Integrated Marketing Communications

MKT 750Professor West

Agenda

Discuss the BMW Z3 LaunchParadigm 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 AnalysisFour Cs + Environmental FactorsSWOT

Marketing StrategyS-T-P

Tactical DecisionsFour 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 standardsBuild an order bank of 5,000 cars and increase brand sales to 100,000Spillover 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 purchaseImage of the “owners” is very importantHow do you get someone to “fall in love” with the car?

Phase I – Evaluation

Strengths:Strong brand heritageProduct positioningFit with BondCost efficiency

Opportunity:Improve dealer relationshipsChange perceptions of the brand

Weaknesses:Traditional rather than youthful imageTransition to US may be perceived negatively

ThreatsLack of control with non-traditional campaignCompetitive threats with other roadsters

Launching a Roadster

This is an emotional purchase…

Typically a secondary vehicle Means of self-expression

Awareness Interest Desire 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

Measuring SuccessTV & Print ads

Create excitement & association between the car & BondWell targeted vehicles (Seinfeld & 90210, Fortune, Business Week, etc…)Memorable

Awareness Interest Desire

Magazine Ad

Measuring SuccessJay Leno Tonight Show

Calculated gamble, promotes movie & car Wide audience and attention getting

Today Show & Central Park appearanceLow risk, promotes movie & car Generated media coverage (over 200 media reps)

DJ Radio ProgramsRisky, promotes car, generated 6,000 spots

Awareness Interest Desire

Press Coverage

Measuring SuccessNeiman 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

Awareness Interest Desire

Neiman Marcus

Apple Computer Ad

Measuring Success

Dealer Showings Move customer from interest desire action

Awareness Interest ActionDesire

Dealer Promotion Kits

Index of Advertising Effectiveness

-0.200.400.600.801.001.201.401.601.802.00

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 CycleVisibility/Exposure

“Buzz” Word of Mouth Missionary Advocacy Virtuous Cycle of

Excitementfor the Brand Word-of-Mouth

Infatuation

Sales/Purchase

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

From Excitement to Sale

Desired End-State: Purchase

Possible End-State: Brand forgotten

Time

Phase I Phase II

Gen

erat

ing

exci

tem

ent,

buzz

, vis

ibili

ty

Point of“infatuation”

Exci

tem

en

t

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 non-traditional 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 non-traditional 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

ReadingsChapters 9 - 10 (pp 337 - 345, 369 - 371)

Team ProjectWork with your team on finding an ad campaign

AssignmentBegin working on Marketing Yourself memo (due on Friday).