1 Chapter 9 : Social Media
Case Study
VivE Hoy
The market for carbonated soft drinks represents one of the largest and most lucrative targets in the United States and around the world. Coca-Cola and PepsiCo have dominated the industry for many years. As the competition continues to evolve, each seeks out groups to attract and retain. Recently, PepsiCo reinvigorated its own efforts to capture the Hispanic share in the United States.
Advertising Age
reported that in 2004, PepsiCo ranked number 6 on the magazine’s list of the Top 50 Advertisers in Hispanic Media, spending $68.5 million. Then, the company dropped to number 27, spending $41 million in 2007. The next year, the company dropped off the list and remained in that position for four years. At the same time, Coca-Cola dropped its spending dramatically to the same group, although the organization still spent $29.8 million in 2011, with a ranking of number 48 on the Top 50 list.
Javier Farfan, senior director for cultural branding at PepsiCo, noted that, “One of the key reasons I came here is to figure out how to dive deeper into the Hispanic space.” Suggesting that the company had somewhat “lost its way,” Farfan said, “In the carbonated category, exponentially, growth is going to come from Latinos. There’s the population growth, but we’re also more prone to drink soda. So it became really important and strategic for Pepsi to get into that space.”
One of the outcomes was the “Vive Hoy” or “Live for Now” campaign and tagline associated with a new wave of television commercials. Farfan noted, “There’s a new mainstream evolving. It’s a different state of mind. Latinos don’t want to be separate; they want to be included. We want to nod and wink to them in places where they actually engage with media. Latinos watch MTV as much as Univision.”
[1]
To more fully attract Hispanic patrons, Pepsi launched two new products, Paradise Mango and Cherry Vanilla. Both were designed to attract Hispanic customers.
In addition to mainstream advertising and new products, Marketing Daily
notes another fertile ground. Hispanic consumers are “Social Media Catalysts,” according to the magazine. A recent study conducted for Unilever revealed that Hispanic consumers are “twice as likely to either share content or click on shared content than Americans in general.” The report’s data indicates that “Hispanic consumers are also more influential on social media: content they share garners more “click-backs” (the act of clicking shared links to view the shared content) than content shared by non-Hispanic consumers.”
Although Hispanic consumers read more on mobile devices than other groups, they are less inclined to share from those devices. At the same time, the youngest Hispanic consumers do not have reservations about sharing from mobile devices, which indicates the potential to reach them in ways that would lead to a larger community of advocates for Pepsi.
[2]
The next generation of marketing efforts will likely integrate messages for Hispanic and non-Hispanic consumers as society becomes more blended. The net result will likely be an expanding marketplace for companies that are able to attract individual groups while at the same time reaching the mainstream audience.
chapter 10 :
Critical Thinking Assignment
Discussion Questions:
(1)The Marketing Daily article noted that Hispanics, “are less likely to use Pinterest or Twitter, and twice as likely to use email and nearly 50% more likely to use blogging channels such as Tumblr and Blogger.” How should PepsiCo’s marketing team respond to these statistics?
(2)What social media marketing goals should PepsiCo seek to achieve with Hispanics? Why?
(3)Which social media marketing tactics do you believe will be most effective for PepsiCo when seeking to reach the Hispanic audience? Which would be least likely to succeed? Defend your responses.
(4)How might social listening be of value to PepsiCo with regard to the Hispanic market? Justify your answer.
chapter 10 :Critical Thinking AssignmentDirections: Answer the questions according to the concepts in Chapter 10. Upload your responses to the designated drop box. A Word or PDF file is acceptable.
1) Think about a product category where you have a high knowledge of the various brands. Pick one of the major brands. Discuss the characteristics the brand would want for a brand advocate, ambassador, or evangelist. What type of offers would it take from the company to create a strong brand ambassador? Discuss each of the stages of buzz marketing as it relates the brand you
identified. Which stage is the brand in now? Justify your answer. Discuss each of the preconditions of buzz marketing as it relates to your chosen brand.
2) Consider a recent purchase you made at the recommendation of someone else. Why did you trust that person’s recommendation? How important is the recommendation of others in your purchase decisions?
3) Discuss the difference between buzz marketing and stealth marketing. If you were hired as a marketing manager for a local business, would you support a stealth marketing campaign? Why or why not?
4) Explain the difference between product placement and branded entertainment. Do you personally notice product placements in television shows or movies? Why or why not? Identify the factors that make product placement or branded entertainment successful for a brand.
Integrated Advertising, Promotion,
and Marketing Communications
Eighth Edition
Chapter 9
Social Media
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Chapter Objectives
1. What constitutes a social network?
2. What unique characteristics are parts of primary
social media websites?
3. What is the nature of social media marketing?
4. Which social media marketing strategies do
companies employ?
5. How can marketers use social media strategies in
international operations?
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Wholly Guacamole
• High pressure processing
• Staple item, popular
• Leverage social media
• Brand alliances
– Biggest Loser
– Sonic
– Disney
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Chapter Overview
• Altered communications
• Basics of social networks
• Popular social networks
• Social media marketing
• Social media metrics
• International issues
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Social Media Terms
• Social media – digital tool or venue that allows for
social interaction
• Social network – social structure of individuals or
organizations
• Social media marketing – utilization of social media
or social networks to market a product, company, or
brand
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Figure 9.1 Types of Social Networking
Sites
• General social networking sites
• Niche social networking sites
–
–
–
–
–
Business
Family and lifestyle
Dating
Special interests and hobbies
Shopping
• Social bookmarking sites
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Figure 9.2 US Social Network
Penetration
Source: Based on “This Year, More Than Half of Americans Will Use Facebook,” https://www.emarketer.com/Articles,
February 8, 2016.
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Facebook
• Largest social media site
• 1.2 billion users worldwide
• Advertising
– 72% of social media dollars
– $10 billion
• Custom audiences
• Demographics
– Teens decline 25%
– Individuals 55+ increase 80%
• Usage
– Only 10% update status daily
– Only 15% comment daily
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Instagram
• Mobile photo and video sharing
• Owned by Facebook
• 200 million users
• Users young, wealthy, and female
• 60% visit daily
• Popular marketing tactics
– Contests
– Crowdsourcing of photos
• Uploading personal photos with
brand clothes
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Twitter
• Micro-blogging service
• Maximum of 140 characters
per message
• 54 million users
• 41 percent are minority
• Effective method of reaching
customers
• Monitor what customers are
saying
• Effective for small businesses
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Figure 9.3 Tips for Using Twitter
• Develop a strategy
• Maintain consistent brand voice
• Engage followers
• Focus on relationships
• Respond to customer comments
• Avoid total automation
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Pinterest
• Bulletin-board style social
network
• 70 million users
• 70% are female
• Popular topics
– Food
– Fashion
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YouTube
• By 2017 YouTube will surpass Facebook and Twitter
• Covergirl, Revlon – 99% views consumer generated
• Swiffer ad re-creations – 10.5 million views
• Fan-produced videos exceed brand-produced
• Product usage or repair – videos instead of manuals
• Brands monitor fan-created videos
– Positive videos – support
– Negative videos – creatively respond
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Figure 9.4 Trends in Consumer Video
Sharing
• Uploading broadcast ads
• Video reviews of products
• Re-creation of ads
• Creating consumer produced how-to videos
• Capturing real-time events
• Creating branded videos
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Figure 9.5 Reasons for Social Media
Marketing
• Engage fans
• Increase brand exposure
• Avenue for customer interaction
• Increase traffic
• Generate leads
• Enhance brand image
• Improve search rankings
• Gather customer intelligence
• Develop loyal fans
• Increase sales
Source: Based on “Social Strategies for 2014,” Wildfire by Google Whitepaper, Ad Age Content Strategy Studio, October
2013; Michael A. Stelzner, “2013 Social Media Marketing Industry Report,” Social Media Examiner,
http://www.socialmediaexaminer.com/, 2013.
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Reasons for Social Media
Marketing (1 of 4)
• Engage fans
• Increase brand exposure
– Hooters
§
§
§
§
Brand rejuvenation
Social media integral component
Engage females
Share experiences
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Reasons for Social Media
Marketing (2 of 4)
• Drive traffic
• Enhance brand image
– Provide Web URL in social media
– Generate leads – business-to-business
– Enhance brand image
§ Solve problems
§ Provide information
§ Gain insights into product usage
– JD Powers
§ Online interactions impact brand perceptions
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Reasons for Social Media
Marketing (3 of 4)
• Improve [organic] search rankings
• Brand name mentioned in social media
– Search engine algorithms examine mentions
• Content or comments fit search terms
– Quality of interactions enhanced
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Reasons for Social Media
Marketing (4 of 4)
• Customer intelligence
– Social listening, social chatter
– Provides insight into customer
thoughts
– Occasionally, social buzz requires
a reaction
– General Mills
§
§
§
§
§
Cheerios ad
Negative racist comment
Comment section disabled
Believed comments were a minority
Did not discontinue ad
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Figure 9.6 Functions of Social
Listening
• React to negative feedback
• Detect problems
• Gather topics for branded content
• Predict trends
• Detect patterns or shifts in views
• Identify brand advocates
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Brand Advocates
Social Listening
• 4.7% fans generate most social buzz
• Most customers do not make comments
• Brand advocate characteristics
– Behavioral commitment
– Emotional connection
– Quality communication skills
• Recruit brand advocates
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Reasons for Social Media Marketing
• Increase sales
• Build brand loyalty
– Should be secondary objectives
– Coca-Cola study
§ No relationship between buzz and sales
– McKinsey study
§ Negative buzz – 8% sales decline
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Successful Social Media Marketing
L’Oreal
• Goal is to keep in touch
with customers
• Three-part strategy
– Different marketing
strategies and Facebook
for each country
– Create content that leads
to social conversations
– Works best when
encountered before and
after a purchase
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Figure 9.7 Building a Social Media
Presence
1. Determine social media goals
2. Determine online personality
3. Decide on social media platforms
4. Develop social media strategies
5. Develop an analytical feedback loop
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Figure 9.8 Social Media Strategies
• Content seeding
• Real-time marketing
• Video marketing
• Influencer marketing
• Interactive blogs
• Consumer-generated reviews
• Viral marketing
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Content Seeding
• Provide incentives to encourage sharing
• Financial incentives
– Coupons
– Rebates
– Contests
• Esurance post-Super Bowl ad
• Value-added incentive – Exclusivity
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Real-Time Marketing
• 2013 Super Bowl – Oreos
• Instantaneous marketing
message
• Live event
• Upfront strategic planning
• Maintain brand image
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Video Marketing
• 58% US population watch videos
• 75% Internet users watch videos
• Spending now $4.6 billion
• Growing 20% to 40% annually
• More receptive to online videos
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Figure 9.9 Video Marketing
• Advertising on videos
• Posting of television ads
• Informational videos
• Cause-related videos
• Product reviews
• Vloggers
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Location of Video Ads
• Pre-roll
– Higher impressions
– Enhance recall
• Mid-roll
– Higher completion rate
– Enhance brand recognition, brand image
• Post-roll
– Higher click-through rate
– Direct response, call to action ads
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Influencer Marketing
• Individual marketing a brand
• Match opinion leaders with
brands
• Number of followers not
always key
• Lead conversations and
shape opinions
• Align brand message &
influencer’s motivation
• Authenticity important
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Interactive Blogs
• Internet provides platform for
– Dissatisfied consumers
– Satisfied consumers
• Interactive allows two-way
communication
• Higher level of risk
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Figure 9.11 Types of Interactive Blogs
• Brand blog
• Individuals sponsored by a brand
• Individual speaking about a brand
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Company-Sponsored Blogs
• Benefits
– Reassure shoppers
– Glimpse of how firm deals with
customers
– Release company information
– Customers can voice opinions
– Company controls site
• Difficult to solicit honest
opinions
• Employees may be more
sensitive to negative comments
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Personal Blogs
• Sponsored by brands
– New FTC regulations
– Limited freedom since blog is sponsored
– Visitors’ comments may be tempered
• Individuals speak about brands
–
–
–
–
No financial connection
Visitors feel more comfortable in commenting
Brands can learn
Brands can post comments or questions
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Consumer-Generated Reviews
• Amazon.com – leader
• Best Buy – online reviews
of brands
• Provide important
information
• Challenge – managing
reviews
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Viral Marketing
• Message passed from one consumer to another
– E-mail
– Blogs
• Form of advocacy or word-of-mouth endorsement
• Viral marketing messages
–
–
–
–
–
Advertisements
Hyperlinked promotions
Online newsletters
Streaming videos
Games
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Figure 9.12 Keys to Successful Viral
Marketing
• Focus on the product or business
• Determine why individuals would want to share the
message
• Offer an incentive
• Make it personal
• Track the results and analyze the data
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Figure 9.13 Why Consumers Follow
Brands
• Keep up with activities
• Learn about products or services
• Sweepstakes or promotion
• Provide feedback
• Join community of fans
• Make purchases
• To complain
Source: Based on Lenna Garibian, “Digital Influence: Blogs Beat Social Networks for Driving Purchases,” MarketingProfs,
http://www.marketingprofs.com/charts/2013/10336/digital-influence-blogs-beat-social-networks-for-driving-purchases,
March 18, 2013.
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International Implications
• Social media worldwide
– Most Facebook users outside U.S.
• Language differences
• Social norms
• Technological issues
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Blog Exercises
• Hooters
• Covergirl
• Social Media
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Copyright
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Integrated Advertising, Promotion,
and Marketing Communications
Eighth Edition
Chapter 10
Alternative
Marketing
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Chapter Objectives
1. How can buzz marketing, guerilla marketing, lifestyle marketing, and
experiential marketing enhance a marketing communications
program?
2. What methods can be used to effectively employ product placements
and branded entertainment?
3. Why has the use of alternative media venues, especially video game
advertising, grown in marketing communications programs?
4. How have in-store marketing and point-of-purchase displays evolved
into even more effective communications and sales tools?
5. How can brand communities enhance brand loyalty and devotion?
6. What methods are used to adapt alternative marketing programs to
international marketing efforts?
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Prairie Fire Experience
• Wichita, Kansas
• Variety of events
• 5K run
• Alternative marketing
• Target several audiences
– Fitness buffs
– Parents and children
– Visitors
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Chapter Overview
• Traditional media faces
challenges
• Alternative methods have
emerged
• Alternative media
• In-store marketing
• Brand communities
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Figure 10.1 Forms of Alternative
Marketing
• Buzz marketing
• Guerrilla marketing
• Lifestyle marketing
• Experiential marketing
• Product placement
• Branded entertainment
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Alternative Marketing Programs
• Requires creativity and imagination
• Identify intersect paths
• To succeed relies on
– Buzz
– Word-of-mouth
– Lifestyle messages
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Buzz Marketing
• Word-of-mouth marketing
– Higher credibility
• Fast growth – now $1 billion annually
• More powerful than paid endorsers
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Figure 10.2 Types of Buzz Marketing
Approaches
• Individuals who truly like a brand
• Individuals sponsored by a brand
• Company or agency employees
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Consumers Who Like a Brand
• Ideal ambassador
• Buzz spread
– In person
– Internet
§ Chat rooms
§ Blogs
§ E-mails
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Sponsored Consumers
• Agent or advocate for a new
brand
• Brand ambassadors, customer
evangelists
– Typically individuals who
already like brand
– Offer incentives in exchange
for advocacy
– Selection based on
§ Devotion to brand
§ Size of social circles
– Expected to deliver
messages
– Honest about relationship
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House Parties
• Nestle Purina
– Spent $50,000 on 1,000
house parties
– Chef Michael’s Canine
Creations
– Household
§ Incomes greater than
$60,000
§ Pamper pets
• BzzAgent
– Offers house parties and
brand ambassadors
– Suzanne Ermel, Black Box
wine
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Company Employees
• Employees posing as
customers
• High-risk approach
• Word of Mouth Marketing
Association
– Honesty of relationship
– Honesty of opinion
– Honesty of identity
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Buzz Marketing Stages
• 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
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Figure 10.4 Preconditions of Buzz
Marketing
• Brand must be unique, new, or better performing
• Brand must stand out
• Advertising should be
–
–
–
–
Memorable
Intriguing
Different
Unique
• Customer involvement with brand
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Stealth Marketing
• Surreptitious practices
• Thrives in online world
• Ethical debate
– Shrewd method
or
– Dishonest approach
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Guerilla Marketing
• Developed by Jay Conrad Levinson
• Instant results with unique, low-cost approaches
• Focus on region or area
• Involve interacting with consumers
• Create excitement
• Goal is to generate buzz
• Grassroots efforts
• Alternative media
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Figure 10.6 Reasons for Using
Guerilla Marketing
• To find new ways to communicate with customers
• To interact with customers
• To make advertising accessible to consumers
• To impact a spot market
• To create buzz
• To build relationships with consumers
Source: Adapted from Lin Zuo and Shari Veil, “Guerilla Marketing and the
Aqua Teen Hunger Force Fiasco,” Public Relations Quarterly, Vol. 51,
No. 4 (Winter 2006/.2007), pp. 8-11.
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Lifestyle Marketing
• Associated with hobbies
and entertainment
• Contacting consumers
where they go
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–
–
–
Relaxation
Excitement
Socialization
Enjoyment
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Experiential Marketing (1 of 2)
Direct marketing + Field Marketing + Sales Promotions
• Direct marketing through interactive connection
• Engage consumers
• Cadillac
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–
–
–
Current and perspective customers
Golf clinics
Culinary tour
High-performance driving
• Cotton, Inc – Jack Morton Worldwide
– Traveling mall exhibit
– “The Fabric of Our Lives”
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Experiential Marketing (2 of 2)
Steps to create positive experiences
1. Clear, concise target segment
2. Identify right time, right place
– Engage emotionally
– Engage logically
3. Clearly reveal brand’s promise
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Product Placement and Branded
Entertainment
“Getting products noticed has become increasingly
difficult, so companies have shifted more dollars to
product placements and branded entertainment.”
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Product Placement (1 of 2)
• Planned insertion
• Used since 1890s
• Biggest surge in 1982 – E.T. and Reese’s Pieces
• Product placements
– Increase awareness
– More positive attitude toward brand
– No immediate impact on sales
• Low cost per viewer
–
–
–
–
Movies
DVD movie rental
Pay-per-view television
Television
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Figure 10.7 Top Television Product
Placements
Top Brands
Blank
Top Shows
Blank
(Total occurrences/month)
Blank
(Total occurrences/month)
Blank
• Coca-Cola
99
• American Idol
208
• AT&T
76
• Celebrity Apprentice
127
• Chevrolet
45
• America’s Next Top Model
88
• Ford
39
• Biggest Loser
88
• Apple
32
• Amazing Race
69
• Everlast
32
• Shedding the Wedding
40
• Nike
32
• Dancing with the Stars
38
Source: Based on “Product Placement Hits High Gear on American Idol, Broadcast’s Top Series for
Brand Mentions,” Advertising Age, April 18, 2011, http://adage.com/article/media/product-placement-hitshigh-gear-american-idol/227041/.
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Product Placement (2 of 2)
Nielsen Research
• Brands in “emotionally engaging” programs are
recognized by 43% more viewers.
• Brand recognition increased 29% in “highly enjoyed
programs.”
• Positive brand feelings increased 85% for brands in
popular programs.
Source: Based on Linda Moss, “Nielsen: Product Placements Succeed in ‘Emotionally Engaging’
Shows,” Multichannel News, December 10, 2007.
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Branded Entertainment
• Brand woven into the
storyline
• Usage increased sharply with
reality shows
• Also found in novels, plays,
songs, and movies
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Figure 10.8 Key Factors in Product
Placement and Branded Entertainment
• Media selection
• Supporting promotional activities
• Consumer attitudes toward placements
• Placement characteristics
• Regulations
Source: Adapted from Simon Hudson and David Hudson, “Branded Entertainment: A New Advertising
Technique or Product Placement in Disguise?” Journal of Marketing Management, Vol. 22, No. 5/6 (July
2006), pp. 489-504.
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Company Tactics
Product Placement − Branded Entertainment
Reasons for increased spending:
• Appeal stronger in non-advertising context
• Perception of what others think is important
• Provides post-purchase reassurance
• Reaches people who place little value on brands
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Media Perspective
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Figure 10.9 Examples of Alternative
Media
• Video games
• Cinemas
• Subways
• Street and mall kiosks
• Escalators
• Parking lots
• Airlines
• Shopping bags
• Clothes
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Video Game Advertising (1 of 2)
• $7 billion per year spent on in-game ads
• Very attractive market
– 75% of online households spend at least 1 hour per
month playing online games
– 27% average 30 hours or more
– Primary market is 16-34 year old males
– Fastest growing market is females
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Figure 10.10 Video Game Advertising
• In-game advertisements
• Rotating in-game advertising
• Interactive ads
• Game-related websites
• Advergames
• Sponsored downloads
• Mobile game apps
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Video Game Advertising (2 of 2)
• Benefits
– Game just as enjoyable with ads
– Increases brand recall
– Positive brand associations
• New video game technology
–
–
–
–
Change ads in real time
Rotate ads
Deliver time-sensitive ads
Use interactive ads
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Females and Video Games
• 130 million, 40% of gamers
• WomenGamers.com
• Need women to design games
• Handheld games
• Socially-oriented games
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Cinema Advertising
• Ads prior to movie
• Captive audience
• Photosmart Premium Printer – HP
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–
–
–
–
Cinema center of integrated campaign
30-second spot in pre-feature program
17,300 theaters
2,600 plasma screens in lobbies
Delivered 50,000 demonstrations
Delivered 700,000 lobby impressions
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Other Alternative Media
• Subways
• Public facilities
• Parking lots, stairs, escalators
• Airlines
• Visit South Walton
– Unique airport signage
• Facial recognition digital displays
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In-Store Marketing
• 60% of purchase decisions made in stores
• Receives limited funding
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Figure 10.11 Types of Advertising that
Most Influenced Clothing Purchases
Source: Adapted from Amy Johannes, “Snap Decisions,” Promo, Vol. 18, No. 11 (October 2005), p. 16.
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Awareness of New Products
Bonus
slide
Source: Based on Wayne Friedman, “Brands Profit by In-Store, Word-of-Mouth Marketing, Media Daily News,
http://www.mediapost.com/publications/article/193422/brands-profit-by-in-store-word-of-mouth-marketing.html,
February 13, 2013”.
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In-Store Marketing Tactics
• In-store “make or break” time
• Engage customers
– Most engaging
§ End-aisle displays
§ Merchandise displays
– Lease engaging
§ Ceiling banners
§ Overhead mobiles
• Use color, light, sound, taste, and smell
• Motion
– Video screens
– Television monitors
– Digital signage
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Point-of-Purchase Tactics
• Location is key
• Last chance to reach buyer
• Effective for increasing sales because
– 60% of decisions are in a 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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Figure 10.12 Effective Point-ofPurchase Displays
• Integrate the brand’s image into the display
• Integrate the display with current advertising and promotions
• Make the display dramatic to get attention
• Keep the color of the display down so the product and
signage stand out
• Make the display versatile so it can be easily adapted by
retailers
• Make the display re-usable and easy to assemble
• Make the display easy to stock
• Customize the display to fit the retailer’s store
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Measuring POP Effectiveness
• Retailers and manufacturers want effective displays
• Point-of-sales (POS) data
• For retailers
– Indicate 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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Brand Communities
• Ultimate demonstration of
– Brand loyalty
– Brand devotion
• Symbolic meaning
• Interactions between brand and consumer
• Shared values and experiences
• Cannot be created by brand itself
• Marketing can enhance community experience
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Figure 10.13 Reasons Brand
Communities Form
• Affirmation of the buying decision
• Social identity and bond
• Exchange stories
• Swap advice and provide help to others
• Feedback and new ideas
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Figure 10.14 Ways to Enhance 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
Source: Adapted from “Brand Communities,” Bulletpoint, No. 133 (July 2006), pp. 12-16.
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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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Blog Exercises
• Coca-Cola
• Harley Davidson
• Buzz Marketing
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Copyright
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