slides14.05

Report
Integrated Marketing
Communications
MKT 750
Professor West
Agenda
Discuss the BMW Z3 Launch
Paradigm shift to nontraditional
marketing?
Launching the BMW Z3
Launching a Roadster:
Why did BMW use a “non-traditional”
marketing venue for the Z3 launch?
Does this campaign qualify as a
“paradigm shift in marketing” and
should BMW continue with this approach
in the future?
Launching a Roadster:
Was the Z3 launch successful? How do
you know?
What specific objective(s) would you
set for Phase II of the campaign? What
budget and media plan would you use?
Launching a Roadster:
Situation Analysis
Four Cs + Environmental Factors
SWOT
Marketing Strategy
S-T-P
Tactical Decisions
Four Ps
Phase I – Evaluation
Objectives:
“To expand the BMW franchise and further
rejuvenate the BMW brand by positioning
the Z3 squarely in American culture and
settling into the hearts and minds of the
American public”
Transition from Made in Germany Made
by BMW
Phase I – Evaluation
Objectives:
Use the roadster to stimulate dealers to
meet high standards
Build an order bank of 5,000 cars and
increase brand sales to 100,000
Spillover a youthful image from the car to
the BMW brand
Phase I – Evaluation
Target Market & Decision Process
“Lover-of-life” psychographic segmentation
Image conscious Gen X, Aspirational car for 40
somethings, Nostalgia for late baby boomers
This is an emotional not rational purchase
Image of the “owners” is very important
How do you get someone to “fall in love” with
the car?
Phase I – Evaluation
Strengths:
Strong brand heritage
Product positioning
Fit with Bond
Cost efficiency
Opportunity:
Improve dealer
relationships
Change perceptions of
the brand
Weaknesses:
Traditional rather than
youthful image
Transition to US may be
perceived negatively
Threats
Lack of control with nontraditional campaign
Competitive threats with
other roadsters
Launching a Roadster
This is an emotional purchase…
Awareness
Interest
Desire
Typically a secondary vehicle
Means of self-expression
Action
Phase I – Evaluation
Campaign Elements:
Product placement
+ Great fit with Bond (glamorous hero who loves
life and is in control)
+ Strong potential for creating buzz
+ Gain access to foreign markets and young people
- What if the movie is a flop?
- Appearance was brief, only 90 sec
- Six month gap between movie and product launch
Awareness
Interest
Desire
Measuring Success
TV & Print ads
Create excitement & association between the
car & Bond
Well targeted vehicles (Seinfeld & 90210,
Fortune, Business Week, etc…)
Memorable
Magazine Ad
Awareness
Interest
Desire
Measuring Success
Jay Leno Tonight Show
Calculated gamble, promotes movie & car
Wide audience and attention getting
Today Show & Central Park appearance
Low risk, promotes movie & car
Generated media coverage (over 200 media
reps)
DJ Radio Programs
Risky, promotes car, generated 6,000 spots
Press Coverage
Awareness
Interest
Desire
Measuring Success
Neiman Marcus
Generate 6,000 orders when only 20 were
expected
Reinforces image
BMW website
Provides a virtual experience and information
gathering opportunity
125,000 hits per day
Neiman Marcus
Apple Computer Ad
Awareness
Interest
Desire
Action
Measuring Success
Dealer Showings
Move customer from interest  desire 
action
Dealer Promotion Kits
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Index of Advertising Effectiveness
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
-
Phase II
How do we convert the interest of
prospective customers into orders?
How do we sustain the interest of
customers who are waiting for their
cars to be built?
A Virtuous Cycle
Visibility/Exposure
“Buzz” Word of Mouth
Missionary
Advocacy
for the Brand
Virtuous Cycle of
Word-of-Mouth
Infatuation
Sales/Purchase
Excitement
Infatuation Metaphor
Response happens very fast and is highly
emotional
Leaves the consumer in a tenuous state,
it can be quickly dismissed if not
reinforced through behavior
When consumers fall in love with their
brands they become credible
missionaries
Excitement
From Excitement to Sale
Point of
“infatuation”


Desired End-State:
Purchase
Possible End-State:
Brand forgotten
Time
Phase I
Phase II
From Excitement to Sale
What can we learn from interpersonal
relationships?
What makes them fizzle?
What can to be done to keep move a
relationship forward?
Can we apply these insights to a
product?
Phase II
Sustaining interest
Dealers need to deepen BMW’s relationship
with self-selected prospects
How?
Contact: Direct mail, videos can give the person a
“taste” of what is in store
Dates: Demo rides can keep appetites whetted
Heart-to-Heart: Progress updates can build
“anticipation”
A Paradigm Shift
We have observed a growth in nontraditional marketing campaigns
Southwest’s service to Baltimore began with
a joint announcement by the CEO and
Maryland Governor.
49 children were taken on a trip to the
Cleveland Zoo
Employees hit the streets
passing out bags of peanuts
A Paradigm Shift
Why have observed a growth in nontraditional marketing campaigns
Increasing costs
Fragmented media
Consumer control
A Paradigm Shift
What new challenges does this approach
present?
Less strategic and more opportunistic
Systems aren’t in place for measuring
success
The Future of NT Marketing
Circumstance
Fit
Product Portfolio Role
Desire versus Need
Due to the higher risk, NT is better
suited to ancillary products in the
brand portfolio.
Product Life Cycle
NT works at generating excitement
during product launch
Buying Behavior
Works best for “irrational”/
emotional purchases
Competitive situation
Intensely competitive industries with
high ad clutter are a good fit
BMW Films
Assignment
Readings
Chapters 9 - 10 (pp 337 - 345, 369 - 371)
Team Project
Work with your team on finding an ad
campaign
Assignment
Begin working on Marketing Yourself memo
(due on Friday).

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