1. Managing Brand Communication in the “Push and Pull” Marketplace Don Schultz and Martin Block Northwestern University At Third EFCCE Conference Vienna 15 May, 2009

2. Brand Comm Models Have Been Based on Traditional, Outbound, Marketer-Controlled Systems All Outbound and All Marketer Controlled Research → Media → Sales Force Marketer Consumer/ Prospect Messages and Incentives Products/Services

3. In the 1990s Technology Changed Brand Communication…Forever Internet – WiFi Mobile Telephony iPods/MP3 -- podcasts Search Engines Cable/satellite Blocking systems - TIVO/DVRs/ Filters/Pop-up Blockers/etc.

4. Today, We Live in a “Push-and-Pull” System Word-of-Mouth New Media Forms Web Search Employees/Recommenders/Friends/Influencers Competitors Research → Media → Sales Force Marketer Customers/ Prospects Messages and Incentives Products/Services

5. In a “Push and Pull” System, Consumption Is More Critical Than Distribution

6. Estimating Media Consumption

7. SIMM - Simultaneous Media Consumption Studies  A method of understanding how consumers use and consume media today  Methodology  Conducted twice per year in the U.S. since 2002. In China quarterly since 2006  14 separate waves in the U.S. (15th in field now)  200,000+ individual responses (17,000 more in Wave 15)  Drawn from on-line interactive base of 60 million individuals in U.S.  Double opt-in methodology  Captures media usage, retailer preference, influence of media, past and future purchases, etc.  Includes 31 media forms – both online and offline  Accuracy at.01 level  Benchmarked to non-online studies  Weighting and balancing of 14 Census 2000 age-sex cells  Being developed and implemented in Mexico, Australia, etc.

8. U.S. Average Personal Media Consumption First Half 2008 – BIGresearch, Inc. Avg Minutes per Day Email131.3 TV129.6 Internet127.5 Radio 93.5 Direct 56.3 Magazines 49.1 Newspaper 44.8 IM 40.8 Games 36.6 Satellite 22.0 Web Radio 14.4 Blog 11.7

9. US Media Combinations Primary Medium (When …,do you simultaneously ….) (Regularly only) Source: 1st Quarter, 2008 – BIGresearch, Inc. OnlineTVMaga- zines News- papers Direct Mail Cell Phone Radio Online26.2 6.1 8.1 9.913.917.1 TV37.520.224.121.414.9 8.0 Magazines7.010.3 5.0 8.3 Newspaper10.311.6 4.711.3 Direct Mail21.014.2 6.710.7 Radio21.73.811.812.612.211.7

10. Purchase Intent and Media Influence Do you plan to make a computer purchase within the next 6 months by Media Influence - Yes – 84.81 No – 15.19 NoYes Total Coupons26.831.027.4 Inserts20.625.021.3 Newspapers 19.824.720.5 TV 19.226.820.3 In-Store 18.323.319.1 Direct 18.223.118.9 Magazines15.622.716.7 Cable 12.319.313.3 Radio 11.718.512.7 Internet10.619.311.9 Email 10.416.811.4 Yellow Pages 6.510.5 7.1 Outdoor 6.311.0 7.0

11. Pruned CHAID Tree Plan to Buy a Computer by Categories of Media Influence 14.9% (100.0%) 11.2% (60.9%) 14.9% (17.9%) 17.7% (6.4%) 17.6% (18.8%) 19.6% (12.6%) 15.2% (4.7%) 22.2% (7.9%) 23.3% (21.1%) 20.9% (12.1%) 26.6% (9.0%) 20.6% (3.0%) 29.5% (6.05) No InternetLow InternetHigh Internet Some Radio Some Email No CableSome Cable Low MagazineHigh Magazine Low EmailHigh Email Total Plan to Buy Computer

12. More Details in This New Book

13. Don E. Schultz, Ph.D. dschultz@northwestern.edu