Alternative

Marketing
Chapter 10

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

 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

 Red Bull’s Buzz
• 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

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-3

Chapter Overview
• 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

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

Alternative Media Programs

• Requires creativity and imagination

• Identify intersect paths
• Alternative media programs
 Buzz marketing
 Guerilla marketing
 Product placement
 Lifestyle marketing

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-5

 Buzz Marketing
• 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

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

Buzz Marketing Stages
• 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

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-7

Buzz Marketing Preconditions

• 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

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

 Guerilla Marketing
• 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

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

Product Placement
• Advertisers believe
• Increased brand awareness
• Positive attitude towards the brand
• No immediate impact on sales
• Nielsen Research shows positive impact
• Low cost per viewer

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

Branded Entertainment

• Brand woven into the storyline

• Use increased sharply with reality shows

• Also found in novels, plays, songs, and movies

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-11

 Product Placement and
Branded Entertainment
• 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

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-12

Video-Game Advertising

• In-game advertisements
• Rotating in-game advertising
• Interactive ads
• Game-related Web sites
• Advergames
• Sponsored downloads

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-13

Video Game Advertising
• 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

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

Alternative Media Venues

• Cinema
• In-tunnel, subway
• Parking lot
• Escalator
• Airline in-flight
• Leaflets and brochures
• Carry home menus
• Carry home bags
• Clothing
• Mall signs
• Kiosks

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-15

In-Store Marketing
• 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

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-16

Point-of-Purchase Displays

• 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

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-17

Measuring POP Effectiveness
• 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

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

Combination Approaches
• Digital, LED displays
• Interactive displays
• Integration of advertising and marketing with POP
• Interface of digital technology with in-store networks
• Interface with retail computers

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-19

 Brand Communities

• 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

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Enhancing 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.

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 10-21

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

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