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.
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