Transcript Chapter 14

Internet Marketing, 2nd Ed
Mohammed, Fisher, Jaworski, Paddison
Chapter 14 Lecture Slides
Designing the Marketing Program
for The Lord of the Rings
Exhibits and Tables
Copyright © 2003 by Marketspace LLC
Exhibit 14–1: LOTR Theatrical Poster
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Designing the Marketing Program — Today’s Objectives
Objectives will be to:

Summarize the concepts of this book by using The Lord of the Rings
marketing program as an example

Explore the online and offline levers for the marketing of The Lord of the
Rings

Examine how The Lord of the Rings marketing plan connects to the
relationship stages

Assess how and why The Lord of the Rings performed as it did in the box
offices given its marketing plan
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Chapter 14:
Designing the Marketing Program for The Lord of the Rings

The Lord of the Rings Business/Marketing Strategy

Design of the Marketing Program – Planning the Relationship Stages

The Lord of the Rings Integrated Plan – Online and Offline Marketing Levers
Through the Relationship Stages

The Success of the Lord of the Rings Marketing Campaign

Conclusion
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–2: Expanding the Base
In the case of The Lord of the Rings, the strategy was to start with the core audience and
then work out to the broadest audience possible as the release date approached
LOTR
Fan Base
Time
“New” Fans
Mass
World Wide
Audience
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–3: Timing
While the basic goals of awareness, exploration, commitment, and dissolution remain the
same across all audience segments, the specific objectives and the timing of the execution
will be different for each group
Core
Audience
Awareness
Exploration/Expansion
Momentum
Commitment
Commitment
Momentum
Momentum
Commitment
Dissolution
Momentum
Secondary
Audience
Awareness
Exploration/Expansion
Commitment
Momentum
Mass
Audience
Awareness
Momentum
Commitment
Dissolution
Momentum
Exploration/Expansion Commitment
Dissolution
TIME
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–4: Stages of Desired Experience
The exhibit articulates the stages that New Line Cinema utilized for the
www.lordoftherings.net website
Stages
Special “Metrics” for LOTR
Experiencing Functionality
Trailer and video materials for viewing readily available
Navigation is simple and clear for downloads, community, cast and crew information
Easy sign up for email and promotions on homepage
Direct links for actions including ticketing, online shop sales and merchandising
Experiencing Intimacy
Website visitors articulated the value they derive from the site experience
Consumers ‘trust’ the information they find on the site
Strong community has developed within site areas
Email interaction allowed for open, clicking and forwarding to others
Experiencing Evangelism
Strong evangelical support from the user base
Trailer and new content postings are seeded throughout community areas as well as on other sites and posting boards
Creates a strong sense of consumer ‘ownership’ of the brand
The website becomes a trusted friend
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–5: The 7C’s of www.lordoftherings.net
CONTEXT
&
CONTENT
COMMERCE:
Links to Home Entertainment
Order Page
& Shop Online Page
COMMUNITY & CONNECTION:
Links to Community Pages
& Out to Fan Club
COMMUNICATION:
Links to E-Mail Feedback
& Opt-In For Newsletter
CUSTOMIZATION:
The Main Page Randomly
Rotates Between 12 Images,
4 Color Palettes
& 10 Audio Greetings
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–6: 7C’s Communication: Lord of the Rings E-mail Screenshot &
Ring Messenger Intelligent Agent
The official website employed several methods to create an ongoing dialogue with users
and firm-to-user e-mail communication was one major communication component
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Supporting Slide 14–A:
Drill-Down: Is an Interactive Campaign Always Appropriate?
Fit With the Internet
Does the personality of the
product align well with the Internet?
Two important issues to consider
when determining the
appropriateness
of an online marketing campaign:
Fit With the Target Audience
What are the Internet usage
characteristics of the target audience?
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–7: Examples of Multiple Territories with Localized Homepages
New Line Cinema released The Lord of the Rings in international markets through a series
of distribution agreements with companies that would independently market the property in
their respective territories
France Full Site
Belgium
Homepage
Benelux
Homepage
Spain Full Site
Argentina
Homepage
Mexico
Homepage
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14– 8: Examples of Localized Homepages
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Supporting Slide 14–B:
Point-Counterpoint: Is Purchasing a Movie Ticket Effectively Dissolution?
Point-Counterpoint
Once the Ticket Is Bought,
the Relationship Is Over



The objective of driving consumers to
the commitment phase is only to drive
intent to buy a ticket
The vast majority of revenue for a movie
comes from one-time ticket sales
A consumer’s interaction with the brand
after purchasing a ticket is essentially
irrelevant — the studio no longer has a
reason to manage the customer
relationship
Commitment Goes Beyond
Purchasing the Ticket




Marketing plans should have the
objective of maintaining post-ticketpurchase customer commitment
Extended commitment leads to viral
marketing through positive word of
mouth
Keeping customers committed can also
lead to merchandise sales and video
sales
Internet marketing campaigns generate
e-mail lists for permission marketing —
strong commitment maximizes the value
of such lists
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–9: New Line’s Marketing Objectives: Does Ticket Purchase End
the Customer Relationship?
POV 1
POV 2
Commitment

Definitely going
to purchase

Tickets purchased
New Line continues to deepen
the customer relationship

Merchandise

Home Entertainment

Updated website
Dissolution
Commitment

Definitely going
to purchase

Tickets are
purchased
OR
In this scenario, getting consumers
to buy tickets to the movie
is the end goal, after which
the customer relationship is dissolved
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Chapter 14:
Designing the Marketing Program for The Lord of the Rings

The Lord of the Rings Business/Marketing Strategy

Design of the Marketing Program – Planning the Relationship Stages

The Lord of the Rings Integrated Plan – Online and Offline Marketing Levers
Through the Relationship Stages

The Success of the Lord of the Rings Marketing Campaign

Conclusion
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–10: New Line’s Objectives Across the Relationship Stages
The first step in developing a marketing plan within the context of the relationship stages is
to define objectives for each stage:
Exploration /
Expansion
Awareness

Recognition of LOTR

Knowledge that the
LOTR movie is coming
out

Initial awareness of
books and themes of
the Trilogy


Further understanding
about plot, characters,
etc.
Commitment

Definite intent to see
the movie

High level of
understanding about
LOTR

Recruiting others to
explore and to become
committed

Purchase tickets to the
movie
Consumers actively
finding out about the
movie

People spreading the
“buzz”

Growing desire / intent
to see the movie
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Chapter 14:
Designing the Marketing Program for The Lord of the Rings

The Lord of the Rings Business/Marketing Strategy

Design of the Marketing Program – Planning the Relationship Stages

The Lord of the Rings Integrated Plan – Online and Offline Marketing
Levers Through the Relationship Stages

The Success of the Lord of the Rings Marketing Campaign

Conclusion
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–11: AOL & LOTR- Corporate Synergy Web
New Line Cinema, a division of AOL Time Warner, was able to leverage unique synergy
opportunities in promoting The Lord of the Rings
Spinner
Digital City
Winamp
Compuserve
LOTR:
Community
Promotion
Content
AOL
Netscape
AOL
Anywhere
Moviefone
ICQ
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–12: America Online Homepage
The Lord of the Rings was prominently highlighted on the AOL welcome screen and in
AOL’s entertainment section
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–13: Moviefone: Content Integration
The Lord of the Rings received substantial promotion, including banner ads, on the
Moviefone website
Male/Female 45/55
82% Ages 18-54
60% Ages 18-34
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–14: AOL Search for the Ring Sweepstakes
The interactive Search for the Rings Sweepstakes gave Web surfers nine chances to win
Lord of the Rings memorabilia and collectibles
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–15: AOL Log-in pop-up
During the two weeks prior to theatrical release, AOL launched a pop-up ticketing
promotion from its welcome screen
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–16: LOTR on AOL
America Online Network:
•
Live: Special Feature Keyword Lord of the Rings
• AOL Welcome, What’s New, AOL Today
• AOL You’ve Got Mail and AOL Celebrity Voices
• AOL Live Event with Cast
• AOL Entertainment: Cinemaniacs, Celebrities, Coming Soon and Now Playing
• Cannes Media Event Coverage
• AOL Computing Channel: LOTR Screensaver Promotion
• AOL Men: “Fantasy Women” Gallery
• AOL Women: “The Men of Lord of the Rings
• AOL Teens: Feature on Elijah Wood
• AOL Plus: Featured Movie on Tower and Entertainment Main Movies Feature
• AOL Community
• People Connection
• Groups@AOL
• LOTR Group Special Feature
• AOL Invitations
• LOTR Holiday Cards of different characters
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–17: LOTR Book Covers
Bookstore chain Barnes & Noble partnered with New Line to establish in-store and online
programs to support the film release and books sales
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–18: Levers for the Awareness Stage
Online Levers
•
AOL Welcome page
• Moviefone
• ICQ
• Netscape
• Spinner
• Winamp
• Digital City
• Compuserve
• AOL Service Tie-in
• Fansites
• New Line Contests
• Online Magazine
Promotions
• NYTimes.com
Offline Levers
•
Movie Trailers
• TV Commercials
• Radio
• Outdoor Ads
• Print Ads
• Retail Point of Purchase Displays
• Partnerships and National Promotions
• Burger King
• JVC
• Barnes and Noble
• American Library Association - Teen Read
Week
• Television Promotions – The WB Network
• Long Lead and Fast Breaking Campaigns:
Magazines, Newspapers and TV Programs
• TV Programming and Special Promotions
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–19: LordoftheRings.net
New Line Cinema’s official movie website (www.lordoftherings.net) was the earliest
marketing element and a focal point in its strategy to establish a dialogue with the most
important segment of its customer base
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–20: America Online Keyword: LOTR
Any AOL member could enter the America Online keyword “Lord of the Rings” to get to a
customized Lord of the Rings page with links to the official website and features within AOL
brands
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–21: AOL Promotion: Win a Trip to Cannes
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–22: Email Marketing
New Line’s e-mail marketing campaign promoted ongoing exploration/expansion with
tailored, content-based messaging that was relevant to the campaign and to subscribers
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–23: The Levers – Exploration/Expansion Stage
Online Levers
• LordoftheRiongs.net
website
• AOL Keyword LOTR, lord
of the rings
• “Syndicated” Content
• Email Marketing
• Apple Quicktime
• In-theater Sweeps
• E! Online Promotion
Offline Levers
• Prominent Magazine Coverage
• TV Programs
• Publisher Houghton Mifflin: Book
of LOTR
• ALA Promotion: Teen Read Week
• Offline References to the Website
• Movie Trailers
• PR Coverage
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–24: Community
A multilevel community plan was a key component of the Lord of the Rings marketing
strategy
ICQ
•Links to the official The Lord of the Rings AOL
ICQ community and custom client
Netscape
•Links to the official The Lord of the Rings AOL
Netscape message boards
Netscape
•Links to the official Decipher The Lord of the
Rings Fan Club
Community
•Links to selected promotional initiatives.
AOL Anywhere
•Links to the official The Lord of the Rings
custom wireless applications
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–25: Wired Magazine Cover
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–26: The Levers – Commitment Stage
Online Levers
Offline Levers
LordoftheRings.net
Merchandising
Screensavers
Publisher – Houghton Mifflin tie-in: Book of
LOTR
Wallpaper
Ticketing
Theatrical Trailer (Fall 2001)
Shop@AOL
Sci-Fi Channel Special “Cinema Beyond: A
Passage to ‘Middle-earth’ ”
AOL Wireless &
VoiceStream
Amazon
Conventions (comicon)
Warner Bros soundtrack
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–27: The Levers Across the Stages
Exploration /
Expansion
Offline
Awareness
•
•
•
•
•
•
•
•
•
•
•
•
Movie Trailers
TV Commercials
Radio
Outdoor Advertising
Print Advertising
Point-of-Purchase displays
Partnership and Promotion
Burger King
JVC
Barnes and Noble
ALA - Teen Read Week
Television Promotions – The WB
Network
Long Lead and Fast Breaking
Campaigns: Magazines, Newspapers
and TV Programs
•
•
•
•
•
AOL
AOL Web Properties: MovieFone
•
•
•
AOL Web Properties: ICQ
•
•
•
•
•
•
•
•
AOL Web Properties: Netscape
AOL Web Properties: Additional Levers
Other AOL Properties
AOL Service Tie-in
Fansites
New Line Contests
Online Magazine Promotions
NYTimes.com
Online
•
•
•
•
•
•
•
•
•
•
Prominent Magazine Coverage
Television Programs
Publisher Houghton Mifflin: Book of
LOTR
ALA Promotion: Teen Read Week
Offline References to the Website
High-profile movie premieres
Magazines and newspaper articles
with in-depth coverage
LordoftheRiongs.net website
AOL Keyword LOTR, lord of the
rings
“Syndicated” Content
Email Marketing
Apple QuickTime
in-theater sweepstakes
E! Online Promotion
Commitment
•
•
Merchandising
Publisher – Houghton Mifflin tie-in:
Book of LOTR
Theatrical Trailer (Fall 2001)
Sci-Fi Channel Special
Conventions (Comicon)
Soundtrack
•
•
•
•
•
•
•
•
•
•
•
LordoftheRings.net
Screensavers
Wallpaper
Ticketing
Shop@AOL
AOL Wireless & VoiceStream
Amazon.com
Community partnerships with
Netscape and ICQ
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–28: Marketspace Matrix for The Lord of the Rings: The
Fellowship of the Ring
Exploration /
Expansion
Awareness
Product
Commitment

Downloads

LOTR merchandise,
Downloads, The movie,
Wireless ring tones and
phone icons

Magazine covers/feature articles

LOTR Store, LordoftheRings.net,
downloads, ticketing, trailers

Consumer to consumer - deeper
interactions, chats/message boards,
reading the LOTR books

Online community building sites and
developing content, going to the
movie
Price
Communication


Outdoor ads, newspaper ads, magazine
ads, movie trailers, TV commercials, radio,
point-of-purchase displays
AOL Moviefone, AOL service tie-ins, New
Line contests, online magazine promotions
Consumer to consumer — “have you
heard about . . .”
Community

Distribution

Mass marketing channels
(billboards, TV, radio, major Internet
portals . . .)

Newspapers, magazines

Movie theaters
Branding

Awareness-oriented mass
marketing levers, other partnerships
(JVC, Burger King…)

Magazine covers, Online
partnerships

LOTR merchandise
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Chapter 14:
Designing the Marketing Program for The Lord of the Rings

The Lord of the Rings Business/Marketing Strategy

Design of the Marketing Program – Planning the Relationship Stages

The Lord of the Rings Integrated Plan – Online and Offline Marketing Levers
Through the Relationship Stages

The Success of the Lord of the Rings Marketing Campaign

Conclusion
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Exhibit 14–29: The Success of LOTR
Measured by box-office receipts, the marketing plan for The Lord of the Rings: The
Fellowship of the Ring was a stellar success
Six factors leading to success:
Offline and Online Partnerships
Reach and Frequency on the Internet
The 2Is
Viral Marketing
Good Message
Complementary Levers
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Supporting Slide 14–C:
Keys to a Successful Integrated Campaign
Offline and Online
Partnerships
Reach and Frequency

Partners wanted to be
associated with the Lord
of the Rings brand

Tremendous reach and
frequency across many
demographic groups

The number of
partnerships significantly
expanded the reach and
frequency of the
campaign

Use of a wide array of
online and offline levers
The 2Is

Tied less interactive
offline levers to
interactive online
vehicles such as the
LordoftheRings.net
website

The integrated
campaign allowed for
the 2Is to augment the
effects of the
marketing messages
and propel customers
to commitment
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Supporting Slide 14–C (continued):
Keys to a Successful Integrated Campaign
Viral Marketing

Users could choose
from a multitude of
ways to promote the
movie to their friends

Users were
encouraged to “send
this page to a friend,”
“send this e-mail to a
friend,” or send their
friends an e-card with
their favorite character
Complementary
Levers
Good Message

New Line Cinema
found a good
message and stayed
with it: The Lord of the
Rings brand
represents the valiant
struggle of good over
evil

Integrated online and
offline levers to
maximize the overall
effect of advancing
customers through the
relationship stages

Awareness levers were
more offline;
commitment levers were
mainly online
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Chapter 14:
Designing the Marketing Program for The Lord of the Rings

The Lord of the Rings Business/Marketing Strategy

Design of the Marketing Program – Planning the Relationship Stages

The Lord of the Rings Integrated Plan – Online and Offline Marketing Levers
Through the Relationship Stages

The Success of the Lord of the Rings Marketing Campaign

Conclusion
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC
Designing the Marketing Program for The Lord of the Rings — Conclusion

The marketing objectives for each relationship stage should provide a clear
path to advance customers to the next stage.

Leveraging the Lord of the Rings brand and successfully integrating the offline
and online levers to give consumers a consistent experience and to drive them
toward commitment were keys to the campaign.

Online levers included AOL tie-ins, a wide variety of contests, online magazine
promotions, the official website, syndicated online content, online ticketing,
customized homepages, and website downloads.

Offline levers included movie trailers, TV commercials, radio, outdoor and print
ads, free products, partnerships, magazine covers and articles, and others.

New Line leveraged the power of individualization and interactivity wherever
possible. The power of the offline levers to advance customers to commitment
increased dramatically when augmented by the 2Is of the online levers.
Last Updated: 10/8/03
Copyright  2003 by Marketspace LLC