Centers of Excellence: Experiential Marketing
Changed Consumers and Experiential Marketing
Posted by Mark Biggin in Experiential Marketing on February 22nd, 2010
In the midst of the past 18 months events; an historic Presidential race, ravaging recession, global terrorism, advances in technology and general unease and concern in the markets, nothing has changed more than the consumer. In an article in US News on January 15, 2010 Rick Newman highlighted the changes in the consumer. Here are the some of the more prominent changes:
1. Less credit, more cash
2. Greater suspicion
3. Less brand loyalty
4. Smaller is bigger
5. Decluttering
6. Frugality
7. Less waste
8. More negotiating
9. Redefining success
There are others but these raise interesting and provocative challenges for brands in the new world economy. As consumers retract, spend less, downsize, look for quality of life, marketers have to redefine what they do.
It used to be that a brand could sample anything and that was cool. Swag and premiums would translate to brand favorability. It really didn’t matter what was given away, as long as it was given away that was enough.
Not anymore.
The new currency with the changed consumer is VALUE. We need to challenge ourselves with each new strategy, tactic and objective to find the core value in the exchange in order to win the loyalty of this new consumer.
What is VALUE? Traditionally it is defined by the worth, importance or appreciation that a person places on a product, service or experience. Did the exchange improve my life? Did I learn something? Will this help my life and allow me to reach my goals?
Topshop, a store in New York has a professional photographer on site that photographs its customers and posts it immediately on FACEBOOK. They have taken the shopping experience and immediately found VALUE by combining it with its customers desire to share with friends in real time. It isn’t just about the clothes anymore, but the experience and the immediacy of sharing.
Ultimate Medical Academy, a fast growing health education organization, teaches each of its students’ important life skills as part of its curriculum. It’s Learn, Build, Success course provides students with life skills that not only enhance job placement but also betters their lives in appreciable ways thereby furthering the reputation of the school.
As we create experiential activities both on and offline, we must be cognizant of where the VALUE is everything we do. What are we bringing to the table that wasn’t there previously? Are we part of our consumer’s redefined definition of success? If not, why not? More importantly, what can be done to do so? It is critical, as our consumers will demand it and success will come to those that heed this call.
Gary Kleinman
President
Sister Agency to Centra Marketing & Communications, llc.
Experiential Marketing Best Practices
Posted by Bob Bell in Experiential Marketing on February 17th, 2010
A recent article posted on BtoB.com identified experiential marketing as one of the top 10 trends for marketers in 2010. The article – titled “Optimism, Accountability, Social Media Top Trends” – stated that “nothing can replace face-to-face communications with consumers.”
We couldn’t agree more.
So, with 2010 upon us we thought it would be prudent to provide you with some best practices in developing an experiential marketing campaign.
Know Who Your Target Is
While this seems to be an obvious point it cannot be overstated enough. All marketing campaigns, experiential or otherwise, start and end here.
Traditional demographics are important to understanding your target but they do not tell the whole story. In today’s fragmented society, consumers have many layers of sub-segments. You have to address all aspects of your targets need states – emotional, physical and social – to develop an experience that creates a lasting, meaningful connection with them.
This is best supported by an article which appeared in the Philadelphia Examiner in June of 2009 titled “Back To The Basics With Experiential Marketing”
“Break free from the traditional demographic parameters you were once taught. Use them as a foundation for defining your target audience, but don’t stop there. Remember, experiential marketing is about the emotions and logic involved in your consumers’ thought process. If Stephen Starr [STARR Restaurants] would have stuck to the straight forward demographics of his potential customers, he would have developed a bland one dimensional dining experience comparable to the same restaurant chains we as consumers are getting bored with.”
If you develop a great experience but deliver it to the wrong consumer than you fall short on connecting with your target in a meaningful way. And, that is at the crux of any successful experiential marketing campaign.
Brand The Experience
In developing the experience, ensure the consumer touch points throughout are branded and uniquely ownable.
How?
First and foremost, your experiential marketing campaign has to showcase your product and brand. It should allow consumers the opportunity to try while providing other relevant information which heightens their overall interest and engagement with your product or offering.
For example, a wine manufacturer executing a consumer tasting is best served to also share wine pairing suggestions and/or recipes for utilizing their wine; common obstacles to purchase for consumers when selecting a wine Brand.
This Experiential Blog…why now? And why is it important?
Posted by Mark Biggin in Experiential Marketing, Marketing Accountability on February 2nd, 2010
This is my initial blog and I appreciate the opportunity to host a forum that provides a voice for the experiential space. There is no shortage of blogs in the advertising, marketing and promotion arena, but none that truly hones in on the depth and perspective that experiential marketing brings in the totality of the marketing experience. Here are a few of the many reasons why I presume to write:
- The consumer is changing
- Measurement, measurement measurement.
- Convoluted media messages
- There is a lot of conversation we need to share.
The consumer is changing
Arguably we are leaving a recessionary year that has impacted consumers, business, politicians, and the social fabric that we all have taken for granted for a long time. Foreclosures are at all time high, banks were (and still are) on the brink of disaster, we elected a African American President for the first time in our country’s history, while the Hispanic population is growing at a rate that will make this group a minority in the not so distant future. We have seen a consumption lifestyle morph by necessity and design to one of caution and temperance. Americans are saving more, spending less and volunteering more. This impacts what and how we do what we do.
We, as marketers, first and foremost must be aware of the shift and be sensitive to the fact that there are new paradigms in the relationship between consumers and brands. That is the upside. Change brings opportunity. New rules bring innovations and ingenuity. That is our challenge, and we again, as marketers, based upon our vast experience can be successful.
Measurement, measurement, measurement
With an evolving consumer the need to understand and measure change becomes increasingly more important. In fact it is critical. What do we measure? How do we measure? Why do we measure? What does it mean? Everyone is measured everyday. Students are measured by their grades. Social institutions are measured by their impact on society. Politicians by successful agendas, and brands by sales. It is the core of why we are in business and the importance of this deliverable cannot be short changed. We need to be astute, proactive and accurate.
Convoluted media messages
We are all part of the Media landscape. Where does experiential fit in among social media, out of home, on air, in-store, promotions, shopper marketing, sponsorships, lifestyle, niche marketing, home parties, television, radio, mobile? Is there really a concept of integrated marketing, or interconnected marketing? If so, what does that mean and how do we achieve this integration?. Can the disciplines work together? Will we play well in the sand box? Whose sand box is it anyway? All these questions and thoughts are important as we, experiential marketers , make a difference in the lives of our ultimate target audience.
There is a lot of conversation that we need to share
By starting this blog I hope that we are committed to sharing our collective thoughts, learning’s and insights on what we see and what we don’t. On what works and what doesn’t. With this intelligence we can address the questions that we face daily. What? Where? How? And most importantly Why?
Do I have all the answers? Not by any means. Challenge me when you disagree, add thoughts when I don’t go far enough. Raise topics I miss that you believe to be important. This is collaboration, a group dynamic where we can help each other. We may not have all the answers but we do know our industry and we have a tremendous amount of experience and knowledge in our reservoir.
Next steps
Look for my first topic blog shortly. I truly ask an open mind and a contributory nature. Together we can create a conversation that will advance the world of marketing in which we live , and in the process make the world safer for brands.
–Gary Kleinman
CEO
Yardstick Marketing Partners
sister company of Centra Marketing & Communications, LLC.
FTC Announces Final Update To Endorsement and Testimonial Guides
Posted by Jason Gordon in Blogging & Podcasting, Digital Marketing, Endorsements & Testimonials, Entertainment Marketing, Experiential Marketing on October 9th, 2009
The Federal Trade Commission (“FTC”) adopted final changes to the Guides Concerning the Use of Endorsements and Testimonials in Advertising (“Guides”). First, the revised Guides indicate that a “results not typical” disclaimer is likely not sufficient when an ad highlights a consumer’s experience with a product when such experiences are not typical (e.g., “before” and “after” photos of a woman who claims to have lost 50 pounds in 6 months with the product). Rather, the Guides require advertisers to clearly and conspicuously disclose the results that most consumers can reasonably expect (e.g., “most women who use the product for 6 months lose at least 15 pounds”).
Additionally, the Guides confirm that advertisers who sponsor bloggers must assure that the connection between the company and endorser is disclosed and should establish procedures to advise endorsers of their obligations and monitor the conduct of the endorsers. The Guides also clarified that such obligations only arise when, viewed objectively, the relationship between the advertiser and the speaker is such that the speaker’s statements can be considered sponsored by the advertiser.
Accordingly, individual reviews about the positive benefits of a product are not deemed “endorsements” (and therefore would not require disclosure of the connection between the reviewer and the seller) when they are (a) made by a consumer who purchases the product with his/her own money and writes in his/her personal blog or (b) made by a consumer who received a coupon from a third party (not the company) for a discount or free trial of the product and written in his/her personal blog. However, if a consumer takes part in a service whereby it receives various free products, cash, or other payments from the company and is expected to review the products, the consumer’s positive review would likely be deemed an endorsement and require disclosure of the material connection between the reviewer and the seller, including if she received the products for her review.
Additionally, the Guides provide recommendations with respect to celebrity endorsements. First, celebrity endorsers may be liable for statements about a product which are false or do not represent the celebrities own views, even though the celebrity is reading from a script. Second, advertisers should disclose the connection between a celebrity and a company when the celebrity makes a “plug” about a product or service on a talk show or other social media when it is not obvious that the celebrity is paid to speak about the product or service. Third, advertisers may use endorsements of celebrities only if the advertiser believes that the celebrity continues to subscribe to the views present.
You can view the Guides here.
These materials have been prepared by Winston & Strawn for informational purposes only. These materials do not constitute legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.
New study redefines role and impact of in-store sampling
Posted by Rob Fields in Experiential Marketing, Promotion tactics, Shopper Marketing/Retail, sampling on August 13th, 2009
As marketers seek every opportunity to get closer to their consumer either online or offline, a traditional “old school” marketing tactic has been proven to be more effective and affordable than ever believed possible.
A new study called R.I.S.E (Report on In-Store Effectiveness) was commissed by PMA member Promoworks and the In-Store Marketing Institute, and conducted by research firm Knowledge Networks-PDI. Results of the study include:
- In-store sampling works—driving trial and sales. The average cumulative trial for the sampled items was +58% over 20 weeks. Sampled items in multiple categories showed an average +475% cumulative sales lift on the day of event.
- In-store sampling impacts sales in ways never thought possible:
- In-store sampling drives additional repeat purchase. The average cumulative first repeat purchase for sampled products was +11% and +6% for the brand franchise over a 20 week period.
- In-store sampling drives sales for existing products and line extensions. The sales lift for the existing product sampled was +177% for day of event and +57% after a 20 week period. The sales lift for the line extension product sampled was +919% for day of event and +107% after a 20 week period.
- In-store sampling drives brand franchise trial and sales. The sampling was found to have a significant impact for the parent brand of the sampled products with +107% average sales lift on the day of event and +21% average sales lift after a 20 week period. The average cumulative trial for the brand franchise was +19% over a 20 week period.
- In-store sampling delivers new buyers - to the sampled items and to the brand franchise1.The average cumulative new buyers for sample products was +85% and +23% for the brand franchise over a 20 week period.
- In-store sampling increases the average household shopping basket size. As a result of the sampling event the involved consumers’ overall shopping basket expenditure increased +10%, as compared to the average frequent shopper basket in the participating retailer. This suggests sampling contributes to incremental growth and does not cannibalize other items within the brands’ own franchise.
- In-store sampling impacts sales long after the day of event, making it incredibly cost effective. By utilizing frequent shopper data, the actual sales impact of the in-store sampling can now be measured. Over the 20-week period, the sampled items saw an average cumulative sales lift of +74%. In-store sampling’s cost effectiveness when applied to all of sampling’s benefits over time is extraordinary.
Case to watch: Class action suit against NCAA
Posted by Mary Reed in Licensing, Marketing Law, sports on August 6th, 2009
An interesting suit to watch in coming months will be the class action filed in late July against the National Collegiate Athletic Association and its licensing arm, the Collegiate Licensing Co.
The suit, filed in the Northern District of California by a putative class of Division I college football and basketball players, alleges that the NCAA has violated antitrust laws by precluding them from receiving compensation in connection with the sale of merchandise using their images after they have graduated from their institutions. At stake is the right of graduates (not current athletes) to receive compensation when the NCAA licenses products, such as video games, that use their images.
The market for collegiate licensed merchandise currently is $4 billion, and while much of that is not the subject of the suit, the suit does challenge the NCAA’s requirement that student athletes sign a form each year relinquishing in perpetuity the commercial use of their images. The release clause apparently was meant to allow the NCAA to use athlete’s names and images to promote its championship games and other events, activities and programs, but allegedly has been more broadly used by the NCAA without compensation to the players. The case is worth watching for those who license footage and other properties from the NCAA, particularly that of historical interest.
The case was filed by former UCAL basketball star Ed O’Bannon and also requests monetary damages for the class. (O’Bannon v. NCAA, N.D. Cal., No. CV-09-3329, filed 7/21/09).
These materials have been prepared by Winston & Strawn for informational purposes only. These materials do not constitute legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.
PMA members dominate the 2009 PROMO100 Awards
Posted by Rob Fields in Digital Marketing, Entertainment Marketing, Experiential Marketing, Marketing Accountability, Shopper Marketing/Retail on June 5th, 2009
We’re happy to report that PMA members ranked extremely well in the 2009 PROMO100 awards, which were announced earlier this week, with Catapult Action-Based Marketing taking the award for Agency of the Year.
Other highlights:
50% of the Top 10: #1 DraftFCB, #2 Digitas, #5 G2 Worldwide, #9 The Integer Group, and #10 Momentum
Those numbers hold up well over the entire list:
- Top 20: 13 PMA Members - 65%
- Top 50: 28 PMA Members - 56%
- Top 100: 45 PMA Members - 45%
Congrats to all of our members!
You can download the entire list here. Even though the Webinar has passed, login and look for a button on the right that says “download PDF”.
“Beethoven Is in the House”
Posted by Mark Biggin in Experiential Marketing on May 4th, 2009
It is a privilege to champion this “Experiential” blog. In the days ahead, I have invited business associates/friends to share this space and voice through their lens what “Experiential Marketing” is all about. Since the PMA office required this be fired up quickly for a quick posting, two recent movies releases are germane.
“Beethoven Is in the House”, is a line Jamie Foxx’s character “Nathaniel Anthony Ayers”, coined as he sat with Cal Lopez played by Robert Downey Jr. in the Walt Disney Concert Hall listening to the LA Philharmonic.
The SOLOIST film is based on a book written by LA Times reporter Steve Lopez about his innocent, real-life discovery of a homeless person eloquently playing a two string violin on a street in LA.
Lopez’s character, whose ex is also the publisher of his newspaper elects, to wipe his reporter slate clean and focus solely on this homeless schizophrenic, Juilliard dropout. This heart string journey the writer and director take us through by two great actors is simply a stunning performance.
Newspaper journalism was the focus of another film which opened this past weekend headlined by Russell Crowe and Ben Affleck titled “State of Play”. This action film finds reporter Crowe chasing a murder mystery that seemed to be at the heart of corrupt Washington politicians and perceived supremacist security corporations set to take over privatizing Homeland Security.
Crowe & Downey share a common thread in their roles as each play newspaper reporters’ working for female bosses faced with the task of getting their star reporters to deliver headline news to drive newsstand sales while online continues to deliver “nuclear fallout” to the future prospects of the printed instrument.
Hollywood film makers have always been insightful storytellers. Writer’s script actors to deliver important messages. Directors are responsible for crafting the visual impact. Is it possible Hollywood is delivering our culture a message about the importance of the actual printed newspaper tabloid? Or is it a veteran reporter?
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