1. Alternative Marketing Chapter 10 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-1

2. Chapter Objectives 1.How do buzz marketing, guerilla marketing, product placement and branded entertainment, and lifestyle marketing fit into an IMC program? 2.What is the difference between a product placement and branded entertainment? 3.What conditions must be present in order to develop a successful guerilla marketing program? 4.How can alternative marketing methods be integrated with in-store programs? 5.Why is it important to attempt to strengthen brand communities? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-2

3. Red Bull’s Buzz Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-3 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

4. Chapter Overview Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-4 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

5. Alternative Media Programs Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-5 Requires creativity and imagination Identify intersect paths Alternative media programs  Buzz marketing  Guerilla marketing  Product placement  Lifestyle marketing

6. Buzz Marketing Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-6 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

7. Buzz Marketing Stages Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-7 Three stages 1.Inoculation 2.Incubation 3.infection Buzz marketing difficult during inoculation stage  Must use brand ambassadors or customer evangelists True customer-generated buzz occurs after awareness  Awareness generated through traditional advertising

8. Buzz Marketing Preconditions Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-8 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

9. Guerilla Marketing Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-9 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

10. Product Placement Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-10 Advertisers believe Increased brand awareness Positive attitude towards the brand No immediate impact on sales Nielsen Research shows positive impact Low cost per viewer

11. Branded Entertainment Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-11 Brand woven into the storyline Use increased sharply with reality shows Also found in novels, plays, songs, and movies

12. Product Placement and Branded Entertainment Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-12 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

13. Video-Game Advertising Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-13 In-game advertisements Rotating in-game advertising Interactive ads Game-related Web sites Advergames Sponsored downloads

14. Video Game Advertising Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-14 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

15. Alternative Media Venues Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-15 Cinema In-tunnel, subway Parking lot Escalator Airline in-flight Leaflets and brochures Carry home menus Carry home bags Clothing Mall signs Kiosks

16. In-Store Marketing Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-16 70% of purchase decisions made in store In-store atmospherics Sight, sound, and scent Video screens and television monitors Customize messages The Salon Channel Wal-Mart 127 million shoppers per week Unilever

17. Point-of-Purchase Displays Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-17 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

18. Measuring POP Effectiveness Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-18 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

19. Combination Approaches Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-19 Digital, LED displays Interactive displays Integration of advertising and marketing with POP Interface of digital technology with in-store networks Interface with retail computers

20. Brand Communities Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-20 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

21. Enhancing a Brand Community Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-21 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.

22. International Implications Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-22 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