Integrated Marketing Communications

1
Integrated Marketing Communications

• MKT 750
• Professor West

2
Agenda

• Discuss the BMW Z3 Launch
• Paradigm shift to nontraditional marketing?

3
Launching the BMW Z3
4
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?

5
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?

6
Launching a Roadster

• Situation Analysis
• Four Cs Environmental Factors
• SWOT
• Marketing Strategy
• S-T-P
• Tactical Decisions
• Four Ps

7
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

8
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

9
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?

10
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 non-traditional campaign
• Competitive threats with other roadsters

11
Launching a Roadster

• This is an emotional purchase
• Typically a secondary vehicle
• Means of self-expression

Awareness
Interest
Desire
Action
12
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

13
Measuring Success
Awareness
Interest
Desire

• TV Print ads
• Create excitement association between the car
  Bond
• Well targeted vehicles (Seinfeld 90210,
  Fortune, Business Week, etc)
• Memorable

14
Magazine Ad
15
Measuring Success
Awareness
Interest
Desire

• 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

16
Press Coverage
17
Measuring Success
Awareness
Interest
Desire

• 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

18
Neiman Marcus
19
Apple Computer Ad
20
Measuring Success

• Dealer Showings
• Move customer from interest ? desire ? action

21
Dealer Promotion Kits
22
(No Transcript)
23
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?

24
A Virtuous Cycle

• Visibility/Exposure
• Buzz Word of Mouth
• Missionary
• Advocacy Virtuous Cycle of
  Excitement
• for the Brand Word-of-Mouth
• Infatuation
• Sales/Purchase

25
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

26
From Excitement to Sale
Point of infatuation

• Desired End-State
• Purchase
• Possible End-State
• Brand
  forgotten
• 
  
• Time
• Phase I Phase II

?
?
Excitement
Generating excitement, buzz, visibility
27
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?

28
Phase II

• Sustaining interest
• Dealers need to deepen BMWs 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

29
A Paradigm Shift

• We have observed a growth in non-traditional
  marketing campaigns
• Southwests 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

30
A Paradigm Shift

• Why have observed a growth in non-traditional
  marketing campaigns
• Increasing costs
• Fragmented media
• Consumer control

31
A Paradigm Shift

• What new challenges does this approach present?
• Less strategic and more opportunistic
• Systems arent in place for measuring success

32
The Future of NT Marketing
33
BMW Films
34
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).