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Rituals in live-marketing Improve your customers‘ experience – enhance your marketing results March 2013 content _Executive Summary 03 _Editorial 04 _Rituals – everyone knows, but no one knows... 06 _Facts about Rituals 08 _Live-Marketing and Rituals 14 _Results of the Random Telephone Survey 20 _Conclusion 30 _Glossar 32 _FAQ 34 2 Executive Summary Within the last decade the obstacles for marketing professionals are increasing. The rapid changes in the needs and preferences of the customers accompanied by constant improvements in technology have mademany advertising techniques obsolete or inefficient. On the one hand everything has to be innovative and new but on the other hand brand-recognition and customer-loyalty have to be protected and improved. The question is how to integrate both „directions“ in one strategy even though they seem to be adverse at first sight. As one of the leading companies in Live-Marketing we have a close contact to the affected parties. Therefore we are aware of the arising problems and have an adequate answer! This is the reason why we decided to publish the study at hand. As the headline presumes, the focus is on rituals as an instrument in Live-Marketing. But our suggestions are not based on serendipity. Instead they are grounded on the findings in recent academic research as well as our specialized knowledge and experience in this topic. So we issued this helpful „guideline“ to show you the advantages or rituals in marketing as a whole and for Live-Marketing purposes in particular. Followed by some theoretical information we present the results of a survey we conducted among business people. Even though we were surprised that only a few companies actually employ rituals in their marketing efforts we found out that most of the interviewees are interested in the topic and believe that rituals can indeed improve the efficiency of their marketing measures. Being your reliable Live-Marketing specialist we want to inform you as our partner about the chances and risks of rituals in your marketing strategy so you can take action before your rivals do. Enjoy reading and feel free to contact us for further consultation! 3 Editorial Our everyday life is changing rapidly. The time we use certain products is declining since innovations substitute for them. The pressure to invest successfully in R&D projects is accompanied by the necessity to reinvent the brand image frequently. Additionally the way of presenting new products has to adapt to constantly changing environmental conditions. This leads to some difficulties in business life, particularly in marketing departments. A set of instruments is offered by the fields of innovation management and entrepreneurship. Although the available methods are tailor-made for some of the concerns, they do not dissolve worries arising from declining costumer loyalty and brand recognition. Furthermore utilizing the findings in these sciences is very complex and often expensive. This creates an immediate need to fill the gap. One promising keyword is “rituals”. Most of us are not really sure what is considered as a ritual and many people are not aware of the benefits arising from the application of rituals. But the artifacts under consideration are a very powerful and efficient support for all marketing activities since they resort to behavioral pattern used in our daily life. In particular, rituals might be capable of overcoming severe problems such as decreasing brand recognition and brand loyalty. Interestingly, the advanced analysis of rituals in science is relatively new and marketing research focusing on the topic is rare. Since the ideas underlying rituals are not unequivocally linked in our minds, we want to give you an insight into this very promising and useful topic. On the following pages we will explain the term ritual and the accompanying subdimensions. Additionally we will show you how rituals work in our every day life and how they can be utilized in Life- and EventMarketing. 4 Editorial To take a in-depth look at the topic we held / carried out a randomized telephone survey amongst marketing experts. The informative results are presented in the corresponding chapter and we hope you will enjoy reading our findings and suggestions. Wolfgang Altenstrasser Director 5 Rituals – everyone knows, but no one knows... A famous German soccer player once said: “I do not have any rituals – except the things that are always done in the same manner.”1 This shows that some routines are so much taken for granted, so deeply integrated in our daily life that it is very difficult to notice them. One of these phenomena are rituals. Even though everyone applies rituals on a daily basis, most of us are not aware of them. A little illustration: After using the snooze function of his alarm clock twice, our protagonist wakes up at 6.00 a.m. and quickly brushes his teeth and washes his face. Today is a special day: He is invited to the latest product presentation by a famous communication technology manufacturer. After drinking his daily cup of fresh-brewed coffee and eating his cereals with his girlfriend, he gets dressed and puts on the new jacket he bought yesterday. Then he hurrys up to catch the bus. On the way he logs in his social network account via his cellular phone and checks for news posted by his friends. In the background his e-mail application is downloading new messages which he reads instantly. After a short trip to his destination – the local theatre – he shows his ticket at the entrance and walks inside. There he becomes part of a perfectly thought-out program starring the newest innovation on the technology market. The product is showcased as usual: A black-shirted specialist in front of a white background is presenting the new device and its features. 6 Rituals – everyone knows, but no one knows... At the end of the example we described one of the various ways to employ rituals in Live-Marketing. But there is more insightful information for marketing purposes hidden in the text. Did you notice the other ritualized behavior pattern?2 And did you realize the recognition power of the marketing ritual applied by the company? Without mentioning a certain name most people will know who is referred to. But back to the theory: There are many variances in what is labeled as a ritual. The main construct ritual can be composed of a bunch of (sub-)dimensions such as family, social, personal, age, cultural or religious rituals. There are other differences regarding intensity, use, frequency, acceptance as well as the relationship of resources invested and benefits gained. But if rituals are present in so many different ways: Why do we know so little about them? The next chapter answers the previously asked question and gives a brief definition of the term ritual. Beyond this basic insight we will provide more detailed information enlightening the various, associated facets. Some of the most important findings indicate that advantages can be gained once the structuring abilities deriving from rituals are instrumentalized. But at this point the innovator may disagree and propose that rituals are out of date referring to the paradigm of creativity and innovation. We can repel their criticism and answer: Yes! You are innovative and unique... just in between your rituals! There is much insight to obtain from rituals studies regardless whether a brand has aligned its marketing and product strategies with more traditional or, on the contrary, innovative approaches. 1 The answer can be found in the appendix. Little hint: more than 10! 7 Facts about Rituals The science observing rituals is called ritual studies and is an interdisciplinary field of research mainly composed of sociological and psychological parts, but connected to many other areas of scientific research. It commenced in the end of the 19‘th century and lifted the analysis of rituals on a new level. In the beginning ritual studies was a field of research focusing on religion and religious behavior, but nowadays it is analyzing the overall effects and the fundamental principles of rituals differentiated by varying criteria such as micro-, meso- and macro-level. Recently the topic sparked great interest in the marketing domain, creating fruitful approaches to benefit from ritualized behavior. The basic processes underlying rituals can be illustrated when looking at the way we promise something. To be able to do so there has to be a consensus about the meaning and the consequences of such a commitment. This can be achieved with rituals. By obeying the related verification procedures we are signaling the acceptance and compliance with the values connected. This way a common agreement about the function of the performed behavior is establish. And the most fascinating part: This kind of communication works without an ex-ante arrangement between the people in correspondence. Additionally, it is noticeable that the simple action is accompanied by a symbolic meaning expanding the statement made by the plain performance. That is why these rituals are special and more than just the executed action. Often a ritual has a certain protocol and etiquette regarding for instance clothing, language, phrases, and the sequence of actions. Furthermore there is a different importance and meaning for instance of a doctor wearing his white coat and a cleric wearing his spiritual garment. 8 Facts about Rituals Giving someone a bouquet of flowers might have the symbolic meaning of “I like you” as well as “I am sorry for your loss” depending on the chosen colors and the situation of handing over. This shows that rituals are a indirect way of communication and display a simulation of the intention. Thus making it convenient for marketing professionals to utilize these structures for more profitable Event- and Live-Marketing. To sum up we can state that a promise is one of the various ways we use rituals in our daily life. But the topic rituals is offering more depth than assumed on first sight. Even though it is part of everyone‘s dailylife, the lack of consciousness makes it difficult to understand the underlying mechanisms and to channel them in a desired direction. RITE Ritualized behavior Ritual Ritualized behavior Ritualized behavior Ritual Ritualized behavior Ritualized behavior Ritualized behavior Ritual Source: VOK DAMS ILM 2013 9 Facts about Rituals As shown in the visualization above another important aspect is the difference between ritualized behavior, rituals, and rites. Since the categories sometimes are overlapping and to keep it simple / uniform, we will mainly use the term ritual(s). But now we would like to focus on some of the levels on which rituals are present. Rituals on the micro-level One differentiation regarding rituals can be the level on which rituals are performed. The smallest unit of interest is the individual3. As shown in the introduction there are many clues where ritualized behavior is hidden. New findings in science have supported the assumption that rituals are indeed important instruments to structure our perception and behavior. Being part of everyone‘s daily routine they become even more important in cases something new or unexpected disturbs the sequence. Habitually, in these situations people tend to fall back in old behavior pattern without realizing it. They take a break and drink a cup of coffee or tea, they go jogging or do special exercises. All these reactions are an expression of the latent need for safety and continuity. The automated mechanisms allow us to concentrate on the new information and handle it more efficiently. This enables us to adapt to the given conditions faster and accept new concepts more sustainably. Rituals on the miso-level The small- and medium-sized aggregation of individuals presents the next step on which rituals are applied and is called meso-level. Similar processes take place when people come together as if they are isolated, but some adjustments have to be made when transferring research results. 3 Some scientists exspect at least two individuals to be involved when talking about rituals, but in our definition each person can have individual rituals which also have a symbolic meaning and therefore are more than just the performed action. 10 Facts about Rituals Taking a look on sports clubs for example reveals the presence of recurring events and behavioral pattern. There are initiationrituals for new members and special ways to celebrate a victory or to get over a defeat. These agreements on and compliances with codes of practice catalyze the formation of team spirit and loyalty. Another example is the working environment of most employees. Just as valid for sports and other clubs there are unique rituals in every company and often special subrituals in the different departments. Theoretically, the greatest potentials for marketing-professionals are hidden on this level. Profound evidence deriving from academic research can be applied on Live-Marketing in various ways. More detailed information on this topic will be available in the chapter “Rituals and Live-Marketing”. Rituals on the miso-level The most extensive level of analysis is the macro-level. The investigated object is the society as a whole.4 As assumed some tricky adjustment have to be implemented in order to properly transfer evidence from smaller units. One obstructing factor is the interdependency of ritualized structures on the several levels. These disturbances are influencing individual rituals as well as group rituals, but the greatest impact of the described connections can be observed when looking at entire societies. 4 Sometimes even a firm or enterprise, but regularly not. 11 Facts about Rituals Other differentiation criteria Apart from these taxonomy criteria there are various other aspects of interest justifying additional categorization characteristics. A very interesting and instructive feature is the age, since there are great deviations in ritualized practices when focusing on certain age ranges. As important as age is culture. The different traditions, the nonimitable collective consciousness and environmental conditions lead to the formation of different national, regional, and local rituals. Also revealing is a separation by field of appliance for example religious, family, and company rituals. Equipped with the knowledge about the pivotal structures and purposes of rituals in the private sector, we want to show you how the well-directed approbiation and exploitation of rituals can enhance your Live-Marketing results. On the one hand this can be achieved by establishing your own company and brand rituals. On the other hand it can be realized by understanding the needs of your customers to assure that they can make use of their personal (or peer-group) rituals. This way you can refine your clients‘ experience before, during, and after a marketing event. As a result you optimize non-monetary advantages as well as financial benefits. 12 Facts about Rituals Artifacts Visible, but not directly understand-/ decodeble Macro, Meso, Micro-level Values & Norms more visible and concious Basal Assumptions Self-evident, invisible and subcontious In reference to Schein, E. 1992, Organizational Culture and Leadership, S. F 13 Live-Marketing and Rituals When utilizing rituals the recommended marketing measures might seem to be obvious, but there are many facettes that have to be taken into account. Even though this chapter provides a basic proceeding framework it is still mandatory to analyse each firm‘s individual situation and potential. In addition, the overall outcome of intentionally working with rituals in Live-Marketing can be improved when cooperating with experts in marketing, sociology, and psychology. Examples for rituals in (Live-)Marketing First of all we would like to give you some remarkable examples of brands successfully integrating rituals in their marketing portfolio. Their advertising affords can be noticed easily once they are revealed, but to identify them in the first place is often a challenging task. To reproduce the same effects is even harder, in particular without identical ressources and conditions. But there is much to learn from these pioneers of ritualization in Live-Marketing. Successful adaptation of rituals in the technology sector One of the most famous manufacturers using rituals is Apple. Despite the fact that Apple is perceived as very innovative and a market pioneer, the way the corporation introduces new products to the market is strongly ritualized. Usually there is a single color background – often white – with only one person presenting the firms new achievments in R&D. This way Apple creates a favourable atmosphere in which the audience can recognize the newness and importance of the promoted product more sustainable. This allows the potential customers to focus on the features of the innovation making it possible for advertising professionals to communicate more efficiently. And as shown in the first chapter, the recognitionfactor is enormous. 14 Live-Marketing and Rituals Successful adaptation of rituals in the automobile sector Another well-known example is the entire automobile industry. Beeing one of the most innovative sectors6 in the economy there are many ritualized actions carried out. Despite the fact that some of the developments in this industry are very creative, they are often presented in a standardized manner. Usually periodical events like car-shows are used to demonstrate the advantages of a new vehicle and the small inventions coming with it respectivly. And even though some manufacturers try to change the presentation style of their products and even might try to break with traditions, there are still many ritualized structures involved. Just imagine an “innovative” premiere of a car. Probably there would be many unexspected and thrilling components. But would there not be an invitation? Would the event-host not offer something to drink or eat? Would there not be attractive women handing out give-aways and information broschures? Nothing that would chain your impressions to the firm, brand, or product? And even if the „broschures“ were available digitally on a USB-stick or acceessible online via barcodes does not change the fact that they are traditional rituals adjusted to contemporary conditions. Successful adaptation of rituals in the textile sector But there are many other showpieces in various industries. In the textile industry luxury-product manufacturers reinvent themselves frequently, but the way of presentation is often the same. Catwalk-events might be adjusted by every single producer according to contemporary needs but in the end these changes correspond with traditional techniques such as mannequins wearing the clothes. One well-known, largescale textile producer applying “rituals” in marketing strategies is Victoria Secrets. Every year there is a special presentation of the latest collection and 6 Especially regarding small and incremental innovations. 15 live-maRketing and Rituals afterwards a calendar is published. The calender itself has become an object of interest for collectors enhancing the prominence and recognition of the brand. This is equally valid for women wearing the clothes and men just being interested in the collectors item. how to utIlIzE rItualS In lIvE-MarkEtIng The mentioned firms already use rituals – intentionally or non-intentionally – as advertising instrument. But the question is: How can you establish rituals in your own marketing strategy? An universal answer can not meet all individual purposes since each company has distinct needs, believes, and aims. But there are some general suggestions that can help to avoid failure and increase the advantages gained by professional implementation of rituals in your Live-Marketing affords. The several components are depicted in the illustration on this page. analyzIng target group/ peer-group rituals IdEntIFIyIng already existing rituals applyIng your own rituals in marketing brEakIng with rituals crEatIng space for customer-rituals source: VOK DAMS ILM 2013 16 Live-Marketing and Rituals Identifying already existing company and brand-rituals The first process that has to be accomplished is the analysis of the current situation in your own company. Before trying to create and apply new rituals for your brand, it is important to identify the actual statusquo. By doing so you reassure that the planned rituals do not interfere with the ones you already have in use. This is very important when trying to maximize returns and ensure that the required continuity is available to the potential customer. The other crucial aspect is that you can use and improve already extisting rituals if the evaluation reveals that they fit the desired outcomes. This is convenient since it is easier – and hence often cheaper – to continue pursuing your goals using already established rituals. Besides these financial aspect it is important to keep certain rituals alive especially when they are positively related to the firm‘s name or the connected brands. Identifying the rituals of your target - and peer-group Before you can start implementing your new rituals in practical use you have to take a look at your target group and how your competitors handle rituals. The first investigation is required since you can not establish rituals that obstruct the individual rituals of your clients. Take into consideration that manifested individual behavior pattern can prohibit the acceptance of externally induced rituals or at least impede the disposition to comply with them. Furthermore you might have to look in more detail at your customers knowledge-aboutrituals and the knowledge-about-the-ritual, since the results of analyzing both aspects lead to different implications. In addition, identifying your market-competitors‘ approaches and gaining insight into their application strategies for rituals is a sound advice since there are legal pitfalls as well as various other problems. One example is the addressee not beeing able to distinguish between your rituals and the ones connected to other firms and brands. 17 Live-Marketing and Rituals Creating space for customer -rituals The next stage of planning is analyzing your customers‘ private rituals and creating space for them. Even though it is the aim of marketing specialists to channel the customers perception as much in the desired direction as possible, it is still very important to allow the participants of LiveMarketing events to carry out their own individual rituals. These might be drinking a cup of coffee in breaks or socializing during intermissions with other people attending the presentation. The intented results can only be reached efficiently if brand and individual rituals are equable in the end. Intentionally breaking with or ignoring rituals Some marketing strategies imply intentionally ignoring or breaking with popular rituals, but it still is very important to understand the consequences of such actions. Applied in a controlled and professional way these approaches can improve effects regarding brand recognition and create major marketingadvantages. But unsupervised there are many threats which VOK DAMS.Consulting - Corporate Live-Communication p. 17 can cause serious damage to your firm‘s substance. It is advised to handle such methods with the appropriate care and specialized proficiency. Think of a colleague never going to the hairdresser‘s or never dressing appropriately. Not obeying such elementary decencies can harm a persons reputation permanently and the same is valid for brands and entire companies. This is why a strong and experienced partner is a mandatory prerequisite to successfully achieve the desired effects of marketing activities and to enhance your customer‘s experience especially regarding LiveMarketing-Events. Be sure to minimize potential damage to your brands or the financial stock of your enterprise and instead establish a solid lead. Also important is the fact that measures once considered innovative and remarkable, might become rituals when they are standardized in the customer behavior on a large scale. Therefore it is obvious that great care has to be taken when 18 Live-Marketing and Rituals applying new instruments since they can evolve into unwanted and lasting mechanisms that might be difficult to influence and change. Creating new and unique rituals Before beeing ready to apply new rituals, the last step is to ask yourself what you want to achieve by using rituals in Live- Marketing. Only with a solid strategy you can decide which rituals suit your purpose best. In this stage it is very important to predict the possible outcomes as precisely as possible. To be able to do so it is important to have the specialized knowledge and experience to supervise the process of ritual formation. Furthermore all information obtained from evaluating the results of the other investigations should be included when creating new rituals. Establishing new rituals The most difficult part is to convert the theoretical considerations into actually working marketing solutions. Introducing new rituals is more effective when supporting instruments and certain channels of communication are employed. One decision to make is whether to use a single media-channel or to sent multimedially and furthermore whether to use the channel(s) simultaneously and / or repeatedly. Unfortunately there are many hidden traps and one-way roads on this level of realization. As a consequence competent and experienced support is recommended. Once generated measures have been executed it is important to foster and improve the established rituals permanently. Furthermore all the other mentioned steps have to be under continuous observation, since changes in your strategy, the customer rituals and the marketcompetitors‘ activities might require you to adjust your ritualized structures permanently. To have a look at the practical realization of these theoretical considerations and the perceived potentials of rituals in Live- Marketing, we summarize the results of our randomized telephone survey in the following chapter. The findings yield interesting information for further implementation of rituals as beneficial marketing measure. 19 Results of the Random Telephone Survey To obtain some more information about the potential impact of rituals and the interest among Businessmen and -women we completed a radomized telephone survey focusing on the topic. Methodology and Theoretical Considerations We used a convenience sample which was composed of various marketing experts frequently employing Live-Marketing. Overall we made 74 calls in two waves and were able to complete 47 interviews hold by a single interviewer, resulting in a return-rate of 63.514 percent. The questionnaire was designed to comply with the causal model depicted below. O B companies status-quo regarding rituals C A recognized competitor´s Private application behavior of rituals D concern and obstacles Source: VOK DAMS ILM 2013 attitude towards rituals as marketing measures E perception of marketing potentials Formative Indicators main construct Reflective indicators 20 Results of the Random Telephone Survey Our simple conceptualization consists of formative and reflective indicators. Except „d. Concerns and Obstacles“ all factores are expected to be positivly related to „o. Attitude towards rituals as marketing measures“. „b. Companies status-quo regarding rituals“ might have a stronger effect on our main concept as the other formative indicators. In our model „e. Perception of marketing potentials“ is a result of „o.Attitude towards rituals as marketing measures“. All subconcepts were enquired with at least two items in the interview, only the attitude was asked for in a single question. The answer-scale was odd ranging from one to five and did not offer an explicit „I do not know“-option so there might be some nonrespondents who actually did not answer because they were undecided. We did not run a pretest or a prenotification campaign and did not offer any incentives. In order to keep the phone-calls short we did not control for other variables such as company-size, -age, or kind of business. Our priority was on the attitude which was the first dispositon we asked for in each interview. The other questions were supposed to test the causal model and – in case the model would prove its validity – to give are more detailed insight. Our intention was not to offer a methodologically overloaded research-publication, but to gain insight into the actual potentials for marketing measures and provide practical results for users. On the following pages we will present the results of our survey and give some theoretical explanations for the findings. 21 Results of the Random Telephone Survey A. Private Application of Rituals At first we were surprised how many marketing specialists are aware of rituals in their private life. But taking the high educational level of our sample into account and considering that most markerting experts are informed about sociological and psychological models, the high degree of awareness seems to be understandable. In the end the results reveal that most interviewees are aware of using rituals on a daily basis. They also think that most of the people around them apply rituals in their daily routines. These findings confirm the great importance of rituals. Furthermore the results implicate that rituals are a commonly used social structure that can be utilized for more efficient communication between brand, company, and customer. 22 Results of the Random Telephone Survey B. Company ‘s stat us-quo regarding rituals The results for question B.1 show that most people are using rituals in their marketing strategy but not intentionally and not professionally. The overall attitude towards rituals in marketing seems to be good in most companies (B.2) and these findings suggest that acceptance should not be a real obstacle. This might be justified on the one hand by the positive attitude in most firms making it easier to implement new rituals internally. On the other hand the application of rituals is already going on in most companies. If channeled and professionalized, the benefits deriving from well-aimed employment of rituals in marketing can be maximized. Unfortunatly question B.1 had a non-responserate of 23.404 percent which might a signal for unawarness or the hesitation to grant insight into internal matters. 23 Results of the Random Telephone Survey C. Recognized Competitor‘s behavior Looking at the answer cluster in this group of questions we can observe that most marketing specialists are not really sure, whether their competitors intentionally use rituals in their marketing strategy. But on Average, the specialists tend to see rivals slightly more concerned and involved with rituals as not. The high counts for answers C.1.3 and C.1.4 might be a result of the fact that our question did not differentiate between intentional and non-intentional use of rituals. To sum up, the results display the awarness of our interviewees that their rivals might be using rituals in marketing to reach a superior market-position. It also implies, that there is a need to anlyse other companies and brands‘ advertising rituals and simultaniously establish your own ones to keep up with the paste of the others. 24 Results of the Random Telephone Survey D. Concerns and Obstacles Interstingly, most of the interviewees are not concerned with the application of rituals in marketing. This might be explainable on the one hand by looking at succesfull examples in business life and on the other hand by analyzing the results of question C.2 showing that specialized knowledge might be underdevelopt. Even though most people questioned think that they or their company have a good basis of knowledge, we assume that the answers are biased, since individuals tend to misjudge their own abilities. In addition, the high count of answer D.1.1 shows the incapability of some interviewees to identify the threats connected to careless application of rituals in marketing. This might be interpreted as a hint for a lack of specialized knowledge and experience. Further research on this special aspect could be insightful. 25 Results of the Random Telephone Survey E. Perceptions of Marketing Potentials Our findings show that the greatest fractiont of the sample thinks that utilizing rituals in marketing offers great potentials for marketing purposes. Comparing these results to the actual application of rituals (D), it is surprising that most companies do not seem to use rituals intentionally and professionally. And this despite the fact that many assume that there are various ways of advantegeously applying rituals in marketing. The findings might be explainable when looking at the results of question D.2 which show that there is a perceived lack of domain-specific capacities and knowledge. Addionally the topic is relativly new and therefore most of the companies did not have the time to implement rituals sustainable in their marketing strategy. But recognizing the latent potentials and noticing that many competitors are engaging in rituals implies their importance. Now seems to be the phase to act since in a short time rivals might 26 Results of the Random Telephone Survey Comparing the subdimensions with the main construct When looking at the our main question it can be observed that the majority of interviewees has a positive attitude towards rituals in marketing and thinks that there are great potentials to be explored. This fits the findings reported in the previous chapters and underlines the importance of rituals for markerting purposes. Most efficient (O.2.5) Benefits prevail (O.2.4) Maybe (O.2.3) Not really (O.2.2) Not at all (O.2.1) N.-A. (O.2.0) 04 2 68 10 12 14 16 Now we will compare the findings regarding the indirectly investigated subdimensions (A-E) to collected data concerned with the direct question (O). The summary of the most important measures can be seen in the illustrations on the following page. The results for question O are always slightly higher than for the other groups. The only exeption is group A which has the highest count of positiv answers. This could be explained with the everyday occurence of rituals in our private life. In Addition, this divergence shows that there is still some space to adopt ideas deriving from specialized research in business life. 27 Results of the Random Telephone Survey Further support for this implication is that the actual status-quo of the individual firms (group B) is lower than the estimated benefits when utilizing rituals (group E). Also interesting is that attitudes and actions of the competitors (group C) are considered almost on the same level as the own activities. This suggests that yet no permanent advantage has been established by the companies nor their competitors. This can be seen as a silent indicator since the upcoming developments in marketing regarding rituals might create an advantage-gap in the market. So it seems to be a good advice to start acting right now to found a solid rituals strategy and establish it before rivals do. 28 Results of the Random Telephone Survey Concludingly, we can state that our model might be capable of predicting the attitude towards rituals. Even though some adjustments could be made regarding the formative indicators, the reflective indicator performed well and should be investigated further. 29 Conclusion As shown in the previous chapters rituals are not only an omnipresent artifact in our private life but also play an influential role in marketing particularly in Live-Marketing. Since the topic is including so many different fields of scientific research and the effects are often not noticeable at first sight, it is very important to exactly know what to do. This is why a solid background based on experience and training is required. The results of the random telephone survey support the assumptions that rituals are part of our daily life. Additionally, the findings reveal a gap between actual implementation of rituals and and the perceived chances for marketing purposes, thus indicating that there are potentials hidden for various marketing strategies. Furthermore we pointed out that enterprises that intentionally and consciously ignore or break with traditions still should consider analyzing their individual situation. With professional support fatal decisions which can cause severe damage to your brands reputation and in consequence the substance of your firm can be avoided. Another aspect is that breaking with old rituals can mean that – in Schumpeterian tradition of creative destruction – new rituals emerge. The topic rituals has to be handled with the appropriate care and expertise to secure the desired course of action. Finally we conclude that rituals and the professionalized application of rituals are becoming more and more important in successful Live-Marketing and marketing as a whole. This evolution is grounded on the recent findings in academic research and the contemporary examples of firms that apply ritualized structures for their advantage. To maximize your marketing results and to keep up with the fast progress in ritual studies it is beneficial to work with a solid and reliable partner who has the capacities to guarantee the best results. 30 Conclusion If the topic rituals caught your eye and you recognize the importance for yourself and your company or brand feel free to contact us for further information. We would be glad to support you on your – ritualized – way towards a more productive and efficient Live-Marketing! 31 Glossar Artifact(s) In contrast to natural phenomena, artifacts are products of human action. They are an expressi on of the underlying believes and moral concepts for example manifested in the way we deal with breaches of law or moral indecencies. So artifacts are a visible approbiation of the intangible values on which social life is based. But artifacts can also so be manifested as paintings, sculptures, the shape of a building, and much more. Macro-level The macro-level is reffered to as the all-including stage on which something is applied or investigated. Often definitions are not conclusive, but usually the term is referring to the most extensive aggregation of subjects of interest. Meso-level The meso-level is the connection between the microand the macro-level and is a stage of analysis, looking at everything that happens in between the completely aggregated and the entirely segregated units. Micro-level On the micro-level the smallest unit of interest is explored. To be able to do so, the objects of interest are seperated in the smallest and meaningful entity available. R&D Research and Development refers to a companies affords to develop new products or services. Furthermore it is concerned with the realization of the ideas and the economical exploitation. 32 Glossar Ritual(s) Rituals are defined as actions that are performed according to fixed rules. Stated ceremonial sequences of ritualized behavior pattern are called “rite”. Rituals are one important way of com munication and can include religious, political, business and other domains. Rituals always have a symbolic value making them more than just the executed behavior. Ritualization and Ritualized behavior Is the process of turning single actions into repeated behavior and giving it a symbolic connotation. Once these actions are ritualized and accepted by a broader group of people they become ritualized behavior and part of rituals or rites. 33 Frequently Asked Questions To put all the information into a nutshell we would like to answer 10 frequently asked questions about rituals: What are rituals? Rituals are defined as actions that are performed according to fixed Rules. They are one important way of communication and can include religious, political, business and other domains. Rituals always have a symbolic value making them more than just the executed behavior. How do rituals emerge? Rituals are usually developed by a long period of time and therefore are lasting artifacts in our society. They emerge form certain experiences and environmental conditions which are mostly unique. One important requirement is the acceptance by individuals or the hierarchical power to impose them. Are rituals performed consciously or unconsciously? In general rituals are practiced unconsciously, but there are some exceptions. People often are aware of the symbolic meaning of their behavior but there are many examples for un- or sub-conscious application. Where are rituals applied? There are many different situations and contexts where rituals are applied. Some of the most influential areas of application are economy, religion, politics, military and education. Additionally on the individual level there are private rituals as drinking a special beverage on certain occasions or doing beneficial exercises when being stressed. Are there differences in rituals? Yes, there are differences regarding the level of appliance, the cultural background and the age or gender of the individual being observed. In some cases even more taxonomy criteria might be suitable. 34 Frequently Asked Questions Are rituals always positively connoted? No, there are also rituals that are considered hazardous or oppressing. Sometimes rituals can also be considered as old-fashioned or impeding. That is why domain-specific knowledge and experience is required. Do rituals persist or do they change? It depends on the kind of ritual. Generally speaking rituals are persistent and usually do not change easily. But in the long run and in certain developmental stages (e.g. early childhood and emergence of new technologies) there are great capacities to influence the further development of rituals. Rituals - only for humans? The term “ritual” usually refers to recurring behavior pattern occurring by humans. Similar processes regarding animals are sometimes called classical or Pavlovian conditioning. But there are some people speaking about rituals when they are talking about animals. So the answer depends on the perspective of the observer. Are there obstacles when manipulating rituals? Yes, since the topic is very complex and the interdependencies are immense it is very difficult for non-professionals to understand the scale of consequences ensuing from manipulating rituals. Additionally the fact that rituals structure humans daily life makes it a crucial and vulnerable lever in marketing actions. Which companies or brands use rituals to improve their marketing affords? There are many firms using techniques emerging form ritual studies. Some examples are given in the chapter “Live-Marketing and Rituals”. 35 contact wolFgang altEnStraSSEr Director vOK DAMS Events GmbH Katernberger Straße 54 42115 Wuppertal Germany P +49 202 38 907-202 F +49 202 38 907-199 [email protected] www.vokdams-ilm.de www.facebook.com/vokdams www.twitter.com/vokdams