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Alternative
Marketing
Chapter 10
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-1
Chapter Objectives
1.
2.
3.
4.
5.
How do buzz marketing, guerilla marketing,
product placement and branded
entertainment, and lifestyle marketing fit
into an IMC program?
What is the difference between a product
placement and branded entertainment?
What conditions must be present in order to
develop a successful guerilla marketing
program?
How can alternative marketing methods be
integrated with in-store programs?
Why is it important to attempt to strengthen
brand communities?
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-2
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-3
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-4
Alternative Media Programs
• Requires creativity and imagination
• Identify intersect paths
• Alternative media programs




Buzz marketing
Guerilla marketing
Product placement
Lifestyle marketing
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-5
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-6
Buzz Marketing Stages
•
Three stages
1.
2.
3.
•
Buzz marketing difficult during inoculation
stage

•
Inoculation
Incubation
infection
Must use brand ambassadors or customer evangelists
True customer-generated buzz occurs after
awareness

Awareness generated through traditional advertising
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-7
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-8
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-9
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-10
Branded Entertainment
•
Brand woven into the storyline
•
Use increased sharply with reality shows
•
Also found in novels, plays, songs, and movies
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-11
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-12
Video-Game Advertising
•
•
•
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In-game advertisements
Rotating in-game advertising
Interactive ads
Game-related Web sites
Advergames
Sponsored downloads
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-13
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-14
Alternative Media Venues
•
•
•
•
•
•
•
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Cinema
In-tunnel, subway
Parking lot
Escalator
Airline in-flight
Leaflets and brochures
Carry home menus
Carry home bags
Clothing
Mall signs
Kiosks
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-15
In-Store Marketing
•
•
70% of purchase decisions made in store
In-store atmospherics
•
•
Video screens and television monitors
•
•
•
Customize messages
The Salon Channel
Wal-Mart
•
•
Sight, sound, and scent
127 million shoppers per week
Unilever
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-16
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-17
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-18
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-19
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-20
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.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-21
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
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-22