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 lvo ln ti xu s gu ar Le Ja Inf ini Au di BM W Me rce de s Ca di l lac Sa ab La nd Ro ve r Ac ura Po rsc he Vo Li n co 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).