alternative marketing chapter 10 copyright © 2010 pearson education, inc. publishing as prentice...

Alternative Marketing

Chapter 10

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-1

Chapter Objectives1. How do buzz marketing, guerilla

marketing, product placement and branded entertainment, and lifestyle marketing fit into an IMC program?

2. What is the difference between a product placement and branded entertainment?

3. What conditions must be present in order to develop a successful guerilla marketing program?

4. How can alternative marketing methods be integrated with in-store programs?

5. Why is it important to attempt to strengthen brand communities?


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

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

Alternative Media Programs


• Requires creativity and imagination

• Identify intersect paths• Alternative media programs

Buzz marketing Guerilla marketing Product placement Lifestyle marketing

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

Buzz Marketing Stages


• Three stages1. Inoculation2. Incubation3. 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

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

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

Product Placement


• Advertisers believe• Increased brand awareness• Positive attitude towards the brand

• No immediate impact on sales• Nielsen Research shows positive

impact• Low cost per viewer

Branded Entertainment


• Brand woven into the storyline

• Use increased sharply with reality shows

• Also found in novels, plays, songs, and movies

Product Placement and

Branded Entertainment


• Works 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

Video-Game Advertising


• In-game advertisements• Rotating in-game advertising• Interactive ads• Game-related Web sites• Advergames• Sponsored downloads

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

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

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

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

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

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

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

Enhancing 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.

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

alternative marketing chapter 10 copyright © 2010 pearson education, inc. publishing as prentice...

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