SELECTED NEW TRENDS IN MARKETING COMMUNICATION Ing. Kateřina Matušínská, Ph.D. MARKETING COMMUNICATION 2/NAMK2 SELECTED NEW TRENDS IN MARKETING COMMUNICATION OUTLINE OF THE LECTURE 1. Guerrilla marketing 2. Viral marketing 3. Product placement 4. Mobile marketing 5. Social media 6. Affiliate marketing 7. Content marketing 8. Experiential marketing 9. Stealth marketing 10. Green marketing 1. GUERRILLA MARKETING „ It is a body of unconventional ways of pursuing conventional goals. It is a proven method of achieving profits with minimum money.“ (Jay Conrad Levinson, 1984) • minimum MAXIMUM (small firms) • unexpected, original, surprising • shocking, drastic, extravagant, controversial • humorous with a hint of arrogance • short-term, inexpensive with good will • illegal, unethical • aggressive against competitors and consumers • the use of new IT • investment is energy, time and creativity SELECTED NEW TRENDS IN MARKETING COMMUNICATION • These campaign could break the law , be unethical and unfair to competitors. • There are also some risks including misunderstanding: • On January 31, 2007, several magnetic boxes with blinking LED cartoon figures were attached to metal surfaces in and around Boston, Massachusetts to promote the animated series Aqua Teen Hunger Force. The boxes were mistaken for possible explosive devices, and several subway stations, bridges, and a portion of Interstate 93 were closed as police examined, removed, and in some cases, destroyed the devices. • Marketing campaign for US series Dexter. SELECTED NEW TRENDS IN MARKETING COMMUNICATION GUERRILLA MARKETING TOOLS OF GUERILLA MARKETING • Word of Mouth, Viral marketing • Ambient marketing • Ambush marketing • Mosquito marketing • Astroturfing • Sensation marketing (free publicity) • Wild posting, … • … BUZZMARKETING SELECTED NEW TRENDS IN MARKETING COMMUNICATION AMBUSH MARKETING • Ambush marketing is a marketing strategy wherein the advertisers associate themselves with, and therefore capitalize on, a particular event without paying any sponsorship fee. SELECTED NEW TRENDS IN MARKETING COMMUNICATION AMBUSH MARKETING • In October 2011, Samsung ambushed the Australian launch of the iPhone 4S by setting up pop-up store near Sydney's Apple Store, where it sold its flagship Galaxy S II smartphone to the first 10 people in line daily at a discount price of $2 AUD. • During the opening ceremony of the 2008 Summer Olympics in Beijing, former Olympic gymnast Li Ning was the final torchbearer and ultimately lit the flame at Beijing National Stadium. However, Li Ning is also the founder of a domestic shoe company of the same name. While the Li Ning company was not an official sponsor of the games, it had still associated itself with the games through its role as an equipment supplier for several Chinese Olympic teams, and through Li Ning's status as both a Chinese sports and business icon. SELECTED NEW TRENDS IN MARKETING COMMUNICATION AMBUSH MARKETING SELECTED NEW TRENDS IN MARKETING COMMUNICATION SENSATION MARKETING • Desigual in the Czech Republic, Prague: ,,Come undressed, get dressed", 2011. • 100 first visitors came into the store only in their underwear, and could choose two pieces of clothes for free. • Other participants (from 101) had a 50% discount on the products. „Sensation marketing – Guerrilla marketing in ball gowns.“ SELECTED NEW TRENDS IN MARKETING COMMUNICATION ASTROTURFING • Astroturfing refers to advertising, or public relations campaigns that are designed to mask the sponsors of the message to give the appearance of coming from a disinterested participant. • Astroturfing is intended to give the statements the credibility of an independent entity by withholding information about the source's financial connection. • The term is a derivation of AstroTurf, a brand of synthetic carpeting designed to look like natural grass. • Fake letters, fake blogs, fake discussions on Internet and social networks, … SELECTED NEW TRENDS IN MARKETING COMMUNICATION WILD POSTING „Je to jak graffiti, ale legální.“ (Christian, 2009). SELECTED NEW TRENDS IN MARKETING COMMUNICATION 2. VIRAL MARKETING • Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness, through self-replicating viral processes. SELECTED NEW TRENDS IN MARKETING COMMUNICATION VIRAL MARKETING • Advantages: low costs, quick spread of information, high effectivity of targeting. • Disadvantages: loss of information control which are spread among people, spam (legislation!) • Viral marketing may take the form of video clips, interactive Flash games, advergames, ebooks, images, text messages, email messages, or web pages. • Flashmob!!! T-MOBILE: Liverpool Street Station - Life is for sharing SELECTED NEW TRENDS IN MARKETING COMMUNICATION 3. PRODUCT PLACEMENT (PP) • Product placement advertisements are promotional ads placed by marketers using real commercial products and services in media, where the presence of a particular brand is the result of an economic exchange. • Product placement appears in plays, film, television series, music videos, video games and books. • PP X hidden advertising (strict legal rules differ in various countries)! • Reverser PP (e.g. Bubba Gump Shrimp Co.) • One of the best-known instances of product placement appeared in 1982 movie E.T. the Extra-Terrestrial, which increased sales of Reese's Pieces 80 percent. SELECTED NEW TRENDS IN MARKETING COMMUNICATION TYPES OF PRODUCT PLACEMENT SELECTED NEW TRENDS IN MARKETING COMMUNICATION • According to the transfer of information: • Visual placement • Verbal placement • Combined placement • According to the type and characteristics of product: • Innovation placement (new product) • Corporate placement (company brand) • Generic Placement (product placement without brand) • Location placement (holiday destination) • Idea placement (religion, ideology) • Music placement (music in background) • According to the level of program integration: • On set placement (product is neutral in relation to the action) • Creative placement (product is creative and implemented in action) • Image placement (the overall theme of the film is focused on product) PRODUCT PLACEMENT • PP must not directly encourage the purchase and sale of the product. • PP must not attribute disproportionate importance to the product. • PP must not be used without a clear notice at the beginning and end. • PP must meet other conditions set by law (program type etc.). SELECTED NEW TRENDS IN MARKETING COMMUNICATION TITLE OF FILM NUMBER OF PROMOTED BRANDS Driven 101 Sex in the city 94 Transformers 60 The fast and the furious 57 Barbershop 55 Source: Rajčák a Rajčáková, Marketingová komunikácia: aktuálne trendy, metódy a techniky, 2012 4. MOBILE MARKETING • The use of interactive wireless media to provide customers with time and location sensitive, personalized information that promotes goods, services and ideas. It is the one of the direct marketing methods. • Mobile marketing (m-marketing) is meant to describe marketing on or with a mobile device, such as a mobile phone, smartphone, PDA, MDA and notebook. • Commercial SMS and MMS, SMS and MMS competition, voting, advergaming, location-based marketing, QR code (Quick Response Code), mobile coupons and bar code with discounts, mobile banking, mobile health, … • Mobile • Anytime • Globally • Integrated • Customized SELECTED NEW TRENDS IN MARKETING COMMUNICATION MOBILE MARKETING  Good targeting, popularity.  Easy and quick up-dating.  Comfortable for users.  Low costs.  Good measurement of response (15% response  3x more than Direct mail, 95 % is read, 25 % is sent again).  Database creation.  Buzz building.  Mobile marketing could be intrusive, not everyone wants to receive texts or other types of advertised messages on phone, nor be slowed by them. SELECTED NEW TRENDS IN MARKETING COMMUNICATION 5. SOCIAL MEDIA • Social media is the umbrella term for we-based software and services that allow users to come together online and Exchange, discuss, communicate and participate in any form of social interaction. That interaction can encompass text, audio, images, video and other media, individually or in any combination. • It can involve the generation of new content, the recommendation of and sharing of existing content, reviewing and rating products, services and brands, discussing the hot topics of the day, pursuing hobbies, interests and passions, sharing experience and expertise, …. SELECTED NEW TRENDS IN MARKETING COMMUNICATION ADVANTAGES OF SOCIAL MEDIA • Easy availability of specific target groups. • Diversity. • Learning and improvement. • Unlimited duration. • Space limitlessness. SELECTED NEW TRENDS IN MARKETING COMMUNICATION SOCIAL MEDIA • A broad marketing potential of data source - social networks marketing research! • Facebook • Google+ • Twitter • LinkedIn • Instagram • Others • Blogs, forums, published audio and video content, publishing photos,... SELECTED NEW TRENDS IN MARKETING COMMUNICATION TYPES OF SOCIAL MEDIA • According to specialization: • Social networking - blogs, videos, audio, photos, chats, discussion ... • Business networking - connecting people from business area (higher management) • Bookmark social systems – the sharing of information (articles, through public bookmarks) • Sites where voting is taken on content quality • News - web sites where people can share content and comment SELECTED NEW TRENDS IN MARKETING COMMUNICATION TYPES OF SOCIAL MEDIA • According to the marketing activity: • Social networks (Facebook, MySpace, LinkdedIn) • Blogs, video blogs, microblogs (Twitter) • Discussion forums, Q & A portals (Yahoo Answers) • Wikis (Wikipedia, Google Knol) • Bookmark social systems (Digg, Delicious, Jagg) • Multimedia sharing (YouTube, Flickr) • Virtual worlds (Second Life, The Sims) SELECTED NEW TRENDS IN MARKETING COMMUNICATION 6. AFFILIATE MARKETING • Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors. • Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing, content marketing and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner. • Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on trust and personal relationships to drive sales. • Affiliate marketing is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies. SELECTED NEW TRENDS IN MARKETING COMMUNICATION THE PRINCIPLE OF AFFILIATE MARKETING Source: https://www.starkmedia.com/blog/why-you-should-offer-an-affiliate-marketing-program/ SELECTED NEW TRENDS IN MARKETING COMMUNICATION 7. CONTENT MARKETING • Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behaviour. It is an ongoing process that is best integrated into your overall marketing strategy, and it focuses on owning media, not renting it. • Basically, content marketing is the art of communicating with customers and prospects without selling. It is non-interruption marketing. Instead of pitching your products or services, you are delivering information that makes your buyer more intelligent. • Content marketing is being used by some of the greatest marketing organizations in the world, including P&G, Microsoft, Cisco Systems, and John Deere. It’s also developed and executed by small businesses and one-person shops around the globe. SELECTED NEW TRENDS IN MARKETING COMMUNICATION 8. EXPERIENTIAL (ENGAGEMENT) MARKETING • It is a marketing strategy that directly engages consumers and invites and encourages them to participate in the evolution of a brand. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand. • While traditional advertising (radio, print, television) verbally and visually communicates the brand and product benefits, experiential marketing tries to immerse the consumers within the product by engaging as many other human senses as possible. In this way, experiential marketing can encompass a variety of other marketing strategies from individual sampling to large-scale guerrilla marketing. • The goal of experiential marketing is to form a memorable and emotional connection between the consumer and the brand so that it may generate customer loyalty and influence purchase. SELECTED NEW TRENDS IN MARKETING COMMUNICATION 9. STEALTH (UNDERCOVER) MARKETING • The marketing campaign employs famous people who secretly represent the company, giving them opportunities to interact with strangers and promote the product in a non-obvious way. Many companies choose this method because it is inexpensive compared to more traditional advertising. • The main purpose of stealth marketing is not to generate immediate sales, but to create interest and excitement that will make consumers more receptive to direct advertising later. • One of the most notable cases of stealth marketing by a small business was fashion entrepreneur Daymond John's first campaign for the FUBU clothing line. John had almost no operating budget and no access to traditional advertising, so he asked hip hop stars Run DMC and LL Cool J to wear FUBU clothing at concerts and during their appearances on MTV. This gave FUBU a massive audience without John having to spend any money buying advertising space. The campaign was successful and FUBU became a major clothing label. SELECTED NEW TRENDS IN MARKETING COMMUNICATION • Green marketing is the marketing of products that are presumed to be environmentally preferable to others. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other. Other similar terms used are environmental marketing and ecological marketing. • Green marketing companies seek to go above and beyond traditional marketing by promoting environmental core values in the hope that consumers will associate these values with their company or brand. Engaging in these sustainable activities can lead to creating a new product line that caters to a new target market. • Greenwashing – it is not the same!!! SELECTED NEW TRENDS IN MARKETING COMMUNICATION 10. GREEN MARKETING