Transcript Challenges of Strategic Communication

Era of Choice
Responding to Diminished Effectiveness
Case Study
• Introduce a new soft drink - Crunk!!!
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http://www.crunkenergydrink.com/
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, 1-800 calls, websites, etc.
Consumers Are Surrounded
• Doctor’s Offices
• Bathroom Walls
• Airport Lounges
• Floor Boards
• Classrooms
• Bus Wraps
• Album Art
• Car Wraps
• Gas Pumps
• Toilet Paper
• Grocery Stores
• Bald Heads
• Health Clubs
• ????????
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
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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