1. BMW Z3
Week 7
Fall 2009
EWMBA 206.1

2. Goldeneye

3. Benefits and Risks of Non Traditional Marketing
German
Ultimate
Driving
Machine
English
Hero
Drives an
Aston
Sexist
Fast cars
Adv.
Technology
Sophisticated
Benefits
Credibility
More credible than paid for advertising
Efficiency through word of mouth
Leveraging the buzz
Risks
Loss of control
Timing
Target audience
Over what is seen
Over what is said
Challenge of translating awareness into sales
Difficult to measure impact

4. How does NT work? Focus on awareness Leverage the buzz
Awareness / Visibility
Word of mouth, Buzz
Involvement / Infatuation
Purchase
Consumer
Advocacy
Awareness
Interest
Excitement
Desire, Preference
Purchase
Focus on awareness
Leverage the buzz
Cannot fully control what is said and to whom
RELIES ON AUDIENCE SELF SELECTION

5. Traditional versus Non Traditional
Credibility
NT can be more credible have more impact and more efficient when it works.
Budgeting
NT costs can be uncertain
Traditional advertising costs can be better forecasted.
Target market
Traditional advertising can be well targeted through mass media
NT relies on audience self selection
Metrics
Traditional advertising = measurable, reach GRP, frequency = more easily measured by market research.
NT is more difficult to evaluate.

6. Products best suited for NT marketing
Stage in product life cycle
May work well for product launches in conjunction with mass media advertising
May work better for social products

7. Success of NT Comparative performance
Intro year exp. sales
(units)
Launch ad support
(millions)
Spend/car
BMW Z3
9k waitlist for 3.5 months =
30,000 p.a
$20
$667
Land Rover Discovery
14,085 $9
Infiniti I-30
15,194
$35
$2304
1998 units (000’s)
1997 units (000’s)
1996 units (000’s)
Z3 / Total BMW
20.6 / 131.6
19.4 / 119.3
10.3 / 102.4
Boxster / Total Porsche (selling price = $40K)
9.7 / 17.2
5.3 / 11.5
Na / 6.8

8. Success of NT Elements Some examples
Objective
Reported results
Neiman Marcus
WOM, Buzz
20 units over 3.5 month Christmas season
After 2 days, 100 orders placed.
By Christmas 6000 orders
Central Park event
Media exposure and Buzz
2000 media reps attended.
# of Z3 editorials in leading publications can be counted.
Jay Leno
Unpredictable, all we know is “it worked out very well”
Role for campaign evaluation research to measure awareness impact.
Radio DJ
Unstated
Statements like “Amazing Credibility,” “Had 3 times the WOM of other events.
What does this mean in terms of measurable effects on sales?
Always try to specify quantitative objectives for each element to the extent possible
Important role for campaign evaluation research to understand the sales impact of these programs.

9. Postscript
By Jan BMW had to scale down their marketing efforts to avoid potential consumer backlash by not being able to meet demand.
Tactics shifted to maintaining consumer interest
Cinema advertising (60 sec. Teaser placements)
In flight videos targeted at business travelers.
Dealer sponsored direct marketing programs to maintain interest of people on waiting lists.
Launch date March Selling price in 1997 = 30k to 36k.