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Jenny Schmidt, approved sharing BUS 114: Marketing Article February 4, 2012 What Google Does Right From Innovative Approaches to Tested Marketing Practices Claire Cain Miller’s article “Google embraces emotional ads for itself” was featured in the Seattle Times on January 2nd, 2012. Miller’s article discusses Google’s shift in marketing strategy and its use of emotional ads to promote the company. In this article review, I will examine aspects of Google’s marketing strategy including relationship marketing, product lines, and risk-taking. The analysis will conclude with a summary explaining why I agree with Miller’s assessment that these strategies are effective. Relationship Marketing In the last year, Google has updated it’s marking strategies through projects including a national television ad campaign and hosting an annual conference for its biggest advertisers. The television ads have focused on creating stories that viewers can connect to emotionally. For example, one ad chronicled a couple falling in love and ‘Dear Sophie’ features a father using Gmail to document important moments in his young daughter’s life. Peter Daboll, chief executive of Ace Metrix (a firm that evaluates TV and video ads) states, “Google's strategy has connected with viewers… because they would rather view a story than have products pushed at them.” Two of Google’s emotionally focused ads – ‘Dear Sophie’ and ‘It Gets Better’ - can be viewed here: http://www.complex.com/tech/2011/05/google-chrome-commercials The very first chapter of Marketing The Core discusses the importance of relationship marketing and explains, “a firm achieves meaningful customer relationships by creating connections with its customers through careful coordination of the product, its price, the way it’s promoted, and how it’s placed.” (pg. 11) As an online tech company, Google faces the challenge of creating personal relationships with users that may never see or speak to a Google representative in person. I believe that Google’s emotional storyline ads are a way of helping consumers feel like they have a relationship with Google and to feel good about using the company’s products. As Doboll explains, “Google has been so dominant in its usefulness… now they want to make you feel something about search, as opposed to just relying on it as a useful tool.” Google also extends the personal connection approach to its own business relationships. This includes the company’s annual Google Zeitgeist - a conference event hosted for its major advertisers. The marketing department invests in researching the best locations for the event and creates massive spreadsheets, detailing “140 hotels from Manhattan to Phoenix, with color-coded tabs and columns for ballroom size, room rates and the number of layovers to fly there.” Considering factors like layovers for business clients demonstrates Google’s concern for creating a positive experience for its business partners. Product Lines and Competition Google has expanded its product offerings beyond its basic search engine to include products like Google+ and Chrome. As noted in Marketing The Core, “New products are the lifeblood of a company and keep it growing, but the financial risks can be large.” (pg. 215) Considering these potential risks and rewards for new product development, I’m sure that Google conducted a thorough SWAT analysis and examined both external opportunities and threats. There are multiple opportunities that Google can gain from expanding its product line. New products can help create new revenue streams, so the company is not just relying on income from advertising on its search engine. Google’s marketing strategy fits into the company’s mission to “pare down 1 its product offering and make Google products more attractive, intuitive and integrated with one another.” In addition to opportunities, there are also threats to consider. Google would be aware of external threats from competitors, including Microsoft's Bing which has a new ad campaign as well. Lorraine Twohill, Google's vice president for global marketing explained, "As we got bigger, we had more competition, more products, more messages to consumers, so we needed to do a bit more to communicate what these products are and how you can use them." Bucking Trends Google has taken risks with its marketing strategy shift. Its television ads featuring families and couples are outside the norm of what immediately comes to mind for a consumer when picturing a giant online tech company. Twohill recognizes this unusual pairing and comments, “If we don't make you cry, we fail… it's about emotion, which is bizarre for a tech company.” Also, the current trend for television ads is a length of 15 seconds. However, the Google story ads run a minute or two. I believe that Google is willing to pay the additional cost for increased airtime in an exchange for communicating more emotionally compelling stories. While these marketing strategies are outside the norm, Google has done its homework. The company segmented its consumers and conducted market research before airing ads. The original Chrome ads did cater to the frequent web user demographic; the ads were online and featured the speed and security of the browser. However, when Google wanted to expand to reach more mainstream users, the company incorporated television ads (instead of relying on online ads). Twohill described this market segment as people "who don't get out of bed in the morning and think, 'I'll get a new browser today.'” Google also utilized the strategy of market research to select its previous Super Bowl ad. Market research is used to “reduce the risk of and thereby improve marketing decisions” (Kerin, 162). Google collected primary data by putting a number of versions of the ad on YouTube then choosing the one that received the most views. I believe that Google made an intelligent decision to incorporate YouTube in its market research. Google product users must also be internet users, so it’s logical to conduct the research online. Summary Some might consider Miller’s article biased because she covers the effective aspects of Google’s marketing strategy. However, I agree with Miller’s assessment – the strategies that she outlined demonstrate that Google is both taking risks and incorporating proven marketing practices. These marketing strategies include expanding the company’s product offerings to stay competitive and generate new revenue sources. Televising emotional ads helps create a connection with consumers through relationship marketing. Additionally, the ads are unique for a tech company, but still utilize tested marketing techniques including market segmentation and market research. I believe that Google is making good investments in sound marketing practices. Google’s investment has also been validated through outside sources. Ace Metrix awarded Google’s ads five of the top 10 positions on its list of the “most effective TV ads for websites this year.” Google also earned recognition from Adweek and Time for Best Ads of 2011 with ‘Dear Sophie.’ Google’s cash-cow search engine currently has two-thirds of the US market share; Google’s well-planned marketing strategies are a step in the right direction to turning its new products into stellar financial performers as well. 2 Bibliography Kerin, R., Harley, S., & Rudelius, W. (2011). Marketing The Core. North Seattle Community College: McGraw-Hill. Miller, Clair. (2012. January 2). Google embraces emotional ads for itself. (Online). The Seattle Times. http://seattletimes.nwsource.com/html/businesstechnology/2017147341_googleads03.html 3