TreatMeLikeYouKnowMe:TheImpactofPersonalizedMarketingCampaigns

A. Traditionalmarketingcampaignsaretoobroadtoinfluencethemajorityof
viewers.
1. Businessesthatuseatraditionalmarketingstrategyriskmarketingto
uninterestedconsumers.
a. Traditionalmarketingstrategycategorizespeopleintogroups
thataretoobroadtobeeffective(Ryan&Jones,2012).
b. Traditionalmarketinginterruptsconsumersfromdoing
somethingtheyareinterestedinandtakesthemtosomething
theyarenotinterestedin,makingthemangryandlesslikelyto
purchase(Schwab,2015).
2. Peoplearemorelikelytotakeactionwhentheyseeanadvertisement
fromasourcethattheytrust,butpeopledonothavehighlevelsof
trustforadvertisementsontraditionalmediums.
a. FourintenconsumersdonottrustadsonTV,innewspapers,
orinmagazines(Nielsen,2015).
b. 84%ofmillennials,ages1834,donottrusttraditional
advertising(Newman,2015).
B. Personalizedmarketingcampaignsuseconsumerinformationtoset
themselvesapartfromothercompaniesandincreasebrandloyaltyquicklyand
efficiently.
1. Differentcompaniesareconstantlycomingoutwithnearlyidentical
versionsofthesameproduct,whichmakesitdifficultforconsumersto
choosewhichproducttobuy.
a. Businessesneedsomethingtosetthemapartfromtheir
competitionwhichiswhatpersonalizationisabletodo
(Dholakia,2015).
b. Personalizationdrivesrepeatsalesbyusingcustomerpurchase
informationtoprovidethemwithopportunitiestobuyother
productstheymightbeinterestedinbasedoffoftheirprevious
purchases(Infosys,2013).
2. CocaColasShareaCokecampaignusedpersonalizationtoinspire
sharedmomentsofhappinessinrealandvirtualworlds.
a. Thiscampaignusedmanypersonalizedaspectssuchas
interactivebillboards,apps,andtravellingstationsthatallowed
peopletocustomizetheirownCokebottle(ShareaCoke,
2014).
b. DuringthesummerthattheShareaCokecampaignwas
unveiledinAustralia,anationof23millionpeople,over250
millionbottlesofCokeweresold(Austin&Rudge,2014).
c. ThismarketingcampaignsnappedCocaColaoutofaneleven
yeardeclineinsaleswhileitsrivalcompanies(Pepsi,
Dr.Pepper,andSnapple)allfacedadeclineinsales(Esterl,
2014).

I.

II.

3. DisneysnewMyMagic+campaigncollectspersonaldataandstoresit
onawristbandtoenhancecustomerinteractionsthattakeplacein
DisneyParks(Barnes,2013).
a. Disneybelievesthatthebettertimepeoplearehavingattheir
parks,themoremoneypeoplewillspendthere.
b. Disneyalsobelievesthatifpeoplespendmoretimeattheir
parks,theywillmakemoremoney.
Anotheraspectofmarketing,realtimeinteractionbetweenbusinessesand
consumers,isauniquefeatureofpersonalizedmarketingthattraditionalmarketing
doesnothave.
A. Traditionalmarketingcampaignslimitconsumeraccesstothebusiness.
1. Inasurveyof1,000consumers,89%admittedthatbrandinteraction
hadsomeimpactontheirpurchasinghabits,showingthatpeoplelike
havingaccesstobusinesses(Infosys,2013).
2. Peopleusedtoseeanadvertisementandassumeitsclaimstobetrue,
but,withtechnologytoday,peoplecanpubliclycommentonwhatthey
areseeinginrealtime,leavingnoroomforbusinessestomakefalse
claims(TedxTalks,2013).
B. Personalizedmarketingcampaignsthatusesocialmediatoadvertiseto
consumersinrealtimeareabletoreachaspecificaudienceataspecifictime.
1. Themarketplaceisconstantlychangingandgrowingandinteractive,
digitaladvertisementsareabletokeepupwiththerapidrateofsociety
(Dholakia,2015).
2. TheOreoBlackoutTweet,asocialmediapostingduringthe2013
SuperbowlBlackout,costOreonothingonanightwhenjusta
thirtysecondadvertisementcostedbusinesses$3,800,000.Thepost
endedupgeneratingover525millionmediaimpressionsfivetimes
thenumberofpeoplewatchingtheactualgame(36i,n.d.).
Bycreatingrelationshipswithconsumersandinteractingwiththeminrealtime,
personalizedmarketingcampaignsgeneratealargerreturnoninvestmentfor
businessesthantraditionalmarketingcampaignsdo.
A. Traditionalmarketingeventsnolongerreachamajorityofthepopulationand
wastemoneytargetinguninterestedconsumers.
1. Initially,massmarketingthroughspecificmediumscouldreachthe
majorityofpeopleonthosemediums,but,theadvancementof
technologyhasgivenpeoplemorechannelswithinmediums,
spreadingthemunevenlyacrosstheplatform(Marsili,2009).
a. Whentelevisionfirstbecamepopular,therewereonlythree
majorstations,soatanygiventimebusinessescouldnearly
guaranteethat1/3ofviewerswouldbeexposedtotheir
advertisements.Butnow,withover500channelstochoose
from,onlyasmallportionoftelevisionviewersareexposedto
anadvertisementononechannel(themorepopularthe
channel,themoreexpensivetheadvertisement).

b. ServicesofferedlikeOnDemand,DVR,andXMRadio
completelyeliminateadvertisements,allowingthousandsof
peopletoavoidadvertisementsaltogether.
2. In2011,Gartner,
theworld'sleadinginformationtechnologyresearch
andadvisorycompany,foundthatmassmarketingcampaignshadon
average,a2%responserate.Thecompanyestimatedthatby2015,
digitalstrategieswouldhavean80%impactonconsumerspending
(Pettey&VanderMeulen,2011).
a. Digitalmarketingallowspeopletointeractwithbusinesses
whiletraditionalmarketingdoesnot,impactingthepurchasing
decisionsthatconsumersmake.
b. Theinternetisaplatformthatfosterscollaboration.When
peopleareinteractingwithbusinessesonlinetheyfeelinvested
inthebusinesswhichresultsinsales.
B. Personalizedmarketingcampaignscostlessthantraditionalmarketing
campaignswhilestilloftengeneratingthesameamountofrevenue.
1. Dataiscollectedbycompaniesusingsoftwareautomationplatformsto
usebycompaniestomarkettoconsumerstheyknowareinterested,
essentiallyensuringreturnoninvestment(Hastings,2015).
a. Thedatagatheredrevealsspecificinformationabouta
consumersonlineactivity,whichgivesinsightsintotheir
interests.
b. Thedatagatheredcanbeusedbybusinessestomarketto
consumersthatappeartohaveintereststhatwouldlend
themselvestotheproductbeingsold.Thisallowsthebusiness
tosavetimeandmoneybymarketingtoaspecificgroupof
peoplelikelytohaveaninterestintheirproduct.
2. Socialmarketingeventsgeneratemorewordofmouthsalesthan
traditionalmarketingevents(Stephen&Galak,2012).
a. Technologyconnectspeoplewithlikemindedpeoplewhich
allowsconsumerstobuildvirtualcommunities.
b. Peoplewhohavereceivedapersonalizedadvertisementfora
productthattheyhaveapositiveexperiencewithwillshare
theirexperiencewiththeirvirtualcommunity,furtherdriving
sales.

References
Austin,L.,&Rudge,J.(2014,September25).Shareacoke:Howthegroundbreakingcampaign
goitsstart'downunder'(InterviewbyJ.Moye)[Transcript].Retrievedfrom
http://www.cocacolacompany.com/stories/

shareacokehowthegroundbreakingcampaigngotitsstartdownunder/

Barnes,B.(2013,January7).AtDisneyParks,abraceletmeanttobuildloyalty(andsales).
The
NewYorkTimes
,p.B1.Retrievedfrom
http://www.nytimes.com/2013/01/07/business/media/atdisneyparksabraceletmeantto
buildloyaltyandsales.html?_r=0
Bartels,R.(1976).Earliertheoriesrelevanttomarketingthought.In
TheHistoryofMarketing
Thought
(2nded.,pp.23).Retrievedfrom
http://www.healthedpartners.org/ceu/hm/a02history_of_marketing_thought_by_bartels_h
ermans.pdf
Dholakia,S.(2015,June24).MarketosCMOonthefutureofmarketing(InterviewbyT.
Kaneshige)[Transcript].Retrievedfrom
http://www.cio.com/article/2939756/cmorole/marketoscmoonthefutureofmarketing
.html
DimensionalResearch.(2013,April).
Customerserviceandbusinessresults:Asurveyof
customerservicefrommidsizecompanies
[PDF].Retrievedfrom
https://d16cvnquvjw7pr.cloudfront.net/resources/whitepapers/Zendesk_WP_Customer_S
ervice_and_Business_Results.pdf

Esterl,M.(2014,September25).'ShareaCoke'creditedwithapopinsales.
TheWallStreet
Journal
.Retrievedfrom
http://www.wsj.com/articles/shareacokecreditedwithapopinsales1411661519
Hastings,E.(2015,October26).[Telephoneinterviewbytheauthor].
Thehistoryofmarketing
[Image].(2012,February9).Retrievedfrom
http://blog.hubspot.com/blog/tabid/6307/bid/31278/TheHistoryofMarketingAnExhau
stiveTimelineINFOGRAPHIC.aspx
Infosys.(2013).
Rethinkingretail
[PDF].Retrievedfrom
https://www.infosys.com/newsroom/pressreleases/Documents/genomeresearchreport.p
df
Marsili,M.(2009).
Massmarketinginthenewmillennium:Whytraditionalmassmarketingis
ineffective
(Mastersthesis,Mt.SaintMarysUniversity,Emmitsburg,MD).Retrieved
fromhttp://cdm.msmary.edu:2011/cdm/ref/collection/MBA/id/19
Newman,D.(2015).Millennialsdon'tcareaboutads:Sohowdowebuildcommunityaround
them?Retrievedfrom
https://powermore.dell.com/business/millennialsdontcareaboutadssohowdowebuil
dcommunityaroundthem/
Nielsen.(2015,September28).
Globaltrustinadvertising
[PDF].Retrievedfrom
http://www.nielsen.com/content/dam/corporate/us/en/reportsdownloads/2015reports/glo
baltrustinadvertisingreportsept2015.pdf

Pettey,C.,&vanderMeulen,R.(2011,March29).Gartnersaysby2015,digitalstrategies,such
associalandmobilemarketing,willinfluenceatleast80percentofconsumers
discretionaryspending[Pressrelease].Retrievedfrom
http://www.gartner.com/newsroom/id/1607814
Ryan,D.,&Jones,C.(2012).Strategicthinking.In
UnderstandingDigitalMarketing:
MarketingStrategiesforEngagingtheDigitalGeneration
(2nded.,pp.1835).
Philadelphia,PA:KoganPage.
Schwab,K.(2016,January14).[Personalinterviewbytheauthor].
"ShareaCoke"campaignrollsoutintheUS.(2014).Retrievedfrom
http://www.cokesolutions.com/MarketingTools/Pages/Site%20Pages/DetailedPage.aspx?
ArticleURL=/MarketingTools/Pages/Articles/Programs%20and%20Promotions/449shar
eacoke.aspx&smallImage=yes&L2=Programs%20and%20Promotions
Stephen,A.T.,&Galak,J.(2012).Theeffectsoftraditionalandsocialearnedmediaonsales:A
studyofamicrolendingmarketplace[PDF].
JournalofMarketingResearch
,
49
(5),
624639.http://dx.doi.org/10.1509/jmr.09.0401
TedxTalks.(2013,December14).
Thefutureofmarketing,fromPlatotoBillHicks:Sean
DromgooleatTEDxZurich
[Videofile].Retrievedfrom
https://www.youtube.com/watch?v=z8oTLlItoV0
Teixeira,T.(2015,October14).Whenpeoplepayattentiontovideoadsandwhy.
Harvard
BusinessReview
.Retrievedfrom
https://hbr.org/2015/10/whenpeoplepayattentiontovideoadsandwhy

36i.(n.d.).
TheOreoblackouttweet
[Videofile].Retrievedfrom
http://www.360i.com/work/oreosuperbowl/