Era of Choice Responding to Diminished Effectiveness

Case Study Introduce a new soft drink - Crunk!!! – –Highly cluttered product and info. environment –$25 Million - very small in category –Target: Urban and suburban youth into hip-hop –Discuss media options only Traditional Media Options Non-traditional Media Options Specialized Media Options –How will you gain attention and build awareness

Media Planning Situation Creates Unique Challenges and Opportunities for Media Planners –Difficult to find your audience –Once you find them, hard to keep them –Difficult to foresee coming changes Diminished Effectiveness –Hard to Get Noticed Even With Great Creative –Very Hard to Get Consumers to Respond

The Death of Mass Marketing? Demassification and fragmentation make traditional mass marketing impossible –Fewer broadly based “shared experiences” –Consumers want “personalized” products –Audiences face the dual problem of “time crunch” and “information overload” Traditional mass marketing ineffective

Fewer Programs Create Widely Shared Experiences

The Explosion of Brands More Brand Contact –More than 49,000 items in average supermarket Less Message Recall –Dropped over 25% in 15 years People avoid marketing messages –Screen telemarketers, avoid ads More Action Messages –Explosion of coupons, direct mail pieces, catalogs, calls, websites, etc.

Consumers Are Surrounded Doctor’s Offices Airport Lounges Classrooms Album Art Gas Pumps Grocery Stores Health Clubs Bathroom Walls Floor Boards Bus Wraps Car Wraps Toilet Paper Bald Heads ???????? Where is the next new place for ads?

Take Away All of this results in marketing overload Consumers are bombarded with over 3,000 marketing messages a day We notice and recognize very few of them

Prognosis Traditional marketing will continue to decrease in effectiveness as consumers’ product and media options increase in the coming decade and beyond –So what do you do?

Integrated Marketing Communication… Strategies to deal with market complexity –Build visibility, trust, and loyalty through the reinforcement of a clear identity Media planning is the key, at the center –Must ensure that targets experience the full range of connections for a holistic experience How do you connect with the market? –How do you use media to overcome these hurdles and create new opportunities for brand building?

Break Through the Clutter Strategic communicators need to become less reliant on traditional marketing tactics and pursue new tools –Traditional marketing tactics are not going away –Must be complemented by emerging integrated communication techniques –Need to combine competency in traditional mass marketing with new capabilities –Need to “think outside the box”

What are the new tools? Marketing communications must be integrated to the extent they create synergies that develop awareness and boost behavioral responses beyond those that would be attained with a traditional campaign

1. Integrated Marketing Communications Need to coordinate various strategic communications approaches –Advertising, PR, Promotions, Direct Response –Mutual reinforcement of core themes –Timing of various strategic efforts –Creates synergy and memorability

2. Segmentation Need to define multiple audiences Defined by usage, lifestyle, behavior Speak to targets based on their individual needs and wants

3. Relationship Marketing Develop a long-term interactive communication process between a defined segment and the brand Use a full array of communication messages and channels to build ties

4. Database Marketing and Interactive Media Technology allows narrowcasting and micro-marketing to individuals Grounded in synthesis of purchasing and media consumption behaviors All the opportunities of the Internet –Yahoo, Amazon, AOL

5. Connections Planning Must get inside the media world of the target market or markets Understand how they live their daily lives and how media fits into this world Build opportunities to connect with target around their lives, not existing options

Case Study Its Crunk!!! time again –Budget still only have $25 Million –Target still Urban and suburban hip-hop youth –Discuss how these five responses to diminished effectiveness would shape your media strategy Integrated Marketing Communications Segmentation Relationship Marketing Database Marketing Connections Planning