Its not just another invented subdomain of marketing jargonese. Many marketers are already executing aspects of Presence, just not in a holistic and integrated manner.
We mean to demonstrate how one-to-one, consumer-focused engagements can be integrated into a smarter, more platformed and strategic approach that we call Presence Marketing. In doing that, were able to… Define that approach Define the attributes that make it succeed Use those attributes to create a template for success Drive results via Presence Marketing
The fact is, all of these can be elements of a Presence campaign. But none in and of itself is Presence Marketing. Lets set a definition…and create filters that help define Presence.
Presence is about exactly what the name says: Staying present in consumers lives and awareness, but in ways that promote dialogue, interaction and trust. A good way to define it? Use its overall objective…
Creating consumer relevance through consistent and engaging personal brand encounters.
To achieve that goal, a Presence program needs to possess FOUR ESSENTIAL ATTRIBUTES. Remove any of them and its no longer effective as Presence.
A true Presence program needs to have an in-depth, lived-in knowledge of the communities and consumers where it operates. Drives authenticity and credibility with its audience Enables better targeting and engagement through localized business intelligence Results in greater proactivity, adaptability to local circumstances ATTRIBUTE: HYPERLOCAL IMMERSION
The brand needs to be a regular Presence in market, and consistent in its actions. Constant in timing and deployment Consistent in behavior and engagement This turns initial consumer surprise into expectation Drives familiarity and acceptance ATTRIBUTE: CONSTANCY & CONSISTENCY
A Presence program is inherently on the ground and needs to be able to quickly adapt to changing circumstances. Allows workarounds for weather, acts of God, other unexpected developments Lets a marketer capitalize on – or even create – opportunities Allows adjustment to constantly-shifting local trends, demographics and consumer interests, thanks to knowledge of the local market ATTRIBUTE: ADAPTABILITY
The most important attribute: putting the right people in place allows a Presence program to enact the other attributes. True walking brand personnel who represent the brand and its consumers Highly trained but honestly evangelical and authentic Enabling the invaluable one-to-one encounter Ideally local, of the community itself 97% of consumers say staffs ability to answer specific product questions is crucial*. *Source: http://www.marketing.ie/jan05/article4.htm 97% of consumers say staffs ability to answer specific product questions is crucial*. *Source: http://www.marketing.ie/jan05/article4.htm ATTRIBUTE: PEOPLE
US Army: Strength in Action Tour To support the US Armys Strength in Action program, staffing up with the right PEOPLE and properly training them were the first of many crucial concerns. Its Presence attributes? HYPERLOCAL IMMERSION: The Tour leveraged locally-based field teams as well as local Army recruiters and other partners. CONSISTENCY: Strength in Action is a regular annual visitor to locations all across the country. ADAPTABILITY: Logistically complex but designed to adapt to rain-or-shine weather conditions and locational parameters. EARNED MEDIA MECHANISMS: Photo opps, signups for added-value offers and more drive chatter, follows and media awareness. PEOPLE: All brand ambassadors in the program went through rigorous training to ensure complete Army program knowledge, safety precaution and role responsibility understanding. 45,000+ STAFF HOURS WORKED 300+ DAYS OF EXECUTION 250+ MARKETS VISITED 5000+ SHIFTS COVERED PRESENCE IN PRACTICE
Nestle: Nesquik A yearlong campaign in California not only generated brand awareness but grew to be a viral favorite. HYPERLOCAL IMMERSION: Local-based field personnel knew the high-impact locations in each market. CONSISTENCY: Street teams were ubiquitous throughout the market, hitting city landmarks, nightlife destinations, sporting events and festivals to deliver samples and premiums. ADAPTABILITY: Our teams were agile and street-smart about their markets, able to take advantage of opportunities when they arose EARNED MEDIA MECHANISMS: Creative stunts drove buzz; the Nesquik Bunny alone drove countless photos and social forwards. PEOPLE: Besides appearances by the Nesquik Bunny, teams were young, enthusiastic and well-versed in the product…but also local, part of their communities. OVER 600 EVENTS VISITED OVER 10,000 COLLATERAL DISTRIBUTED 500,000 SAMPLES DISTRIBUTED EXPANSION INTO 2 ADDITIONAL MAJOR MARKETS IN 2012 20% INCREASE IN MARKET SHARE PRESENCE IN PRACTICE
Triscuit Home Farming Movement To promote the simple nature of Triscuit, Kraft partnered with FFA and local urban farming advocates, garden clubs and community groups in a national Home Farming initiative. HYPERLOCAL IMMERSION: Partnering with local advocates ensured effective community outreach and positive engagement. CONSISTENCY: Home Farming was promoted at events, at local retailers, through a persiste online/social media campaign, even via 4 MM specialty packages. ADAPTABILITY: Teams contended with local logistics, weather, even what crops were preferred in each market. EARNED MEDIA MECHANISMS: An online community site and social tactics allow members of the movement to dialogue and promote their advocacy. PEOPLE: Teams were training in the brands simple goodness platform and in how to dialogue with local advocates and consumers back-to-basics urban farming. OVER 50 BRANDED GARDENS ACROSS 20 MAJOR MARKETS 4 MILLION SPECIALTY PACKAGES AT RETAIL WITH IN-PACK SEED KITS MEDIA TIE-INS A& COVERAGE BY ELLEN DEGENERES, HGTV AND MORE CREATED AN ONGOING USER COMMUNITY AND ONGOING IN-MARKET PRESENCE DROVE SALES & AWARENESS INCREASES OVER FLAT/DECLINING PRIOR PERIODS PRESENCE IN PRACTICE
The Four Attributes result in integrated campaigns greater than the sum of their parts… 4x4x
Hyperlocal Immersion Constancy & Consistency Adaptability People Consumer Sentiment Trial and Referral Social Forwarding Word-of-Mouth …by multiplying the reach and influence of each consumer encounter. 4x4x
Consumers trust authentic, live, one-to-one brand encounters more than other touchpoints: 75% of consumers say that participating in a live marketing experience would make them more receptive to the product/brands advertising 75% of consumers said they would be extremely or very likely to tell others after participating in a live marketing event, extending impact through word-of-mouth 8 out of 10 consumers who had actually participated in experiential marketing in the past said that they had told others about their experience Source: Jack Morton Worldwide survey
Source: Constant Contact Spring 2012 Small Business Pulse Survey 60% 50% 40% 30% 20% 10% 0% 48% 40% 59% 17% 18% 14% In-Person Interactions Traditional Advertising (print, radio, TV, etc.) TotalB2CB2B Source: Constant Contact Spring 2012 Small Business Pulse Survey; Of the items you find to be effective, which do you rank as the #1 most effective? Fully Engaged customers are more likely to have had face-to-face interactions with a brand. 52% of Actively Disengaged customers had phone contact with a company compared with just 18% of Fully Engaged Customers. 76% of fully engaged customers had in-person interactions, versus 48% of Actively Disengaged customers. In-person interactions create loyal customers better than other media:
Why in-store and POP activation? Because unseen is unsold: 74% of purchase decisions are made in the store (POPAI 1997). Yet consumers look only at fractions of brands available. The key is to be able to manipulate attention (Dreze, Hoch, and Purk) Sources: Woodside and Waddle 1975; Bemmaor and Mouchoux 1991;Wilkinson et al. 1982. Woodside and Waddle JAR 1975 It holds at retail, too. Sales (coffee) Regular Price 600 400 200 0 100 200 166 500 -20% Without POP display With POP display
BOUGHT This media consists of: Print advertising Television Web banners, paid search Media deals EARNED This media consists of: Social media channel content Blogs, videos, comments, pictures, Stories, conversations, wikis, feedback, tweets, applications, Emotion cons, and ratings. ATTRACTS: OWNED This media consists of: Corporate website Portals Microsites ATTRACTS: fans customers strangers ATTRACTS: Presence can drive earned media…
Source: 2011 study: emarketer.com, Synaptic Digital & Kantar Video Effect on Brand Awareness: 40% 30% 20% 10% 0% …the most valuable tool for brand awareness.
Theyve already embraced elements of Presence Eventually theyll integrate them under the Four Attributes Major marketers will soon drink the Kool-Aid.
Source: Constant Contact Spring 2012 Small Business Pulse Survey Which marketing activities do you find to be effective for your organization? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 83% 84% 81% 71% 72% 70% 68% 64% 75% 49% 56% 38% 41% 43% 38% 33% 23% 49% 22% 21% 22% 19% 17% 22% 10% 17% 18% 15% Email Marketing WebsiteIn-Person Interactions Social Media Marketing EventsPhone Calls (for lead Generation, etc) Public Relations Direct Mail Traditional Advertising (print, radio, TV, etc.) Online Advertising (paid Search, etc.) TotalB2CB2B Major marketers will soon drink the Kool-Aid.
How is Presence different from… Experiential Marketing? Event Marketing? Guerilla Marketing? PR/Stunt Marketing? OOH/Alternative Media? What Differentiates Presence?
It comes back to 4 x Any strategy or tactic becomes Presence only if they possess the Four Attributes Hyperlocal Immersion Constancy & Consistency Adaptability People
Lets pick an example: an Experiential Marketing tour visiting retail, malls or festivals Not Hyperlocal Only in-market for a (relatively) brief period Highly scheduled and locked into logistics Some staff may be highly trained, evangelical and local Hyperlocal Immersion Constancy & Consistency Adaptability People
Guerilla marketing can come close… Can be hyperlocal, adaptable, and have solid human assets on the ground Hyperlocal Immersion Constancy & Consistency Adaptability People
PRESENCE TV/Radio Digital/ Mobile Shopper Marketing Experiential/ Event Public Relations OOH/Alter native Presence enhances the power of every medium and touchpoint Cross-functional and complementary Lends authenticity to other media by being…well, present in peoples lives Presence is central…
Why does a Presence-type program not succeed? When an inadequate marketing plan is used without integrating it with other marketing communication initiatives40 or when ambient communication is trivialized and used without any specific objective (e.g., it is used to imitate competitors or because it is a trendy communication tool). Source: 2010 California Management Review, Vol. 52, #3 Presence Fails
When there is an inadequate creative concept and/or execution, either when the ambient initiative is not able to break through the clutter, grab consumers attention, and generate word-of-mouth, or when there is an exaggerated use of creativity that cannibalizes the brand and that is not congruent with the marketing objectives (e.g., when the…initiative is used for its own sake and does not add value to the brand). Source: 2010 California Management Review, Vol. 52, #3
When there is a lack of environmental/contextual integration, which may occur either when there is an improper relationship with the local authorities or when ambient communication is improperly used to spread messages to sensitive audiences on delicate social topics where the initiative runs the risk of being misunderstood and obtaining a counterproductive impact on the audience. Source: 2010 California Management Review, Vol. 52, #3
Pick four disciplines from this list where Presence works particularly well. Why? Relationship Marketing TV/Radio Public Relations Local Immersion Marketing Sponsorships Community Outreach Music/Sports Activation Grassroots Marketing Presence Pop Quiz
RELATIONSHIP MARKETING One-on-one encounters on a constant & consistent basis create dialogue & trust that drive relationships LOCAL IMMERSION MARKETING Understanding local preferences, trends, activities results in more focused and relevant actions COMMUNITY OUTREACH Being part of the community allows brands to be good guys and esteemed neighbors GRASSROOTS MARKETING Presence creates authenticity that helps drive bottom up strategies and loyalty at the local level Presence Pop Quiz Answers
What metrics & outcomes are important in assessing Presence? Why are those important? How do we measure them? Measuring Presence
Presence provides a continuum of multiple touch points in a consumers life. Your Consumers Day, Week, Month, Year…
How do you measure Presence? By what outcomes matter most for you. Assessment can be based on results from multiple types of metric What types are specific to each program and goals Develop a measurement matrix before each program, with associated targets One goal or many?
Does Presence work? Following is an example of Presence Marketing sales trends compared to national and like-market trends, and observed ROI, drawn from a national CPG marketing program.
Growth vs other markets: PM Market A vs. others $ Vol Velocity: $ Sales/ CDP Share Year 1 AVERAGES (% Chg Vs YAG) Distribution: CDPs 2495 7(7)(3) 410 15188 $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs (27)(16)(17) 8(7)(5) (9)(3)(4) (31)(9)(8) CONVENIENCE GROCERY NATIONALLIKE MARKETSPM MARKET A NATIONALLIKE MARKETSPM MARKET A
Growth vs other markets: PM Market A vs. others Affects on grocery velocity (Q4 2011 – Present) Distribution: Q4 2011 - Present Velocity: Q4 2011 - Present PM Market: +11.3% National: (7.4%) Like Markets: (7.0%) PM Market: +12.1% Like Markets: +6.1% $ volume PM Market A: +28% (National +4%, Like Markets -1%)
$ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs 562539 372327 465 9116 $ Vol Velocity: $ Sales/ CDP Share Distribution: CDPs (11) (15) 365 (6)(1) (16)(10)(9) CONVENIENCE GROCERY Growth vs other markets: PM Market B vs. others Year 1 AVERAGES (% Chg Vs YAG) NATIONALLIKE MARKETSPM MARKET A NATIONALLIKE MARKETSPM MARKET A
PRESENCE MARKETING R.O.I. PM Expansion/Profit & Loss Analysis – 3 years (2013-2015) Based on current assumptions Cumulative NPS: $24.578MM Cumulative Margin: $8.318MM Total Investment:$13.300MM Net Investment: ($4.982MM ) Opportunities not included Incremental Trade:$2.941MM Amplified effect (.5%):$1.562MM Synergies$1.064MM NET Investment (incl. opp):$.585MM Opportunity to create margin positive investment over time!
What marketing programs do you have underway now that are Presence? Or…what programs could be modified to become Presence programs? Are You Using Presence Already?
Incorporating the FOUR ATTRIBUTES Logistical and executional investment Synergy with brand, with advertising, with online Tactical enhancements that extend Presence – social/mobile overlays, sales promotions, shopper marketing, to name a few Looking at consumer influence from the ground up, as an eye-to-eye encounter first and foremost What Makes Presence Work?
Done right, it does what it promises: Presence Marketing creates consumer relevance through consistent and resonant, personal brand encounters. Summing Up
By generating that presence and relevance in their day-to-day lives, a brand earns authenticity and trust…which drives consumer action, engagement and loyalty. Summing Up
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