up storytelling, and the creation of context, to the customer. 2) Advertising is no longer the only way of creating Context The cost of youth attention was expensive before digital arrived but it was digital that changed the game completely. Before digital, brands and advertising could control the storytelling because only those with money, knowledge and access could tell stories. Whether you liked, loved or loathed a product only your immediate circle knew about it. Today, however, everyone has access from the high school student 16
- 22. Youth Marketing 101 posting reviews on YouTube to your worst critics on your Facebook fan page. Now they’re all storytellers and it’s out of your control. The media formats may have changed but the mindset we use to reach youth is still the same old Paid Media model. The dynamics may have changed but the truth still holds true: People buy Context not Content. What has changed is who now creates the Context – the advertising agency or the customer? We’ll cover these changes in section 2 under Fans. 17
- 23. Graham Brown, Ghani Kunto, Freddie Benjamin More from Youth Marketing 101 … The Change: The Rise of Earned Media South Africa’s Coolest Brand From Liked to Loved T-Mobile’s Flashmob Lego Fans The Interest Economy The Loudspeaker vs Telephone Model Marketing in the Age of Earned Media Trevor Moran Engaging Fans Ford Fiesta Movement Facebook: The Hacker Way Get your copy today! Click here to Click here to Buy the book from Amazon Buy the PDF 18