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Alternative
Marketing
Chapter 10
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
10-1
Chapter Objectives
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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
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Chapter Overview
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Traditional media declining
Alternative media rising
Ugg – fashion conscious consumers
Alternative approaches
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Buzz marketing
Guerilla marketing
Product placement
Branded entertainment
Lifestyle marketing
In-store marketing
Brand communities
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10-4
Alternative Media Programs
• Requires creativity and imagination
• Identify intersect paths
• Alternative media programs
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Buzz marketing
Guerilla marketing
Product placement
Lifestyle marketing
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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
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Buzz Marketing Stages
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Three stages
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Buzz marketing difficult during inoculation
stage
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Inoculation
Incubation
infection
Must use brand ambassadors or customer evangelists
True customer-generated buzz occurs after
awareness
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Awareness generated through traditional advertising
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Buzz Marketing Preconditions
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Brand must be unique, new, or perform better
Brand must stand out
Memorable advertising helps
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Intriguing, different, and unique
Customers must get involved
Buzz marketing works because
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People trust someone’s else’s opinion
People like to give their opinion
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Guerilla Marketing
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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
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Increased brand awareness
Positive attitude towards the brand
• No immediate impact on sales
• Nielsen Research shows positive impact
• Low cost per viewer
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10-10
Branded Entertainment
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Brand woven into the storyline
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Use increased sharply with reality shows
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Also found in novels, plays, songs, and movies
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Product Placement and
Branded Entertainment
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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
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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
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Video-Game Advertising
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In-game advertisements
Rotating in-game advertising
Interactive ads
Game-related Web sites
Advergames
Sponsored downloads
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Video Game Advertising
• Benefits
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Online games allow Web analytics
Ads can be targeted to match audience
• Disadvantage
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Ads soon become static
• New technologies
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Ad rotations within game
New ads can be added to online games
Time-sensitive ads can be used
Ads can be made interactive
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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
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10-15
In-Store Marketing
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70% of purchase decisions made in store
In-store atmospherics
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Video screens and television monitors
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Customize messages
The Salon Channel
Wal-Mart
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Sight, sound, and scent
127 million shoppers per week
Unilever
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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
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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
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Combination Approaches
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Digital, LED displays
Interactive displays
Integration of advertising and marketing with POP
Interface of digital technology with in-store networks
Interface with retail computers
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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
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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.
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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
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10-22